Harry Hines Millennium Market Place, LLC v. Pawn TX, Inc. F/K/A First Cash, Ltd.

CourtCourt of Appeals of Texas
DecidedFebruary 28, 2023
Docket05-21-00778-CV
StatusPublished

This text of Harry Hines Millennium Market Place, LLC v. Pawn TX, Inc. F/K/A First Cash, Ltd. (Harry Hines Millennium Market Place, LLC v. Pawn TX, Inc. F/K/A First Cash, Ltd.) 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
Harry Hines Millennium Market Place, LLC v. Pawn TX, Inc. F/K/A First Cash, Ltd., (Tex. Ct. App. 2023).

Opinion

Affirmed and Opinion Filed February 28, 2023

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-21-00778-CV

HARRY HINES MILLENNIUM MARKET PLACE, LLC, Appellant V. PAWN TX, INC. F/K/A FIRST CASH, LTD., Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-20-02585

MEMORANDUM OPINION Before Justices Molberg, Partida-Kipness, and Carlyle Opinion by Justice Partida-Kipness The case involves a commercial lease dispute. Appellant Harry Hines

Millenium Market Place, LLC (Harry Hines) contends appellee Pawn TX, Inc. f/k/a

First Cash, Ltd. (Pawn TX) failed to vacate the premises at the end of the lease and

became a holdover tenant for two months. Harry Hines appeals the summary

judgment dismissing its breach of contract action and the judgment in favor of Pawn

TX on its Chapter 93 counterclaim for bad faith retention of Pawn TX’s security

deposit. We affirm. BACKGROUND

This case involves a lease of commercial property located at 11250 Harry

Hines Boulevard, Dallas, Texas 75229 (the Property). The original parties to the

Lease were Harry Hines as landlord and National Jewelry Exchange, Inc. (National

Jewelry) as tenant. In 2009, National Jewelry assigned the Lease to First Cash Ltd.

n/k/a Pawn TX, Inc. Following the assignment, Pawn TX operated a pawn shop

business at the Property. The Lease term ended on May 31, 2013. The Lease,

however, included two separate five-year option periods through which the parties

had the option to extend the lease term. On January 23, 2013, Harry Hines and Pawn

TX triggered the first option period, amended the Lease, and extended the lease term

from June 1, 2013, to May 31, 2018. As the Lease neared the end of its term, Pawn

TX attempted to negotiate a lower monthly rent payment. Negotiations were

unsuccessful, and Pawn TX decided to relocate its business to a different location

(the New Property). Pawn TX made its last monthly lease payment to Harry Hines

on May 1, 2018, in the amount of $10,639.18. According to Mike McCollum, Pawn

TX’s district manager, Pawn TX “vacated and surrendered” the Property to Harry

Hines on May 31, 2018.

Pawn TX transmitted a “Notice of Forwarding Address and Demand for

Security Deposit” (the Notice and Demand) to Harry Hines on July 12, 2018. In the

Notice and Demand, Pawn TX requested that Harry Hines return Pawn TX’s security

deposit of $9,252.00 and provided its forwarding address to which the deposit could

–2– be mailed. Harry Hines did not return the security deposit. Pawn TX sent additional

demands for the return of its security deposit on July 22, 2019, August 14, 2019, and

April 24, 2020. Harry Hines has not returned the security deposit.

On February 14, 2020, Harry Hines filed the underlying lawsuit for breach of

contract against Pawn TX. Harry Hines alleged in its petition that Pawn TX “failed

to vacate the premises and remained in possession of the Demised Premises for an

additional two (2) months” and owed Harry Hines $31,919.40 in holdover rent

pursuant to Section 18.1 of the Lease, which provides:

In the event Tenant remain [sic] in possessions [sic] of the Demised Premises after the expiration of this lease and without the execution of a new lease it shall be deemed to be occupying said premises as a tenant from months to months [sic] at rental (including any percentage rental) herein provided plus fifty percent of such amount otherwise subject to all the conditions, provisions and obligations of this lease insofar as the same are applicable to months-to month tenancy.

