Ho & Huang Properties, L.P. v. Parkway Dental Associates, P.A.

529 S.W.3d 102
CourtCourt of Appeals of Texas
DecidedMay 24, 2017
DocketNO. 14-14-00528-CV
StatusPublished
Cited by7 cases

This text of 529 S.W.3d 102 (Ho & Huang Properties, L.P. v. Parkway Dental Associates, P.A.) 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
Ho & Huang Properties, L.P. v. Parkway Dental Associates, P.A., 529 S.W.3d 102 (Tex. Ct. App. 2017).

Opinion

OPINION

Kem Thompson Frost, Chief Justice

This appeal—the second in this case— arises out of a landlord-tenant dispute un-der a commercial lease. The tenant sued the landlord and its management company, asserting breach of the lease. On remand following the first appeal, the trial court rendered judgment on the jury’s verdict, awarding the tenant actual damages and attorney’s fees. In this appeal, the landlord challenges the sufficiency of the evidence to support several jury findings and asserts that one jury finding mandated rendition of judgment in the landlord’s favor. The landlord also asserts that'the tenant failed to provide written notice of the landlord’s alleged breach, the trial court reversibly erred in rejecting two jury-charge complaints, and the trial court erred in calculating prejudgment" interest. We affirm.

I. Factual and Procedural Background

Appellee/plaintiff Parkway Dental Associates, P.A. as tenant, and appellant/defendant SW Parkway Management, Inc., as agent for appellant/defendant Ho & Huang Properties, L.P., as landlord, executed a commercial lease (the “Parkway Lease”) in January 2004, for property located in a shopping center. Appellees/third-party defendants Poorang Pahlavan, H. Tram Nguyen, and Shannon Presley (collectively the “Guarantors”), officers of Parkway Dental, guarantied Parkway Dental’s • obligations under the Parkway Lease.

Competitive-Business Restriction under the Lease

Parkway Dental used the'leased premises for the practice of ge'neral dentistry. The Parkway Lease included an “Adden[107]*107dum Regarding- Restrictions on Use of Project by Other Tenants,” which provided that, “[u]less a Default of this Lease has occurred and remains uncured upon the expiration of any grace or notice periods, Landlord covenants and agrees that Landlord shall not permit any portion of the Project to be used for a Competitive Business.” Under this provision (the “Covenant”), the parties defined “Competitive Business” as “Businesses practic[ing] ... [gjeneral dentistry.” As used in this provision, “Project” included the complex in which the leased premises were located, any of the common areas, as well as the shopping-center parking areas.

The Lease-Extension Option

The term of the Parkway Lease began on April 1, 2004, and ended on March 31, 2009 (the “Lease Term.”). Provided that Parkway Dental was not in default, the Parkway Lease gave Parkway Dental the option to extend the term of the Parkway .Lease for an additional five years (the “Extension Option”).

Aquarium Dental’s Lease of Property in the Shopping Center

Parkway Dental, occupied the leased premises and paid rent under the Parkway Lease to the landlord throughout the Lease Term. Midway through the Lease Term, in June 2006, Ho & Huang Properties, L.P. sold a portion of the shopping-center parking lot to a third party without requiring that the purchaser agree to a restriction that was the same as or similar to; the Covenant. The purchaser later sold the portion of.the parking lot to. another party who had a building constructed and entered into a lease agreement with Dr. Tuan Thanh Pham d/b/a Aquarium Dental (“Aquarium Dental”). The following year, Aquarium Dental posted a sign on the newly constructed space stating that Aquarium Dental would be opening soon.

Parkway Dental’s Suit for Injunctive and Monetary Relief

Parkway Dental filed suit in November 2007, seeking injunctive and monetary relief against Ho,& Huang Properties, L.P. and Aquarium Dental as well as SW Parkway Management, Inc. (the “Management Company”). The trial court granted no in-junctive relief in Parkway Dental’s favor. Parkway Dental later nonsuited its claims against Aquarium Dental but continued to pursue its claims against Ho & Huang Properties, L.P. and the Management Company (collectively, the “Landlord Parties”).

Expiration of the Parkway Lease

Parkway Dental decided not to exercise the Extension Option, and on March 31, 2009, the Parkway Lease terminated by its own terms. Parkway Dental then closed the dental practice that it had been operating on the-leased , premises.

The Trial Court’s Judgment.

Pursuing the lawsuit, Parkway Dental asserted various claims against the Landlord Parties, including breach of the Parkway Lease and anticipatory repudiation. The trial court granted summary judgment in favor of the Landlord Parties as to all of Parkway Dental’s claims. Based upon the dismissal of Parkway Dental’s claims, the trial court concluded that the Landlord Parties were “prevailing parties” under a Parkway Lease provision allowing a prevailing party to recover its reasonable attorney’s fees and litigation costs. The parties tried to a jury the issue of reasonable fees for the services of the Landlord Parties’ attorneys as well the amount of the Landlord Parties’ out-of-pocket litigation costs. The trial court rendered a final judgment in favor of the Landlord Parties [108]*108and against Parkway Dental for the amounts the jury found.

The First Appeal

On Parkway Dental’s appeal, this court reached the following conclusions:

(1) The summary-judgment evidence raised a genuine issue of fact as to whether there was a competing business engaged in the practice of general dentistry on the Project before the Parkway Lease expired.
(2) A genuine fact issue existed as to whether the Landlord Parties breached the Parkway Lease because, under the unambiguous language of the Parkway Lease, the conveyance of part of the Project does not absolve the Landlord Parties of liability if the Covenant is breached based on the use of that part of the Project for a business involving the practice of general dentistry during the term of the Parkway Lease.
(3) A genuine fact issue existed as to Parkway Dental’s damages under a reliance measure of damages, whose purpose is to put the injured party in as good an economic position as it would have occupied had the contract not been made.
(4) The summary-judgment evidence raised a genuine fact issue as to whether Parkway Dental suffered any harm or damages resulting from a material breach by the Landlord Parties of any of the landlord’s obligations under the Parkway Lease.

See Parkway Dental Assocs., P.A. v. Ho & Huang Properties, L.P., 391 S.W.3d 596, 602-10 (Tex. App.—Houston [14th Dist.] 2012, no pet.). We reversed the trial court’s summary judgment as to Parkway Dental’s claims for breach of the Parkway Lease and anticipatory repudiation and remanded these claims and the parties’ requests for attorney’s fees to the trial court for further proceedings. See id. at 612. We affirmed the trial court’s summary judgment as to all of Parkway Dental’s other claims. See id.

Trial on Remand Folloioing the First Appeal

Following remand, the parties tried the remaining claims, and the jury answered the questions submitted to it as follows:

(1) The Landlord Parties failed to comply with the Covenant;
(2) The failure to comply was not excused;

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Cite This Page — Counsel Stack

Bluebook (online)
529 S.W.3d 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ho-huang-properties-lp-v-parkway-dental-associates-pa-texapp-2017.