Johnson v. Huie Properties

594 S.W.2d 488, 1979 Tex. App. LEXIS 4472
CourtCourt of Appeals of Texas
DecidedNovember 27, 1979
Docket20067
StatusPublished
Cited by3 cases

This text of 594 S.W.2d 488 (Johnson v. Huie Properties) 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
Johnson v. Huie Properties, 594 S.W.2d 488, 1979 Tex. App. LEXIS 4472 (Tex. Ct. App. 1979).

Opinion

STOREY, Justice.

Leland Johnson, a tenant, sued Huie Properties, the landlord, for recovery of a security deposit. In answer to special issues the jury found that the landlord had furnished to the tenant a notice of cessation of ownership required by Tex.Rev.Civ.Stat.Ann. art. 5236e § 5(b) (Vernon Supp. 1978-79); and that the tenant had failed to furnish the notice of forwarding address required by section 6(a). The tenant appeals from a take-nothing judgment rendered on the jury verdict. We hold as a matter of law that the landlord’s notice did not comply with the statute and that the tenant furnished statutory notice. Accordingly, we reverse and render.

The applicable provisions of article 5236e are as follows:

Section 5(b): On cessation of the owner’s interest in the premises (whether by sale, assignment, death, appointment of a receiver, or otherwise), the owner remains liable for security deposits received by the owner or his agent until such time as the new owner or his agent has delivered to the tenant a signed statement, acknowledging that the new owner has received and is responsible for the tenant’s security deposit. The acknowledgment shall specify the exact dollar amount of the tenant’s security deposit. [Emphasis added.]
Section 6(a): The tenant shall furnish the landlord with a written copy of the tenant’s forwarding address for purposes of security deposit refunding. A tenant’s right to security deposit refund and description of damages and charges is never forfeited for mere failure to furnish a forwarding address to the landlord. .

On January 31, 1977, during the tenancy, the landlord sold the apartment complex, Knight Place Apartments, to Tottenham Court, N.V., Inc. In due course a notice was sent to the tenant in the following form:

NOTICE TO KNIGHT PLACE TENANTS

Effective February 1, 1977, the • Knight Place Apartments are being sold to Tot-tenham Court, N.V., Inc. February rent and all succeeding rent payments should be made payable to Knight Place Apartments for the credit of the new owners. According to our records, your rent deposit status, and pet deposit status, if applicable, is as indicated below. These *490 deposits are being transferred to the new owner along with your Lease Agreement. The same lease terms will prevail and it will be necessary for you to live up to the terms of your lease to qualify for any deposit refund if and when you vacate your apartment at Knight Place. Thank you for having been a Huie Properties tenant.
Sincerely,
HUIE PROPERTIES
Don Mayfield General Manager /ke

The landlord contends this notice is sufficient to comply with section 5(b).

While the notice may be sufficient to advise a tenant of the party to whom future rents should be paid, it falls short of the requirement of section 5(b) that the new owner or his agent acknowledge receipt of as well as responsibility for the security deposit. In the absence of an acknowledgment of responsibility, the tenant has no cause of action against the new owner because the deposit was not paid to him. But the landlord contends that, as a condition of the sale, it had agreed to furnish the notice as agent for the new owner. The notice contains no language from which an agency could be inferred nor is there evidence elsewhere in the record which would tend to put the tenant on notice that the landlord was acting as agent for the new owner. If agency be assumed, however, the notice still lacks the vital element required by the statute, namely, the new owner’s acknowledgment of responsibility. We hold that the notice was insufficient to comply with the statute.

We hold also that the notice required of the tenant was given. It is conceded that the tenant failed to provide written notice of his forwarding address to the landlord at the time the tenant vacated the premises. The tenant contends, however, that his attorney’s demand letter to the landlord was sufficient notice. We agree. The record shows that several months after vacating the premises, the tenant employed counsel, who made a written demand upon the landlord for return of the deposit. In Tammen v. Page, 584 S.W.2d 914 (Tex.Civ.App.-Eastland 1979, no writ), this fact situation was before the court and that court held that a tenant may furnish written notice through an agent or attorney. That court further held that the tenant’s forwarding address for purposes of security deposit refund can be the same as that of the agent or attorney. See also Hogg v. Jaeckle, 561 S.W.2d 568 (Tex.Civ.App.-Tyler 1978, no writ) (where one of five lessees gave his address in writing for return of all five deposits). We hold, therefore, that the written demand of the tenant’s attorney was sufficient notice under section 6(a).

We also agree with the tenant’s contention that the landlord failed to present evidence to rebut the presumption of bad faith raised by section 4(c) which provides in part that failure to return a security deposit or failure to furnish a written itemization of deductions within thirty days is prima facie evidence and a presumption that the landlord acted in bad faith. Section 4(c) also places the burden on the landlord to prove that his retention of the deposit was reasonable. No finding on the issue of bad faith was made by the jury because the issue was conditioned upon an affirmative answer to the issue on the tenant’s notice. Neither party objected to the conditional submission, nor did either party request an issue on bad faith. However, in the absence of rebutting evidence offered by the landlord, the presumption raised by article 5236e compels a finding of bad faith. Wilson v. O’Connor, 555 S.W.2d 776, 780 (Tex.Civ.App.-Dallas 1977, writ dism’d). No rebutting evidence was offered by the landlord for its failure to refund the deposit. Accordingly, under article 5236e, bad faith on the part of the landlord was established as a matter of law.

It may be contended that, although insufficient to relieve it of liability, the landlord’s attempt to furnish the notice required of it is nevertheless evidence in rebuttal of the bad faith presumption. The facts do not support this contention. The landlord’s general manager, Don Mayfield, who was *491 also a part owner of the company, testified that he had knowledge of a landlord’s responsibilities respecting security deposits and that he was aware that the landlord would remain liable for the return of security deposits until a new owner acknowledged responsibility.

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Cite This Page — Counsel Stack

Bluebook (online)
594 S.W.2d 488, 1979 Tex. App. LEXIS 4472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-huie-properties-texapp-1979.