Joseph and Jamie Schwartzott v. Maravilla Owners Association, Inc. and Hudak & Dawson Construction Co., Inc

403 S.W.3d 488, 2013 WL 1802628, 2013 Tex. App. LEXIS 5282
CourtCourt of Appeals of Texas
DecidedApril 30, 2013
Docket14-11-00950-CV, 14-11-00951-CV
StatusPublished
Cited by13 cases

This text of 403 S.W.3d 488 (Joseph and Jamie Schwartzott v. Maravilla Owners Association, Inc. and Hudak & Dawson Construction Co., 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
Joseph and Jamie Schwartzott v. Maravilla Owners Association, Inc. and Hudak & Dawson Construction Co., Inc, 403 S.W.3d 488, 2013 WL 1802628, 2013 Tex. App. LEXIS 5282 (Tex. Ct. App. 2013).

Opinion

OPINION

KEM THOMPSON FROST, Justice.

In these consolidated appeals, we consider whether the trial court erred in sustaining two defendants’ pleas to the jurisdiction in a suit brought by two former owners of a condominium unit against the condominium owners’ association, a contractor hired by the association, and the property manager of the condominiums. We affirm the trial court’s dismissal as to one claim, reverse the trial court’s dismissal of the remaining claims, and remand for further proceedings.

I. Factual and PROCEDURAL Background

Appellants/plaintiffs Joseph and Jamie Schwartzott were the owners of Unit 113 at the Maravilla Condominiums on Seawall Boulevard in Galveston, Texas, in September 2008, when Hurricane Ike damaged their condominium unit. The Schwart-zotts filed a lawsuit in the trial court, eventually asserting claims against appel-lee Maravilla Owners Association, Inc. (the “Association”), the governing body of the Maravilla Condominiums, appellee Hudak & Dawson Construction Co., Inc. (“Hu-dak”), a contractor hired by the Association, and Etheridge Property Management (“Etheridge”), the property manager for the Maravilla Condominiums. The Schwartzotts asserted claims for fraud, negligence, breach of an implied warranty of good and workmanlike repair, unjust enrichment, conversion, and breach of fiduciary duty. The Schwartzotts also alleged that the Association and Etheridge acted with gross negligence, and they sought exemplary damages against these defendants.

The Association and Hudak asserted separate pleas to the jurisdiction, alleging the trial court lacked jurisdiction because the Schwartzotts lack standing to assert their claims against the Association and *492 Hudak, respectively. In each plea, the respective defendant raised the same grounds, which were as follows: (1) because the Schwartzotts lost their interest in Unit 113 at a foreclosure sale on June 1, 2010, they no longer have an ownership interest in the unit, and, under Texas Property Code section 82.111, the Schwartzotts have no standing due to then-lack of any right to the insurance proceeds in which they claim an interest in this lawsuit; (2) in their petition, the Schwart-zotts do not allege a real controversy between the Schwartzotts and each respective defendant that can be resolved by the relief that the Schwartzotts seek; (3) the Schwartzotts lack standing to assert a claim for “money to make structural repairs to their unit” because under the Ma-ravilla Condominium Declarations (“Declarations”), the Schwartzotts have never owned any of the structural components of Unit 113; (4) the Schwartzotts lack standing to recover any insurance proceeds because they have never had any property interest in the structural components of Unit 113 under Section 5.3 of the Declarations and because they have no interest in the common elements; and (5) the Schwartzotts lack standing to assert any claims based upon damage to the common elements of the condominiums or the structural components of Unit 113 because they have never had any property interest in the structural components of Unit 113 under Section 5.3 of the Declarations and because they have no interest in the common elements. Etheridge did not file a plea to the jurisdiction or otherwise seek dismissal of the Schwartzotts’ claims against Etheridge.

After a non-evidentiary hearing, the trial court signed separate orders granting the pleas to the jurisdiction. Concerned that the language in one of the orders might dispose of the Schwartzotts’ claims against Etheridge and create a final judgment, the Schwartzotts filed a notice of appeal seeking to appeal the two orders. On the same day that the Schwartzotts filed their notice of appeal, they also filed a motion to sever their claims against the Association and Hudak into a separate case. The trial court granted this motion and severed the Schwartzotts’ claims against the Association and Hudak into a separate case. After the severance, the Schwartzotts amended their notice of appeal in the un-severed case (Cause No. 14-11-00950-CV in this court) and filed a notice of appeal in the severed case (Cause No. 14-11-00951-CV in this court).

II. Standard of Review

In filing a plea to the jurisdiction, a litigant challenges the trial court’s subject-matter jurisdiction. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.2000). Because subject-matter jurisdiction is a question of law, we conduct a de novo review of the trial court’s ruling on the plea. Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004). When a party has filed a plea to the jurisdiction challenging the pleadings, a reviewing court must construe the pleadings liberally in favor of the pleader and look to the pleader’s intent. See id. If the facts alleged affirmatively demonstrate the trial court’s jurisdiction to hear the cause, the plea to the jurisdiction must be denied. See id. If the pleadings do not contain sufficient facts to affirmatively demonstrate the trial court’s jurisdiction, but do not affirmatively demonstrate incurable defects in the jurisdiction, the issue is one of pleading sufficiency and the plaintiffs should be afforded the opportunity to amend. See id. If the pleadings affirmatively negate the existence of jurisdiction, then a plea to the jurisdiction may be granted without allowing an opportunity to amend. See id. at 227.

*493 If in its plea to the jurisdiction a party challenges the existence of jurisdictional facts, the reviewing court considers relevant evidence submitted by the parties when necessary to resolve the jurisdictional issues raised, as the trial court is required to do. See id. If the evidence creates a fact question regarding the jurisdictional issue, then the plea to the jurisdiction must be denied. See id. at 227-28. But, if the relevant evidence is undisputed or fails to raise a fact question on the jurisdictional issue, then the court rules on the plea to the jurisdiction as a matter of law. Id. at 228. In ruling on a plea to the jurisdiction, a court does not consider the merits of the parties’ claims. See id. at 226-28; County of Cameron v. Brown, 80 S.W.3d 549, 555 (Tex.2002).

III. Issues and Analysis

A. Does this court have appellate jurisdiction in Cause No. 14-11-00950-CV?

The record does not reflect that Etheridge sought dismissal of the Schwartzotts’ claims against it. The Association and Hudak sought dismissal based on the Schwartzotts’ alleged lack of standing. In open court and in two written orders signed on July 27, 2011, the trial court stated that it granted the pleas to the jurisdiction of the Association and Hu-dak; it did not state it was granting any motion or plea filed by Etheridge. The trial court did not state that it was dismissing any claims against Etheridge.

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403 S.W.3d 488, 2013 WL 1802628, 2013 Tex. App. LEXIS 5282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-and-jamie-schwartzott-v-maravilla-owners-association-inc-and-texapp-2013.