Miller v. Vineyard

765 S.W.2d 865, 1989 Tex. App. LEXIS 660, 1989 WL 25890
CourtCourt of Appeals of Texas
DecidedFebruary 1, 1989
Docket3-87-068-CV
StatusPublished
Cited by1 cases

This text of 765 S.W.2d 865 (Miller v. Vineyard) 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.

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Miller v. Vineyard, 765 S.W.2d 865, 1989 Tex. App. LEXIS 660, 1989 WL 25890 (Tex. Ct. App. 1989).

Opinion

ON MOTION FOR REHEARING

SHANNON, Chief Justice.

The opinion handed down by this Court on September 28, 1988, is withdrawn and this opinion is filed in its stead.

Appellees Gerald N. Vineyard and Patsy N. Vineyard sued appellant Jack W. Miller, et al., in the district court of Comal County for anticipatory breach of a lease agreement. After a bench trial, the district court rendered judgment that appellees recover from Miller $14,675.00 together with prejudgment interest. This Court will modify the judgment and will affirm the judgment as modified.

In September 1985, appellees held title to certain real property and improvements located in Comal County known as “Busy Corner Auto Service.” On September 80, 1985, appellees entered into a lease option *867 agreement with appellant Miller. By the agreement, Miller agreed:

1. To lease the property, as part of the consideration for the option to purchase, for a period of eighteen months at $1,150 each month with the first payment due on October 1, 1985, until $20,700 was paid in full;

2. To pay $10,000.00 for the option to purchase the property, which was to be exercised on or before April 1, 1987 payable at $1000.00 per month with the first payment due on October 1, 1985, until the $10,000.00 was paid in full; and

3. That should Miller not exercise his option to purchase, he would lease the property for an additional forty-two months, at $1,150.00 each month, beginning April 1, 1987, for a total consideration of $48,300.00.

Appellees were empowered under the agreement to cancel Miller’s option to purchase in case of default. The agreement, however, does not address appellees’ authority to declare a forfeiture of the lease in the event of default and is also silent respecting Miller’s liability for lease payments after breach.

Miller performed under the contract for four months by making the lease option payments. However, in February 1986 Miller vacated the premises without notice and made no further payments. After discovering that Miller had vacated, appellees eventually succeeded in renting the premises to a new tenant on a month-to-month basis for $975.00 each month. Appellees then filed suit against Miller for damages for anticipatory breach of the agreement.

Miller defended the suit claiming inter alia that appellees had declared a forfeiture of the lease and, accordingly, that he was relieved from liability for payment of future rentals. Miller asserted further that appellees, in pleading their claim against him, had committed usury thereby excusing his performance under the agreement.

After rendering judgment for appellees, the district court found, inter alia, damages in the sum of $14,675.00. Of that total, $5,750.00 represented the monthly lease payments due under the agreement from February 1,1986, until appellees were able to relet the premises on June 30, 1986. The balance, $8,925.00, represented the monthly lease payments due under the agreement for the balance of the lease term less the rentals to be paid by the new tenant. Respecting Miller’s defenses, the district court failed to find that appellees forfeited the lease and failed to find that appellees had charged usurious interest.

By two points of error Miller claims that the district court erred in failing to find that appellees had declared a forfeiture of the lease because the evidence conclusively proved forfeiture or, alternatively, because the district court’s failure to find forfeiture was so contrary to the great weight and preponderance of the evidence as to be manifestly unjust.

In the context of a lease agreement, a forfeiture is a penalty provided by the terms of the agreement for the breach of a covenant in the agreement. Rescission, on the other hand, is an equitable remedy that terminates the agreement by force of law and is independent of any provision of the agreement. The practical effect is the same: the tenant’s obligation to pay rent ends at the time of forfeiture or rescission. Stovall, Remedies of the Landlord, 13 Baylor L.Rev. 374 (1961). A corollary of this rule is that the tenant’s obligation to pay rent continues until such an event occurs. Accordingly, this Court must determine whether the record supports the district court’s refusal to find that rescission (forfeiture) occurred.

In considering a “no evidence” point, the reviewing court must reject all evidence contrary to the jury’s findings and consider only the facts and circumstances which tend to support those findings. Renfro Drug Co. v. Lewis, 149 Tex. 507, 235 S.W.2d 609 (1950). In reviewing factual sufficiency points of error, the court considers all of the evidence to determine whether the findings are so against the great weight and preponderance of the evidence as to be manifestly unjust. In re King’s *868 Estate, 150 Tex. 662, 244 S.W.2d 660 (1951).

Miller’s most convincing evidence of ap-pellees’ intent to rescind the lease is Gerald Vineyard’s somewhat ambiguous statement that the lease was “terminated” until he “got paid.” However, a layman’s loose usage of a word with possible legal significance is not conclusive evidence of his intent.

Some evidence suggests that appellees did not rescind; this evidence includes Gerald Vineyard’s testimony that he was willing to allow Miller to continue under the lease-option agreement if Miller would pay all past due payments under the lease and give thirty days notice so that appellees could retake possession of the premises. Appellee Vineyard also testified that Miller attempted to terminate the lease and that he, Vineyard, refused to accept the termination.

Rejecting all of the evidence contrary to the district court’s finding and considering only the facts and circumstances tending to support that finding, this Court has no difficulty in concluding that all of the evidence did not require a finding that appel-lees intended to and did cancel the lease agreement. Renfro Drug Co. v. Lewis, supra. Accordingly, Miller’s no evidence point is overruled.

This Court has considered all of the évi-dence respecting appellees’ intent to cancel, or their actual cancellation of, the lease agreement. In re King’s Estate, supra. The fact that appellees rented the premises to another upon Miller’s vacating in violation of the agreement does not effect a release of Miller from the agreement. At most, it only raises a question of fact about appellees’ intent to release Miller from the contract. Marathon Oil Co. v. Rone, 83 S.W.2d 1028, 1031 (Tex.Civ.App.1935, writ ref’d). It is evident that the proof is conflicting, and under such circumstances, the fact finder may, of course, accept part of the testimony of a witness and disregard the remainder. Further, the fact finder is the judge of the credibility of the witnesses and the weight to be accorded their testimony. Harrell v. Sunylan Co., 128 Tex.

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765 S.W.2d 865, 1989 Tex. App. LEXIS 660, 1989 WL 25890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-vineyard-texapp-1989.