Denco CS Corporation v. Body Bar, LLC

445 S.W.3d 863, 2014 Tex. App. LEXIS 10785, 2014 WL 4782935
CourtCourt of Appeals of Texas
DecidedSeptember 26, 2014
Docket06-14-00022-CV
StatusPublished
Cited by4 cases

This text of 445 S.W.3d 863 (Denco CS Corporation v. Body Bar, LLC) 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
Denco CS Corporation v. Body Bar, LLC, 445 S.W.3d 863, 2014 Tex. App. LEXIS 10785, 2014 WL 4782935 (Tex. Ct. App. 2014).

Opinion

OPINION

Opinion by

Justice MOSELEY.

Body Bar, LLC, desired to open an upscale Pilates studio and juice bar in Plano, Texas. 1 Toward that aim, Body Bar entered into a lease for commercial property owned by Regency Centers, L.P., the lease acknowledging that it would be Body Bar’s responsibility to construct the studio within the demised space and providing that Regency would pay $25,000.00 of the cost of doing so after the successful completion of the construction project. Body Bar had its plans and specifications for the improvements drafted by an outside consultant and included those plans and specifications in its advertisement for bids to accomplish the work. Denco CS Corporation responded to the advertisement for bids and was awarded the contract for the improvements as Body Bar’s contractor. On March 25, 2012, Denco and Body Bar entered into a contract to complete the project.

Denco’s completion of the project was delayed, in part, due to the city’s determination that portions of the plans and specifications for the project failed to meet the city’s health code. In order to complete the project with as little delay as possible, Denco’s crewmen worked overtime and on weekends, thereby increasing Denco’s cost for the project by $28,933.40. Denco attempted to pass this cost along to Body Bar via an e-mail request for additional sums. Believing that its contract with Denco did not obligate it to pay more on the contract due to Denco’s decision to employ crewmen outside of normal business hours, Body Bar — which had paid each contractually prescribed invoice Den-co submitted — did not acquiesce to Denco’s request for additional sums. In response, Denco took the steps it felt were necessary to perfect contractor’s liens under both the statutory scheme and the Texas constitutional contractor’s lien on the property it had improved. These liens were supported by the affidavit of Denco’s Director of Construction, Steven J. Smith, and stated, in part, that “the amount of $28,933.40 ... remains unpaid and is due and owing to [Denco] under its agreement with Body Bar.” 2

*866 Some two months after Denco and Body Bar entered into the construction agreement, Regency sold the premises to Bre Throne Preston Park, LLC, which purchased the property subject to Body Bar’s lease and the obligations of the landlord thereunder — including the responsibility of the lessor to reimburse Body Bar $25,000.00 of the cost of the improvements it made to the property. When Bre Throne discovered the existence of the lien affidavits filed by Denco, it withheld its reimbursement to Body Bar of the $25,000.00 specified in the lease agreement. When Bre Throne refused to pay the reimbursement, Body Bar filed suit against Denco.

In its suit seeking declaratory relief, Body Bar’s petition (1) set out the existence of the contractual relationship into which it had entered with Denco; (2) alleged that Denco had breached its contract with Body Bar by requesting additional sums not contemplated to be paid by Body Bar under the contract; (3) requested the trial court to declare that the affidavits filed by Denco did not effectuate liens on the improved property because (a) Denco failed to provide the required statutory notice, (b) Denco failed to file its lien affidavits within the prescribed time, and (c) the lien affidavits were ineffective to affix a lien on the property because Denco had no privity of contact with Bre Thorne, the owner of the realty; (4) alleged that Den-co’s act in filing fraudulent lien affidavits tortiously interfered with Body Bar’s lease with Bre Throne, causing damages in the amount of the $25,000.00 reimbursement prescribed in the lease agreement; and (5) sought to recover Body Bar’s attorney fees.

Denco responded by filing counterclaims of its own, these counterclaims seeking relief for the alleged breach of contract, quantum meruit, unjust enrichment, and attorney fees, together with the relief of allowing it to foreclose the mechanic’s liens it alleged that it held.

Body Bar filed a combination traditional and no-evidence motion for summary judgment. After reviewing the summary judgment evidence, the trial court (1) ruled that neither the constitutional mechanic’s lien nor the statutory mechanic’s lien alleged by Denco were valid and that neither was subject to foreclosure; (2) determined that Denco had breached its contract with Body Bar, that Denco was guilty of tor-tious interference with Body Bar’s contract with its lessor, and that Denco was not entitled to recovery under its claim of quantum meruit or unjust enrichment; 3 and (3) granted Body Bar recovery of $25,000.00 in damages, $16,451.00 in attorney fees and $491.00 in costs. Denco appeals the trial court’s ruling.

In this case, we find that the summary judgment evidence (1) conclusively established that the statutory and constitutional liens were invalid, (2) conclusively established that Body Bar was entitled to summary judgment on all of Denco’s claims, (3) failed to conclusively establish that Body Bar sustained damages as a result of Denco’s breach, and (4) failed to conclusively establish tortious interference with the lease with Bre Thorne as a matter of law. In short, Body Bar established its entitlement to summary judgment on its declaratory judgment and breach of contract claim as a matter of law. However, while Body Bar proved that Bre Thorne withheld reimbursement due to the invalid liens filed on the premises, Body Bar failed to prove that Bre Thorne would not pay the reimbursement once the liens were invalidated. Thus, while Body Bar demonstrated that it sustained some damage (in- *867 eluding interest on the reimbursement had it been timely paid), the amount of damages actually sustained in light of our opin-. ion remains speculative. 4

We further find (1) that Denco could not foreclose invalid liens, (2) that Denco failed to raise a genuine issue of material fact demonstrating that Body Bar was contractually obligated to pay the additional sums requested by Denco, and (3) that Denco’s equitable claims of unjust enrichment and quantum meruit were precluded as a matter of law because the labor used to complete the project was covered by the contract price. Because Denco failed to raise more than a scintilla of evidence on any of its claims, the trial court’s no-evidence motion for summary judgment was proper.

We affirm the trial court’s judgment in part, but reverse (1) the finding that Body Bar established tortious interference as a matter of law, (2) the finding that Body Bar established breach of contract as a matter of law, and (3) the award of $25,000.00 to Body Bar, and remand these matters to the trial court for further proceedings consistent with this opinion.

I. Standard of Review

‘We apply well-known standards in our review of traditional and no-evidence summary judgment motions.” W. Fork Advisors, LLC v. SunGard Consulting Servs., LLC, 437 S.W.3d 917, 919 (Tex.App.-Dallas 2014, no pet. h.) (citing Timpte Indus., Inc. v. Gish, 286 S.W.3d 306, 310 (Tex.2009); Nixon v. Mr. Prop. Mgmt.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
445 S.W.3d 863, 2014 Tex. App. LEXIS 10785, 2014 WL 4782935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denco-cs-corporation-v-body-bar-llc-texapp-2014.