Coinmach Corp. F/K/A Solon Automated Services, Inc. v. Aspenwood Apartment Corp.

417 S.W.3d 909, 57 Tex. Sup. Ct. J. 77, 2013 WL 6244605, 2013 Tex. LEXIS 953
CourtTexas Supreme Court
DecidedNovember 22, 2013
Docket11-0213
StatusPublished
Cited by276 cases

This text of 417 S.W.3d 909 (Coinmach Corp. F/K/A Solon Automated Services, Inc. v. Aspenwood Apartment Corp.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coinmach Corp. F/K/A Solon Automated Services, Inc. v. Aspenwood Apartment Corp., 417 S.W.3d 909, 57 Tex. Sup. Ct. J. 77, 2013 WL 6244605, 2013 Tex. LEXIS 953 (Tex. 2013).

Opinions

Justice BOYD

delivered the opinion of the Court.

We have previously explained that a tenant “who remains in possession of the premises after termination of the lease occupies ‘wrongfully’ and is said to have a tenancy at sufferance.” Bockelmann v. Marynick, 788 S.W.2d 569, 571 (Tex.1990). This case involves a commercial tenant that remained in possession for six years after it lost its lease when the property was sold through foreclosure. After arguing to the contrary — at times successfully — for over ten years, the tenant ultimately conceded that the foreclosure terminated the lease and, because the new owner immediately and continually insisted that the tenant vacate the premises, the tenant became a tenant at sufferance. We must decide whether the tenant can be liable for breach of the terminated lease, for trespass and other torts, or for violations of the Texas Deceptive Trade Practices-Consumer Protection Act (DTPA), and whether the property owner can recover attorney’s fees under the Texas Uniform Declaratory Judgments Act (UDJA). The trial court entered summary judgment for the tenant on all of the owner’s claims, and the court of appeals reversed and remanded in part. Agreeing with the court of appeals, we hold that (1) a tenant at sufferance cannot be hable for breach of the previously-terminated lease agreement; (2) a tenant at sufferance is a trespasser and can be liable in tort (although the extent of liability depends on the nature of the trespass), including, in this case, tortious interfer-[913]*913enee with prospective business relations; and (3) the tenant in this case cannot be liable under the DTPA because the property owner was not a consumer. Disagreeing with the court of appeals, we hold that (4) the property owner in this case cannot recover under the UDJA. We therefore affirm the court of appeals’ judgment in part, reverse in part, render judgment for the tenant on the owner’s claim for declaratory relief, and remand the case to the trial court for further proceedings.

I.

BACKGROUND

Coinmach Corp. installs and maintains coin-operated laundry machines in apartment complexes. Rather than lease its equipment to property owners, it leases laundry rooms from the owners and installs and operates its own machines in those rooms. In 1980, Coinmach entered into a ten-year lease of “the laundry room(s)” at the Garden View Apartments in Harris County, Texas. The lease was expressly “subordinate to any mortgage or deed of trust on the premises.” In 1989, the parties extended the lease term until 1999. In 1994, the owner’s lender foreclosed on its deed of trust. The individual who bought the complex at the foreclosure sale immediately deeded it to a company he owned, and a few months later that company sold the complex to Aspenwood Apartment Corp.

Aspenwood immediately gave Coinmach written notice to vacate the laundry rooms, asserting that the foreclosure sale had terminated the lease and that Coinmach had failed to maintain the equipment in an adequate and safe condition. When Coin-mach refused to vacate, Aspenwood removed Coinmach’s equipment, began to remodel one of the laundry rooms, and filed a forcible entry and detainer (FED) action to evict Coinmach from the premises. Co-inmach, in turn, obtained a writ of reentry from the justice court,1 and refused to vacate the premises.

Two years later,2 Aspenwood sent Coin-mach another notice to vacate and filed a second FED action. This time, the justice court ordered Coinmach to vacate the property, but Coinmach appealed for a de novo trial and the county court at law reversed. Aspenwood appealed that judgment to the court of appeals, but that court ultimately dismissed the appeal for want of jurisdiction.3 By then, the lease’s 1999 termination date had passed, but Co-inmach still refused to vacate. After As-penwood contracted with a different laundry company and that company set up [914]*914operations in a laundry room that Coin-mach had previously abandoned, Coinmach obtained another writ of reentry and forced that company to leave the premises, based this time on sworn testimony that the lease had automatically renewed for another nineteen-year term. Coinmach thus continually remained in possession of the premises, while Aspenwood continued to send additional notices to vacate, complaining of Coinmach’s repeated failures to maintain the condition of its equipment, pay rent, and provide an accounting of its receipts. Aspenwood maintains it never cashed any checks it received from Coin-mach.

Meanwhile, Aspenwood filed the present suit in district court in 1998, shortly after it filed the second FED action. Aspen-wood originally asserted claims against Coinmach for trespass to try title, common law trespass, breach of the lease agreement, DTPA violations, statutory and common law fraud, tortious interference with prospective business relations, and a declaratory judgment that Coinmach had no right to possession and no leasehold interest in the property. Coinmach filed counterclaims for breach of the lease agreement, breach of warranties of possession, quiet enjoyment, fitness for a particular purpose, and suitability, defamation, tor-tious interference, bad faith, and harassment. The trial court first ruled as a matter of law that the 1994 foreclosure sale had terminated Coinmach’s lease agreement. It then submitted the case to a jury, which found in favor of Aspenwood and awarded approximately $1.5 million, consisting of actual damages, DTPA treble damages, exemplary damages, attorney’s fees, and prejudgment interest. In the spring of 2000, after the trial court entered judgment for Aspenwood on the jury’s verdict, Coinmach vacated the premises.

Coinmach also filed a motion for new trial, however, and the trial court granted that motion. The parties subsequently amended their pleadings. Aspenwood reasserted all of its prior claims except for statutory and common law fraud, while Coinmach continued to deny liability but dropped all of its counterclaims. In May 2007, the trial court entered a partial summary judgment, ruling that the foreclosure sale terminated the lease and that Coin-mach became a tenant at sufferance. Based on these holdings, the court struck all of Aspenwood’s breach of contract claims. Coinmach then filed motions for summary judgment and Rule 166 motions asking the court to rule, as a matter of law, that a tenant at sufferance cannot be a trespasser; that Aspenwood could not seek declaratory relief and attorney’s fees under the UDJA; that Aspenwood’s trespass, trespass to try title, DTPA, and tor-tious interference claims were either moot or procedurally improper; and that, since Coinmach was not a trespasser, it could not be liable for such tort-based claims. In June 2008, the trial court issued orders granting Coinmach’s motions, ruling that Aspenwood was not a consumer under the DTPA and that Coinmach had a possesso-ry interest in the property from the time of foreclosure until it vacated the premises in 2000, and concluding that the effect of its legal rulings was to preclude Aspen-wood’s remaining claims as a matter of law. The court thus entered judgment that Aspenwood take nothing on its claims.

The court of appeals affirmed in part, reversed in part, and remanded. The court affirmed the dismissal of Aspen-wood’s breach of contract claims, holding that, because Aspenwood never consented to Coinmach’s remaining on the premises, no actual or implied contractual relationship existed between the parties. 349 S.W.Sd at 634.

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417 S.W.3d 909, 57 Tex. Sup. Ct. J. 77, 2013 WL 6244605, 2013 Tex. LEXIS 953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coinmach-corp-fka-solon-automated-services-inc-v-aspenwood-apartment-tex-2013.