Pawn TX filed a general denial and, on July 21, 2020, filed counterclaims for breach

of contract and bad faith failure to return the security deposit in violation of Chapter

93 of the property code. Pawn TX sought actual damages in the amount of its

security deposit and statutory damages of $27,856.00.

On May 7, 2021, Pawn TX moved for summary judgment on its counterclaims

and on Harry Hines’s breach of contract claim. Pawn TX’s motion as to Harry

Hines’s breach of contract claim was a hybrid motion alleging both no evidence and

traditional grounds. Pawn TX argued (1) there was no evidence Pawn TX breached

the lease, and (2) Pawn TX owed no holdover rent as a matter of law because the

–3– evidence conclusively established Pawn TX vacated the premises before the lease

expiration date. Pawn TX’s motion on its Chapter 93 counterclaim was a traditional

motion for summary judgment in which Pawn TX argued Harry Hines acted in bad

faith by failing to return the security deposit. Pawn TX included the following

evidence in support of its motions: the Lease, the 2009 assignment, the Notice and

Demand, the three additional letters and emails to Harry Hines demanding return of

the security deposit, Harry Hines’s responses to interrogatories and requests for

production, the Declaration of Mike McCollum, Pawn TX’s District Manager, the

Declaration of Robert Epley, Pawn TX’s Construction Coordinator, a general ledger

report, documentation concerning the New Property, and an attorney’s fees affidavit.

In response to an interrogatory asking Harry Hines to identify the date on

which it contends Pawn TX surrendered the Property, Harry Hines stated that Pawn

TX surrendered the Property “on or about August or September 2018.” In response

to an interrogatory asking Harry Hines to identify all facts to support its contention

that Pawn TX failed to vacate the premises at the end of the Lease and became a

holdover tenant for two months, Harry Hines stated “Pursuant to the terms of the

Lease, Pawn TX, Inc. was to surrender possession to the Premises by June 1, 2018.

Pawn TX, Inc. did not surrender the Premises until August or September 2018.” In

its responses to requests for production, Harry Hines stated it found no responsive

documents of (1) demands Harry Hines made on Pawn TX for holdover rent, (2)

correspondence between Harry Hines and Pawn TX regarding Pawn TX’s surrender

–4– of the Property, and (3) documents Harry Hines contends establish the date Pawn

TX vacated the Property.

Harry Hines responded to the motions for summary judgment. The only

evidence filed in support of its response was the two-page affidavit of Shazeb

Daredia, the sole manager and director of Harry Hines. In the affidavit, Daredia

made the following statements concerning the alleged holdover of Pawn TX after

the Lease expired:

 “On expiration of the lease term, Pawn TX., Inc. failed to vacate the premises and remained in possession of the Property for an additional two (2) months.”

 “At the time of holdover by Defendant, the monthly rent was $10,639.80 per month.”

 “In accordance with the terms of the Lease, Pawn TX., Inc. owed Harry Hines Millennium Market Place, LLC rent in the amount of $15,959.70 per holdover month.”

 “The total past due balance owed by Pawn TX., Inc. to Harry Hines Millennium Market Place, LLC pursuant to the Lease, as amended, is $31,919.40.”

 “Harry Hines Millennium Market Place, LLC made demand on Pawn TX., Inc. for payment of holdover rent prior to the filing of this suit without success.”

On June 10, 2021, the trial court granted summary judgment for Pawn TX,

dismissed Harry Hines’s breach of contract claim with prejudice, and rendered

judgment for Pawn TX on its Chapter 93 counterclaim for bad faith retention of

Pawn TX’s security deposit.

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Harry Hines Millennium Market Place, LLC v. Pawn TX, Inc. F/K/A First Cash, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/harry-hines-millennium-market-place-llc-v-pawn-tx-inc-fka-first-cash-texapp-2023.