Liberation Holdings, LLC D/B/A Soundcheck Music Complex, Brandon Stanley and Carrie Stanley v. All-Tex Roofing LLC, Gulf Warehouse Associates, LTD and Steadmont Warehouses, Inc.

Texas Court of Appeals, 1st District (Houston)·Decided May 28, 2026·No. 01-24-00298-CV·Published

Opinion

Opinion issued May 28, 2026.

In the

Court of Appeals

for the

First District of Texas

from summary judgment rulings in favor of appellee All-Tex Roofing LLC (All-Tex), a defendant, cross-plaintiff, and cross-defendant in the trial court. The parties’ dispute arises from allegations that, while replacing the roof on a warehouse structure owned by GWA and used by tenant Soundcheck, All‑Tex permitted water to enter the warehouse, damaging both GWA’s and Soundcheck’s property. Soundcheck and GWA claimed further that All‑Tex did not timely complete promised repairs to the roof. The trial court granted summary judgment in favor of All‑Tex on all of Soundcheck’s and GWA’s claims against All‑Tex and all of All‑Tex’s claims against GWA.

We affirm the trial court’s judgment. Tenant Soundcheck had entered into a settlement with All-Tex’s insurer prior to the summary-judgment proceedings, carving out any “loss of income” claims, and Soundcheck’s remaining claims were those it argued were outside the scope of the settlement. We find the trial court properly concluded that Soundcheck’s lost-profits and business-destruction claims against All‑Tex failed as a matter of law and that Soundcheck presented no evidence of damages allegedly resulting from All‑Tex’s failure to repair the roof on a timely basis that are not within the scope of damages that Soundcheck released as part of a settlement with All‑Tex’s insurer.

With respect to owner GWA’s claims against All-Tex, because GWA elected to treat its contract with All‑Tex as continuing after All‑Tex’s alleged

breach and insisted on All‑Tex’s continued performance before ultimately refusing to pay All‑Tex for its work, the trial court properly rejected GWA’s prior-breach defense to All‑Tex’s breach-of-contract claim against GWA and GWA’s breach-of-contract claim against All‑Tex. The trial court also properly granted summary judgment to All‑Tex on GWA’s breach-of-warranty claim because GWA presented no evidence that All‑Tex did not make repairs to the roof within a reasonable time. Finally, we affirm the summary judgment on GWA’s negligence claims because GWA did not challenge All‑Tex’s argument that such claims are barred by the economic-loss rule.

Background

In April 2013, Soundcheck began renting from GWA warehouse space located on the Gulf Freeway in Houston. Soundcheck is owned by Brandon Stanley (Brandon) and Carrie Stanley (Carrie). Soundcheck rented soundproofed rooms to monthly tenants for music rehearsals, music recording, and instrument storage. A. The Roofing Contract In November 2018, GWA hired All‑Tex, a roofing contractor, to replace the roof of the building that included Soundcheck’s facility. GWA and All‑Tex entered into a written contract under which GWA promised to pay All‑Tex $130,506 for

the work. The contract did not include a deadline by which All‑Tex was required to complete its work. The work was supervised by Joel Duran, an All‑Tex manager. B. The Water Intrusion On the night of November 21, 2018, when All‑Tex’s roofing work was underway but incomplete, rainwater entered Soundcheck’s space during a storm. The next morning, Brandon exchanged text messages with Duran regarding the water intrusion. In that exchange, Brandon told Duran that “extensive” damage had occurred. Brandon asked Duran: “How was roof secured?” Brandon later followed up with the question: “Again, how was roof closed up?” Duran responded: “Our tie-in from the new roof to the old roof failed so we had to re-do the whole area again.”

