Bundren v. Holly Oaks Townhomes Ass'n, Inc.

347 S.W.3d 421, 2011 WL 3505692
CourtCourt of Appeals of Texas
DecidedSeptember 12, 2011
Docket05-09-00788-CV
StatusPublished
Cited by47 cases

This text of 347 S.W.3d 421 (Bundren v. Holly Oaks Townhomes Ass'n, Inc.) 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
Bundren v. Holly Oaks Townhomes Ass'n, Inc., 347 S.W.3d 421, 2011 WL 3505692 (Tex. Ct. App. 2011).

Opinion

OPINION

Opinion By Justice FILLMORE.

William Charles Bundren 1 and Karen P. Bundren (collectively the Bundrens), doing business as C & K Residential Properties (C & K), New Hope Foundation (New Hope), 2 and Hope Hill Investments, Inc. (Hope Hill) appeal the trial court’s judgment awarding Holly Oaks Townhomes Association, Inc. (Holly Oaks) $24,324 in damages and $73,000 for attorney’s fees for trial and appeal. In four issues, appellants argue the trial court erred by (1) granting judgment for appellees for unpaid homeowner association (HOA) dues; (2) failing to grant judgment for appellants for excess payments of HOA dues, rents that were subject to a lien assigning rents, and property taxes; (3) failing to award appellants attorney’s fees on the claims on which appellants prevailed at trial and by awarding Holly Oaks attorney’s fees on claims on which it did not prevail at trial; and (4) refusing to file findings of fact and conclusions of law requested by appellants. In a cross-appeal, appellees assert the trial court erred by failing to award all litigation costs and attorney’s fees incurred by appellees. We affirm the trial court’s judgment in part, reverse and render in part, and reverse and remand the issue of attorney’s fees to the trial court.

Procedural Background

Holly Oaks is a condominium property owners association. Pursuant to Holly Oaks’ declaration, each owner of a condominium in the complex is required to pay monthly HOA dues. Holly Oaks sued appellants, alleging appellants were the “holders of legal title, and/or equitable titles, both in the past and at the present, of numerous condominium units” in the complex. Holly Oaks specifically asserted appellants were the holder of legal and/or equitable title relating to units 3, 6, 8, 9, 11, 21, 22, 32, 33, 36, 50, 51, and 60 and had failed to pay the required HOA dues for those units. Holly Oaks asserted claims based on debt, quantum meruit, unjust enrichment, and fraud and deceit. Appellants answered and asserted a counterclaim alleging that Holly Oaks performed work on the sewer line under unit 3 that prevented appellants from leasing the unit and caused appellants to incur repair costs. The Woods on Park Lane Homeowners Association (WOPL), Royal Lane Highland Owners Association, Inc. (Royal Lane), and Dutch Creek Owners Association (Dutch Creek), all condominium prop *425 erty owners associations, intervened in the lawsuit and asserted claims against appellants identical to those asserted by Holly Oaks based on appellants’ ownership of units 711 and 728 at WOPL, unit 218 at Royal Lane, and unit 301 at Dutch Creek.

Appellees argued in the trial court that they were entitled to recover the unpaid HOA dues from appellants on a number of theories. First, appellees asserted they were entitled to recover based on fraud, quantum meruit, and unjust enrichment because appellants engaged in a scheme designed to disguise the ownership of a unit by transferring the unit between themselves. One of appellants would then sell the unit to a third party at an inflated price, but retain superior title to the unit through a deed of trust. When the third party failed to pay the required HOA dues, and presumably the payments due on the mortgage, appellants took possession of the unit without foreclosing the mortgage lien, rented the unit to a tenant, and then retained the rental income without paying the HOA dues. Appellees also asserted that appellants failed to foreclose on a unit for an extended period of time and did not pay HOA dues during the time period that appellants refused to foreclose.

Appellees’ second theory involved the ability of Hope Hill and New Hope to conduct business as corporations. Hope Hill was incorporated on December 31, 1991, but forfeited its corporate charter on February 15, 1994. Hope Hill’s corporate charter was not reinstated until April 16, 2009. New Hope was chartered in April 2002, but did not comply with all corporate formalities during the incorporation. Further, by February 10, 2006, New Hope had forfeited its corporate charter, which was not reinstated until November 20, 2008. Appellees argued that any deeds from Hope Hill or New Hope while the corporate entity was dissolved were void. Ap-pellees also argued that, with respect to a number of the units, one of appellants executed a warranty deed to a third party when that appellant was not the actual legal owner of the unit. In an effort to correct the defects in the chains of title, appellants later filed deeds transferring the unit from the appellant who owned the unit to the appellant who had executed the deed to a third party. These deeds stated they were effective years earlier, well before the conveyance to the third party. Appellees contended these deeds were not effective until they were executed and filed of record.

Finally, appellees asserted that, pursuant to chapter 81 of the property code, entitled “Condominiums Created Before Adoption of Uniform Condominium Act” (the Condominium Act), 3 the seller or the buyer of a condominium unit is required to pay outstanding HOA dues at the time the unit is transferred. Accordingly, appellants, as the buyers or the sellers of any unit, were responsible for paying outstanding HOA dues.

The case was tried to the court beginning on May 5, 2008, but was continued for sixty days to allow appellants the opportunity to review the documents relied on by one of appellees’ expert witnesses. Although the record does not reflect the reasons for the subsequent delay, the trial did not resume until April 20, 2009. On July 22, 2009, the trial court entered judgment that appellants were liable for outstanding HOA dues for seven of the units at Holly Oaks and for Dutch Creek unit 301 and Royal Lane unit 218. The trial court awarded no damages relating to the other units at Holly Oaks and the units at WOPL. The trial court also entered judgment for appellants on their counterclaim *426 concerning Holly Oaks unit 3. The trial court ordered that Holly Oaks recover the net amount of $21,581 in damages plus attorney’s fees of $68,000 for trial. 4 Both appellees and appellants filed motions for new trial.

On October 1, 2009, the trial court entered an amended final judgment that corrected a typographical error and addressed two additional units not mentioned in the original judgment. The trial court’s final award to Holly Oaks of damages and attorney’s fees for trial did not change, but the trial court awarded an additional $5,000 in attorney’s fees for an appeal to this Court. Appellants filed a motion for new trial and both appellants and appel-lees filed requests for findings of fact and conclusions of law. On October 19, 2009, appellants filed a notice of appeal.

On October 27, 2009, the trial court entered a second amended judgment. The trial court reduced the amount awarded to appellants on their counterclaim, awarded Holly Oaks damages on a unit on which the trial court had previously found zero damages, increased the net amount awarded to Holly Oaks to $24,324, and awarded Holly Oaks the same attorney’s fees as in the first amended judgment. On October 28, 2009, appellees filed a notice of appeal from the trial court’s October 1 amended judgment.

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Bluebook (online)
347 S.W.3d 421, 2011 WL 3505692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bundren-v-holly-oaks-townhomes-assn-inc-texapp-2011.