KBG Investments, LLC v. Greenspoint Property Owners' Association, Inc.

478 S.W.3d 111, 2015 Tex. App. LEXIS 10198, 2015 WL 5770828
CourtCourt of Appeals of Texas
DecidedOctober 1, 2015
DocketNO. 14-14-00484-CV
StatusPublished
Cited by13 cases

This text of 478 S.W.3d 111 (KBG Investments, LLC v. Greenspoint Property Owners' Association, 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
KBG Investments, LLC v. Greenspoint Property Owners' Association, Inc., 478 S.W.3d 111, 2015 Tex. App. LEXIS 10198, 2015 WL 5770828 (Tex. Ct. App. 2015).

Opinion

OPINION

Tracy Christopher, Justice

In this action by a property owners’ association to enforce a restrictive covenant, the property owner challenges the summary judgment against it and the award of statutory damages for the prop *113 erty owner’s violations of the covenant. Although we conclude that the property owner failed to raise a genuine issue of material fact precluding summary judgment, we hold that the statutory damages awarded constitute exemplary damages, which are available only if the claimant also is awarded more than a nominal amount of other damages for the cause of action. Because the property owners’ association was awarded no actual damages, we conclude that the trial court erred in awarding it statutory damages. We therefore modify the trial court’s judgment to eliminate the award of statutory damages and affirm the judgment as modified.

I. Background

Appellant KBG Investments, LLC owns a commercial tract in Greenspoint Subdivision, which is subject to a Declaration of Covenants, Conditions and Restrictions (“the Declaration”). Appellee Greenspoint Property Owners’ Association, Inc. (“Greenspoint”) administers and enforces the provisions of the Declaration. According to Greenspoint’s petition, KBG sought and obtained permission from the Architectural Review Committee to paint the exterior of its building a certain color and to post at specified locations two “International Market Place” signs. Rather than acting on this approval, KBG painted its building an unapproved bright yellow color and erected two “Now Open” signs and two “Intei’national Flea Market” signs at non-approved locations.

Greenspoint sued for permanent injunc-tive relief requiring KBG to remedy the violations. In addition, Greenspoint sought declaratory relief that the lien it had placed on KBG’s property to secure payment of attorneys’ fees, costs, and interest was valid. Finally, Greenspoint sought foreclosure of the lien' and an award of statutory damages pursuant to section • 202.004(c) of the Texas Property Code. Greenspoint successfully moved for traditional summary judgment on "its request for a permanent injunction. The trial court additionally awarded Greens-point $10,400 in statutory damages, together with attorney’s fees, costs, and interest.

In two issues, KBG argues that the trial court erred in granting summary’ judgment and in awarding statutory damages.

II. Summary Judgment

A movant for traditional summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. Tex. R. Crv. P. 166a(c); Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009). If the movant initially establishes a right to summary judgment on the issues expressly presented in the motion, then the burden shifts to the nonmovant to present to the trial court'any issues or evidence ■ that would preclude summary judgment. See City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678-79 (Tex.1979). When reviewing a traditional summary judgment, we consider all the evidence in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if a reasonable factfinder could, and disregarding contrary evidence unless a reasonable factfinder could not. See Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex.2006).

A. Condition Precedent

KBG first argues that the trial court erred in granting Greenspoint’s motion for summary judgment because Greenspoint neither’ alleged nor proved that all conditions precedent had been performed or had occurred. The record does not support KBG’s argument. Greens-point alleged in its petition that “[a]ll con *114 ditions precedent to filing this suit and Plaintiffs right to recovery have been performed or have occurred.” A party that makes such a general averment in its pleading is required to prove that allegation only to the extent that it is specifically denied by the opposing party. See Tex. R. Civ. P. 54, Because KBG did not specifically deny that any condition precedent had been fulfilled, Greenspoint was not required to prove the contrary.

B. Affirmative Defenses of Estoppel, Laches, Unclean Hands, and Waiver

KBG next contends that the summary judgment must be reversed because a review of the entire record in the light most favorable to KBG reveals that there are material issues of fact regarding KBG’s affirmative defenses of estoppel, laches, unclean hands, and waiver. This argument, however, fails to take into consideration KBG’s burden in responsé to the summary-judgment motion.

Any issues that a non-movant contends avoid summary judgment must be expressed in a written response or answer to the motion. See Sandhu v. Pinglia Invs. of Tex., L.L.C., No. 14-08-00184-CV, 2009 WL 1795032, at *6 (Tex.App. — Houston [14th Dist.] June 25, 2009, pet. denied) (mem.op.). Such issues include any affirmative defenses that the nonmovant contends are sufficient to defeat summary judgment. See Clear Creek Basin Auth, 589 S.W.2d at 678 (“[T]he nonmovant must expressly present to the trial court any reasons seeking to avoid movant’s entitlement [to summary judgment], such as those set out in rules 93 and 94.... ”); Sharma v. Vinmar Int’l, Ltd., 231 S.W.3d 405, 421-22 (Tex.App.— Houston [14th Dist.] 2007, no pet.) (characterizing the unclean-hands doctrine as an affirmative defense); Tex. R. Civ. P. 94 (identifying estoppel, laches, and waiver as affirmative defenses). Affirmative defenses that are raised in the nonmovant’s pleadings but are not expressly asserted in a summary-judgment response or other answer to the motion cannot be considered on appeal as grounds for reversal. See Tex. R. Civ. P. 166a(c); Clear Creek Basin Auth., 589 S.W.2d at 678.

The affirmative defenses of estop-pel, laches, and unclean hands are not mentioned in KBG’s summary-judgment response. Thus, we cannot consider these as grounds for reversal.

Waiver is mentioned in KBG’s summary-judgment response only in the con-clusory sentence, “Only after the Plaintiff had effectively waived all its rights as to the Defendant’s actions, did the Plaintiff start making its assertions and demands.” KBG did not state the factual basis for its conclusion that Greenspoint had waived all of its rights before ever making an assertion or a demand. KBG neither referred to any law, nor cited any evidence.

Even assuming, without deciding, that this bare assertion was sufficient to raise the issue of whether summary judgment was precluded by the affirmative defense of waiver, KBG still was required to offer summary-judgment proof of each element of the defense. See Richardson v. Office Bldgs. of Hous.,

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478 S.W.3d 111, 2015 Tex. App. LEXIS 10198, 2015 WL 5770828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kbg-investments-llc-v-greenspoint-property-owners-association-inc-texapp-2015.