Neely v. Jacobs

673 S.W.2d 705, 1984 Tex. App. LEXIS 5867
CourtCourt of Appeals of Texas
DecidedAugust 2, 1984
Docket2-83-213-CV
StatusPublished
Cited by9 cases

This text of 673 S.W.2d 705 (Neely v. Jacobs) 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
Neely v. Jacobs, 673 S.W.2d 705, 1984 Tex. App. LEXIS 5867 (Tex. Ct. App. 1984).

Opinion

OPINION

FENDER, Chief Justice.

This suit began as an injunctive action by the appellant, Lester Neely, against the appellee, John Jacobs, to prevent Jacobs from removing six hydraulic lifts from a building which Jacobs leased from Neely. *707 Jacobs counterclaimed, seeking damages for conversion of the lifts and prejudgment interest on those damages. From a judgment denying the injunctive relief and awarding Jacobs damages and prejudgment interest, Neely appeals.

We affirm the judgment, but order a partial remittitur as to damages.

In 1968, appellee Jacobs entered into an agreement with a John W. Porter to lease a building suitable for use as a transmission shop. Shortly after signing the lease, Jacobs installed six hydraulic lifts on the property. Each lift was installed by placing its base in an excavation approximately nine feet deep and pouring concrete around the base. No concrete was poured under the base of the lifts however, so that it was possible to remove them for repair.

Jacobs renewed his lease agreement with John Porter in 1979. In November, 1980, appellant Lester Neely attempted to purchase the transmission franchise from Jacobs. When Jacobs refused to sell, Neely purchased the building occupied by Jacobs from John Porter. Because Jacobs was in arrears in rent payments, Neely ordered Jacobs to vacate the premises.

At the time Neely gave Jacobs notice to vacate, a dispute arose as to the ownership of the lifts. Neely claimed that he owned them pursuant to the warranty deed conveyed to him by John Porter. Jacobs, however, claimed that the lifts were trade fixtures which he was entitled to remove. When Jacobs left the premises, therefore, he took with him various controls and above ground pipes which rendered the lifts inoperable.

Neely responded to Jacobs’ action by filing suit to enjoin Jacobs from removing the lifts from the building. Jacobs counterclaimed, seeking damages from Neely for conversion of the lifts and prejudgment interest on those damages. Trial was to the court, which found that Neely had converted the lifts. The trial court further determined that the value of the lifts to Neely at the time of conversion as well as their cash market value on that date was $20,000.

Neely alleges thirteen points of error, which will be set out as they are addressed in this opinion. In points of error one through four, Neely argues that there is no evidence, or alternatively insufficient evidence, that the lifts in question were trade fixtures which Jacobs was entitled to remove. He claims that the evidence clearly shows that the lifts were permanently affixed to the property, and that therefore title to them passed to him when he purchased the property. We find no merit to these arguments.

In reviewing legal insufficiency on “no evidence” points of error, this court may consider only the evidence tending to support the trial court findings. We must give effect to all reasonable inferences that may be drawn from the evidence favorable to the finding, and disregard all contrary or conflicting evidence. Precipitair Pollution Control v. Green, 626 S.W.2d 909 (Tex.App.—Tyler 1981, writ ref’d n.r.e.). In deciding a factual “insufficiency” point, however, we must consider and weigh all of the evidence in the case and decide whether the verdict was so against the great weight and preponderance of the evidence as to be manifestly unjust. In re King’s Estate, 150 Tex. 662, 244 S.W.2d 660 (1951).

Having set forth the proper evidence standards of review, we must now apply these standards in order to determine whether the evidence supports the conclusion that the lifts were trade fixtures. In general, a trade fixture is an article which (1) is annexed to the realty by the tenant to enable him properly or efficiently to carry on the trade, profession or enterprise contemplated by the tenancy contract or in which he is engaged while he is occupying the premises, and (2) can be removed without material injury to the freehold. Jim Walter Window v. Turnpike Distribution, 642 S.W.2d 3 (Tex.App.—Dallas 1982, no writ). The general rule is that in the absence of a contract between the landlord and tenant to the contrary, a tenant may remove and take away trade fixtures at the *708 end of his lease. Eckstine v. Webb Walker Jewelry Co., 178 S.W.2d 532 (Tex.Civ.App. —Fort Worth 1944, writ ref’d w.o.m.). The reason for the rule is that improvements made by a vendor, mortgagor, or ancestor are made to enhance the value of the estate, and ■ to be permanent, while those made by the tenant are temporary and made for the purposes of his trade. Jim Walter Window, supra. Thus, the law presumes that a tenant who erects improvements on leased land did not intend to contribute toward enhancement of the property. Eckstine, supra.

In reviewing the record in the case at bar, we find evidence which supports the trial court’s conclusion that the lifts were trade fixtures which Jacobs was entitled to remove. The evidence clearly shows that the lifts met the first prong of the trade fixture test; it was undisputed that they were originally affixed to the building by the tenant, Jacobs, in order for him to properly carry on his transmission business. Further, it was Jacobs’ undisputed testimony that the lifts were tools of the trade and that they were the type normally used in the transmission business.

There is also evidence in the record which supports the conclusion that the lifts were removable without material injury to the freehold, and thus met the second requirement of the trade fixture test. The evidence shows that in order to remove a lift, the concrete collar around its base must be broken. A hole is then dug around the base of the lift, and the lift is pulled out with a tow truck. Although the process is somewhat expensive and time consuming, it does not affect the structure of the building but only results in the removal of a small amount of concrete around the base of each lift. In fact, Neely testified that if the job is done properly, very little concrete is required to return the lifts to their original place.

The expense and time required to take the lifts out of the building did not prevent them from being periodically removed for maintenance work. During the operation of his transmission franchise, Jacobs removed the lifts and had them repaired and replaced at least once. Further, when Neely purchased the building he also pulled out the lifts for repairs and later returned them.

We conclude that the evidence is sufficient to support the trial court’s determination that the lifts are trade fixtures. Thus, in the absence of a contract to the contrary, Jacobs was entitled to remove the lifts when he vacated the premises. Eck-stine, supra.

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Bluebook (online)
673 S.W.2d 705, 1984 Tex. App. LEXIS 5867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neely-v-jacobs-texapp-1984.