Clearview Properties, L.P. v. Property Texas SC One Corp.

287 S.W.3d 132, 2009 Tex. App. LEXIS 3288, 2009 WL 196034
CourtCourt of Appeals of Texas
DecidedMay 14, 2009
Docket14-06-00716-CV
StatusPublished
Cited by41 cases

This text of 287 S.W.3d 132 (Clearview Properties, L.P. v. Property Texas SC One Corp.) 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
Clearview Properties, L.P. v. Property Texas SC One Corp., 287 S.W.3d 132, 2009 Tex. App. LEXIS 3288, 2009 WL 196034 (Tex. Ct. App. 2009).

Opinion

OPINION

LESLIE B. YATES, Justice.

Appellants Clearview Properties, L.P.; Michael Starcher, Trustee for the Crown Hill Trust; Craig Walker, d/b/a Clearview Properties, L.P.; and Clearview Investments, Ltd. (collectively “Clearview”) appeal from the trial court’s order granting summary judgment on their claims against appellees Property Texas SC One Corp., Clarion Partners, L.L.C., Granite Partners, L.L.C., Triple Net Properties, L.L.C., T. Reit, L.P. (“TRL”), and T. Reit, Inc. (“TRI”) and awarding attorney’s fees in favor of Property Texas and TRL. We affirm the trial court’s summary judgment on Clearview’s claims and the attorney’s fees award in favor of Property Texas but reverse the attorney’s fees award in favor of TRL and remand for further proceedings.

I. BACKGROUND

Property Texas owned an office building in Houston that it leased to the Federal Bureau of Investigation (“FBI”), and it employed Clarion as its property manager. Property Texas decided to sell the building and hired Granite as its real estate broker. In 2002, Clearview signed a contract with Property Texas to buy the property. The parties agreed to amend the contract several times, with the fifth and final amendment (“the fifth amendment”) being executed on January 17, 2003. The fifth amendment required Clearview to obtain financing to purchase the building by January 29, 2003, and if Clearview could not do so, it could terminate the contract and recover only its escrow deposit.

Clearview planned to purchase the property and then immediately “flip” it to TRL for a profit. To this end, Clearview entered into a separate contract with TRL. However, Clearview was not able to obtain financing because Deutsche Bank, the prospective financier, would not make the loan itself and could not convince another lender to accept the loan as part of a loan sales package because it was uncomfortable with the entire flip transaction. Consequently, neither the Property Texas/Clearview contract nor the Clearview/TRL contract were ever consummated.

Two events happened that are at the center of this litigation. First, Clearview learned on January 30, 2003 for the first time about an amendment to the Property Texas/FBI lease (“SLA 12”). Clearview asserts that SLA 12 was a scam created to conceal falsified documents submitted in connection with reimbursement for finish-out space leased by the FBI. Clearview also asserts that if it had known of SLA 12, it would not have entered into the fifth amendment to its contract with Property Texas. Second, Property Texas learned of Clearview’s deal to immediately resell the property to TRL when one of its employees, in the course of conducting due diligence on the Clearview/TRL deal, told Triple Net, an affiliate of TRL, of the deal, and Triple Net then contacted the building’s property manager, who told Granite. According to Clearview, this knowledge made Property Texas reluctant to enter into another contract amendment to extend the closing time when Clearview had not yet secured financing by the due date and instead enter into a sales contract with *137 Triple Net, though this sale never went through either.

Clearview sued nearly everyone involved in the proposed sale of the building. As relevant to this appeal, 1 Clearview sued Property Texas for breach of contract, arguing that its failure to disclose SLA12 earlier breached its contractual obligations to make reasonable efforts to furnish all amendments to the Property Texas/FBI lease and to promptly correct any inaccuracies in prior representations. Clearview also asserted claims against Property Texas, Clarion, and Granite under various fraud theories, claiming that they intentionally failed to disclose SLA 12 and that if Clearview had known about SLA 12, it would not have entered the fifth amendment, which required Clearview to pay $20,000 in consideration and limited its damages to the return of escrow money. Finally, Clearview sued TRL, TRI (which is TRL’s general partner), and Triple Net (collectively “the Triple Net defendants”), arguing that the chain of events that led to Property Texas’s discovery of the Clear-view/TRL contract constituted breach of contract and tortious interference with a prospective contract.

Property Texas, Clarion, Granite, and the Triple Net defendants moved for tradi- • tional and no-evidence summary judgment, which the trial court granted. The trial court also awarded attorney’s fees to Property Texas and TRL pursuant to their attorney’s fees counterclaims for prevailing in the breach of contract claim. This appeal followed.

II. Analysis

A. Summary Judgment

In its first issue, Clearview argues the trial court erred in granting summary judgment on its fraud, breach of contract, and tortious interference claims against Property Texas, Clarion, Granite, and the Triple Net defendants. Appellees moved for summary judgment on both traditional and no evidence grounds. See Tex.R. Civ. P. 166a(c), 166a(i). To prevail on a traditional motion for summary judgment, the movant must show that there is no genuine issue of material fact and that he is entitled to judgment as a matter of law. Tex.R. Civ. P. 166a(c); Sw. Elec. Power Co. v. Grant, 73 S.W.3d 211, 215 (Tex.2002). A defendant moving for summary judgment must conclusively negate at least one essential element of each of the plaintiffs causes of action or conclusively establish each element of an affirmative defense. Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910, 911 (Tex.1997); Shirvanian v. DeFrates, 161 S.W.3d 102, 106 (Tex.App.-Houston [14th Dist.] 2004, pet. denied). When we review a summary judgment, we take as true all evidence favorable to the non-movant; we also indulge every reasonable inference and resolve any doubts in favor of the non-movant. Grant, 73 S.W.3d at 215. As to a no evidence summary judgment motion, the movant must state the specific elements of a cause of action for which there is no evidence. Cuyler v. Minns, 60 S.W.3d 209, 212 (Tex.App.-Houston [14th Dist.] 2001, pet. denied). If the movant has identified specific elements he claims lack evidence, we must then determine de novo whether the non-movant has produced more than a scintilla of probative evidence to raise a genuine issue of material fact. Allen v. Connolly, 158 S.W.3d 61, 64 (Tex.App.-Houston [14th Dist.] 2005, no pet.).

1. Fraud

*138 Clearview sued Property Texas, Clarion, and Granite under various fraud theories, arguing that they intentionally prevented Clearview from knowing about SLA 12. Property Texas and Clarion moved for summary judgment, arguing, among other things that there was no evidence that Property Texas and Clarion knowingly concealed or misrepresented SLA 12 or intended to deceive Clearview.

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Bluebook (online)
287 S.W.3d 132, 2009 Tex. App. LEXIS 3288, 2009 WL 196034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clearview-properties-lp-v-property-texas-sc-one-corp-texapp-2009.