D.R. Horton - Texas, Ltd. and DRHI, Inc. v. Savannah Properties Associates, L.P.

416 S.W.3d 217, 2013 WL 5946545, 2013 Tex. App. LEXIS 13763
CourtCourt of Appeals of Texas
DecidedNovember 7, 2013
Docket02-12-00349-CV
StatusPublished
Cited by58 cases

This text of 416 S.W.3d 217 (D.R. Horton - Texas, Ltd. and DRHI, Inc. v. Savannah Properties Associates, L.P.) 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
D.R. Horton - Texas, Ltd. and DRHI, Inc. v. Savannah Properties Associates, L.P., 416 S.W.3d 217, 2013 WL 5946545, 2013 Tex. App. LEXIS 13763 (Tex. Ct. App. 2013).

Opinion

OPINION

ANNE GARDNER, Justice.

I. Introduction

Appellants D.R. Horton — Texas, Ltd.' (D.R.Horton) and DRHI, Inc. (DRHI) appeal a summary judgment in favor of Ap-pellee Savannah Properties Associates, L.P. (Savannah). In three sub-issues, D.R. Horton and DRHI contend the trial court erred by not granting their motion for continuance of the submission date of Savannah’s summary judgment motions, by granting Savannah’s motion for summary judgment on its affirmative defenses of release, res judicata, novation, and limitations, and by granting Savannah’s no-evidence motion for summary judgment on D.R. Horton’s and DRHI’s breach of contract, breach of warranty, negligence, and fraudulent inducement claims. We affirm.

II. Factual and Procedural Background

This appeal arises out of the second lawsuit between the parties. Savannah was the developer of multiple phases of residential single-family lots and commercial tracts in the Savannah Addition, a suburban development in Denton County, Texas. In February 2003, Savannah entered into a Contract of Purchase and Sale with DRHI (the Horton Contract) under which DRHI agreed to purchase from Savannah 800 residential lots in the Savannah Addition for the purpose of constructing single-family homes. In March 2008, Savannah and DRHI entered into another Contract of Purchase and Sale (the Continental Contract) under which DRHI agreed to purchase from Savannah 800 additional lots in the Savannah Addition for the same purpose.

DRHI transferred and assigned its rights and obligations under the Horton Contract and the Continental Contract to D.R. Horton. Savannah sold its interest in the Savannah Addition to CHS Savannah, L.P. (CHS) and assigned its rights and obligations under the Horton Contract and the Continental Contract to CHS. 1

In 2007, a dispute arose between D.R. Horton and CHS over the Horton Contract and the Continental Contract. Savannah and CHS filed suit against D.R. Horton and DRHI, asserting breach of contract, fraud, and negligent misrepresentation claims arising from D.R. Horton’s and DRHI’s alleged failure to pur *221 chase and close on the number of lots required by the Horton Contract and Continental Contract. D.R. Horton and DRHI filed counterclaims against Savannah and CHS, claiming they breached the Horton Contract and the Continental Contract by giving preferential treatment to another homebuilder working in the Savannah Addition.

D.R. Horton, DRHI, Savannah, and CHS settled the first lawsuit and entered into a settlement agreement under which the parties merged the Continental Contract into the Horton Contract so the Horton Contract was the only contract between the parties. Pursuant to the terms of the settlement agreement, CHS and D.R. Horton also amended the Horton Contract by entering into a Reinstatement of and Twelfth Amendment to Contract of Purchase and Sale (the Amended Contract). Under the terms of the settlement agreement, D.R. Horton and DRHI released Savannah and CHS from any and all claims belonging to D.R. Horton and DRHI, known or unknown, asserted or unasserted in the first lawsuit with respect to, arising from, or related in any way to the Horton Contract, the Continental Contract, the Savannah Addition, or the Amended Contract. As set forth in the settlement agreement, the parties filed a joint motion to dismiss the case with prejudice. The trial court granted the motion and signed an order dismissing the first lawsuit with prejudice in May 2008.

On April 20, 2009, D.R. Horton and DRHI filed the present lawsuit against Savannah and CHS, asserting breach of contract, breach of warranty, and negligence claims arising out of Savannah’s and CHS’s alleged failure to properly prepare the soil on the lots they sold to D.R. Horton and DRHI for residential construction. In its answer, Savannah asserted the affirmative defense of release. Savannah filed a motion for summary judgment on its release defense, claiming D.R. Horton and DRHI released all claims against Savannah related to the Amended Contract and the Savannah Addition in the settlement agreement. The motion was denied.

On August 11, 2011, Savannah amended its answer to assert additional affirmative defenses, including res judicata, novation, and limitations. Savannah filed a motion for summary judgment on August 17, 2011 seeking a traditional summary judgment on its res judicata, novation, and limitations defenses and a no-evidence summary judgment on D.R. Horton’s and DRHI’s breach of contract, breach of warranty, and negligence claims. Savannah’s motion was set for submission on October 14, 2011. On October 12, 2011, D.R. Horton and DRHI filed a motion for continuance, claiming they needed additional time for discovery. Savannah’s motion was re-set for submission on January 13, 2012. On December 11, 2011, Savannah filed a motion asking the trial court to reconsider its order denying Savannah’s motion for summary judgment on its release defense.

The motion to reconsider and motions for summary judgment were heard by submission on January 13, 2012. On March 5, 2012, D.R. Horton and DRHI filed a fourth amended petition, asserting additional claims of fraudulent inducement and alter ego against Savannah. D.R. Horton and DRHI filed a fifth amended petition on March 27, 2012, adding a joint enterprise claim against Savannah. On April 17, 2012, Savannah filed a motion to strike these pleadings.

On April 17, 2012, the trial court granted (1) Savannah’s motion to reconsider, (2) Savannah’s motion for summary judgment on its release defense, (3) Savannah’s motion for summary judgment on its res judi-cata, novation, and limitations defenses, and (4) Savannah’s no-evidence motion for *222 summary judgment on D.R. Horton’s and DRHI’s breach of contract, breach of warranty, and negligence claims. The trial court did not specify the grounds upon which it relied in granting the motions.

Savannah filed an amended motion to strike D.R. Horton’s and DRHI’s fourth and fifth amended petitions. The trial court granted the amended motion, striking all new, amended, or supplemental allegations relating to Savannah made in D.R. Horton’s and DRHI’s fourth and fifth amended petitions. The trial court then severed D.R. Horton’s and DRHI’s claims against Savannah, thus making the court’s order on the motion to reconsider and motions for summary judgment final and appealable. 2 This appeal followed.

III. Motion for Continuance

In their first sub-issue, D.R. Horton and DRHI contend the trial court abused its discretion by not continuing the January 13, 2012 submission of Savannah’s motions for summary judgment. D.R. Horton and DRHI allege they did not have adequate time prior to the submission date to conduct discovery on their claims and on Savannah’s res judicata, novation, and limitations defenses. .In response, Savannah contends D.R. Horton and DRHI failed to preserve error on this sub-issue because they did not set the motion for continuance for hearing or bring it to the trial court’s attention. Savannah also contends that the trial court did not abuse its discretion by denying D.R. Horton’s and DRHI’s motion for continuance because D.R.

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416 S.W.3d 217, 2013 WL 5946545, 2013 Tex. App. LEXIS 13763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dr-horton-texas-ltd-and-drhi-inc-v-savannah-properties-associates-texapp-2013.