Kingsley Properties, LP v. San Jacinto Title Services of Corpus Christi, LLC

501 S.W.3d 344, 2016 Tex. App. LEXIS 10341, 2016 WL 5243134
CourtCourt of Appeals of Texas
DecidedSeptember 22, 2016
DocketNUMBER 13-15-00128-CV
StatusPublished
Cited by10 cases

This text of 501 S.W.3d 344 (Kingsley Properties, LP v. San Jacinto Title Services of Corpus Christi, LLC) 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
Kingsley Properties, LP v. San Jacinto Title Services of Corpus Christi, LLC, 501 S.W.3d 344, 2016 Tex. App. LEXIS 10341, 2016 WL 5243134 (Tex. Ct. App. 2016).

Opinions

OPINION

Opinion by

Justice Rodriguez

Appellant Kingsley Properties LP (Kingsley) appeals from a final judgment in favor of appellees San Jacinto Title Services of Corpus Christi, LLC; San Jacinto Title Services of Texas, LLC; and Mark Scott, the local president of San Jacinto (collectively, San Jacinto). By two issues, Kingsley contends that the trial court erred in: (1) awarding attorney’s fees to San Jacinto, and (2) excluding expert testimony. We affirm in part and reverse and render in part.

I. Background

Kingsley sued San Jacinto complaining of a letter which Scott wrote and distribuí-[347]*347ed in 2009 in pursuit of his bid for city council. The letter concerned the future of Kingsley’s chief asset, a Corpus Christi golf course and country club called King’s Crossing.

In 2005, Basil and Wendy Beck agreed to purchase King’s Crossing for 2.65 million dollars. At the time of the acquisition, Basil and Wendy Beck were the sole members of the Kingsley limited partnership. The Becks executed an agreement which defined the terms of the transaction (the agreement), and they began running the golf course and country elub themselves.

San Jacinto served as the escrow agent for the agreement and also performed some title services. At trial, Scott testified that he was a local vice president of San Jacinto at the time of the King’s Crossing acquisition. It is undisputed that another vice president of San Jacinto signed the final page of the agreement, which stated that San Jacinto “acknowledges receipt of this Contract, executed by Buyer and Seller” and “agrees to treat the subject transaction in confidence and will not disclose the terms or conditions” of the agreement.

Residents of the surrounding neighborhood testified that after the Becks acquired King’s Crossing, Basil Beck made certain management decisions that negatively affected the country club and golf course. Basil testified at trial that the country club’s membership and financial condition began to decline after the purchase. In 2006,- Kingsley sent a letter to local residents encouraging them to join (or rejoin), the country club, professing many new benefits. However, the letter also warned the residents that as the club’s membership declined, King’s Crossing was “not deed restricted” and there was “no obligation to keep this property as a country club and golf course,” and that this “could open the door to undesirable development.” The letter stated that “without the golf course, your home’s value would drop significantly by 15-35% or more.” At trial, local residents testified that they perceived this letter negatively and had arguments with Basil-Beck. According to the residents, Basil repeatedly asserted his intention to repurpose the golf ■course, using the land to develop homes, condos, or even a trailer park. Basil claimed that he had the unilateral right to re-plat the land for- these, other purposes. Club membership continued to decline in the coming years.

In 2009, Jim Robichaux, a local attorney who lived in the King’s Crossing neighborhood, sent a memorandum to members of the Corpus Christi City Council, asking them to oppose the Becks’ plan to convert the golf course. By that time, Scott had become the president of San Jacinto’s regional operation and was running for city council. When he received a copy of Robi-chaux’s memo, Scott sent a letter to Robi-chaux and other King’s Crossing residents addressing concerns about.the Becks’ plan to convert the land (Scott’s letter, or the letter). Among other things, Scott’s letter stated that this “issue could come before the next City Council, as the proposed rer plat will require City Council approval.” The letter stated that if elected, Scott would not support the “re-plat.”

In. 2010, Kingsley filed suit over. the letter. Kingsley claimed business disparagement, alleging that the letter contained multiple false statements, including the following: that repurposing the golf course property would be “inconsistent with the master plan approved by the City many years ago,” that Kingsley intended to “destroy the master plan,” and that any proposed re-plat would require city council approval. Kingsley alleged that the letter caused a prospective sale of the property to fall through. According to Kingsley, Beck had previously entered a “handshake [348]*348deal” whereby an investor named Phillip Hurst was to purchase King’s Crossing for five million dollars, but that when Hurst read Scott’s letter, the deal fell through because of Hurst’s concern over regulatory approval. Kingsley also claimed breach of contract—specifically, that by disclosing sensitive information regarding the 2005 agreement, Scott’s letter had breached San Jacinto’s agreement to keep the agreement confidential. Finally, Kingsley alleged that the actions above also constituted breach of a fiduciary duty and tortious interference with prospective business relations. San Jacinto denied all of the allegations and filed a counterclaim seeking attorney’s fees in the event that it prevailed on Kingsley’s breach of contract claim.

When Kingsley rested its case, the trial court granted a directed verdict against Kingsley on his breach of fiduciary duty claim. At trial,' the jury found against Kingsley on its business disparagement, tortious interference, and breach of contract claims. The trial court entered a take-nothing judgment on all of Kingsley’s claims and awarded San Jacinto attorney’s fees for its defense of the breach of contract claim. This appeal followed.

II. Attorney’s Fees

At trial, San Jacinto claimed it was entitled to attorney’s fees based on a provision in the agreement which generally stated that the “prevailing party” would be entitled to recover reasonable attorney’s fees and costs. The trial court entered judgment on the jury’s verdict that San Jacinto was entitled to $380,000 for representation in the trial court, $100,000 through the court of appeals, and $95,000 through various stages of a Texas Supreme Court appeal.

On appeal to this Court, Kingsley does not contest that San Jacinto prevailed in the underlying contract dispute. Rather, Kingsley argues that San Jacinto was not a “party” under the meaning of the agreement. Kingsley contends that the prevailing party clause therefore did not apply.1

A. Standard of Review and Applicable Law

When a contract is not ambiguous, the construction of the written instrument is a question of law for the court. MCI Telecomms. Corp. v. Tex. Utils. Elec. Co., 995 S.W.2d 647, 650 (Tex.1999). In construing a written contract, the primary concern of the court is to ascertain the true intentions of the parties as expressed in the instrument. Seagull Energy E & P, Inc. v. Eland Energy, Inc., 207 S.W.3d 342, 345 (Tex.2006). To achieve this objective, courts should examine and consider the entire writing in an effort to harmonize and give effect to all the provisions of the contract so that none will be rendered meaningless. Coker v. Coker, 650 S.W.2d 391, 393 (Tex.1983). Contract terms are given their plain, ordinary, and generally accepted meanings unless the contract itself shows them to be used in a technical or different sense. Valence Operating Co. v. Dorsett,

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501 S.W.3d 344, 2016 Tex. App. LEXIS 10341, 2016 WL 5243134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingsley-properties-lp-v-san-jacinto-title-services-of-corpus-christi-texapp-2016.