Centurion Planning Corp. v. Seabrook Venture II

176 S.W.3d 498, 2004 WL 2823125
CourtCourt of Appeals of Texas
DecidedMay 27, 2005
Docket01-02-00518-CV
StatusPublished
Cited by53 cases

This text of 176 S.W.3d 498 (Centurion Planning Corp. 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. v. Seabrook Venture II, 176 S.W.3d 498, 2004 WL 2823125 (Tex. Ct. App. 2005).

Opinion

OPINION

TERRY JENNINGS, Justice.

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 hen rights on *502 the property as Centurion was not engaged in the practice of engineering 1 and the lien was fraudulent. 2

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 3 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 McCol-lum 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 Kicker-bocker 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.

*503 Knickerbocker subsequently filed, on behalf of Centurion, a Notice of Claim of Lien and Affidavit of Mechanic’s and Ma-terialman’s Lien on the entire 53-acre tract of land, including the 14 acres owned by Seabrook United Methodist Church. 4 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. 5 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. 6 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) there was no evidence that they made, presented, or used a document with knowledge that the document was a fraudulent lien, and (3) the instruction accompanying the question was defective.

Question number 7 of the jury charge reads as follows:

Did Centurion or Knickerbocker make, present or use a document with knowledge that the document was a fraudulent hen or claim against real property or an interest in real property with the intent that the document be given the legal effect of evidencing a valid lien or claim against real property or an interest in real property with the intent to cause [Venture] to suffer financial injury?
A lien is fraudulent if the person who files it has actual knowledge that the *504 lien was not valid at the time it was, filed.

The jury answered this question “yes” as to both Centurion and Knickerbocker.

Materiality

Centurion and Knickerbocker argue that question number 7 was immaterial because it premised a finding of liability on a statute, section 12.002 of the Civil Practice and Remedies Code, which, they assert, does not apply to the facts of this case. An appellate court may disregard a jury finding on a question that is immaterial. See Spencer v. Eagle Star Ins. Co.

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Cite This Page — Counsel Stack

Bluebook (online)
176 S.W.3d 498, 2004 WL 2823125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centurion-planning-corp-v-seabrook-venture-ii-texapp-2005.