De Monet v. Pera

877 S.W.2d 352, 1994 WL 65645
CourtCourt of Appeals of Texas
DecidedMarch 4, 1994
Docket05-92-02711-CV
StatusPublished
Cited by38 cases

This text of 877 S.W.2d 352 (De Monet v. Pera) 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
De Monet v. Pera, 877 S.W.2d 352, 1994 WL 65645 (Tex. Ct. App. 1994).

Opinion

OPINION

ROSENBERG, Justice.

This is a summary judgment case. Joaquin de Monet, Ricardo de Monet, Charles Schonfeld, and Helga Schonfeld (Sellers) appeal the trial court’s decision to grant PERA rescission of a $30 million purchase agreement on the grounds of mutual mistake. Sellers bring seventeen points of error, contending that the trial court erred in granting summary judgment to Public Employees Retirement Association of the State of Colorado (PERA) and denying their cross-motion for summary judgment.

We conclude that a material fact issue exists regarding mutual mistake. We sustain Sellers’ point of error one and overrule point of error two. Because of our disposition of point of error one, we do not address Sellers’ points of error three, four, five, six, seven, eleven, thirteen, and seventeen. Sellers’ remaining points of error complain that the trial court erred in denying their cross-motion for summary judgment. Because the trial court expressly denied Sellers’ summary judgment solely on its erroneous finding of mutual mistake as a matter of law and did not consider the merits of Sellers’ grounds for summary judgment, we will not review these issues for the first time on appeal. We reverse the trial court’s order granting summary judgment to PERA and denying summary judgment to Sellers. We remand the entire cause to the trial court for further proceedings.

BACKGROUND FACTS

In 1986, PERA purchased property at 1200 Main Street in downtown Dallas, which included a twenty-seven floor office building, from Sellers. A federal agency, the General Services Administration (GSA), was the building’s primary tenant, occupying more than seventy percent of the building. In 1984, Sellers discovered that the building contained asbestos, which GSA required to be removed as a prerequisite for renewing its *355 lease. Sellers hired a company called PICO, Inc., to remove the asbestos-contaminated material. PICO contracted to bring the budding into compliance with the GSA lease restrictions on asbestos. GSA renewed its lease.

At the time of the sale, GSA remained the budding’s primary tenant, and PICO continued the asbestos-abatement program. During negotiations for purchase of the budding, the attorneys for Seders and PERA discussed the necessity of satisfactory removal of asbestos in the budding. During the course of the abatement work, Matrix Engineering periodically tested the air quality in the budding and reported its readings to GSA, which determined that the air readings were within acceptable levels. PICO represented to Seders that it had removed the asbestos in an amount consistent with the GSA lease restrictions on ad but four floors. Neither Seders, GSA, nor PERA supervised or inspected PICO’s asbestos-abatement work to determine whether PICO had properly removed the fireproofing material.

In the purchase agreement, Seders represented to PERA that, in redance on the air clearance tests performed by Matrix, the asbestos removal was complete and consistent with GSA guidelines, except for four floors. At the closing, the parties acknowledged that PICO had not performed its abatement work on four floors of the budding. In a letter-of-eredit agreement, Seders agreed to complete the abatement work necessary on these four floors to ensure compdance with federal guidelines. PERA held back 1.3 million dollars of the purchase price untfl the abatement work was completed on the remaining four floors.

The parties also executed an assignment and assumption of lease agreements, which included an assignment of the GSA lease. In the assignment, Seders stated that to the best of their actual knowledge, there were no defaults under the leases and that there was nothing which, with the passage of time or the giving of notice, could become a default under the lease, except as they had previously disclosed in writing.

In Spring 1987, PICO completed its work on the remaining floors, and GSA occupied these floors based on the results of the air-monitoring tests. PERA released the letters of credit.

In 1989, PERA discovered unabated asbestos in the budding. Several inspections, more extensive than air quadty tests, revealed that none of the budding’s floors were in compdance with the GSA lease restrictions. In 1990, PERA filed suit, contending that Seders negdgently misrepresented the status of the asbestos abatement and breached their warranties. PERA sued for damages based on fraud, misrepresentation, neg-dgenee, and breach of contract. PERA also sued for rescission of the purchase agreement on the grounds of mutual mistake. Both parties moved for summary judgment.

The trial court voided the contract and letters of credit, ordered rescission of the $30 midion purchase agreement, and sought to restore the parties to their original positions. The trial court required PERA to tender title to the budding and required Seders to return the purchase price with interest minus an offset for income received on the property. The trial court determined that the remaining claims and counterclaims between the parties were inconsistent with the finding of mutual mistake and entered a take-nothing judgment on those claims and counterclaims.

SUMMARY JUDGMENT

A trial court may render summary judgment only if the pleadings, depositions, admissions, and affidavits on file show that no genuine issue exists regarding any material fact and that the movant is entitled to judgment as a matter of law. Tex.R.Civ.P. 166a(e); Black v. Victoria Lloyds Ins. Co., 797 S.W.2d 20, 23 (Tex.1990). Summary judgment is designed to eliminate unmerited claims or untenable defenses; it is not intended to deprive litigants of their right to a full hearing on fact issues. Compton v. Calabria, 811 S.W.2d 945, 949 (Tex.App.-Dallas 1991, no writ) (citing Gulbenkian v. Penn, 151 Tex. 412, 416, 252 S.W.2d 929, 931 (1952)).

Under rule 166a, both plaintiff and defendant may simultaneously move for summary judgment. Tex.R.Civ.P. 166a. A movant *356 must expressly present, in the summary judgment motion, the specific grounds for summary judgment. McConnell v. Southside Indep. Sch. Dist., 858 S.W.2d 337, 341 (Tex.1993). Each party must carry its own burden, and neither can prevail due to the other’s failure to meet its burden. See Cove Inv., Inc. v. Manges, 602 S.W.2d 512, 514 (Tex.1980).

On appeal, this Court considers all evidence accompanying both motions. Edinburg Consol. Indep. Sch. Dist. v. St. Paul Ins. Co., 783 S.W.2d 610, 612 (Tex.App.-Corpus Christi 1989, no writ). In reviewing the summary judgment evidence, we apply the following standards:

1. The movant has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law;
2. In deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the nonmovant is taken as true; and
3.

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Bluebook (online)
877 S.W.2d 352, 1994 WL 65645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-monet-v-pera-texapp-1994.