Jon Richard O'Kane v. Jeff Coleman, Individually and Enterprise Rent-A-Car Company of Texas, Inc.

CourtCourt of Appeals of Texas
DecidedJuly 1, 2008
Docket14-06-00657-CV
StatusPublished

This text of Jon Richard O'Kane v. Jeff Coleman, Individually and Enterprise Rent-A-Car Company of Texas, Inc. (Jon Richard O'Kane v. Jeff Coleman, Individually and Enterprise Rent-A-Car Company of Texas, Inc.) 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
Jon Richard O'Kane v. Jeff Coleman, Individually and Enterprise Rent-A-Car Company of Texas, Inc., (Tex. Ct. App. 2008).

Opinion

Affirmed in part, Reversed and Remanded in Part, and Memorandum Opinion filed July 1, 2008.

In The

Fourteenth Court of Appeals

____________

NO. 14-06-00657-CV

JON RICHARD O=KANE, Appellant

V.

JEFF COLEMAN, INDIVIDUALLY, AND ENTERPRISE RENT-A-CAR COMPANY OF TEXAS, INC., Appellees

On Appeal from the 10th District Court

Galveston County, Texas

Trial Court Cause No. 05-CV-1113

M E M O R A N D U M   O P I N I O N


In this case arising from sequential leases of the same commercial premises, the initial lessee, appellant Jon Richard O=Kane appeals from a take-nothing summary judgment in favor of the subsequent lessees, appellees Jeff Coleman, individually, and Enterprise Rent‑A‑Car Company of Texas, Inc.  We affirm the judgment in favor of appellees on all claims except O=Kane=s claim under the Texas Theft Liability Act.  We sever that claim from the remaining claims, reverse the summary judgment in favor of appellees on O=Kane=s Theft Liability Act claim, and remand to the trial court.

I.  Factual and Procedural Background

In July 2003, O=Kane personally signed a two-year lease for commercial property in Galveston, with the term to begin August 1, 2003.  Unless the landlord agreed otherwise in writing, use of the premises was limited to Aautomobile sales and related services to automobiles.@  The lease also required O=Kane to Acomply with all applicable laws or requirements of any governmental entity@ and prohibited O=Kane from allowing the premises Ato remain vacant for a period of thirty (30) days without Landlord=s prior written consent except in cases necessitated by repair, maintenance or alteration.@  Finally, the lease could not be Amodified or amended in any manner whatsoever@ except on O=Kane=s and the landlord=s written agreement.

O=Kane, however, was a convicted felon, and had not held a dealer=s license from the Texas Department of Transportation (ATexDOT@) to sell new or used cars after his license expired.  Instead, to sell cars, he needed to be employed by a dealership with the proper license; and, in late 2001, he had associated himself with Pamela Nicar, who subsequently obtained an independent motor vehicle dealer=s license.  The license, which expired on July 31, 2004, entitled Nicar, under the name ADiscount Wholesalers,@ to sell cars at a specific location in Kemah, Texas.


O=Kane understood the Galveston lease required him to comply with all applicable laws, including TexDOT regulations.  Motor vehicle dealer=s licenses are specific to a geographic location, and Nicar=s license permitted her to sell new or used cars only at the specified Kemah location.[1]  Nicar did not apply for a dealer=s license specific to the Galveston premises until August 19, 2003, again under the ADiscount Wholesalers@ name.  TexDOT denied Discount Wholesalers= application in September 2003.

Shortly after O=Kane took possession of the premises, the City of Galveston notified him that a local ordinance placed a moratorium on his having a car dealership on the property.  The landlord sought an exception to the moratorium, but the city denied the request.  The city staff members recommending the denial did Anot anticipate the continuation of auto sales facilities as a permitted land use within [the zone].@  Discount Wholesalers, however, had begun selling cars from the premises in July 2003 and continued to do so until September 20 or 25, 2003, during which time it sold approximately one-hundred-fifty cars.

According to O=Kane, a TexDOT Enforcement Division attorney instructed the Galveston County Tax Office not to accept any car titles Discount Wholesalers presented for registration.  Without the registration, customers could not obtain proper title or license plates.  They soon complained to the authorities, and the Galveston County Auto Crimes Task Force (the ATask Force@) began an investigation.  After discovering O=Kane and other Discount Wholesalers employees were counterfeiting temporary red‑tag license plates to mollify angry customers, the Task Force sought an arrest warrant for O=Kane and Nicar on felony forgery charges.

In mid-November 2003, O=Kane and Nicar fled to Mexico, where O=Kane stayed until September 1, 2004.  A Task Force sergeant observed that, as of October 21, 2003, A[t]here were no vehicles . . . for sale located on the premise[s].  The business was empty except for desks, computers, and filing cabinets.@


On January 23, 2004, Coleman and Enterprise Rent-A-Car signed a lease for the premises.  The lease provided in part:

Landlord represents and warrants to Tenant that all of the following are true as of the Lease Date and shall be true as of the Commencement Date:

(a) Landlord is the free owner of the Premises and has full right and lawful authority to execute this Lease and perform the obligations of Landlord herein contained without the consent or joinder of any other party . . . .

In July 2005, O=Kane sued the landlord alleging he Aentered [O=Kane=

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