Brady W. Chambers and Evelyn B. Chambers v. Hunt Petroleum Corporation

CourtCourt of Appeals of Texas
DecidedAugust 25, 2010
Docket12-09-00225-CV
StatusPublished

This text of Brady W. Chambers and Evelyn B. Chambers v. Hunt Petroleum Corporation (Brady W. Chambers and Evelyn B. Chambers v. Hunt Petroleum Corporation) 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
Brady W. Chambers and Evelyn B. Chambers v. Hunt Petroleum Corporation, (Tex. Ct. App. 2010).

Opinion

NO. 12-09-00225-CV

IN THE COURT OF APPEALS         

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

BRADY W. CHAMBERS AND                    §          APPEAL FROM THE 188TH

EVELYN B. CHAMBERS,  

APPELLANTS

V.                                                                    §          JUDICIAL DISTRICT COURT

HUNT PETROLEUM CORPORATION,  

APPELLEE                                                               §          GREGG COUNTY, TEXAS


OPINION

            This is an appeal from a judgment granting specific performance to Hunt Petroleum Corporation of an option to purchase, and awarding damages and attorney’s fees.  In three issues, Brady W. Chambers and Evelyn Chambers contend that (1) the option had expired because Hunt failed to timely tender the $100.00 purchase money, (2) Hunt was not entitled to enforce the option because it was in default on the contract’s provisions, and (3) there was insufficient evidence to support the award of damages.  We affirm the trial court’s order for specific performance, reverse and render the award of damages, render judgment awarding taxes paid by the Chamberses, and remand the cause for a redetermination of attorney’s fees.

Background

            The parties’ predecessors in interest, Sonat Exploration Company and First Church of the Nazarene, on August 7, 1992, entered into a lease with an option to purchase involving 3.94 acres of a 7.94 acre tract in Longview, Gregg County, Texas.  The term of the lease was fifteen years.  Sonat paid $39,300.00 at the execution of the lease “as rent for the entire lease term.”  The lease required Sonat to pay all ad valorem taxes and other costs during the term “as if it were the fee simple owner,” and provided that the church would have no ownership responsibilities.  The lease granted Sonat the exclusive option to purchase the 3.94 acre tract “at any time prior to the end of the lease term.”  The lease and the option were assignable.  The option agreement contained the following provision:

                The option shall be exercisable by giving written notice to the Lessor prior to the end of the lease and the purchase shall be completed by conveyance of the property by General Warranty Deed and payment of the purchase price within sixty (60) days from the delivery of the notice of the intent to exercise the option.  The purchase price shall be one hundred dollars ($100) to be paid in cash at closing.

            On November 22, 2004, the Chamberses bought the 7.94 acre tract that was subject to the lease for $50,000.00.  Shortly thereafter, the Chamberses received notice from the City of Longview that excessive overgrowth on the tract was a violation of the municipal code.  Brady Chambers contacted Hunt Petroleum Corporation, the successor in interest to Sonat, to notify it of the problem and its responsibility under the lease to clear the 3.94 acre tract to correct the code violations.

            In May 2005, Hunt hired a contractor to clear and mow the 3.94 acres.  The contractor “began clearing the approximately 8 acres, our half and as a favor to Mr. Chambers, his half also.”  The cost for clearing and mowing the 7.94 acres was $17,353.00.  The foreman’s memo noted that “there was a brush and dirt pile on Mr. Chambers[’s] half of the property that was buried in a pit that we dug.  We put the excess dirt in a low area on his side to help it from collecting water.”  The foreman’s memo also stated that “[w]e thought it would be in our best interest to help out Mr. Chambers by cleaning up his side.”  Hunt mowed the entire tract in 2006 and 2007.  Only the $4,625.00 cost of the 2007 mowing was charged to this tract.

            The Chamberses paid $1,698.00 in taxes attributable to Hunt’s 3.94 acres.

            On July 16, 2007, Brad Russell, district landman for Hunt, sent the Chamberses formal notice of Hunt’s exercise of its option to purchase.  Russell stated in the letter that Hunt would prepare a plat and general warranty deed for the Chamberses’ review.  The Chamberses did not respond.  Russell sent another letter to the Chamberses on September 8, 2007, once again informing them that Hunt was exercising the option in the lease and enclosing a general warranty deed.  Russell asked the Chamberses to review the deed and sign it.  In his letter, Russell stated that he would call the Chamberses and fix a time to meet with them to pay the $100.00 purchase price, pursuant to the lease terms.  The Chamberses did not respond to this letter.   On September 20, 2007, Russell sent a third letter to the Chamberses referring to the numerous occasions that Hunt had attempted without success to communicate with them by telephone despite Hunt’s leaving several messages for them on their voice mail.  Another warranty deed was enclosed for the Chamberses to execute.  The letter concluded by asking the Chamberses to call one of two numbers to schedule a time to close.  The Chamberses did not respond to the third letter.

            On October 8, 2007, Hunt received a letter from the Chamberses’ lawyer advising Hunt it was in default under the lease, and, as a result, was now holding over.

            On November 5, 2007, the Chamberses filed a suit to quiet title to the 3.94 acre tract.  They sought a declaration that the option to purchase was invalid on various grounds, and judgment awarding them the back taxes they had paid on the property.

            Hunt counterclaimed seeking a declaration that the option was valid and a decree ordering its specific performance.  It also sought an award of 50.6% of the land clearing and mowing costs under the theory of quantum meruit, and attorney’s fees.

            The trial court found that Hunt had properly and timely exercised its option.  The trial court ordered the Chamberses to execute a warranty deed, and, upon its delivery, that Hunt tender $100.00 to the Chamberses.  The court also awarded Hunt $11,132.00 in damages (50.6% of the total clearing and mowing charges), and $29,289.91 in attorney’s fees.

Did the Option Expire Because of Hunt’s Failure to Tender

 the $100.00 Purchase Money?

            In their first issue, the Chamberses contend that the option to purchase expired because Hunt failed to meet its contractual obligation to tender the $100.00 purchase price within the sixty day period allowed for closing after its notice of exercise of the option.  They maintain that there are no special circumstances that serve to excuse Hunt from strict compliance with the contract’s terms.  The Chamberses argue that there is no evidence, or at least insufficient evidence, or findings to support the trial court’s conclusion that they were solely to blame for the failure to close.

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Brady W. Chambers and Evelyn B. Chambers v. Hunt Petroleum Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brady-w-chambers-and-evelyn-b-chambers-v-hunt-petr-texapp-2010.