Cove Terrace Associates, I, Ltd., as Successor in Interest to CTE Shopping Centers I, Ltd. v. Michele McGuire

CourtCourt of Appeals of Texas
DecidedOctober 14, 2009
Docket10-08-00008-CV
StatusPublished

This text of Cove Terrace Associates, I, Ltd., as Successor in Interest to CTE Shopping Centers I, Ltd. v. Michele McGuire (Cove Terrace Associates, I, Ltd., as Successor in Interest to CTE Shopping Centers I, Ltd. v. Michele McGuire) 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.

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Cove Terrace Associates, I, Ltd., as Successor in Interest to CTE Shopping Centers I, Ltd. v. Michele McGuire, (Tex. Ct. App. 2009).

Opinion

IN THE

TENTH COURT OF APPEALS

 

No. 10-08-00008-CV

Cove Terrace Associates, I, Ltd.,

as Successor in Interest to

CTE Shopping Centers I, Ltd.,

                                                                                    Appellant

 v.

Michele McGuire,

                                                                                    Appellee


From the 52nd District Court

Coryell County, Texas

Trial Court No. CAC-03-34918

MEMORANDUM  Opinion

This case is a commercial landlord-tenant dispute.  Michele McGuire d/b/a Michele’s Floral & Gifts sued her landlord, Cove Terrace Associates I, Ltd. (Cove Terrace) for breach of contract and constructive eviction after her floral shop suffered water damage.  Assurance Company of America intervened and asserted a subrogation claim.  Cove Terrace asserted several affirmative defenses and counterclaimed against McGuire for breach of the lease.  A jury found in favor of McGuire, and the trial court denied Cove Terrace’s motion for judgment notwithstanding the verdict and entered judgment on the verdict.  Raising three issues, Cove Terrace appeals the trial court’s judgment.

Factual Background

            In 1989, McGuire purchased the flower shop located at 248 Cove Terrace in the Cove Terrace Shopping Center in Copperas Cove, Texas.  Over the years, she entered into three lease agreements.  In 1995, she entered into a lease agreement with CTE Shopping Centers, Ltd. for a term of three years.  Cove Terrace subsequently bought the shopping center from CTE Shopping Centers, Ltd., and in 1998, McGuire agreed with Cove Terrace to extend the 1995 lease.  The lease extension agreement stated that, except for several modifications, the 1995 lease would “remain in full force and effect” until February 28, 2003.

            On November 29, 2001, McGuire began to have a problem with water entering her shop.  She immediately called and reported the problem to Quine & Associates, Inc., Cove Terrace’s agent and manager of the shopping center.  Over the next few weeks, the parties attempted to discover the reason for the water intrusion, and McGuire discovered water in her shop on several more occasions.  On each occasion, Quine & Associates had Diversified Services perform water extraction and drying services.

            It was eventually discovered that a concrete ramp that had recently been constructed for another tenant in the alleyway behind the shop was the reason for the flooding.  The ramp had been constructed so that it blocked the back door to the vacant unit adjacent to McGuire’s shop, and when it rained, the water would flow over the ramp’s edge like a waterfall and under the door of the adjacent unit.  The water was then migrating into McGuire’s shop from the adjacent unit.  Upon discovering this, a piece of metal was put in to divert the water, and a new door was built, stopping the water intrusion.  No more water migrated into McGuire’s shop after December 16, 2001.

In January 2002, McGuire began complaining about mildew and mold in her shop.  At the end of January, Quine & Associates had Diversified Services treat and seal the floors and install new carpet in McGuire’s office.  In late February, McGuire discovered additional mold growing under a cooler.  Diversified Services returned to the shop and wanted to put down a treatment to kill the mold underneath the cooler floor, but McGuire would not allow it.  On February 28, McGuire permanently closed the shop at the Cove Terrace Shopping Center, and sometime between March 1 and March 3, she found another location that was just around the corner from the Cove Terrace Shopping Center.

On March 5, McGuire sent a letter notifying Cove Terrace that she was immediately vacating her unit at the shopping center because it had become uninhabitable due to the flooding and resultant mold infestation.  On March 13, Cove Terrace sent a letter to McGuire, stating that she was in default under the terms of the lease agreement for failure to pay certain annual billbacks for 2001.  The letter demanded that McGuire pay the amount by 12:00 p.m. on March 19 and continue thereafter making monthly payments of rent and other charges as stated in the lease, or Cove Terrace would notify its attorneys to sue her.  When McGuire did not pay the 2001 billback charges by March 19, Brad Quine, the president of Quine & Associates, had the locks to her unit changed and had a notice posted on the door to her unit that the locks were changed because she breached the lease agreement and that she could get new keys from Quine & Associates when the terms of her lease had been met.

By March 20, 2002, the date when the lockout notice was posted on the door, McGuire had already vacated the premises.  She eventually paid the 2001 billback charges on April 20, but she testified that she did not pay rent from April 2002 through February 2003.

Procedural Background

McGuire sued Cove Terrace for breach of contract and constructive eviction.  Assurance Company of America, McGuire’s commercial property-casualty insurer, intervened, asserting its subrogation claim.  Assurance had paid $16,355.50 for the replacement cost of the personal property that was damaged by the water; $6,650 for the nine days that McGuire’s shop had to be closed; $19,759 for the anticipated environmental remediation expense; $7,581.45 for the balance due on two of the coolers that had to be left in the unit; and $38,708.75 for lost business and the balance due to rebuild her business.  Cove Terrace counterclaimed against McGuire for breach of the lease.

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Cove Terrace Associates, I, Ltd., as Successor in Interest to CTE Shopping Centers I, Ltd. v. Michele McGuire, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cove-terrace-associates-i-ltd-as-successor-in-interest-to-cte-shopping-texapp-2009.