Goldman v. Alkek

850 S.W.2d 568, 1993 WL 24001
CourtCourt of Appeals of Texas
DecidedApril 8, 1993
Docket13-91-227-CV
StatusPublished
Cited by21 cases

This text of 850 S.W.2d 568 (Goldman v. Alkek) 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
Goldman v. Alkek, 850 S.W.2d 568, 1993 WL 24001 (Tex. Ct. App. 1993).

Opinions

OPINION ON MOTION FOR REHEARING

NYE, Chief Justice.

We withdraw our former opinion and substitute the following. John and Henry Goldman (appellants) filed suit against Warren and Maureen Alkek to terminate a commercial lease, alleging breach of contract and fraud. The Goldmans also sought declaratory relief to establish that Alkek breached the lease. Warren Alkek counter-sued for damages, for a declaration of the amount of rent due under the lease, and a determination that he was not in default.

The parties tried the case to a jury. The Goldmans submitted their cause on breach of contract and fraud. Alkek alleged breach of contract and deceptive trade practices.1 The jury answered every question in Alkek’s favor. The trial court rendered judgment for actual damages, additional damages under the Texas Deceptive Trade Practices Act, attorney’s fees, and prejudgment interest in the total amount of $210,097.26. The court denied the Gold-mans’ motion for judgment non obstante veredicto, motion for new trial, and motion to modify, correct, or reform the judgment.

By ten points of error, the Goldmans claim that the trial court erred in overruling the above-referenced motions because the evidence is legally insufficient to support the jury’s findings, and because the findings are against the great weight and preponderance of the evidence. The Gold-mans also contend that Maureen Alkek is not a proper party to the suit, that judgment rendered for her is improper, and that the award of certain damages and attorney’s fees is excessive. We modify the judgment, and, as modified, we affirm.

John and Henry Goldman own property in Victoria County. They entered a ground lease with Warren Alkek and his partner, Galen May. May later assigned his lease interest to Maureen Alkek, Warren Alkek’s mother. The lease term was thirty years. It provided that Alkek would build a convenience store (the Oak Hill Store) and install fuel pumps on the far northeasterly side of the property. The parties agreed that Al-kek would pay a “minimum guaranteed rental” of $750 per month on the northeasterly portion of the property. That amount would be adjusted yearly for inflation, [571]*571starting the second year of the lease. In addition to the minimum guaranteed rental, the lease required additional rent based upon a percentage of gross sales from the store. Alkek further agreed to develop the remainder of the property and pay as rent a percentage of the reasonable monthly rental value of the existing buildings, whether occupied or not.

Alkek was to keep adequate records, conforming to generally accepted accounting principles, by which the gross sales would be determined. The books were subject to audit at the Goldmans’ option.

Alkek built a structure housing the Oak Hill Food Store, the Oak Hill Liquor Store, and a video store, on the northeasterly portion of the land. Thereafter, the Gold-mans complained that Alkek failed to pay percentage rentals on gross sales from the liquor and video stores and that he had violated other express provisions of the lease. After making several demands for the alleged delinquent payments, the Gold-mans filed suit and sent Alkek a termination notice. Warren Alkek counterclaimed alleging violations of the DTPA and requesting a declaration that he did not breach the lease since he complied with all the Goldmans’ demands. He further requested the trial court to construe how much rent was owed under the lease. Al-kek based his DTPA claims on grounds that the Goldmans’ demands for increased rent violated the lease’s warranty of quiet enjoyment and required him to perform obligations not called-for under the lease.

By points two and four, the Gold-mans claim that the trial court erred in submitting question 8, in overruling their motion for judgment non obstante veredic-to and their motion for new trial because there is no evidence to support all of the elements of a breach of the warranty of quiet enjoyment. In the alternative, appellants claim that the jury’s answer to question 8 is against the great weight and preponderance of the evidence. Question 8 asks the jury whether the Goldmans breached the implied warranty of quiet enjoyment. Both parties agree that, since the lease contains an express warranty of quiet enjoyment, the express clause governs and abrogates any implied warranty of quiet enjoyment. Exxon Corp. v. Atlantic Richfield Co., 678 S.W.2d 944, 947 (Tex.1984). Since we find that both legally and factually sufficient evidence exists to justify the submission of question 72 and the trial court’s denial of the Goldmans’ motion for new trial, we overrule points two and four.

By their first and third points, the Gold-mans contend that the trial court erred in submitting question 7 to the jury, and in overruling their motion for judgment non obstante veredicto because there is no evidence to show all of the elements of a breach of the express warranty of quiet enjoyment. Alternatively, they claim the trial court erred in overruling their motion for new trial because the jury’s finding of breach is against the great weight and preponderance of the evidence.3 The Gold-mans claim that Alkek did not prove all of the elements of his cause of action for breach of the warranty of quiet enjoyment because there is no evidence that their acts hindered his possession and use of the property to such an extent that he abandoned it.

Traditionally, a tenant establishes breach of the warranty of quiet enjoyment by showing: (1) an intention of the landlord that the tenant no longer enjoy the premis[572]*572es; (2) a material act by the landlord that substaptially interferes with the intended use and enjoyment of the premises; (3) permanent deprivation of the tenant’s use and enjoyment of the premises; and (4) abandonment of the premises within a reasonable time after the commission of the act. Coleman v. Rotana, 778 S.W.2d 867, 872 (Tex.App.—Dallas 1989, writ denied); Fidelity v. Mut. Life Ins. Co. v. Kaminsky, 768 S.W.2d 818, 819 (Tex.App.—Houston [14th Dist.] 1989, no writ); Stillman v. Youmans, 266 S.W.2d 913 (Tex.Civ.App.—Galveston 1954, no writ); see Quitta v. Fossati, 808 S.W.2d 636, 643 (Tex.App.—Corpus Christi 1991, writ denied). Although Texas case law generally requires proof of abandonment to establish a breach of the warranty of quiet enjoyment, these cases do not control here. Generally in eases where a breach of the warranty of quiet enjoyment is claimed, a landlord seeks to collect rent payments still remaining under the lease when his tenant has already abandoned the property. By way of defense, the tenant will claim that he is not obligated to pay the remaining installments because the landlord has breached the warranty of quiet enjoyment or has constructively evicted him. If he proves his claim, the lease is effectively rescinded, and the tenant will be excused from any further obligation to pay rent.

The present case differs from most breach of quiet enjoyment cases because Alkek did not seek to avoid paying rent or to effectively rescind the lease.

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Goldman v. Alkek
850 S.W.2d 568 (Court of Appeals of Texas, 1993)

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Bluebook (online)
850 S.W.2d 568, 1993 WL 24001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldman-v-alkek-texapp-1993.