Padre Island Investment Corp. v. Sorbera

677 S.W.2d 90, 1984 Tex. App. LEXIS 5734
CourtCourt of Appeals of Texas
DecidedJune 27, 1984
Docket04-83-00199-CV
StatusPublished
Cited by8 cases

This text of 677 S.W.2d 90 (Padre Island Investment Corp. v. Sorbera) 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
Padre Island Investment Corp. v. Sorbera, 677 S.W.2d 90, 1984 Tex. App. LEXIS 5734 (Tex. Ct. App. 1984).

Opinion

OPINION

BUTTS, Justice.

This is a venue case governed by the Texas Deceptive Trade Practices Act, TEX. BUS. & COM.CODE ANN. § 17.41 et seq. (Vernon Supp.1984). 1 Plaintiffs Salvatore and Joyce Sorberá sued Padre Island Investment Corporation for breach of contract and breach of warranty, instituting suit in Bexar County. Padre Island filed its plea of privilege, requesting transfer of the case to Nueces County, the corporation’s place of residence. Plaintiffs asserted by controverting plea that venue is proper in Bexar County under § 17.56. The trial court agreed and overruled the plea of privilege. We affirm.

The transaction at issue involves a series of events occurring both before and after the effective date of the DTPA (May 21, 1973). Before December 27, 1972, a purported agent of defendant (a retired colonel) solicited plaintiffs by telephone to attend a presentation in San Antonio concerning the purchase of undeveloped real property in North Padre Island from Padre Island Investment Corporation. After the presentation, plaintiffs made a check payable to Padre Island for $100.00, indicating their good faith interest in purchasing property in North Padre Island. When they visited Corpus Christi to view the property, they received back their very same $100.00 good faith deposit check un-negotiated.

Plaintiffs purchased three lots from the corporation. Padre Island in 1977 returned the money on one lot, but the other two are still owned by plaintiffs. On January 8, 1973, and on July 10, 1973, defendant corporation signed contracts in Nueces County, previously signed by plaintiffs, which promised, among other things, to ready the lots for home construction by November 1981. Salvatore Sorberá testified that he visited Corpus Christi three or four times a year subsequent to the signing of the contract until defendants failed to perform as promised in November 1981 and was reassured each time by agents of Padre Island that the lots would be completed on schedule as promised.

We note that breach of contract damages and damages for breach of express warranty under the DTPA are not mutually exclusive. Smith v. Baldwin, 611 S.W.2d 611, 614 (Tex.1980). Plaintiffs could sue for breach of contract and could also sue for misrepresentations as to the date the lot would be ready for house construction, provided they received but one recovery for the same act or practice. § 17.43. Cf. Garcia v. Texas Instruments, Inc., 610 S.W.2d 456 (Tex.1980); Continen *93 tal Savings Association v. Maheney, 641 S.W.2d 290, 292 (Tex.App.—Houston [14th Dist.] 1982, writ ref d n.r.e.).

Padre Island raises three points of error. In points of error one and two, it argues that since the events of which plaintiffs complain occurred in Bexar County before the DTPA became applicable to real property, venue is not proper in Bexar County. In point of error three, the corporation complains that the evidence is factually and legally insufficient to support a finding that the solicitations for the sale of real property were made by an authorized agent of Padre Island in Bexar County.

In order to resolve points of error one and two, we first must decide when the acts giving rise to the cause of action occurred, thereby enabling us to determine which DTPA venue statute 2 applies and, thus, where venue properly lies.

Although it is uncontested that the solicitations precipitating the series of events of which plaintiffs complain occurred prior to the effective date of the DTPA, the date of the deceptive acts or practices giving rise to the cause of action under the DTPA determines the applicability of the Act. La Sara Grain Co. v. First National Bank of Mercedes, Texas, 673 S.W.2d 558, 565 (Tex.1984); Woods v. Lit-tleton, 554 S.W.2d 662, 665-66 (Tex.1977). 27 P. KENS and S. COCHRAN, CONSUMER RIGHTS AND REMEDIES § 2 Texas Practice (1983).

The pertinent parts of plaintiffs’ original petition are:

At some time prior to December 27, 1972, Defendant solicited Plaintiffs by telephone to attend a presentation in San Antonio, Bexar County, Texas. During such presentation, the sum of $100.00 was solicited by Defendant from Plaintiffs as a good faith deposit, which deposit was paid by Plaintiffs in San Antonio, Bexar County, Texas, to Defendant, prior to Plaintiffs visiting the real estate development belonging to Defendant. Plaintiffs then purchased from Defendant two (2) pieces of real property, the first being Lot 70, Block 001, Cape Summer Unit 1, in Nueces County, Texas, and were furnished and executed a Contract for Deed therefor, a copy of which is attached hereto and marked Plaintiffs’ Exhibit “A” and incorporated herein by reference, and Lot 32, Block 21, Cape Summer Unit 1 in Nueces County, Texas, and were furnished and executed a Contract for Deed therefor, copy of which is attached hereto and marked Plaintiffs’ Exhibit “B” and incorporated herein by reference.
III.
Said contracts provide in relevant part that by November, 1981, “there shall have been constructed and installed paved streets, and, if applicable, concrete bulk hill heading of canals, abutting said *94 property; and there shall have been made available to buyer a water main and sewage disposal facility abutting said property that buyer may, at his expense, tap into said water main, and into a sewage disposal facility and procure water service and sewage disposal service for said property.” In addition, Defendant made various other representations which constituted warranties contained in the contracts referred to above, some or all of which were breached by Defendant, In addition, said contracts provide for an exchange privilege which Defendant has failed and refused to comply with. (Emphasis added.)

We perceive the acts giving rise to this cause of action to be the misrepresentations of the defendant in the form of continued reassurances to the plaintiffs that their land would be ready. Plaintiffs could not know before November 1981 the statements made by Padre Island were misrepresentations although such reassurances occurred over a period of time beginning prior to the effective date of the DTPA (May 21, 1978) until the actual breach. Woods, supra at 665-66; Town & Country Mobile Homes, Inc. v. Stiles, 543 S.W.2d 664, 666 (Tex.Civ.App.—El Paso 1976, no writ).

It is well established that breach of an express warranty occurs when defects are discovered. Ralston Oil & Gas v. Gensco,

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Bluebook (online)
677 S.W.2d 90, 1984 Tex. App. LEXIS 5734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/padre-island-investment-corp-v-sorbera-texapp-1984.