Likover v. Sunflower Terrace II, Ltd.

696 S.W.2d 468, 1985 Tex. App. LEXIS 12123
CourtCourt of Appeals of Texas
DecidedAugust 22, 1985
Docket01-84-0765-CV
StatusPublished
Cited by96 cases

This text of 696 S.W.2d 468 (Likover v. Sunflower Terrace II, Ltd.) 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
Likover v. Sunflower Terrace II, Ltd., 696 S.W.2d 468, 1985 Tex. App. LEXIS 12123 (Tex. Ct. App. 1985).

Opinion

OPINION

COLEMAN, Chief Justice (Retired).

Sunflower Terrace, Ltd., and its successor, Sunflower Terrace II, Ltd., (Sunflower), brought suit against Erwin A. Ritter; his wife, Monique Ritter; his son, Ron Rit-ter; Capital Title Company; and Ritter’s lawyer, Sanford Likover. After a trial to a jury, the trial court rendered a judgment in favor of the plaintiffs against all defendants for damages. Likover has appealed. The principal issue is whether an attorney-at-law acting for a client in settlement negotiations can be held liable for damages as a co-conspirator. The judgment is affirmed.

On September 30, 1983, Sunflower through its general partners, Robert Kendrick (Kendrick) and Jackson Ryan (Ryan), purchased the 160-unit Sunflower Terrace Apartments. The property was purchased from Erwin A. Ritter, Monique Ritter, Matthew W. Noall, and his wife, Marcile Noall. The Noalls were not active participants in the transactions resulting in this suit. Erwin Ritter acted for them through a power of attorney. Early in 1983, the Ritters and the Noalls submitted the successful bid for the purchase of an apartment complex, The Sunflower Terrace Apartments, located in Houston, Texas, from the U.S. Department of Housing and Urban Development (HUD). Because Ritter did not have the financial resources to close on the purchase of the project from HUD, he spent approximately three months trying to acquire additional financing or investors for the purchase. A third party put Jackson Ryan, from Corpus Christi, Texas, in touch with Ritter.

On September 30, 1983, Jackson Ryan, his attorney, Robert Kendrick, and Jackson Ryan, Jr., travelled to Houston to meet Ritter and to investigate the potential investment. September 30, 1983, was the end of the fiscal year for HUD, and the purchase of the project had to be completed on that day or the bid would be forfeited.

After several meetings between Ryan, Kendrick, Ritter, and others, it was agreed that Ryan and Kendrick would form a partnership that would acquire ownership of the subject apartments.

At the closing, since HUD still had title in its name, two deeds were prepared. The first deed was a special warranty deed from HUD to the Ritters and the Noalls. The Ritters and the Noalls then executed a general warranty deed conveying the property to Sunflower Terrace, Ltd. Shortly thereafter, Capital Title Company, which had issued a title policy in connection with the transaction, became concerned, because it believed there was a technical gap in the chain of title. A deed of trust to Allied Mercantile Bank showed title from HUD to Erwin Ritter, Monique Ritter, and Jackson Ryan. Capital Title was concerned because Ryan’s name did not appear in the chain of title to Sunflower. It was agreed that Sunflower Terrace, Ltd., would convey the property to Erwin Ritter, Monique Ritter and Ryan and simultaneously Erwin Ritter, Monique Ritter, and Ryan would reconvey the property to Sunflower Terrace, Ltd. Kendrick signed the deed on behalf of Sunflower Terrace and obtained Jackson Ryan’s signature on the deed from Erwin *470 Ritter, Monique Ritter, and Ryan to Sunflower Terrace, Ltd.

By letter, Kendrick sent both deeds to Jeannette Ubernoski of Capital Title Company. The letter expressly instructed her not to file the deed to Erwin Ritter, Monique Ritter, and Ryan until she would simultaneously file the deed back to the partnership. When Jeannette Ubernoski received both deeds, she called the Ritters to come in and sign the deed back to Sunflower. Erwin Ritter said that his wife was out of town but told Ms. Ubernoski to mail the deed to him. On that same day, Ritter went to see Sanford Likover, who had previously represented him, and discussed the matter. Thereafter, Ritter told Ms. Ubernoski that he would sign the deed, but he did not do so. Further, at the suggestion of Erwin Ritter, Ms. Ubernoski filed the deed, which act was contrary to Ryan’s instructions.

Prior to the purchase of the property, Sunflower acting through Kendrick and Ryan, and Erwin Ritter acting for himself, his wife, Monique Ritter, and the Noalls entered into a written agreement, whereby Sunflower agreed to purchase the apartment project for a cash consideration of $79,793. In addition, Sunflower agreed to reimburse Ritter the sum of $36,738 in cash for penalties paid by Ritter to HUD in connection with the project. The writing contained these further provisions:

Sunflower shall pay in cash to Ritter & Associates, architects, the sum of One Hundred Ten Thousand, Two Hundred Seven Dollars ($110,207.00) cash as payment for architectural services and blueprints and plans prepared by such architects in connection with rehabilitation of the above project.
Sunflower shall pay to Realty [entirely controlled by the Ritters] the sum of Sixty Thousand Dollars ($60,000.00) in return for the agreement of Realty to act as a management supervisor for the operation of the project for a period of six months beginning October 1, 1983. Sunflower agrees to enter into a construction contract with Ritter for construction of the HUD required rehabilitation for a turnkey price of One Million Dollars ($1,000,000.00), such construction to be completed within six months from the date of such contract.

This contract was executed on September 30, 1983. The cash considerations required were paid to Ritter by Sunflower Terrace, Ltd.

Subsequently, it developed that no plans or blueprints had been prepared by Ritter & Associates, as represented. Ron Ritter, the son of Erwin Ritter, was a partner with others in Ritter & Associates. It developed that neither Ron Ritter nor any of his associates were licensed architects, although they had graduated from college with degrees in architecture.

No contract for the rehabilitation was ever executed. Kendrick testified that it had been agreed that a standard American Institute of Architects contract had been agreed upon and that he had prepared such a contract. When he took it to Houston, he intended to get the plans and specifications from Ritter and attach them to the contract. Ritter told him that the plans and specifications were not ready at that time, but that he would send them to him. They consisted of three little sheets that were drawings of the floorplan and were entirely insufficient for the purpose. He then had his architect get in touch with Ron Ritter.

Mr. Boggs, a member of an architectural firm in Corpus Christi, testified that he reviewed the three sheets received from Ritter and told him that they were entirely insufficient for such a project. At Kendrick’s suggestion, he called Ron Ritter and asked him when they would have something more. He was told that Ron Ritter had not been authorized to proceed with the work until after the building contract was signed and closed. The previous week he had visited with Erwin Ritter in Houston and had gone over the project. Ritter told him at that time that the plans and specifications were in the architect’s office; that Ron Ritter was the architect; and that the plans were in the computer, but that the electrical drawings were not quite com- *471 píete. After talking with Ron Ritter, Mr. Boggs informed Kendrick of the situation.

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Cite This Page — Counsel Stack

Bluebook (online)
696 S.W.2d 468, 1985 Tex. App. LEXIS 12123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/likover-v-sunflower-terrace-ii-ltd-texapp-1985.