Centurion Planning Corp., Inc. & Thomas C. Knickerbocker v. Seabrook Venture II

CourtCourt of Appeals of Texas
DecidedDecember 9, 2004
Docket01-02-00518-CV
StatusPublished

This text of Centurion Planning Corp., Inc. & Thomas C. Knickerbocker v. Seabrook Venture II (Centurion Planning Corp., Inc. & Thomas C. Knickerbocker v. Seabrook Venture II) 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
Centurion Planning Corp., Inc. & Thomas C. Knickerbocker v. Seabrook Venture II, (Tex. Ct. App. 2004).

Opinion

Opinion issued December 9, 2004







In The

Court of Appeals

For The

First District of Texas


NO. 01-02-00518-CV

____________

CENTURION PLANNING CORPORATION, INC.

AND THOMAS C. KNICKERBOCKER, Appellants

V.

SEABROOK VENTURE II, Appellee


On Appeal from the 165th District Court

Harris County, Texas

Trial Court Cause No. 2000-01560


O P I N I O N

          Appellants, Centurion Planning Corporation, Inc. (Centurion) and Thomas C. Knickerbocker (Knickerbocker), challenge the trial court’s judgment, entered after a jury verdict, declaring that Centurion’s mechanic’s and materialman’s lien on real property owned by appellee, Seabrook Venture II (Venture), was null and void because there was no written contract between Centurion and Venture and because Centurion did not have any lien rights on the property as Centurion was not engaged in the practice of engineering and the lien was fraudulent.

          In four issues, Centurion and Knickerbocker contend that the trial court erred in (1) submitting to the jury a question concerning whether Centurion and Knickerbocker made, presented, or used a fraudulent lien with the intent to cause Venture to suffer financial injury; (2) applying the Uniform Declaratory Judgment Act to Knickerbocker personally and holding him personally liable for filing a fraudulent lien; (3) excluding evidence that Centurion was “in compliance with the rules and regulations of the Texas Board of Professional Engineers”; and (4) submitting a jury instruction that Centurion and Knickerbocker assert constituted an impermissible comment on the weight of the evidence. We affirm.

Facts

          On October 20, 1998, Theodore McCollum Jr. (McCollum) entered into an earnest money contract with Bayport 47 Limited to acquire a 53-acre tract of land in Seabrook, Texas. On January 20, 1999, McCollum purchased 14 acres of the 53-acre tract and conveyed it to Seabrook United Methodist Church. One month later, McCollum purchased the remaining 39 acres.

          On August 19, 1999, McCollum, on behalf of McCollum Interests, L.L.C., entered into a joint venture agreement with John Boswell, on behalf of Pacific Ride Development Company, L.L.C. This agreement created Venture for the purpose of developing the 39 acres into a housing subdivision. The following day, McCollum conveyed the 39 acres to Venture.

          Following the creation of Venture, McCollum contacted Knickerbocker, the President and sole shareholder of Centurion, and requested that Centurion prepare a preliminary plat for the 39 acres and submit it to Seabrook for approval. McCollum specified that the plat had to meet all of the city’s conditions and ordinances and be approved without requiring any variances. Knickerbocker orally agreed to McCollum’s terms, and Centurion began working on the preliminary plat.

          In October 1999, McCollum and Kickerbocker met with several city officials to review the initial plat prepared by Centurion. At this meeting, the city officials discovered several problems with the plat that needed to be corrected before it could be submitted. McCollum instructed Knickerbocker to make the necessary changes, but Knickerbocker submitted the plat without doing so.

          When McCollum learned what Knickerbocker had done, he went to Seabrook City Hall and recovered all documents on file relating to the plat. McCollum then sent a letter to Centurion terminating its services because McCollum “had a lack of confidence” in Centurion and “was disgusted” that Knickerbocker had not done what McCollum had asked him to do. In response, Knickerbocker sent a letter to McCollum demanding payment in the amount of $39,416.30 for work performed by Centurion, but McCollum refused to pay.

          Knickerbocker subsequently filed, on behalf of Centurion, a Notice of Claim of Lien and Affidavit of Mechanic’s and Materialman’s Lien on the entire 53-acre tract of land, including the 14 acres owned by Seabrook United Methodist Church. Knickerbocker filed the lien for “labor and materials” provided to Venture in the amount of $39,416.30. McCollum requested that Centurion release the lien from 39 acres owned by the Venture, but Knickerbocker refused.

          Venture then filed this lawsuit seeking a declaration that Centurion’s lien was null and void because Centurion and Knickerbocker had violated certain provisions of the Property Code and the former Engineering Practice Act. Moreover, Venture alleged that Centurion and Knickerbocker had violated section 12.002 of the Civil Practice and Remedies Code because they knowingly had made, presented, and used a fraudulent lien. In response, Centurion and Knickerbocker filed counterclaims alleging that Venture owed Centurion $18,301.66 and that Centurion was entitled to foreclose on the lien for this amount.

          Following a jury trial, the trial court declared that Centurion did not have any lien rights or lien claims against Venture and that Centurion’s lien against the 39 acre property was “null, void, invalid, unenforceable and of no effect” because (1) there was no written contract between Venture and Centurion; (2) Centurion and Knickerbocker had violated the former Engineering Practice Act and were therefore not entitled to a lien under Property Code section 53.021(c); and (3) Centurion and Knickerbocker had violated Civil Practice and Remedies Code section 12.002 by making, presenting, and using the lien with the knowledge that it was a fraudulent lien. The trial court awarded Venture statutory damages, exemplary damages, attorney’s fees, reasonable expenses, and costs.Fraudulent Lien Question

          In their first issue, Centurion and Knickerbocker argue that the trial court erred in submitting to the jury a question concerning whether Centurion and Knickerbocker made, presented, or used a fraudulent lien with the intent to cause Venture to suffer financial injury because (1) the question was “immaterial and of no legal consequence,” (2)

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Centurion Planning Corp., Inc. & Thomas C. Knickerbocker v. Seabrook Venture II, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centurion-planning-corp-inc-thomas-c-knickerbocker-texapp-2004.