Franco v. Lopez

307 S.W.3d 551, 2010 Tex. App. LEXIS 1651, 2010 WL 779332
CourtCourt of Appeals of Texas
DecidedMarch 9, 2010
Docket05-08-01318-CV
StatusPublished
Cited by5 cases

This text of 307 S.W.3d 551 (Franco v. Lopez) 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
Franco v. Lopez, 307 S.W.3d 551, 2010 Tex. App. LEXIS 1651, 2010 WL 779332 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion By

Justice MORRIS.

This is an appeal from the trial court’s judgment awarding appellees Albertano Lopez, Manuel Lopez, and Geronima Val-despino specific performance of a commercial real estate sales contract. In three issues, appellant Jose C. Franco generally complains that appellees are barred from recovering under the contract because they failed to perform their contractual obligations on or before the closing date stated in the contract. In an additional issue, appellant asserts the evidence was legally insufficient to support the trial court’s award of attorney’s fees. After reviewing the record, we conclude appellant’s issues lack merit. Accordingly, we affirm the trial court’s judgment.

I.

The parties’ dispute arises out of a real estate contract in which appellant agreed to sell three parcels of land to appellees Manuel Lopez and Geronima Valdespino for $250,000. 1 The contract is undated and does not indicate the date or dates the individual parties signed the contract. The closing of the sale was to be on or before “January 19, 2007 or within seven days after objections to title have been cured, whichever date is later.” The contract provided “time is of the essence.” It further provided, “The effective date of the contract for performance of all obligations is the date the escrow agent receipts this contract after all parties execute this contract.” The last page of the contract contains a box in which the escrow agent acknowledged receipt of the contract on February 2, 2007 and $1,000 in earnest money. The closing did not occur on January 19, 2007. In the following months, appellees made several additional escrow deposits that are noted on the contract. Appellees attempted to close the sale after receiving the survey, but appellant refused. Appellees then filed this lawsuit seeking, among other things, specific performance of the contract. Following a trial before the court without a jury, the trial judge awarded specific performance of the contract to appellees. Appellant filed this appeal from the trial court’s judgment.

II.

In his first issue, appellant contends the evidence is legally insufficient to support a finding that there was an enforceable contract between the parties. In his second issue, he asserts appellees breached the contract by failing to perform their contractual obligations. Although these issues are argued separately in appellant’s brief, we address them together because the analysis and facts upon which appellant relies to support both issues are very similar. In essence, appellant contends that because appellees defaulted on their contractual obligations they cannot enforce the contract against him. Specifically, appellant contends ap- *554 pellees’ failure to deposit the escrow payment, obtain a survey, or appear for closing on or before January 19, 2007 bars their claims. We disagree.

In a nonjury trial, if no findings of fact or conclusions of law are requested by the parties or filed by the trial court, we imply all necessary findings to support the judgment. See Mag Instrument, Inc. v. G.T. Sales, Inc., 294 S.W.3d 800, 805 (Tex.App.-Dallas 2009, pet. filed). Where, as here, the appellate record contains a reporter’s and clerk’s record, appellant may challenge the legal and factual sufficiency of these implied findings the same as findings made by the trier of fact. Id.

As noted above, the effective date of the contract was February 2, 2007, the date the escrow agent received an executed copy of the contract. Pursuant to the contract, appellees were required to deposit $500 in earnest money no later than three days after February 2, 2007. The evidence shows the escrow agent received a $1,000 earnest money deposit from ap-pellees on February 2, 2007. Moreover, the contract’s survey provision did not specify a date by which the survey had to be obtained and furnished to appellant. Contrary to appellant’s contention, appel-lees’ failure to perform these obligations by January 19, 2007, before the contract became effective, did not constitute a breach or prevent them from enforcing the contract. In fact, the contract specifically contemplated a closing date after January 19, 2007 if objections to the title had not been cured by that date. Yet the obligations to provide the title commitment from which any objections would be made did not begin to run until February 2, 2007, the contract’s effective date. Considering the record as a whole, the evidence supports the trial court’s implied finding that an enforceable contract existed between the parties and that appellees did not breach the contract by failing to perform its obligations or close on or before January 19, 2007.

Appellant also argues that Manuel Lopez’s execution of a “Release of Earnest Money and Contract” dated April 27, 2007 supports his position that appellees’ claims are barred. The release was signed only by Lopez and no other party to the real estate contract. Moreover, even after the release was executed, appellees maintained $1,000 in earnest money on deposit with the escrow agent. Finally, the trial court ruled appellant had waived the affirmative defense of release by failing to raise it in his responsive pleading. Appellant has not challenged that ruling on appeal. Based on the record before us, we cannot say the trial court erred in concluding that appel-lees had a right to enforce the contract. We resolve appellant’s first and second issues against him.

In his third issue, appellant asserts that appellees are not entitled to specific performance because they failed to tender performance by the required dates under the contract. Generally, where a contract provides that “time is of the essence,” a party must tender performance within the specified time to be entitled to specific performance. See 17090 Parkway, Ltd. v. McDavid, 80 S.W.3d 252, 255 (Tex.App.Dallas 2002, pet. denied). We have already considered and rejected appellant’s complaints based on appellees’ failure to perform by January 19, 2007.

To the extent appellant’s brief can be read to assert appellees are barred from seeking specific performance because, after January 19, 2007, they never tendered the full amount of the purchase price, we note that appellant never presented this complaint to the trial court. By failing to present this theory to the trial court, appellant has waived error on *555 appeal with respect to this issue. Tex. R.App. P. 33.1(a). Absent waiver, however, we would still conclude that appellant’s argument lacks merit. Texas cases have long recognized that where a party openly refuses to perform his part of the contract a plaintiff need not tender performance before bringing suit. See McDavid, 80 S.W.3d at 256. Where tender of performance is excused, a party must plead and prove he is ready, willing, and able to perform. Id. In this case, there is ample evidence from which the trial court could have found that appellant openly refused to perform his part of the contract and that appellees were ready, willing, and able to perform their obligations under the contract.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
307 S.W.3d 551, 2010 Tex. App. LEXIS 1651, 2010 WL 779332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franco-v-lopez-texapp-2010.