Gaedeke Holdings II, Ltd. v. Chait and Henderson, P.C. D/B/A Uptown Vision

CourtCourt of Appeals of Texas
DecidedDecember 29, 2022
Docket05-20-01048-CV
StatusPublished

This text of Gaedeke Holdings II, Ltd. v. Chait and Henderson, P.C. D/B/A Uptown Vision (Gaedeke Holdings II, Ltd. v. Chait and Henderson, P.C. D/B/A Uptown Vision) 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
Gaedeke Holdings II, Ltd. v. Chait and Henderson, P.C. D/B/A Uptown Vision, (Tex. Ct. App. 2022).

Opinion

Reverse and Remand in part; Affirm in part and Opinion Filed December 29, 2022

In The Court of Appeals Fifth District of Texas at Dallas No. 05-20-01048-CV

GAEDEKE HOLDINGS II, LTD., Appellant V. CHAIT AND HENDERSON, P.C. D/B/A UPTOWN VISION, Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-18-03350

MEMORANDUM OPINION Before Justices Schenck, Molberg, and Pedersen, III Opinion by Justice Molberg

In this commercial lease dispute, appellant Gaedeke Holdings II, Ltd.

(“Gaedeke”) and appellee Chait and Henderson, P.C. d/b/a/ Uptown Vision

(“Uptown”) appeal a final judgment in favor of Uptown on its breach of contract and

declaratory judgment claims against Gaedeke. Gaedeke argues the trial court erred

as a matter of law in interpreting the parties’ lease or, alternatively, in concluding

Gaedeke failed to prove mutual mistake. In a cross-issue, Uptown argues the trial

court erred in its award of attorney’s fees. In this memorandum opinion, see TEX.

R. APP. P. 47.4, because we resolve Gaedeke’s first issue in its favor, we reverse the judgment in favor of Uptown and order it take nothing on its claims for breach of

contract, declaratory relief, and attorney’s fees against Gaedeke; remand to the trial

court for re-entry of judgment consistent with our opinion as it relates to Gaedeke’s

breach of contract and declaratory judgment claims and for a determination of any

attorney’s fees to which Gaedeke may be entitled; and otherwise affirm the trial

court’s judgment.

I. BACKGROUND On June 16, 2016, the parties entered into a Lease entitled “Triple Net Lease

Agreement” (the “Lease”).1 Gaedeke is the landlord; Uptown, the tenant.

After a dispute arose regarding the calculation of rent—a term the Lease

specifically defines2—Uptown sued Gaedeke and two others who are not parties to

this appeal.3 Against Gaedeke, Uptown asserted breach of contract, declaratory

judgment, and various tort claims, the latter of which are not at issue in this appeal.

Gaedeke generally denied Uptown’s claims, raised various affirmative defenses, and

1 See Hoppenstein Props., Inc. v. Schober, 329 S.W.3d 846, 850 n.2 (Tex. App.—Fort Worth 2010, no pet.) (“A triple net lease is one in which the tenant’s rent includes a percentage of the landlord’s real property taxes, insurance, and common area maintenance charges for the property in addition to the basic rent.”); see also Lease (net-net-net lease), BLACK’S LAW DICTIONARY (11th ed. 2019) (defining “net-net- net lease,” also known as a “triple net lease,” as “[a] lease in which the lessee pays all the expenses, including mortgage interest and amortization, leaving the lessor with an amount free of all claims.”). 2 The Lease states, “‘Rent’ means “Base Rent,” plus “Parking Fees,” and its “Pro Rata Share” [i.e. 1.88 percent of] its “Electricity Costs” and all “Basic Costs,” and “all other sums of money owed to [Gaedeke] under the lease. Each of those capitalized, quoted phrases is specifically defined in the parties’ lease, including “Basic Costs,” a phrase defined in a roughly two-page span in the Lease, some of which we include below. 3 The trial court entered a take nothing judgment on Uptown’s claims against William Sale and Transwestern Commercial Services, LLC. Uptown has raised no issue regarding that portion of the judgment on appeal. –2– asserted various counterclaims against Uptown, including a counterclaim for breach

of contract. Gaedeke also sought declaratory relief.

