Garza v. Southland Corp.

836 S.W.2d 214, 1992 Tex. App. LEXIS 1793, 1992 WL 148294
CourtCourt of Appeals of Texas
DecidedJuly 2, 1992
DocketA14-90-00874-CV
StatusPublished
Cited by29 cases

This text of 836 S.W.2d 214 (Garza v. Southland Corp.) 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
Garza v. Southland Corp., 836 S.W.2d 214, 1992 Tex. App. LEXIS 1793, 1992 WL 148294 (Tex. Ct. App. 1992).

Opinion

OPINION

DRAUGHN, Justice.

This is an appeal from a judgment in favor of Southland Corporation. Appellants brought suit against Southland to recover for breach of a contract to purchase real property, and the jury found in favor of Southland. We affirm.

Alfred Gutierrez, Jr. owned a tire store in Bryan, Texas. In connection with the business, appellants purchased the property on which the store was located. Gutierrez’ father-in-law held the mortgage on the property, but he gave Gutierrez authority to sell the property.

In 1984, a representative for Southland informed appellants of its interest in buying the property, and a purchase contract and addendum were signed by appellee. The sale was subject to certain covenants and conditions precedent, the non-satisfaction or non-waiver of which would entitle purchaser to terminate the contract.

The pertinent conditions provided as follows:

(e) There being no easement or restriction which would adversely affect BUYER’S intended construction or use of the PROPERTY.
(h) The approval of the appropriate authorities of the location of the IMPROVEMENTS, as shown on Exhibit B, having been obtained, and a building permit having been issued for the construction of the IMPROVEMENTS, said approval and permit to be applied for and obtained by and at the expense of BUYER.
(i) The SURVEY reflecting conditions which will permit BUYER to construct the IMPROVEMENTS in a manner and at a cost acceptable to BUYER. If the SURVEY shows any variation from the description set forth on Exhibit B, then BUYER shall have the option (1) to terminate this contract without further liability, or (2) to accept the description as disclosed by the SURVEY.
(j) test borings, percolation and other soil tests showing underground conditions satisfactory to BUYER being obtained by and at the expense of BUYER.

The expense of obtaining the building permit and of conducting soil tests were expressly on the purchaser. The contract provided elsewhere that Seller pay for a topographic survey for extended coverage title insurance and a report describing property and certifying encroachments.

Nevertheless, appellee obtained a survey at its expense. The survey revealed a floodplain easement. Pursuant to request by appellants, Southland informed Citizens Bank of the purchase agreement and that the City of Bryan required Southland to obtain city approval of a “lot split” to utilize the property. After obtaining the City’s approval, Southland would be ready to close the purchase. The result of a “lot split” would put Southland’s proposed building in a 100-year floodplain. Appellants informed appellee that it would have to take care of that problem itself. Appel-lee’s representative did not respond.

As the City prohibited building the intended structure (a 7-Eleven food store and gas station) in the floodplain, South-land was required to relocate the proposed site. In a desire to obtain full use of the *217 property, appellee requested a study which revealed that an existing creek on the property could be modified. Such a modification, however, required approval by the Federal Emergency Management Agency (FEMA). Appellants knew of the FEMA requirements prior to signing the contract. FEMA subsequently gave its approval.

The City of Bryan then informed the parties of two requirements before it would file a replat of the property. First, Mr. Garrett, the owner of Garrett Engineering who had been retained by Southland, would have to file a corrected site plan and plat with the City. Second, Mr. Gutierrez would have to submit a letter of credit for $22,000.00 with the City. Garrett filed a corrected site plan but Gutierrez did not submit a letter of credit. Gutierrez was reminded twice of his responsibility but he did not act.

Pursuant to tests conducted on the soil, Southland was informed that the levels of hydrocarbon exceeded EPA standards. The cost to remedy this problem would be about $6,500.00. Additionally, in order to develop a foundation for the store on top of fill material needed for the property modification, the cost would have been prohibitive.

Finally, appellee proposed a contract amendment for the sale of the entire tract, on condition that Chief Auto Parts also move onto the property. Chief Auto Parts refused to move onto that location so Southland declined to enter into the amendment.

In appellants’ first point of error, they complain that the trial court erred in entering judgment on the jury findings because the conditions precedent to South-land’s obligation were either met or waived or were within Southland’s control and it chose not to perform the conditions precedent.

The record shows that there were encumbrances adversely affecting Southland’s intended use, namely the floodplain. Additionally, Southland could not obtain city approval of a replat on the property because appellants would not submit the required letter of credit. The results of the soil tests conducted on the proposed site also revealed that the underground conditions were not satisfactory as remedial work would be necessary to comply with EPA standards. We find that the conditions precedent had not been met, and that Southland had not waived the performance of these conditions. We also find that the conditions precedent were not within the control of appellee and that it did not cause the non-performance of the conditions. The first point of error is overruled.

In their second point of error, appellants contend that there was no evidence to support the jury’s finding on question number one. Question number one defined “condition precedent” and asked “[d]o you find from a preponderance of the evidence that the Southland Corporation failed to perform its obligation(s) under the Purchase contract signed by Southland on November 9, 1984?” The jury was then instructed as to the four conditions, stated above, as to easements, approval, survey, and soil tests. The jury responded negatively.

In reviewing a “no evidence” point of error, we must look only to the evidence and inferences favorable to the jury finding, disregarding all evidence to the contrary. See Best v. Ryan Auto Group, 786 S.W.2d 670, 671 (Tex.1990). If there is some evidence, more than a mere scintilla, then the challenge fails. See Responsive Terminal Sys. v. Boy Scouts of America, 774 S.W.2d 666, 668 (Tex.1989).

The evidence stated in the first point of error revealed that of the four pertinent conditions precedent, none of them were satisfied or waived by Southland. Indeed, Southland attempted to correct problems on the proposed site without cooperation from appellants, and Southland finally felt compelled to terminate the purchase. There was ample evidence to support the jury finding that Southland had not failed to perform its obligation. The second point of error is overruled.

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Bluebook (online)
836 S.W.2d 214, 1992 Tex. App. LEXIS 1793, 1992 WL 148294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garza-v-southland-corp-texapp-1992.