Bolin Development Corp. v. Indart

803 S.W.2d 817, 1991 Tex. App. LEXIS 223, 1991 WL 5955
CourtCourt of Appeals of Texas
DecidedJanuary 24, 1991
DocketC14-89-00927-CV
StatusPublished
Cited by6 cases

This text of 803 S.W.2d 817 (Bolin Development Corp. v. Indart) 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
Bolin Development Corp. v. Indart, 803 S.W.2d 817, 1991 Tex. App. LEXIS 223, 1991 WL 5955 (Tex. Ct. App. 1991).

Opinions

OPINION

PAUL PRESSLER, Justice.

The appellees were tenants who sued their landlord for property damages caused by a fire in a rented residence. The trial court awarded them a total of $47,000. The landlord raises nine points of error. We reverse.

Appellees rented a residence from appellant, Bolin Development Corporation, in [818]*818July 1981. The property was owned by a trust set up by appellant, George Bolin, for his son. Appellees did not sign a written lease because appellants said it was unnecessary. When appellees moved in, there were approximately twelve fuse boxes in the garage. In the summer of 1982, appel-lees noticed sparking in a fuse box and in the fall of 1982, appellees experienced a power shortage in the residence. Appel-lees notified appellants of these problems and appellants employed McDonald Electric Company to remove the old fuse boxes and replace them with two breaker panels. Appellant, Bolin, testified that this was the only electrical problem of which he received notice.

Appellees testified about other incidents of electrical problems. In January 1983, appellees experienced a power outage in the living room, kitchen, and master bedroom. At the time of this outage, appel-lees were having a party and had four television sets on. Appellees testified that they advised appellants of this problem and that appellants promised to send an electrician, but no electrician came. Appellees further testified to subsequent outages, including one in August 1983, three days before the fire occurred. Appellees testified that they notified appellants, who promised to send an electrician. The fire occurred on August 25, 1983. Appellees sued appellants for negligence and breach of an implied warranty of habitability.

Two experts testified about the origin and the probable cause of the fire. Both experts agreed that the fire originated at or near the breaker panel. Appellees’ expert testified that the fire probably originated in the panel or in the “raceway” underneath the panel. He further testified that the probable cause of the fire was a short circuit, which may have occurred just moments before the fire. This expert found no evidence tying the prior power outages or the breaker panel installation to the fire. Furthermore, he doubted that an electrician could have discovered a problem or prevented the fire unless he was present when the short circuit occurred.

Appellants’ expert testified that the fire probably began in the raceway below the breaker panels and that the probable cause of the fire was a power surge or dielectric failure, which is a breakdown in the insulation in the wireway. This expert added that a problem with the insulation or a short circuit would not be visible because it is enclosed in a metal box which only Houston Lighting & Power Company may enter. He agreed that an overload of power can trip a circuit breaker, but the power should return when the breaker is flipped on. This expert added that if flipping the breaker does not restore power, there may be a problem with the particular appliance, with the breaker, or with the wiring.

The jury found the residence uninhabitable on the day of the fire, that the electrical system at the residence was defective, that appellants knew or should have known of this defect, and that this defective condition was the proximate cause of the fire. Although the jury found appellants negligent, they found that this negligence was not a proximate cause of the occurrence. The jury awarded appellee, Indart, $40,000 and awarded appellee, Tabini, $7,000 for damage to their personal property. The trial court rendered judgment on the verdict and awarded both pre-judgment and post-judgment interest.

In point of error one, appellants claim that under Texas law a landlord can be held liable for property damages only if they are proximately caused by the negligence of the landlord. Appellants also argue that statutory duties and remedies provided in the Property Code abrogate the common law implied warranty of habitability created by Kamarath v. Bennett, 568 S.W.2d 658 (Tex.1978). The implied warranty recognized in Kamarath created a duty on the part of the landlord to keep the rented premises habitable and fit for living. Kamarath, 568 S.W.2d at 661.

At the time of the fire, the date the cause of action accrued, rights and duties of landlords and tenants were governed by Tex. Rev.Civ.Stat.Ann. art. 5236f. Section 14 of art. 5236f provided:

[819]*819The duties of the landlord and remedies of the tenant as set forth in this Act shall apply in lieu of existing common law and statutory law regarding the landlord’s warranties or duties of maintenance, repair, security, habitability, and nonretali-ation, and the tenant’s remedies for violation thereof. Otherwise, nothing in this Act shall serve to affect or diminish any other rights of the landlord or tenant under contract, statute, or common law which are consistent with the purposes of this Act or any right the landlord or tenant may have to bring actions for personal injury or property damage under the laws of this state.

Act of May 28, 1979, 66th Leg., R.S., ch. 780, 1979 Tex.Gen.Laws 1978, 1983 (repealed 1983 and codified at Tex.Prop.Code Ann. § 92.061 (Vernon 1984) current version at Tex.Prop.Code Ann. § 92.061 (Vernon Supp.1991)). This statute was enacted the year after Kamarath was decided and abrogated the Kamarath implied warranty. See Waldon v. Williams, 760 S.W.2d 833, 834 (Tex.App.—Austin 1988, no writ); Garza-Vale v. Kwiecien, 796 S.W.2d 500, 502-03 (Tex.App.—San Antonio 1990, writ denied). The first sentence of this section expressly states that the landlord’s statutory duty to repair and the tenant’s statutory remedies are in lieu of the common law remedy for breach of the implied warranty of habitability. See Waldon, 760 S.W.2d at 834.

The second sentence of § 14 expressly provides that nothing in the statute affects a tenant’s right to bring a cause of action for personal injury or property damage. Appellants contend that this sentence does not mean that tenants may recover property damages for breach of the implied warranty of habitability set forth in Kamar-ath. Rather, appellants argue that this sentence simply recognizes a tenant’s right to seek personal injury or property damages under a negligence theory. Appel-lees, on the other hand, argue that neither art. 5236f nor the current section in the Property Code preempts causes of action for personal injury or property damage under the implied warranty of habitability of Kamarath. Thus, the issue presented is whether the statute precludes a tenant from recovering property damages under the implied warranty of habitability theory recognized in Kamarath.

Prior to Kamarath, a tenant received only a bare right of possession in return for his promise to pay rent. See Kamarath, 568 S.W.2d at 660. Unless the landlord expressly promised to keep the leased premises in repair, the landlord had no obligation to repair. Morton v. Burton-Lingo Co., 136 Tex.

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Bolin Development Corp. v. Indart
803 S.W.2d 817 (Court of Appeals of Texas, 1991)

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Bluebook (online)
803 S.W.2d 817, 1991 Tex. App. LEXIS 223, 1991 WL 5955, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bolin-development-corp-v-indart-texapp-1991.