Linda S. Nowlin v. Lori Keaton

Court of Appeals of Texas·Decided May 7, 2019·No. 01-17-00523-CV·Published

Opinion

Opinion issued May 7, 2019

In The

Court of Appeals

For The

First District of Texas

for breach of lease agreement and Keaton’s countersuit against Nowlin for failure to refund security deposit,2 retaliation,3 and other violations of the Texas Property Code.4 In seven issues, Nowlin contends that the trial court erred in entering judgment in favor of Keaton on Nowlin’s breach-of-lease-agreement claim, entering judgment in favor of Keaton on Keaton’s counterclaims, and awarding Keaton attorney’s fees.

We affirm.

Background

In her amended petition, Nowlin alleged that on May 6, 2014, she purchased a house in Austin, Texas (the “property”). Prior to Nowlin’s purchase, Keaton lived at the property pursuant to a lease agreement with the property’s previous owner. Nowlin and Keaton executed a new lease agreement (the “lease agreement”) when Nowlin purchased the property.

Nowlin further alleged that the lease agreement provided a lease term from May 6, 2014 until April 30, 2015 and required Keaton to pay $2,100 in rent each month. Keaton was to make her rent payments by direct deposit on the first day of each month, with the exception of her May 2014 rent payment. Keaton was not

2 See TEX. PROP. CODE ANN. §§ 92.103, 92.104.

3 See id. § 92.331.

4 See id. §§ 92.153(a)(3), (a)(5), 92.157(a)(2), 92.158.

required to pay a security deposit directly to Nowlin, but the $2,000 security deposit that Keaton had paid to the property’s previous owner was transferred to Nowlin when she purchased the property. The lease agreement also required Keaton to pay a $1,785 reletting fee if she vacated the property under certain conditions before the end of the lease term.

Additionally, under the terms of the lease agreement, Keaton was to provide Nowlin with an inventory and condition form at the beginning of the lease term, and Keaton was liable and required to reimburse Nowlin for any expenses incurred in remedying damage to the property resulting from any cause other than Nowlin’s own negligence or fault. The lease agreement also stated that Keaton was to promptly notify Nowlin, in writing, of any water leaks, mold, electrical problems, malfunctioning lights, broken or missing locks or latches, and other conditions that posed a hazard. Further, Keaton was responsible for cleaning the interior of the property and could be liable for reasonable cleaning charges.

In regard to termination of the lease agreement, Keaton was required to give thirty-days written notice before moving out of the property. Upon vacating the property, Keaton was liable for certain charges, including unpaid rent, certain repairs and damages, replacement of unreturned keys, and the reletting fee, all which could be deducted from Keaton’s $2,000 security deposit. Nowlin was required to return, within thirty days of move out, Keaton’s security deposit, less any lawful deductions.

Nowlin further alleged that on June 3, 2014, Keaton paid Nowlin rent, but failed to make any other rent payments thereafter. And Nowlin alleged that on September 5, 2014, without written notice and prior to the end of the lease term, Keaton moved out of the property without paying rent for the entire lease term, responding to a notice of abandonment, making her September rent payment, paying the $1,785 reletting fee, and cleaning the property.

After Keaton vacated the property, Nowlin discovered that the property had been damaged. Between September 18, 2014 and November 5, 2014, Nowlin made repairs to the property, which cost her $13,738. Nowlin also hired a professional cleaning service to clean the property. Nowlin did not return any portion of Keaton’s security deposit.

According to Nowlin, after Keaton vacated the property, Nowlin “exercised reasonable diligence to mitigate [her] damages by repairing the damage to the property caused by [Keaton] in as prompt a manner as possible and then [by] seeking another tenant to” rent the property. Nowlin, however, did not find another tenant for the remaining portion of the lease term, and she received “no actual rent from any other tenant during that time period.” Nowlin asserted a claim against Keaton for breach of lease agreement and sought $19,000 for unpaid rent, $13,738 for repairs to the property, $1,785 for the reletting fee, and attorney’s fees.

In her third amended answer and counterclaims, Keaton generally denied the allegations in Nowlin’s amended petition, asserting, inter alia, that Nowlin had breached the lease agreement first and waived Keaton’s compliance with the lease agreement. Keaton also brought counterclaims against Nowlin, alleging that she began living at the property in 2011 under a lease agreement with the property’s previous owner. Subsequently, she and Nowlin executed the lease agreement, which required Keaton to pay $2,100 in rent each month.

After Nowlin purchased the property in May 2014, she and/or her agents, repeatedly came to the property, oftentimes without proper notice and on holidays, to make repairs that were purportedly “to protect [Nowlin’s] investment.” Nowlin told Keaton that “she could enter [the property] whenever she wanted,” and Nowlin told her contractors that they could leave their tools and materials in the property’s garage. (Internal quotations omitted.) Nowlin also gave her contractors permission to use Keaton’s tools to complete their work.

On May 14, 2014, Keaton “expressed to [Nowlin] that she was unaccustomed to and overwhelmed by” Nowlin’s presence at the property and the presence of Nowlin’s contractors at the property on an almost daily basis. On May 19, 2014, Keaton sent Nowlin a letter expressing her frustrations with the frequent intrusions. At that time, Keaton also requested that Nowlin install a keyless dead bolt lock on the property’s front door. On May 24, 2014, Nowlin installed a “keyed” dead bolt

lock on the property’s front door, stating that it was “keyless” because no key existed for the lock, despite there being “a clear keyhole on the exterior of the lock.” (Internal quotations omitted.)

On June 11, 2014, Keaton notified Nowlin, by letter, that she had failed to provide her address as required by the Texas Property Code, she was continuing to access the property without providing proper notice, she had failed to install pin locks on the exterior sliding glass doors at the property, and she had failed to provide working handle latches for the exterior sliding glass doors. In her letter, Keaton requested the installation of pin locks, working handle latches, and security bars on the exterior sliding glass doors. On July 28, 2014, Keaton notified Nowlin by email that a keyless dead bolt lock still had not been installed on the property’s front door and “there were no locks on the [property’s exterior] sliding glass doors,” and Keaton requested the installation of pin locks. According to Keaton, Nowlin did not provide pin locks or proper security bars for any of the exterior sliding glass doors, did not fix the inoperable handle latches that did not properly latch to secure the exterior sliding glass doors, and did not disclose her address as requested.

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Linda S. Nowlin v. Lori Keaton, (Tex. Ct. App. 2019).

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