Harris County Municipal Utility District No. 48 v. Mitchell

915 S.W.2d 859, 1995 WL 678409
CourtCourt of Appeals of Texas
DecidedDecember 7, 1995
Docket01-94-00712-CV
StatusPublished
Cited by39 cases

This text of 915 S.W.2d 859 (Harris County Municipal Utility District No. 48 v. Mitchell) 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
Harris County Municipal Utility District No. 48 v. Mitchell, 915 S.W.2d 859, 1995 WL 678409 (Tex. Ct. App. 1995).

Opinion

OPINION

TAFT, Justice.

This is an appeal from a judgment awarding contract damages arising out of a loan. Appellee, Edna Jean Mitchell, is the independent executor of the estate of Ray Mitchell, deceased, and trustee for the beneficiaries of Ray Mitchell, trustee. Mitchell sued appellant, Harris County Municipal Utility District No. 48 (the District), over a financial agreement between the District and Mitchell’s predecessor in interest, Killarney Oaks, Inc. The trial court rendered judgment in favor of Mitchell for the principal amount of $120,000, $29,986.41 in attorney’s fees, prejudgment interest at 9½ per cent annually, and post-judgment interest.

The District brings 25 points of error on appeal. The primary issue we are called upon to decide is whether the Texas Water Commission (the Commission) had primary jurisdiction over the determination of the interest rate on a loan from the developer, Killarney Oaks, Inc., to the District for the provision of water and sewer facilities. We will modify the trial court’s judgment and, as modified, affirm.

Background

Harris County Municipal Utility District No. 48 was created in 1972 to provide water and sewage treatment to the Cashel Oaks subdivision, which was developed by Killar-ney Oaks, Inc. The District and Killarney Oaks signed a financial agreement on July 28, 1978, under which Killarney Oaks loaned the District $120,000 so the District could provide services to the subdivision. The agreement provided that the District would “pay interest on such funds as advanced at a rate of 9½% or such lower rate as may be determined by regulatory authorities, compounded annually, until all principal and interest are paid in full.” The loan was to be repaid “at the time (or before) the number of completed homes plus those on which construction has commenced totals 100 units....”

On March 26, 1992, Mitchell, as successor to Killarney Oaks, filed suit against the District to collect on the loan. 1 When the District received notice in May 1992 that construction was commencing on the 100th unit, the District filed a bond application with the Commission on June 2, 1992 to request approval to sell bonds to repay Killarney Oaks, or its successor in interest, the monies owed under the financial agreement. On September 28, 1992, the trial court abated the suit to await the Commission’s ruling on the District’s bond application. On January *862 20, 1993, the Commission approved a bond sale that included payment of $39,096 in interest to Killamey Oaks or its successor in interest. 2 After a bench trial on May 11 and 12,1993, the trial court signed a judgment in Mitchell’s favor on April 13, 1994, enforcing the higher interest rate of 9½ percent. 3 On June 6, 1994, the trial court filed findings of fact and conclusions of law in which the trial court concluded, inter alia, “There has been no lower rate of interest set by regulatory authorities, as that term is used in the Financial Agreement.”

Mitchell’s Standing to Sue

In point of error 25, the District claims the trial court erred in rendering judgment for Mitchell because Mitchell is not a proper party to the suit. We interpret this point as an attack on the legal sufficiency of the evidence regarding Mitchell’s standing to sue. In deciding a legal sufficiency point, we must consider only the evidence and inferences tending to support the finding of the trier of fact and disregard all evidence and inferences to the contrary. Alm v. Aluminum Co. of Am., 717 S.W.2d 588, 593 (Tex. 1986); Garza v. Alviar, 395 S.W.2d 821, 823 (Tex.1965). See generally William Powers, Jr. & Jack Ratliff, Another Look at “No Evidence” and “Insufficient Evidence”, 69 Tex.L.Rev. 515 (1991). A trial court’s find ings of fact are reviewable for legal sufficiency of the evidence by the same standards as are applied to reviewing the legal sufficiency of the evidence supporting a jury’s finding. Anderson v. City of Seven Points, 806 S.W.2d 791, 794 (Tex.1991).

Mitchell introduced evidence that Ray Mitchell, Bryan E. Mitchell, Jr., and Lewis L. Crenshaw obtained ownership of the financial agreement in 1981 through a judgment against Killamey Oaks. Bryan E. Mitchell, Jr. later transferred his interest in the financial agreement to Ray Mitchell. Ray Mitchell filed this lawsuit based on his ownership of 60 percent of the financial agreement and as trustee of the remaining 40 percent owned by the estate of Lewis L. Crenshaw. After Ray Mitchell’s death, his wife, as independent executor of his estate and as trastee for the beneficiaries of Ray Mitchell, trustee, continued the suit. Considering the evidence and inferences tending to support the trial court’s findings of fact regarding Mitchell’s status as a proper party and disregarding all evidence and inferences to the contrary, we hold that Mitchell is a proper party to this suit.

We overrule point of error 25.

Contract Ambiguity

In point of error five, the District claims the trial court erred in rendering judgment for Mitchell because the agreement is ambiguous. The ambiguity alleged is the obligation of the District to pay “interest on such funds as advanced at a rate of 9½% or such lower rate as may be determined by regulatory authorities.” The District contends the agreement is ambiguous because the interest rate can be either 9½ percent or a lower rate as determined by the proper regulatory authority. We disagree.

The question of whether a contract is ambiguous is one of law for the court. The court’s primary concern is to ascertain and to give effect to the intentions of the parties as expressed in the instrument. If the contract is so worded that the court may properly give it a certain or definite legal meaning or interpretation, it is not ambiguous. R & P Enters, v. LaGuarta, Gavrel & Kirk, Inc., 596 S.W.2d 517, 518-19 (Tex.1980). The fact that the agreement set the interest rate as the lesser of 9½ percent or the rate determined by the proper regulatory authority does not make the agreement ambiguous.

We overrule point of error five.

*863 Condition Precedent

In point of error 24, the District claims the trial court erred in rendering judgment for Mitchell because a condition precedent to payment under the agreement was not met. The District argues that Killamey Oaks was obligated to complete or commence construction on 100 homes before May 18,1982. This point is without merit because the finance agreement contains no language obligating Killarney Oaks to take any action by May 18, 1982.

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Bluebook (online)
915 S.W.2d 859, 1995 WL 678409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-county-municipal-utility-district-no-48-v-mitchell-texapp-1995.