Lone Starr Multi-Theatres, Ltd. v. Max Interests, Ltd.

365 S.W.3d 688, 2011 WL 6938527, 2011 Tex. App. LEXIS 10210
CourtCourt of Appeals of Texas
DecidedDecember 29, 2011
Docket01-10-00708-CV
StatusPublished
Cited by22 cases

This text of 365 S.W.3d 688 (Lone Starr Multi-Theatres, Ltd. v. Max Interests, 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
Lone Starr Multi-Theatres, Ltd. v. Max Interests, Ltd., 365 S.W.3d 688, 2011 WL 6938527, 2011 Tex. App. LEXIS 10210 (Tex. Ct. App. 2011).

Opinion

OPINION

TERRY JENNINGS, Justice.

Appellant, Lone Starr Multi-Theatres, Ltd. (“Lone Starr”), challenges the trial court’s judgment, entered after a jury trial, in favor of appellee, Max Interests, Ltd. (“Max”), on Max’s claim against Lone Starr for breach of contract. In its first issue, Lone Starr contends that the evidence is legally and factually insufficient to support the jury’s findings that it breached its lease agreement with Max and Max was damaged by this breach. In this issue, Lone Starr also contends that these findings are immaterial to the extent that the jury was “called upon” to interpret the lease. In its second issue, Lone Starr contends that the jury’s findings did not provide a basis for the trial court to award Max $25,800 for lost rent and the evidence is legally and factually insufficient to support the “implied finding” that Max lost this amount of rent as a result of Lone Starr’s breach of the lease. In its third issue, Lone Starr contends that it established as a matter of law that Max unlawfully retained Lone Starr’s security deposit and the evidence is legally insufficient to support the jury’s finding that Max had provided Lone Starr with a “written description and itemized list of all deductions” from Lone Starr’s security deposit. 1 In its fourth, fifth, and sixth issues, Lone Starr contends that the trial court erred in not admitting the testimony of its witness *692 on the cost to repair the alleged damage to the leased property, not providing it with a credit in the judgment for its security deposit, awarding Max attorney’s fees, and not awarding Lone Starr attorney’s fees.

We affirm in part, reverse in part, and remand solely for a new trial on attorney’s fees.

Factual and Procedural Background

In May 1998, Lone Starr entered into a lease agreement with Championship Sports, Inc. to lease a property in Houston, Texas to be used as an “adult entertainment center,” which included “movie exhibitions, sales, and videotape rentals.” 2 The lease provided that the original term would expire December 31, 2001 and Lone Starr would become a month-to-month tenant after this time, pay a monthly rental fee of $8,200 until December 31, 1999, and pay a monthly rental fee of $8,600 for the remainder of the lease term and any additional period in which it remained in the property as a month-to-month tenant.

The lease imposed certain maintenance obligations on Lone Starr. Specifically, the lease provided,

Throughout the term of this lease, [Lone Starr], at [Lone Starr’s] own expense, agrees to keep the Premises and improvements thereon in good repair and condition, and will save and hold Lessor harmless from penalty or damage imposed by a lawful authority for the violation of any lawful regulation, and from any loss, damage, or expense in any way arising out of the use of said Premises by [Lone Starr]. Lone Starr further covenants and agrees that [it] will not commit or allow the commission of waste on the Premises,.... [Lone Starr] shall deliver the Premises free and clean of trash and in good repair and condition at the expiration or termination of this Lease Agreement.

The lease also provided that, upon termination, Lone Starr would have twenty days to remove its property and improvements at its own expense, “so long as such removal is without damage to the structure or the Premises.” Max applied, as a security deposit for the instant lease, a $5,000 security deposit that Lone Starr had deposited pursuant to a prior lease agreement.

The parties extended the lease, and, in 2005, Lone Starr became a month-to-month tenant. In June 2006, Max bought the property subject to the lease between Championship Sports and Lone Starr. On September 26, 2006, Lone Starr sent Max a written notice that it intended to vacate the property on October 31, 2006. And, on October 20, 2006, Lone Starr sent Max a second notice, informing Max that it would vacate the property by November 1, 2006 and, pursuant to the terms of the lease, it would have an additional twenty days to remove its property and improvements.

On November 1, 2006, Max sent Lone Starr a letter stating that Max would begin its inspection of the property. On or about November 14, 2006, John Cibik, on behalf of Max, inspected and took photographs of the property. On November 15, 2006, David Greenberg, Max’s general partner, sent to Lone Starr an e-mail informing Lone Starr that it had left the property in “terrible condition with extensive damage” and requesting that Lone Starr clean and repair the property. Greenberg attached to his e-mail photographs from Cibik’s visit to the property. On November 27, 2006, Greenberg sent to Lone Starr a letter stating that Lone Stan-had left the property “in poor condition *693 with needed repairs and maintenance.” He demanded that Lone Starr perform the required repairs and maintenance, informed Lone Starr that if it did not repair the property Max would make the repairs at Lone Starr’s expense with Lone Starr’s security deposit, and noted that Max would hold Lone Starr responsible for any excess amount. Greenberg further warned Lone Starr that its continued delays in repairing the property were preventing Max from leasing the property, and he stated that Max would hold Lone Starr accountable for any damages incurred.

On December 11, 2006, Max sent to Lone Starr a letter, demanding that Lone Starr pay Max $56,008.20, representing $26,608.20 in costs for “repairs/damages” and $84,400 for three-month’s rent from November 2006 to February 2007, less Lone Starr’s $5,000 security deposit. Max attached to this letter a document entitled, “Commercial Construction Cost Schedule,” in which Cibik itemized costs for repairs or work that Max contended Lone Starr was obligated to perform under the lease. On December 21, 2006, Lone Starr responded and sent Max a letter, denying the allegation that it had failed to surrender the property in good condition, asserting that Max had acted in bad faith by not returning its security deposit or providing it with a written description and itemized list of deductions for repairs, and demanding the return of its security deposit.

Max filed suit, alleging that Lone Starr had breached the lease by failing to return the property in “good condition” and seeking $56,008.20 in damages as set forth in its demand letter as well as its attorney’s fees. Lone Starr filed an answer, generally denying Max’s allegations and alleging that Max had unlawfully retained its security deposit to cover normal wear and tear and failed to provide Lone Starr with a written description and itemized list of any deductions from the deposit. Lone Starr contended, thus, that Max had forfeited its right to withhold the security deposit or bring suit for damages. Lone Starr also asserted that Max’s breaches of the lease agreement precluded it from bringing suit.

At trial, both parties presented conflicting evidence concerning the condition of the property, the maintenance and repairs performed by Lone Starr during the lease and at the time it terminated the lease, the scope of repairs and cleaning, and the amount of costs necessary to return the property to “good condition” in compliance with the lease.

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Cite This Page — Counsel Stack

Bluebook (online)
365 S.W.3d 688, 2011 WL 6938527, 2011 Tex. App. LEXIS 10210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-starr-multi-theatres-ltd-v-max-interests-ltd-texapp-2011.