As to their competing breach of contract claims, in their pleadings, Uptown

claimed Gaedeke breached the Lease by “choosing to enforce lease terms to which

neither party has ever agreed, but to which Gaedeke wishes the party had agreed”

and interfered with Uptown’s performance under the Lease by asking Uptown to pay

more than is due and by “refusing to accept as full monthly payments the payments

made in compliance with the Lease.” In addition to other alleged breaches of the

Lease not at issue in this appeal,4 Gaedeke claimed Uptown breached the Lease by

failing to pay the full amount of rent due under the Lease.

The case was tried in a four-day bench trial beginning February 17, 2020. On

May 26, 2020, the trial court signed an interlocutory judgment entitled “Final

Judgment Except for Determination of Attorneys’ Fees” in favor of Uptown on its

declaratory judgment and breach of contract claims. Both parties submitted post-

trial briefing on attorney’s fees, and the court conducted a post-trial hearing on that

issue on June 17, 2020.

On November 17, 2020, the trial court signed a twelve-page final judgment

for Uptown against Gaedeke on Uptown’s declaratory judgment and breach of

4 Gaedeke’s pleading also claimed Uptown breached the Lease in other respects by allegedly violating a non-disclosure provision and by filing this action without providing notice to Gaedeke’s mortgagees as required under the Lease. None of these other breach of contract claims are pertinent to this appeal, and we do not address them.

–3– contract claims. Among other things, the trial court included in the final judgment

five declarations in connection with Uptown’s declaratory judgment claim,5 entered

a take nothing judgment on Uptown’s other claims, entered a take nothing judgment

on Gaedeke’s counterclaims against Uptown, denied all relief requested but not

granted therein, and awarded Uptown certain amounts, including release of certain

funds in the court’s registry, as well as $73,345.60 in attorney’s fees plus other

amounts in the event Uptown successfully defends the matter on appeal.

Two days later, the trial court signed findings of fact and conclusions of law,

which included the following paragraph:

Under the plain meaning of the terms of the Lease, for purposes of computing [Uptown’s] pro rata share of those Basic Costs excluded from the 6% cap in Paragraph 1(b) of the Lease, [Uptown] was only

5 This portion of the judgment stated: IT IS THEREFORE ORDERED, ADJUDGED, and DECREED that pursuant to the Uniform Declaratory Judgments Act, codified as Ch. 37 of the Texas Civil Practice & Remedies Code, the Court hereby makes the following declarations:

i. Uptown Vision is not in default of the Lease Agreement dated June 16, 2016 between [Gaedeke] as Landlord and [Uptown] as Tenant . . .;

ii. Gaedeke has no present right to terminate the Lease;

iii. Gaedeke has no present right to change the locks to the Premises, or otherwise lock [Uptown] out from the Premises;

iv. For purposes of computing [Uptown’s] pro rata share of those Basic Costs excluded from the 6% cap in Paragraph 1(b) of the Lease, [Uptown] was only obligated to pay Gaedeke for any increase in those Basic Costs since the first year of the lease term;

v. For purposes of computing [Uptown’s] pro rata share of controllable Basic Costs, controllable Basic Costs of the first calendar year of the Lease term was capped to 110% of Gaedeke’s estimate of [Uptown’s] first year Basic Costs, which was $1,018.00;

–4– obligated to pay Gaedeke for any increase in those Basic Costs since the first year of the lease term; and for purposes of computing [Uptown’s] pro rata share of controllable Basic Costs, controllable Basic Costs of the first calendar year of the Lease term was capped to 110% of Gaedeke’s estimate of [Uptown’s] first year Basic Costs, which was $1,018.00.

The trial court included portions of this paragraph in its final judgment6 and

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Gaedeke Holdings II, Ltd. v. Chait and Henderson, P.C. D/B/A Uptown Vision, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaedeke-holdings-ii-ltd-v-chait-and-henderson-pc-dba-uptown-vision-texapp-2022.