Birds Construction, Inc. v. Gonzalez

595 S.W.2d 926
CourtCourt of Appeals of Texas
DecidedFebruary 28, 1981
Docket1630
StatusPublished
Cited by10 cases

This text of 595 S.W.2d 926 (Birds Construction, Inc. v. Gonzalez) 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
Birds Construction, Inc. v. Gonzalez, 595 S.W.2d 926 (Tex. Ct. App. 1981).

Opinion

OPINION

NYE, Chief Justice.

The plaintiffs, Edmundo R. Gonzalez and wife, Janet L. Gonzalez, brought suit against Birds Construction Company, Inc., contractor, for damages which resulted from an alleged breach of a construction contract. The plaintiffs obtained a temporary injunction pending disposition of the cause on the merits prohibiting the defendant from holding a foreclosure sale of plaintiffs’ property. It is from this temporary interlocutory order that defendant appeals.

At the hearing on the temporary injunction, evidence was introduced through stipulations. Arguments were heard from the parties’ attorneys setting forth their various contentions. At the conclusion of the hearing, the trial court granted the temporary injunction stating:

“All right. I am going to grant the temporary injunction. I find that there is need of a temporary injunction; that the sale of the house would harm the Plaintiffs, and that Plaintiffs would lose their *928 lot, the improvements thereon, and all of the monies previously invested therein if the injunction were not issued. I think that the Plaintiffs do not have an adequate remedy at law. It is obvious to me that there is a bona fide dispute between the owners of the lot and the contractor. Specifically, the defendants are enjoined from proceeding with any notice of sale in the form of, or anything that would foreclose on the property while this lawsuit in question is pending.”

As a condition to the granting of the temporary injunction, the trial judge required plaintiffs to post a bond in the amount of $5,000.00.

The defendant presents eight points of error complaining in essence that: 1) the trial court failed to hold an evidentiary hearing, therefore there is no evidence that plaintiffs have both a probable right to recovery and a probable injury; 2) the scope of the temporary injunction granted by the trial court exceeds, and is different from, the relief sought by plaintiffs; and 3) the trial court abused its discretion by fixing the amount of the bond at only $5,000.00.

In considering these points of error, we keep in mind the familiar rules concerning our review of the trial court’s action in granting or denying a temporary injunction. First, the ultimate purpose of a temporary injunction is to preserve the status quo of the suit pending a final trial of the case on the merits. Camp v. Shannon, 162 Tex. 515, 348 S.W.2d 517, 519 (Tex.Sup.1961). “To warrant issuance of the writ, an applicant is not required to establish that he will prevail on final trial; he needs only to plead a cause of action and to show a probable right on final trial to the relief he seeks and probable injury in the interim.” Sun Oil Company v. Whitaker, 424 S.W.2d 216 (Tex.Sup.1968). On appeal, the reviewing court is limited in its consideration to the question of whether the trial court abused its discretion in making the foregoing determination. Davis v. Huey, 571 S.W.2d 859, 861-62 (Tex.Sup.1978). See Brooks v. Expo Chemical Co., Inc., 576 S.W.2d 369, 370 (Tex.Sup.1979).

We have summarized as follows the relevant stipulations made by the parties during the course of the hearing, which is now at issue:

1) Defendant had appointed Willaim A. Faulk, as substitute trustee; the property had been posted for foreclosure sale on the first Tuesday in November; and such foreclosure sale was pending;
2) The house being constructed for plaintiffs by defendant was not substantially completed;
3) Defendant was constructing the house pursuant to the following exhibits, accurate copies of which were before the trial court:
a) a building and construction contract which required plaintiffs to pay a total of $99,930.00. The first $5,000.00 payment was payable upon execution of the contract; the second $25,000.00 payment was payable on or before forty-five days from the date the contract was executed; and the final payment was payable on or before ninety days from the date or upon completion of the improvements;
b) a note executed by plaintiffs payable to the order of defendant in an amount equal to the total contract price, payable in the installments mentioned above, and
c) the mechanic’s and materialman’s lien contract which had been filed of record securing payment for the improvements;
4) Plaintiffs had made the first two payments as required by the note and contract; (i. e., $5,000.00 and $25,000.00).
5) The contract required defendant construction company to construct the home pursuant to certain enumerated specifications;
6) Several letters written by the attorney for the respective parties were true and correct copies of correspondence and that they would be admissible to the extent they were relevant.

Thereafter, the attorneys for the respective parties summarized into the record other evidence they expected to produce. The trial judge then stated that, for the pur *929 poses of the temporary injunction hearing, he would take the representations of counsel as to what their witnesses would say and as to what further evidence would show. Based upon the evidence, the sworn pleadings of plaintiffs, the stipulations and the arguments of counsel, the trial judge granted plaintiffs’ motion for a temporary injunction.

The case before us is readily distinguishable from the cases upon which defendant relies where the trial judge issued a temporary injunction after hearing absolutely no evidence. See City of Austin v. Texas Public Emp. Ass’n, 528 S.W.2d 637 (Tex.Civ.App.—Austin 1975, no writ); Gibson v. Shaver, 434 S.W.2d 462 (Tex.Civ.App.—Tyler 1968, no writ); Texas State Board of Medical Examiners v. McKinney, 315 S.W.2d 387 (Tex.Civ.App.—Waco 1958, no writ). It is evident to us from the record that a substantial dispute exists between the parties concerning performance by the respective parties under the terms of the construction contract. One of the letters which was admitted through stipulation evidences an acknowledgement on the part of defendant that plaintiffs have complaints concerning the quality of defendant’s work. It is undisputed that plaintiffs are the record owners of the property in question; that defendant sought to sell the property under the provisions of the mechanics’ and materialman’s lien prior to the time the case could be determined on the merits, and that, if such sale occurred, plaintiffs would lose title to their property.

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Bluebook (online)
595 S.W.2d 926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/birds-construction-inc-v-gonzalez-texapp-1981.