Joaquin Zendejas v. Towers of Town Lake Condominiums Council of Co-Owners, Inc. and Camellia Belcher

CourtCourt of Appeals of Texas
DecidedNovember 1, 1995
Docket03-94-00445-CV
StatusPublished

This text of Joaquin Zendejas v. Towers of Town Lake Condominiums Council of Co-Owners, Inc. and Camellia Belcher (Joaquin Zendejas v. Towers of Town Lake Condominiums Council of Co-Owners, Inc. and Camellia Belcher) 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
Joaquin Zendejas v. Towers of Town Lake Condominiums Council of Co-Owners, Inc. and Camellia Belcher, (Tex. Ct. App. 1995).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN



NO. 03-94-00445-CV



Joaquin Zendejas, Appellant



v.



Towers of Town Lake Condominium Council of Co-Owners, Inc.,

and Camellia Belcher
, Appellees



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 345TH JUDICIAL DISTRICT

NO. 92-16271, HONORABLE MARGARET A. COOPER, JUDGE PRESIDING



PER CURIAM



Appellant Joaquin Zendejas owns a unit at the Towers of Town Lake Condominium in Austin, Texas. In 1991, he reported a roof leak to appellee Camellia Belcher, the operations manager hired by appellee Towers of Town Lake Council of Co-Owners, Inc. ("the Council") to manage the property. The repairs were completed in July of 1992.

Zendejas claimed that water leaking into his unit before the repairs were performed damaged a valuable painting. He sought damages of $5,000 for the cost to restore the painting and of $30,000 for its diminution in value. He brought claims for negligence, gross negligence, breach of contract, and deceptive trade practices. The trial court granted appellees' motion for summary judgment on the deceptive trade practice claim, and later granted appellees' motion for instructed verdict on the contract claim, so that only the negligence claims reached the jury.

The jury found the Council and Belcher negligent but not grossly negligent and awarded damages of $12,000. Zendejas challenges the trial court's actions regarding its deceptive trade practices and contract claims. We will affirm in part and reverse and remand in part.



DTPA

By point of error one, Zendejas asserts that the trial court erred in granting appellees' motion for partial summary judgment on his Deceptive Trade Practices-Consumer Protection Act ("DTPA") claim because appellees failed to prove that Zendejas was not a consumer as that term is defined in the DTPA. See Tex. Bus. & Com. Code Ann. §§ 17.41-.63 (West 1987 & Supp. 1995).

To prevail on the motion for summary judgment, the defendant must have either disproved at least one element of the plaintiff's cause of action, or pleaded and conclusively established each essential element of an affirmative defense. Gibbs v. General Motors Corp., 450 S.W.2d 827, 828 (Tex. 1970). The nonmovant has no duty to present contrary evidence until the movant establishes his right to summary judgment. City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 (Tex. 1979). The standards for reviewing a motion for summary judgment are well established: (1) the movant for summary judgment has the burden of showing that no genuine issue of material fact exists and that he is entitled to judgment as a matter of law; (2) in deciding whether a disputed material fact issue precludes summary judgment, evidence favorable to the nonmovant will be taken as true; and (3) every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548-49 (Tex. 1985).

A "consumer" is one who seeks or acquires goods or services by purchase or lease. See DTPA § 17.45(4). To prevail under the DTPA, the plaintiff must prove that the goods or services purchased or leased form the basis of the DTPA complaint. Cameron v. Terrell & Garrett, Inc., 618 S.W.2d 535, 540 (Tex. 1981). A plaintiff establishes his standing as a consumer in terms of his relationship to a transaction, not by a contractual relationship with the defendant. Birchfield v. Texarkana Memorial Hosp., 747 S.W.2d 361, 368 (Tex. 1987).

Appellees assert that Taylor v. GWR Operating Co., 820 S.W.2d 908 (Tex. App.--Houston [1st Dist.] 1991, writ denied), controls the disposition of this point. We agree. The Taylor court considered whether a nonoperating working interest owner of an oil and gas lease was a consumer in relation to the operating working interest owner. GWR Operating Company ("GWR"), the operating working interest owner, incurred administrative expenses on behalf of all owners and billed nonoperating owner Taylor for his share. The administrative expenses included the cost of directing and controlling all operations, paying expenses, keeping books, and managing and supervising the mineral prospects. Id. at 910. GWR sued Taylor when he did not pay his share, and Taylor defended by asserting a DTPA cause of action against GWR. The Taylor court held that when the operating interest owner merely incurs debts for others, the nonoperating interest owner was not, as a matter of law, a consumer of goods or services as contemplated by the DTPA. Two other cases, C & C Partners v. Sun Exploration & Production Co., 783 S.W.2d 707 (Tex. App.--Dallas 1989, writ denied), and Hamilton v. Texas Oil & Gas Corp., 648 S.W.2d 316, 322 (Tex. App.--El Paso 1982, writ ref'd n.r.e.), reached the same conclusion on the issue.

The Council is a nonprofit corporation created pursuant to the declaration of condominium. Under the articles of incorporation, the Council is organized to act on behalf of the co-owners and to maintain the common areas for all owners. The Council incurs administrative costs for labor, materials, and services in maintaining the common areas. The condominium declaration requires that each owner contribute to a fund for the maintenance and operation of the common elements. The fund is held for the use and benefit of the project and the owners. In sum, a homeowners' association is only a conduit for the payment of the individual owner's debts. Tygrett v. University Gardens Homeowners' Ass'n, 687 S.W.2d 481, 483 (Tex. App.--Dallas 1985, writ ref'd n.r.e.). We conclude that the homeowners' association is analogous to the operating working interest owner under an oil and gas lease and that the unit owners are not consumers with regard to it. We overrule point of error one.

By point of error two, Zendejas asserts that the trial court erred in granting appellees' motion for partial summary judgment on his DTPA cause of action because appellees failed to prove that they were not engaged in "trade" or "commerce" in providing repair services to the owners in return for the payment of money. We need not address this point since we have concluded that appellees negated the essential element that Zendejas be a consumer in this transaction to prosecute a DTPA action.



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Joaquin Zendejas v. Towers of Town Lake Condominiums Council of Co-Owners, Inc. and Camellia Belcher, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joaquin-zendejas-v-towers-of-town-lake-condominium-texapp-1995.