Hassan M. Tork v. Ray A. and Carmen B. Garcia

CourtCourt of Appeals of Texas
DecidedMarch 30, 2023
Docket13-21-00077-CV
StatusPublished

This text of Hassan M. Tork v. Ray A. and Carmen B. Garcia (Hassan M. Tork v. Ray A. and Carmen B. Garcia) 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
Hassan M. Tork v. Ray A. and Carmen B. Garcia, (Tex. Ct. App. 2023).

Opinion

NUMBER 13-21-00077-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

HASSAN M. TORK, Appellant,

v.

RAY A. AND CARMEN B. GARCIA, Appellees.

On appeal from the 135th District Court of Calhoun County, Texas.

MEMORANDUM OPINION

Before Chief Justice Contreras and Justices Silva and Peña Memorandum Opinion by Justice Peña

Appellant Hassan M. Tork appeals a take-nothing judgment, following a bench trial,

on his breach of contract claim. By ten issues which we interpret as two, Tork argues that:

(1) the evidence was legally and factually insufficient to support the trial court’s judgment; and (2) the trial court abused its discretion in failing to issue findings of fact regarding

Tork’s attorney’s fees. We affirm.

I. BACKGROUND

A. The Underlying Facts 1

Tork owned and operated several Skillet’s Restaurants in South Texas, including

one in Port Lavaca and another in Victoria. In 2015, Tork closed his Port Lavaca location

and placed the building for sale. A realtor introduced appellees Ray and Carmen Garcia

to Tork in 2016. Ray stated that he and his wife were interested in purchasing the Port

Lavaca restaurant but could not afford the purchase price of $700,000. Because the

restaurant’s lack of revenue for two years prevented the Garcias from obtaining a bank

loan, the parties negotiated a year-long lease with an option to buy the restaurant for

$599,000. The parties executed this lease on July 16, 2016.

Carmen testified that the Garcias spent thousands of dollars of their own money

repairing the Port Lavaca restaurant during the lease term. According to her, the most

significant expenses were for air conditioning and freezer repairs, upgrades to the vent

hood and frying equipment, and the purchase of a new ice machine. By April of 2017, the

Garcias signed a commercial contract with Tork to purchase the property for $592,747,

contingent on the Garcias securing financing. 2 The contract set a closing date of July 1,

2017.

1 These facts are taken from the trial evidence.

2 The record shows that Tork gave the Garcias credit for the repairs they had made to the

restaurant during the pendency of their lease.

2 The Garcias amassed $121,000 as a down payment toward the purchase of the

restaurant by selling their residence and personal stock. However, they were unable to

secure a loan for the remainder of the purchase price by July 1. Tork subsequently agreed

to extend the closing deadline in exchange for a separate promissory note of $18,000, 3

and the closing date was moved to August 25, 2017. The Garcias finally obtained

financing from Woodforest National Bank and were prepared to close on August 25.

Unfortunately, Hurricane Harvey then ravaged Port Lavaca in late August of 2017, and

the closing did not occur at this time, either. Because of the hurricane, the parties mutually

agreed to move the closing date to September 20, 2017.

Under the terms of the commercial contract, Tork could have taken the $6,000 in

earnest money the Garcias had tendered to the title company and terminated the

agreement. The commercial contract specifically set forth that, “[i]f Buyer fails to comply

with this contract, Buyer is in default and Seller, as Seller’s sole remedy(ies), may

terminate this contract and receive the earnest money [] as liquidated damages for

Buyer’s failure.” Tork did not exercise this remedy, however, and the Garcias continued

to operate the Port Lavaca restaurant on a month-to-month basis.

Tork gave conflicting testimony regarding whether the contract to sell the Port

Lavaca ever terminated. At his deposition, he was asked, “When did you terminate [the

contract to sell]?”, to which he replied, “I did not.” At trial, however, he stated “as far as

[he] was concerned . . . the contract was over” in July of 2017. Tork’s commercial realtor

3 Carmen testified that Tork lost $18,000 on a missed vacation and other business expenses

related to the sale not occurring, so he asked the Garcias to pay that amount in exchange for continuing with the sale of the Port Lavaca restaurant.

3 James Paxton, however, testified that Tork never took the Garcia’s $6,000 earnest money

as liquidated damages to terminate the contract. Paxton also stated that he never drafted

a termination contract for the sale of the Port Lavaca restaurant.

Tork testified that he received “numerous offers” on the Port Lavaca restaurant.

One call in particular was from someone who offered to purchase the Port Lavaca

restaurant for $800,000. Tork testified that he could not recall the name of the person who

made this offer, nor did he obtain an email address or phone number from this person.

According to Carmen, one week before the September closing date, Tork told the Garcias

about this new offer. In response, Tork made the Garcias a new offer of $100,000 to walk

away from the purchase contract.

The Garcias, however, did not want to do this. Carmen testified that she spent a

year of her life “building up” the restaurant through personal sacrifice, including selling

her home and living in an RV with her husband, quitting her job, and selling personal

stock. She also claimed she injured herself once while cleaning the Port Lavaca

restaurant, spending some time in the hospital. In sum, she stated that she “spent too

much money and time in this thing.”

According to Carmen, Tork then made another offer: he would add $100,000 to

the purchase price which would go toward the optional purchase of his Victoria Skillet’s

Restaurant. On the day of closing, Tork presented a letter to the Garcias that stated the

following:

This letter is to serve as the agreement between [the parties], as follows:

1. That the total purchase price to be paid by [Ray] and [Carmen] for the Port Lavaca Property at the Closing is the sum of $592,747[], including

4 third party financing secured by a vendor’s lien and first lien deed of trust on the Port Lavaca Property.

2. That, in consideration of [Tork] closing the sale of the Port Lavaca Property, [Ray] and [Carmen] agree, promptly after closing, to execute a promissory note in the amount of $100,000[], payable to [Tork] for a term of 18 months. The $100,000[] note will be secured by a second lien deed of trust on the Port Lavaca Property which will be inferior to the first lien deed of trust executed by [Ray] and [Carmen] in connection with the purchase of the Port Lavaca Property. The form and terms of the $100,000[] note and the second lien deed of trust securing the $100,000[] note will be subject to agreement between [Tork] and [Ray] and [Carmen], but will be in accordance with appropriate forms contained in the State Bar of Texas Real Estate Forms Manual.

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