Anderson Oaks (phase I) Ltd. Partnership v. Anderson Mill Oaks, Ltd.

734 S.W.2d 42, 1987 Tex. App. LEXIS 8074
CourtCourt of Appeals of Texas
DecidedMay 20, 1987
DocketNo. 3-86-039-CV
StatusPublished
Cited by12 cases

This text of 734 S.W.2d 42 (Anderson Oaks (phase I) Ltd. Partnership v. Anderson Mill Oaks, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson Oaks (phase I) Ltd. Partnership v. Anderson Mill Oaks, Ltd., 734 S.W.2d 42, 1987 Tex. App. LEXIS 8074 (Tex. Ct. App. 1987).

Opinion

POWERS, Justice.

Plaintiffs Anderson Oaks (Phase I) Limited Partnership and Anderson Oaks (Phase II) Limited Partnership sued the following defendants alleging a common-law action for breach of contract and a statutory cause of action under Tex.Bus. & Com. Code Ann. § 17.50(b)(1) (Supp.1987): Anderson Mill Oaks, Ltd. and Anderson Mill Oaks, Ltd., Phase II, each a limited partnership, and Stanley P. Smith, a natural person and the general partner of each such limited partnership. Ancillary to the plaintiffs’ cause of action, they applied for a temporary injunction which the trial court denied after hearing. From that order, plaintiffs have taken this interlocutory appeal. Tex.Civ.Prac. & Rem.Code Ann. § 51.014 (1986). We will reverse the order of the trial court and remand the cause to that court with instructions as given hereafter.

THE CONTROVERSY

The temporary injunction requested by plaintiffs would have enjoined the trustee’s sale of two apartment complexes owned by plaintiffs, a sale contemplated’to be exercised by the trustee under a power of sale [43]*43granted him in a deed of trust given by plaintiffs. The occasion for plaintiffs’ request arose as follows.

In 1984, plaintiffs purchased from defendants the two apartment complexes. Part of the consideration was paid by the plaintiffs’ execution and delivery of a $500,-000 promissory note payable to defendants on August 31, 1985. At the time plaintiffs filed the present suit, on April 28,1986, the unpaid balance was approximately $300,000 together with interest. Defendants held and owned the note at the time suit was filed.

Sometime after their purchase of the property, plaintiffs discovered defects in the construction of the two apartment complexes. Based upon representations, covenants, and warranties contained in the purchase contract, plaintiffs called upon defendants to remedy the defects. Defendants undertook to do so and the parties presently dispute whether the remedial work was sufficient and whether all of it was in fact done.

The plaintiffs’ promissory note matured August 31, 1985. Although the record is not entirely clear, there is some evidence that there was one extension of the maturity date until March 1986. Plaintiffs did not pay the note in March, either because they were unable to do so or because they were unwilling in view of their belief that the defendants owed them a greater sum on their contract obligation to remedy the construction defects. In either case, when plaintiffs failed to pay the note in March, defendants requested that the trustee exercise his power of sale under the deed of trust. Immediately on receiving notice thereof, plaintiffs filed the present suit alleging a cause of action for breach of contract and a deceptive-trade practice action under Tex.Bus. & Com.Code § 17.-50(b)(1), both founded upon the construction defects.

Ancillary to the suit, plaintiffs applied to the trial court for a temporary injunction restraining the trustee’s sale pending a trial on the merits. Following a hearing in that regard, the trial court denied the application and plaintiffs took their interlocutory appeal to this Court. We have previously issued a temporary injunction in order to preserve our jurisdiction, restraining the trustee’s sale pending appellate review.

HOLDINGS AND DISCUSSION

The controversy arises between the original parties to the purchase and sale of the apartment complexes. They join issue on whether the trial court abused its discretion in denying the application for temporary injunction. Brooks v. Expo Chemical Co., 576 S.W.2d 369 (Tex.1979); Davis v. Huey, 571 S.W.2d 859 (Tex.1978); Camp v. Shannon, 162 Tex. 515, 348 S.W.2d 517 (1961).

The governing principles are familiar. The purpose of the requested injunction is ancillary. A temporary injunction pending trial on the merits “may be and usually is issued in connection with any species of litigation where it is necessary to preserve the status quo pending a final adjudication of the rights of the parties.” Turcotte v. Alice National Bank, 402 S.W.2d 894, 896 (Tex.1966) (emphasis added). In cases like the present, the writ depends upon the applicant’s showing (1) a probable and irreparable injury and (2) a probable right to recover after final hearing on the merits. Tex.Civ.Prac. & Rem.Code Ann. § 65.011 (1986); Transport Co. of Texas v. Robertson Transports, 152 Tex. 551, 261 S.W.2d 549 (1953).

The record does not include any findings of fact and conclusions of law demonstrating the basis of the trial court’s decision on plaintiffs’ application. We therefore assume the court determined adversely to plaintiffs both prerequisites to the issuance of a temporary injunction. Concerning the prerequisite of showing probable and irreparable injury, we believe there was no basis upon which that matter could have been determined adversely to plaintiffs. It is undisputed that they presently have title and possession of the property in question. Similarly, it is undisputed that the trustee’s sale would deprive them of both. In these circumstances, any legal remedy is inadequate as a matter of law. Sumner v. Crawford, 91 Tex. 129, 41 S.W. [44]*44994 (1897). There remains then the more difficult question of whether the trial court abused its discretion when it presumably determined that plaintiffs had not shown a probable right to recover after final hearing. This consideration invokes a mosaic of considerations.

The evidence adduced at the hearing on temporary injunction is in serious conflict concerning the nature and extent of the construction defects upon which plaintiffs base their claim for money damages. While there may be some dispute about the rules of.law that would make defendants liable for such damages, the case depends in the main upon a resolution of the controverted issues of fact. This is not, therefore, a case where “abuse of discretion” depends upon whether the trial court erred in the rule of law it applied to undisputed facts. See e.g., Camp v. Shannon, supra; Note, Criteria for Granting a Temporary Injunction When Only Questions of Law are Presented, 40 Tex.L.Rev. 409 (1962); Southland Life Ins. Co. v. Egan, 126 Tex. 160, 86 S.W.2d 722 (1935); The probabilities concerning plaintiffs’ right to recover issue almost entirely from where the truth is finally found to lie in the parties’ dispute about the nature and extent of the construction defects.1 The suit is preeminently a contest about adjudicative facts. Whether the trial court abused its discretion must be ascertained in this context.

It has been said that “[a]n abuse of discretion does not exist where the trial court bases its decisions on conflicting evidence.” Davis v. Huey, supra, at 682. This simplistic statement is less than helpful if one purports to use it as a decisional norm or standard in a particular case. It does not determine, standing alone, the issue of “abuse of discretion.” For example, the very fact that there exists

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
734 S.W.2d 42, 1987 Tex. App. LEXIS 8074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-oaks-phase-i-ltd-partnership-v-anderson-mill-oaks-ltd-texapp-1987.