Garden Ridge, L.P. v. Clear Lake Center, L.P.

504 S.W.3d 428, 2016 Tex. App. LEXIS 10649, 2016 WL 5497501
Court of Appeals of Texas·Decided September 29, 2016·No. NO. 14-15-00695-CV·Published·Cited by 32 cases

Opinion

OPINION

Sharon McCally, Justice

Garden Ridge, L.P. is a commercial tenant of Clear Lake Center, L.P. Garden Ridge sued Clear Lake Center for breach of the lease, claiming that Clear Lake Center overcharged common area maintenance (CAM) costs by including a fee paid to a third party for managing the entire property rather than just the common area.' In a prior appeal, we reversed summary judgment for Garden Ridge because Garden Ridge failed to conclusively prove that its damages amounted to the entire manage *434 ment fee Clear Lake Center had charged. See Clear Lake Center, L.P. v. Garden Ridge, L.P., 416 S.W.3d 527, 540 (Tex. App.—Houston [14th Dist.] 2013, no pet.).

On remand, the case was tried to a jury. The jury found that (1) Clear Lake Center failed to prove its affirmative defenses, (2) Garden Ridge was entitled to damages and attorney’s fees for Clear Lake Center’s breach of the lease, (3) Clear Lake Center was entitled to some damages for money had and received, and (4) Clear Lake Center incurred no reasonable and necessary attorney’s fees. The trial court signed a judgment consistent with the jury’s verdict for Garden Ridge to recover $594,700 in damages, $350,000 for trial attorney’s fees, and appellate attorney’s fees. The court awarded Garden Ridge five percent post-judgment interest and no prejudgment interest. 1

Both parties appealed. Clear Lake Center contends in its appeal that (1) Clear Lake Center conclusively established its affirmative defenses, (2) the trial court erred by excluding evidence regarding Clear Lake Center’s affirmative defenses under the parol evidence rule, (3) the jury’s findings of liability and damages are unsustainable based on the trial court’s error in the second issue, (4) Garden Ridge was not entitled to recover attorney’s fees, (5) the trial court erred by including damages in the judgment that were barred by the statute of limitations, and (6) Clear Lake Center was entitled to attorney’s fees as a matter of law, and the jury’s finding of $0 for Clear Lake Center’s attorney’s fees is unsustainable. Garden Ridge contends in its appeal that the trial court erred by (1) failing to award post-judgment and prejudgment interest at a contractual rate of eighteen percent, or alternatively, (2) failing to award prejudgment interest at the statutory rate of five percent.

We sustain Clear Lake Center’s fifth issue and Garden Ridge’s second issue. Thus, we modify the trial court’s judgment as to the amount of damages and prejudgment interest, and we affirm the judgment as modified.

I. CleaR Lake Center’s Affirmative Defenses

The jury answered “no” to Question 2, which asked whether Clear Lake Center’s failure to comply with the lease was excused by four affirmative defenses. The jury answered “no” to Question 3, which asked whether Garden Ridge was estopped from complaining of Clear Lake Center’s failure to comply.

In its first issue, Clear Lake Center contends it “conclusively established Garden Ridge’s claims are precluded based on affirmative defenses of waiver, ratification, novation, accord and satisfaction, and/or estoppel,” Clear Lake Center argues that the “conclusively established facts and applicable law” show that “Garden Ridge was estopped to challenge how Clear Lake Center determined -the management fees.” Clear Lake Center asks this court to render judgment in its favor.

Garden Ridge contends that Clear Lake Center fáiled to preserve error. Clear Lake Center responds that it preserved error by moving for á directed verdict at the close of Garden Ridge’s case. We agree with Garden Ridge.

When a party attacks an adverse finding on an issue for which the party has *435 the burden of proof, the party must demonstrate on appeal that the evidence establishes as a matter of law all vital facts in support of the issue. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 241 (Tex.2001). The party must prove that the evidence conclusively establishes the proposition contrary to the jury’s finding. Id. This is. a legal sufficiency complaint. See id.

In a case tried to a jury, a legal sufficiency complaint must be preserved in the trial court. Daniels v. Empty Eye, Inc., 368 S.W.3d 743, 748 (Tex.App.— Houston [14th Dist.] 2012, pet. denied). The complaint may be preserved in one of five ways: (1) a motion for instructed verdict, (2) a motion for judgment notwithstanding the verdict, (3) an objection to the submission of the issue to the jury, (4) a motion to disregard the jury’s answer to a vital fact issue, or (5) a motion for nfew trial. Id. at 748-49.

Clear Lake Center contends it preserved error by moving for a directed verdict at the close of Garden Ridge’s evidence when Clear Lake Center said that Garden Ridge should be “as a matter of law, estopped.” 2 Even assuming that Clear Lake Center’s argument at the close of Garden Ridge’s case could be construed as a motion for directed verdict based on estoppel, this motion was not adequate to preserve error about the jury’s findings on Clear Lake Center’s affirmative defenses because Clear Lake Center proceeded to offer evidence after the trial court denied the motion. See Meek v. Onstad, 430 S.W.3d 601, 610 (Tex.App.—Houston [14th Dist.] 2014, no pet.) (“A motion for directed verdict at the close of the plaintiffs case-in-chief is insufficient to preserve a complaint of legal insufficiency of the evidence if a defendant offers evidence after denial of this motion.”); Liberty Mut. Ins. Co. v. Heitkamp, No. 14-12-00873-CV, 2014 WL 261010, at *1-2 & n. 3 (Tex. App.—Houston [14th Dist.] Jan. 23, 2014, pet. denied) (mem. op.) (defendants waived the affirmative defense of statute of limitations because they did not -re-urge their motion for directed verdict at the close of the evidence, and the defendants did not assert that the affirmative defense - was conclusively established in a motion for judgment notwithstanding the verdict, an objection to the jury charge, a motion to disregard a jury finding, or a motion for new trial).

We have reviewed the remainder of the record. Clear Lake Center did not preserve error by any other method. Clear Lake Center did not object to Questions 2 or 3. Nor did any of Clear Lake Center’s post-trial motions or other filings address any of these defenses. “The core principle underlying error-preservation requirements is that the trial court should be given the opportunity to correct potential errors before the case proceeds on appeal.” Heitkamp, 20146WL 261010, at *1. Clear Lake Center did not provide the trial court with an opportunity to render judgment for Clear Lake Center on its affirmative defenses. Accordingly, Clear Lake Center has not preserved error for its appellate complaint that it conclusively established its affirmative defenses.

Clear Lake Center’s first issue is overruled.

II. Exclusion of Evidence

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Garden Ridge, L.P. v. Clear Lake Center, L.P., 504 S.W.3d 428, 2016 Tex. App. LEXIS 10649, 2016 WL 5497501 (Tex. Ct. App. 2016).

504 S.W.3d 428 (Garden Ridge, L.P. v. Clear Lake Center, L.P.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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