Hawkins v. Walker

233 S.W.3d 380, 2007 WL 1952376
CourtCourt of Appeals of Texas
DecidedAugust 23, 2007
Docket2-05-387-CV
StatusPublished
Cited by73 cases

This text of 233 S.W.3d 380 (Hawkins v. Walker) 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
Hawkins v. Walker, 233 S.W.3d 380, 2007 WL 1952376 (Tex. Ct. App. 2007).

Opinion

OPINION

JOHN CAYCE, Chief Justice.

I. Introduction

Rischon Development Corporation and John L. Hawkins (collectively, appellants) appeal the trial court’s August 15, 2005 judgment for Ron and Marla Walker. In addition, appellants attempt to appeal a November 13, 2006 order denying their post-judgment motion to recuse the trial judge. We affirm the trial court’s August 2005 judgment in part and reverse and render in part. We dismiss appellants’ appeal of the order denying their motion to recuse for want of jurisdiction.

II. Background Facts and Procedural History

On April 19, 2001, the Walkers bought lot 30 of the Sapphire Enclave subdivision in Colleyville, Texas from Rischon for $95,000. The Sapphire Enclave consisted of thirty-two lots, which Rischon was developing. Hawkins was Rischon’s president. At the time of the purchase, Ron Walker owned Ron Walker Custom Homes, Inc. He had been in the custom home building business for over twenty years and had built between 300 and 400 houses. The Walkers planned to construct a “spec house” on the lot that they would live in while the home was on the market.

Ron had first heard of the Sapphire Enclave sometime in 2000. He was impressed by the brochure advertising the subdivision, which stated that it was to be a gated community. Later, Ron received a copy of the Sapphire Enclave building restrictions and homeowner’s association covenants, 1 which Hawkins had drafted. Before the Walkers purchased their lot, Ron and Hawkins talked often about the subdivision and Hawkins’s plans for it. According to Ron, Hawkins made numerous representations to him, both before and after the Walkers purchased their lot and began building their house. Ron testified that he relied on these representations in deciding to purchase the Walkers’ lot and in building a 5000-plus square-foot house that was valued (preconstruction) at $896,000.

After closing on their lot in April 2001, the Walkers began construction on their house. A month or six weeks later, no other homes were under construction, and no other lots had been sold. In the summer of 2001, Hawkins told Ron that he was considering selling the remaining lots in the Sapphire Enclave to Pulte Homes and letting Pulte finish the subdivision. By this time, the Walkers had already finished the outside of their home and had ordered custom items such as trim molding and cabinets. Ron was concerned that the Walkers’ home would be too expensive to be competitive with the lower-priced homes that Pulte would build. He was also concerned because the promised gate and perimeter fence had not been constructed and the subdivision was overgrown with weeds three to four feet tall. Consequently, the Walkers decided to delay finishing their house until they could see what type and price ranges of houses would be built around theirs.

Ron also asked Hawkins to approve variances from the Covenants for the Walkers’ home that would reduce construction costs, such as substituting a heavy-duty *387 composite roof for a slate one, a six-foot fence for an eight-foot one, and aluminum windows for wood windows on the back of the house. Hawkins verbally approved these requests. In addition, in violation of the Covenants and without Hawkins’s approval, the Walkers used cedar siding on part of the house and some nonconforming doors and shutters. They also did not install roof down spout drains hidden within the house’s exterior walls, as required by the Covenants. As a result of these cost-saving measures, the Walkers’ total cost in their finished house was $732,199.

In early 2002, Rischon revoked the Covenants and sold the remaining thirty-one lots in the Sapphire Enclave to Pulte. Pulte cleaned up the subdivision and began building other homes. Pulte put up a sign advertising the homes as starting at $300,000 to $400,000.

In early January 2003, the Walkers consented to Rischon’s revocation of the Covenants. On January 23, 2003, the Walkers sold their house for $490,000. Shirley McLemore, a real estate agent with more than twenty years’ experience who had worked with the Walkers on the design and layout of their house, testified at trial that the Walkers’ house should have sold for $850,000 to $900,000, but it did not because no homes of similar value were built in the Sapphire Enclave. McLemore further testified that potential buyers did not like the subdivision because the Walkers’ home was the only one under construction, and people were concerned that the surrounding lots, as well as the subdivision entrance, were unkempt and covered in tall weeds.

Meanwhile, in December 2001, the Walkers sued appellants, 2 alleging causes of action for statutory fraud under business and commerce code section 27.01, common law fraud, and negligent misrepresentations. The Walkers also sought declaratory relief and statutory damages from Rischon for its alleged invalid revocation of the Covenants under property code section 202.004.

Rischon counterclaimed for a declaratory judgment that the Covenants were revocable and properly revoked by Rischon, and that the Walkers had not complied with the Covenants and, therefore, could not enforce them. Rischon sought actual damages and attorney’s fees.

In August 2004, the trial court granted the Walkers summary judgment on their claim that Rischon’s revocation of the Covenants was invalid. In September and October 2004, the remainder of the case was tried to a jury. The jury found that appellants had not committed common law fraud, but had committed statutory fraud and negligent misrepresentations, resulting in damages to the Walkers of $242,199. The jury also found that $25,000 in exemplary damages should be assessed against both Rischon and Hawkins and that the Walkers’ reasonable and necessary attorney’s fees were as follows: $45,000 through trial, $25,000 if the case was appealed to this court, $15,000 if a petition for review is filed in the Supreme Court of Texas, and $15,000 if the petition is granted.

As to Rischon’s counterclaim for declaratory judgment, the jury found that the Walkers had failed to comply with three out of eight Covenants without Hawkins’s approval 3 but that Rischon had not suffered any damages or incurred any attorney’s fees as a result of the noncompliance.

*388 The trial court rendered judgment on the verdict and awarded the Walkers $242,199 in actual damages against appellants, jointly and severally, pre- and post-judgment interest, $25,000 in punitive damages against Hawkins, $25,000 in punitive damages against Rischon, and attorney’s fees in the amounts found by the jury. The trial court also awarded the Walkers $68,600 in statutory damages against Rischon under section 202.004 of the property code, less a settlement credit of $45,000. The trial court did not award Rischon any damages or attorney’s fees on its counterclaim against the Walkers, but it recited that the Walkers had “failed to comply with the restrictive covenants at issue without justification as to the wood siding, wooden doors, and shutters on the residence.”

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Bluebook (online)
233 S.W.3d 380, 2007 WL 1952376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawkins-v-walker-texapp-2007.