Ben Sayani v. Smothermon Family Partners, Ltd. Lynn Family Holdings, Ltd. Ronald Otis Lynn, and Diana Smothermon

Court of Appeals of Texas·Decided June 14, 2023·No. 05-22-00177-CV·Published

Opinion

Affirmed and Opinion Filed June 14, 2023

In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-22-00177-CV

BEN SAYANI, Appellant

V.

SMOTHERMON FAMILY PARTNERS, LTD.; LYNN FAMILY HOLDINGS, LTD.; RONALD OTIS LYNN, AND DIANA SMOTHERMON, Appellees

On Appeal from the 44th Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-19-14752-B

MEMORANDUM OPINION

Before Justices Reichek, Nowell, and Garcia Opinion by Justice Nowell Appellant Ben Sayani filed suit against appellees Smothermon Family

Partners, Ltd., Lynn Family Holdings, Ltd., Ronald Otis Lynn, and Diana Smothermon alleging multiple causes of action arising out of a real estate contract. The trial court granted three motions for partial summary judgment, which resulted in a final judgment on December 3, 2021. In six issues, Sayani challenges the orders granting appellees’ motions for partial summary judgment. We affirm the trial court’s final judgment.

Background

On July 7, 2015, Sayani as “Buyer” and appellees as “Sellers” entered into a written “Farm and Ranch Contract” in which appellees agreed to sell 51.358 acres of land and improvements in Collin County, Texas to Sayani for $15,660,096.61. The Ranch Contract was “subject to the successful rezoning of the current zoning to urban living.” The parties also signed an addendum requiring “Seller to cooperate with Buyer to sign and notarize all the necessary documents” regarding zoning changes, plans, permits, etc. Sayani hired attorneys, engineers, and zoning experts to begin the rezoning process. As the project moved forward, the City of Frisco began delaying the process. During this time, appellees signed the necessary documents to accommodate the City’s delays and pushed the closing date from September 2016 to September 2017, then from September 2017 to September 2018, and finally to September 17, 2019.

In January 2019, the City finally approved a new Preliminary Site Plan (PSP)

for the planning and development of the property. The PSP required amending the Ranch Contract to effectuate the new requirements. Sayani and appellees exchanged email communications in early February regarding the new terms. Sayani believed the parties reached a mutually agreed upon amendment (the February 2019 Amendment) dividing the land into six parcels, closing on the parcels “in two pieces” (a residential tract closing on September 17, 2019 and a commercial tract closing

within twenty-four months of the residential closing), and among other things, reducing the sales price to $13,661,834.00.

Sayani entered into a contract with Chase Partners Frisco-I, LLC (the Chase Contract) on July 10, 2019, in which Sayani agreed to sell the residential property to Chase. The Chase Contract acknowledged the Ranch Contract, required simultaneous closings of the two contracts, and stated Sayani would use the funds from the Chase Contract to purchase appellees’ property. According to Sayani, “all parties understood that if the [Ranch] Contract did not close, then the Chase Contract did not close.”

The Ranch Contract was set to close on September 17, 2019; however, appellees refused to close without further amendments and modifications. Sayani refused the proposed modifications because the proposed amendments included some, but not all, of the February 2019 Amendment terms. Appellees told Sayani they would not close on the required date if he continued to insist on closing under the February 2019 Amendment. Sayani informed Chase of the developments and Chase backed out of its contract.

Because Sayani believed appellees repudiated the Ranch Contract, he preemptively filed an original petition on September 16, 2019, alleging, among other things, breach of contract, negligent misrepresentation, breach of fiduciary duty, and fraud. He sought damages in excess of $19 million.

On September 17, 2019, Sayani arrived at the Fidelity Title office for closing, but appellees did not attend. On September 20, 2019, appellees sent Sayani an email terminating the Ranch Contract because he failed to pay the purchase price on or before September 17, 2019.

Appellees answered the lawsuit and subsequently filed three motions for partial summary judgment challenging Sayani’s various causes of action.

Appellees’ first traditional and no-evidence motion for partial summary alleged there was no evidence Sayani appeared at closing with the required funds or that the February 2019 Amendment satisfied the statute of frauds to properly modify the Ranch Contract. Thus, the Ranch Contract terminated when Sayani failed to tender performance by September 17, 2019. Sayani responded that appellees repudiated and breached the contract first and, alternatively, the February 2019 Amendment complied with the statute of frauds. The trial court granted appellees’ motion without specifying the grounds for its ruling.

Appellees’ second motion for partial summary judgment argued, among other things, that there was no evidence of negligent misrepresentation, breach of fiduciary duty, or promissory estoppel. The trial court granted the motion and “ordered that plaintiff take nothing” on his claims. The trial court noted it was an interlocutory order that did not dispose of all the parties’ claims.

Appellees’ third motion for partial summary judgment sought an award of their attorneys’ fees as prevailing parties. On December 3, 2021, the trial court

signed the final judgment, which incorporated the previous partial summary judgment orders. The final judgment ORDERED, ADJUDGED, AND DECREED the following:

[T]hat Plaintiff’s failure to timely tender performance on or before September 17, 2019 resulted in a default and breach of the [Ranch Contract] by Plaintiff, that Defendants did not breach the [Ranch Contract], and that Plaintiff take nothing by Plaintiff’s claims against Defendants.

The trial court subsequently denied Sayani’s motion for new trial, and this appeal followed.1 Standard of Review

When an appeal involves review of both traditional and no-evidence grounds, we consider the no-evidence challenge first because evidence that defeats the no- evidence challenge will defeat the traditional challenge as well. See Arredondo v. Techserv Consulting & Training, Ltd., 567 S.W.3d 383, 390 (Tex. App.—San Antonio 2018), aff’d in part and rev’d in part on other grounds, 612 S.W.3d 289 (Tex. 2020); see also Loya v. Hickory Trail Hosp., No. 05-20-00378-CV, 2022 WL 17335694, at *2 (Tex. App.—Dallas Nov. 30, 2022, no pet.) (mem. op.).

To defeat a no-evidence motion for summary judgment, the non-movant must produce evidence regarding each challenged element of each challenged claim that “would enable reasonable and fair-minded people to differ in their conclusions.”

1 Appellees challenged the timeliness of Sayani’s notice of appeal; however, they conceded during oral argument that his brief was timely filed. We, therefore, do not address this argument.

Ford Motor Co. v Ridgway, 135 S.W.3d 598, 601 (Tex. 2004). A no evidence point will be sustained when (a) there is a complete absence of evidence of a vital fact; (b) the court is barred by rules of law or of evidence from giving weight to the only evidence offered to prove a vital fact; (c) the evidence offered to prove a vital fact is no more than a mere scintilla; or (d) the evidence conclusively establishes the opposite of the vital fact. King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex. 2003) (internal quotation omitted). In reviewing a no-evidence summary judgment, we consider the evidence in the light most favorable to the non-movant, crediting evidence a reasonable jury could credit, and disregarding contrary evidence and inferences unless a reasonable jury could not. De La Cruz v. Kailer, 526 S.W.3d 588, 592 (Tex. App.—Dallas June 16, 2017, pet. denied).

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Ben Sayani v. Smothermon Family Partners, Ltd. Lynn Family Holdings, Ltd. Ronald Otis Lynn, and Diana Smothermon, (Tex. Ct. App. 2023).

Ben Sayani v. Smothermon Family Partners, Ltd. Lynn Family Holdings, Ltd. Ronald Otis Lynn, and Diana Smothermon (Ben Sayani v. Smothermon Family Partners, Ltd. Lynn Family Holdings, Ltd. Ronald Otis Lynn, and Diana Smothermon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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