Kenneth D. McKeough v. Camelot Townhomes Association, Inc.

Court of Appeals of Texas·Decided February 27, 2023·No. 08-21-00057-CV·Published

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

KENNETH D. McKEOUGH, § No. 08-21-00057-CV

Appellant, § Appeal from the

v. § County Court at Law No. 3

CAMELOT TOWNHOMES § of El Paso County, Texas ASSOCIATION, INC., § Cause No. 2019DCV3303 Appellee. §

MEMORANDUM OPINION

In separate appeals, Kenneth D. McKeough challenged the trial court’s traditional and no-

evidence summary judgments rendered against him and in favor of Camelot Townhomes

Association, Inc. (Camelot).1 Originally, we docketed the traditional motion in cause number 08-

21-00026-CV, while the no-evidence motion was docketed in the instant cause. But based on the

parties’ agreed motion to consolidate filed during the pendency of both, we further considered the

parties’ request and determined consolidation was appropriate. The consolidation of the appeals is

based on a Rule 11 agreement submitted to the United States Bankruptcy Court and to this Court.

As a result, we have granted consolidation of the record of the first appeal docketed under cause

1 Before consolidation, this appeal only challenged the trial court’s order granting Camelot’s no-evidence summary judgment motion, signed February 11, 2021. The other appeal styled, Kenneth D. McKeough v. Camelot Townhomes Ass’n, No. 08-21-00026-CV, (Tex. App.—El Paso Feb. 27, 2023) (mem. op.), challenged the trial court’s order granting Camelot’s traditional summary judgment motion, signed November 10, 2020. number 08-21-00026-CV, with the record of this appeal docketed under cause number 08-21-

00057-CV, and by separate opinion issued this same day, we dismiss cause number 08-21-00026-

CV, based on that case being duplicative and unnecessary following the issuance of this opinion.

We address the trial court’s rulings together in this consolidated appeal. We affirm the trial

court’s grant of traditional summary judgment on McKeough’s breach of his obligation to pay

condominium assessments and late fees, while we reverse the trial court’s grant of a no-evidence

summary judgment on McKeough’s counterclaims on breaches of Camelot’s obligation to repair

and to provide records. We reverse the attorney’s fees award and remand to the trial court for

further proceedings consistent with this opinion.

I. PROCEDURAL BACKGROUND

McKeough owns a condominium unit in Camelot Townhomes #2, a condominium regime

declared under the Texas Condominium Act, located in El Paso, Texas. 2 See TEX. PROP.

CODE ANN. § 81.002(5). Camelot, a Texas non-profit corporation, is the homeowners’ association

for Camelot Townhomes #2. McKeough purchased his condominium in 2007. Neither party

disputes they are bound by the terms of the Condominium’s Declaration and Camelot’s Bylaws.

On August 28, 2019, Camelot filed suit against McKeough alleging he failed to pay

assessments and late fees as required under the Condominium’s Declaration. Camelot’s suit

alleged McKeough accepted and was bound by the terms of the Condominium Declaration when

he purchased his property and intentionally failed and refused to pay his assessment and late fees

as required. As a result of McKeough’s default, Camelot alleged it had been damaged in the sum

of at least $3,325 for unpaid common assessments, special assessments, and late fees. As relief,

Camelot sought judgment against McKeough in the amount of the unpaid fees, establishment of

2 Camelot’s Declaration was made on November 20, 1980; and recorded in the real property records of the El Paso County Clerk’s office on March 25, 1981.

2 its right to foreclose on its Vendor’s Lien, an order of foreclosure, attorney’s fees and other costs.

The petition attached the Condominium Declaration, McKeough’s 2007 warranty deed, a letter

demanding payment of fees and costs, and a copy of Camelot’s ledger of fees and payments.

McKeough originally responded with a pro se original answer generally denying the claims

and generally alleging that Camelot had breached the Declaration by non-repair of his attic and in

breaching certain Bylaws. McKeough then hired counsel and filed an amended answer entering a

general denial. In contrast with the original answer, the amended answer did not present any

allegation of breach on Camelot’s part.

On July 10, 2020, Camelot filed a motion for traditional summary judgment on its

monetary claim for outstanding assessments and request for permission to foreclose on

McKeough’s unit.3 Camelot asserted it was entitled to summary judgment on its claim based on a

breach of the obligation to pay assessment fees as McKeough stopped paying as of February 2019.

Camelot attached evidence in support of its motion showing the terms of the Condominium

Declaration and missed payments by McKeough.

McKeough soon filed a motion for leave to file an amended answer and counterclaims.

Specifically, McKeough sought to bring counterclaims against Camelot asserting it breached the

Condominium Declaration by failing to repair/remedy the common area above his unit.

Additionally, McKeough alleged Camelot breached the Condominium Bylaws by not supplying

certain records upon McKeough’s request. The trial court granted McKeough’s motion for leave

to file an amended answer and counterclaims. Camelot filed an answer to McKeough’s

counterclaims, including the affirmative defenses of failure to mitigate, waiver, laches, unclean

hands, fraud, and estoppel.

3 Camelot first moved for traditional summary judgment on December 31, 2019, on the outstanding assessments and its foreclosure suit. A month later, the trial court granted Camelot’s motion. Upon McKeough’s request, the trial court granted a new trial based on COVID-19 grounds.

3 McKeough also amended its answer to include affirmative defenses of offset and prior

material breach. McKeough then responded to Camelot’s motion for traditional summary

judgment opposing the award of attorney’s fees and arguing Camelot was the first to breach the

Declaration. McKeough attached exhibits to its response asserting they raised genuine issues of

material fact.

After additional replies and sur-replies by the parties, the trial court granted Camelot’s

motion in its entirety. The trial court awarded Camelot McKeough’s outstanding assessment

balance of $8,760, attorney’s fees of $23,890.99, and court costs of $934.77. The trial court also

awarded Camelot conditional attorney’s fees on appeal. Lastly, the trial court granted Camelot’s

petition for judicial foreclosure and ordered it could move forward with foreclosure.

On November 11, 2020, a day after the trial court granted Camelot’s traditional motion for

summary judgment, Camelot filed a no-evidence motion for summary judgment on McKeough’s

counterclaims. Camelot alleged McKeough could not provide any evidence that he performed,

tendered performance of, or was excused from his contractual obligations under the Condominium

Declaration or the Bylaws. Furthermore, it alleged McKeough could not provide any evidence that

Camelot had breached any obligation owed under the Condominium Declaration or Bylaws, or if

it did, that McKeough did not sustain any harm.

Days later, Camelot filed a motion to sever its claims against McKeough so it could make

final and enforce its traditional summary judgment. Camelot’s motion described there were three

causes of action before the trial court: (1) Camelot’s claim against McKeough for unpaid

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Kenneth D. McKeough v. Camelot Townhomes Association, Inc., (Tex. Ct. App. 2023).

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