Harmon v. 1401 Elm Street Condominium Ass'n

139 S.W.3d 411, 2004 WL 1206137
CourtCourt of Appeals of Texas
DecidedAugust 4, 2004
Docket05-03-01025-CV
StatusPublished
Cited by3 cases

This text of 139 S.W.3d 411 (Harmon v. 1401 Elm Street Condominium Ass'n) 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
Harmon v. 1401 Elm Street Condominium Ass'n, 139 S.W.3d 411, 2004 WL 1206137 (Tex. Ct. App. 2004).

Opinion

OPINION

Opinion by

Justice JAMES.

In this breach of contract and declaratory judgment action brought by 1401 Elm Street Condominium Association (the Association), P.J. Murphy Harmon appeals the summary judgment granted in favor of the Association. In three issues, Harmon argues the court erred in (1) granting the Association’s motion for summary judgment because the lease did not permit the Association’s appraisement procedure; (2) denying Harmon’s summary judgment motion because the lease did not permit the Association’s appraisement procedure; and (3) entering judgment for the total amount of damages against Harmon because the Association settled with other defendants. We affirm the trial court’s judgment.

Background

The Association is the lessee in a ninety-nine year lease covering real property in Dallas, Texas. Harmon is one of several successor lessors. The lease, which commenced on January 1, 1961, provided for a fixed rental amount to apply to ten-year periods, with a pre-determined amount to apply to the first twenty years — $838.33 per month for the first ten years and $1000.00 per month for the next ten years. Paragraph four of the lease addresses computation of rent after the first twenty years, providing for monthly rent to be “one-half of one percent (½ of 1%) of the value of the leased premises, as determined by the most recent previous appraisal, as hereinafter provided, except that no such monthly rental payment shall ever be less than that, as aforesaid, for the second ten (10) years’ period.” Section (d) of paragraph four addresses subsequent appraisals.

From 1991 through 2000, the rental amount was $1875 per month. In 2000, the Association sought to have the property appraised, and the property’s value was found to be $140,000. Under Paragraph Four, the new rent would be $1000 because one-half of one percent of the appraised value fell below the $1000 per month floor. The Association received the appraisal in May 2000, and on June 6, 2000, it notified the lessors they had received a copy of the appraisal and recommended that the lessors appoint an appraiser as per the lease. One of the lessors, Harmon, disputed his obligation to retain an appraiser. In December 2000, the Association requested a change in the rental amount based on its 2000 appraisal. The lessors, however, contended the appraisal was invalid and that if the full rental amount was not paid, it would be a breach of the lease.

The Association continued to pay monthly rent in an amount of $1875, but it sought a declaratory judgment in April 2001. The Association asked the court to declare that the Association had a valid appraisal done; the lessors were obligated to appoint an appraiser or accept one from the court; the monthly rent should be based on the reappraisal; and the Association’s payment of rent based on the reappraisal would not constitute breach of the lease. The Association also contended the lessors had breached the lease contract, and it sought damages, attorney’s fees, and costs.

The Association moved for appointment of an appraiser in November 2001. The lessors contended that because no appraisal had been completed in the first three months of 2000, the rental amount should remain $1875 per month. The trial court, however, granted the Association’s motion and appointed an appraiser on February *413 18, 2002, ordering the lessors to retain the appointed appraiser. The lessors, however, did not do so. In August 2002, the Association amended its petition, asking the court to also declare that since January 1, 2001, the rental amount did not exceed $1000 per month and that the lessors failed to comply with their obligation to appoint an appraiser. The Association filed a motion to compel lessors to retain the appointed appraiser, which was granted on October 3, 2002. The appraisal was completed, and the property was valued at $187,500. The monthly rental calculated under this value is $1000 because one-half of one percent is less than the $1000 floor. After receiving the October 2002 appraisal, in November 2002, the Association moved for summary judgment, stating there were no contested fact issues and it was entitled to judgment as a matter of law.

The lessors filed a response and a summary judgment motion, arguing it was undisputed that the Association had not had a valid reappraisal performed and had breached the lease by failing to fulfill requirements to have an appraisal performed. The lessors argued the Association had not complied with its obligations under the lease. They alleged the Association was required to meet, attempt to agree prior to any reappraisal, appoint a representative, and notify the lessors “promptly.”

In March 2003, the trial court granted the Association’s motion. The court found the appropriate amount of rent as of January 1, 2001 was $1000 per month. The court further found that the lessors had received $23,625 in rent overpayments and ordered the lessors to pay the Association damages in that amount as well as prejudgment interest. The court denied the lessors’ motion for summary judgment and set a date for trial for determination of the issue of attorney’s fees. In May, the Association nonsuited — with prejudice — all of the lessors other than Harmon; they had reached a settlement. The Association also nonsuited its attorney’s fees claim against Harmon without prejudice. This was its only remaining claim. The Association moved for final judgment, based on the summary judgment, and the final judgment was entered in June 2003. After judgment was entered, Harmon responded to the Association’s motion for final judgment, requesting a credit for the sums the Association would be receiving from the settling lessors, and Harmon filed a notice of appeal.

The Appraisal Procedure

/ Summary Judgment

In his first and second issues, Harmon complains the court erred in granting the Association’s summary judgment motion and denying his summary judgment motion because the appraisal procedure used by the Association was not permitted by the lease. Harmon alleges that under the lease contract, the Association was required to meet and to attempt to agree before the end of March 2000 in order to have the right to have the property reappraised.

Standard of Review

Because the parties do not dispute the relevant facts, this is a proper case for summary judgment. See Gaines v. Hamman, 163 Tex. 618, 358 S.W.2d 557, 563 (1962). When both parties move for summary judgment, each party bears the burden of establishing that it is entitled to judgment as a matter of law. See City of Garland v. Dallas Morning News, 22 S.W.3d 351, 356 (Tex.2000); Guynes v. Galveston County, 861 S.W.2d 861, 862 (Tex.1993). When the trial court grants one motion and denies the other, the reviewing court should determine all ques *414 tions presented. See Comm’rs Court of Titus County v. Agan, 940 S.W.2d 77, 81 (Tex.1997); Jones v. Strauss,

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139 S.W.3d 411, 2004 WL 1206137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harmon-v-1401-elm-street-condominium-assn-texapp-2004.