According to Soundcheck, the water intrusion damaged multiple Soundcheck practice rooms and common areas, as well as its office. Soundcheck claims that some of the damaged practice rooms were rendered unusable and that the soundproofing insulation throughout its facility was compromised even in areas without visible water. Soundcheck alleges further that new roof leaks in different parts of the facility continued to be discovered “over and over” through at least July 2020. Soundcheck claims that All‑Tex’s “malfeasance destroyed Soundcheck’s business,” including by driving away customers, forcing

Soundcheck to sell a related facility elsewhere in Houston, and undermining plans to expand the business to other cities. C. Insurance Settlement and Release On June 14, 2019, Brandon entered into a Release and Settlement of Property Damages Claims with All‑Tex’s insurer (the Insurance Settlement and Release) pursuant to which, in exchange for a payment of $128,253.50, Brandon agreed on Soundcheck’s behalf to release All‑Tex from:

any and all claims and demands, actions and causes of action, damages (not including loss of income) both known and unknown, including future developments thereof, expense and compensation on account of, or in any way growing out of, any and all known and unknown property damage resulting or to result from that certain accident on or about November 21, 2018 at or near 5001 Gulf Freeway, Houston, TX.

The release stated further:

Brandon Stanley agrees that this settlement is a full compromise.

Brandon Stanley further agrees that the nature, extent and results of the damages sustained are not now all known or anticipated, but Brandon Stanley nevertheless desires to settle and compromise said claim in full.

I/We further agree that this release and payment pursuant thereto is not to be construed as a waiver or an estoppel of any party released to prosecute any claim or action which such party may have against the undersigned or others. This release does not release the claim for loss of income claimed by Brandon Stanley.

(Emphasis in original.)

D. The Parties’ Litigation Claims On November 20, 2020, Soundcheck and the Stanleys filed suit against All‑Tex and GWA. Soundcheck’s claims against All‑Tex included claims for negligence, gross negligence, res ipsa loquitur, violation of the Texas Deceptive Trade Practices Act (DTPA), breach of express and implied warranty, and negligent misrepresentation.

On June 16, 2021, GWA filed cross-claims against All‑Tex for breach of contract, breach of warranty, negligence, and contribution. On February 28, 2022, All‑Tex filed a suit on sworn account against GWA and cross-claims for breach of contract and quantum meruit. On January 5, 2024, All‑Tex amended its cross-claims to include claims for unjust enrichment and unclean hands. E. Soundcheck/GWA Settlement On November 14, 2022, the trial court granted a partial summary judgment against GWA on its defense of waiver and release. The trial court ruled that the Insurance Settlement and Release between Brandon and All‑Tex’s insurer did not release any claims against GWA. Soundcheck later settled its claims against GWA, which were dismissed with prejudice. GWA remained in the litigation due to the cross-claims between GWA and All‑Tex.

F. All‑Tex’s Motions for Summary Judgment 1. Plaintiffs On December 1, 2023, All‑Tex filed traditional and no-evidence motions for summary judgment regarding the plaintiffs’ claims against it. All‑Tex amended those motions on March 6, 2024. In its traditional motion for summary judgment, as amended, All‑Tex argued that the evidence conclusively established All‑Tex’s affirmative defense of release and negated the plaintiffs’ claims for “mental anguish,” “loss of business income,” “lost profits,” “business destruction,” and other economic damages. In its no-evidence motion for summary judgment, as amended, All‑Tex argued that no evidence supported the essential elements of plaintiffs’ claims for negligence, DTPA violations, breach of implied and express warranty, and negligent misrepresentation.

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Liberation Holdings, LLC D/B/A Soundcheck Music Complex, Brandon Stanley and Carrie Stanley v. All-Tex Roofing LLC, Gulf Warehouse Associates, LTD and Steadmont Warehouses, Inc., (Tex. Ct. App. 2026).

Liberation Holdings, LLC D/B/A Soundcheck Music Complex, Brandon Stanley and Carrie Stanley v. All-Tex Roofing LLC, Gulf Warehouse Associates, LTD and Steadmont Warehouses, Inc. (Liberation Holdings, LLC D/B/A Soundcheck Music Complex, Brandon Stanley and Carrie Stanley v. All-Tex Roofing LLC, Gulf Warehouse Associates, LTD and Steadmont Warehouses, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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