Pitman v. Sanditen

611 S.W.2d 663, 1980 Tex. App. LEXIS 4216
CourtCourt of Appeals of Texas
DecidedDecember 17, 1980
Docket16451
StatusPublished
Cited by6 cases

This text of 611 S.W.2d 663 (Pitman v. Sanditen) 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
Pitman v. Sanditen, 611 S.W.2d 663, 1980 Tex. App. LEXIS 4216 (Tex. Ct. App. 1980).

Opinion

OPINION

KLINGEMAN, Justice.

This suit was originally filed by Appel-lees, Dean Sanditen and Sanditen Properties, Ltd., asking the trial court to enter a judgment declaring a certain lease agreement terminated and further declaring that the Appellants, Pitman and Lifshutz, no longer have any claim or interest in and to the leased premises and all improvements situated thereon. Appellees, Sanditen and Sanditen Properties, Ltd., joined Appellee, Peter Trang, who is Appellants’ sublessee, as a party defendant in said suit seeking to require that his rental payments be paid into the registry of the court pending final judgment, which was done by agreement of the parties.

Appellants counter-claimed against Ap-pellees, Dean Sanditen and Sanditen Properties, Ltd., seeking specific performance of their option to purchase and damages.

In this opinion, Pitman and Lifshutz will usually be referred to as appellants; Dean Sanditen and Sanditen Properties, Ltd., will be referred to as “Sanditen”; and Peter Trang will be referred to as “Trang.”

*665 Trial was to a jury with numerous special issues being submitted. Based on the jury verdict, the trial court rendered judgment that (a) the lease involved was terminated; (b) all of the interest of appellants in the property was also terminated; and (c) appellants take nothing by their counterclaim. The court further ruled that Trang was entitled to attorney’s fees in the amount of $2,500, payable from the funds deposited in the registry of the court by Trang and by appellants, and that any remainder be paid to Sanditen.

In 1978, Sanditen owned a hotel and the land on which it was situated in Laredo, Texas. Sanditen entered into a written contract with appellants whereby appellants purchased the improvements and personal property located on the land and leased the real property underlying said improvements and personal property. This lease agreement granted the appellants an option to purchase the land, exercisable by appellants giving written notice to Sanditen and designating a closing date. Appellants gave notice to exercise the option in January, 1979, specifying a closing date of February 28, 1979. Carlos Zaffirini, the attorney representing Sanditen, received said notice and proceeded to prepare the notes and the deed necessary for the completion of the transaction. Zaffirini testified that around February 25 or 26, 1979, he and John Hemmi, the appellants’ attorney, discussed closing the transaction on March 1, 1979, but that Hemmi called back on February 27, 1979, leaving a message that the closing would be handled by mail rather than by meeting of the parties on February 28 or March 1. Zaffirini testified he then sent the necessary documents to Hemmi and that they were probably mailed on March 1,1979. As a result, the sales transaction did not close on February 28 as initially specified by appellants nor did it close on March 1. The transaction did not close thereafter because, after March 1 had passed without the sale being closed, Sandi-ten then insisted on payment by appellants of the rent due on March 1 before he would complete the sale. Sanditen notified appellants on March 5 that they were late in making the March 1 rental payment and upon appellants’ continued failure to pay said rent, Sanditen notified them that he was terminating the lease.

Appellants’ first two points of error assert that the trial court erred in failing to grant appellants’ motion for judgment and in failing to order that the purchase and sale between the parties be specifically performed because (1) the undisputed evidence and jury’s answers to Special Issues 2 and 3 1 establish that appellants were entitled to a deed to the property and the use and enjoyment thereof by them on March 1, 1979; and (2) the trial court’s actions are based upon a questionable construction of the contract and result in a forfeiture of vested property rights, which is approved by neither law nor equity.

In essence appellants urge that they timely and properly exercised their option to purchase prior to March 1, 1979, and by doing so relieved themselves of any liability for the March rental. They further assert that in any event, appellants were entitled to such rental as the equitable owners of the property effective March 1, 1979. Appellants maintain that once they exercised the option to purchase, the landlord-tenant relationship ceased and a vendor-purchaser relationship arose, and that therefore no rent was due upon March 1, 1979.

They also assert, without conceding that any rent was due, that it was Sanditen’s conduct which led them to believe that the closing would be effected on March 1,1979; that the closing was delayed only because of the conduct of Sanditen and his attorney which prevented a closing on March 1,1979; and that this relieved them of any responsibility of making the rental payment due March 1, 1979.

*666 The written instrument here involved is dated May 1, 1978, and is entitled “Indenture of Lease.” In such agreement, Sandi-ten, as lessor, leases to appellants as lessee, certain property in Laredo, Texas, with the initial rental being $725.00 a month for the first ten months, after which time the monthly rental will be $1,762.00 commencing on March 1, 1979.

The pertinent provisions of the instrument here involved leading up to this controversy are summarized as follows:

Section 14 of the lease provides for termination of the lease upon failure to pay monthly rentals in accordance with the terms and provisions of the lease.
Section 16 of the lease contains the option to purchase under which appellants are granted an option to purchase the underlying land at any time after the expiration of eight months and before the expiration of twenty-one months from the date of the lease under certain stipulated conditions, which option was exercisable by giving Sanditen written notice; and that thereafter, a contract shall exist between lessor and lessee for the sale and purchase of the real estate.
Section 16(i) of the lease agreement provides as follows:
It is expressly agreed by and between the parties hereto that in the event that Lessee should default, at any time, in the performance of its obligations under this Lease, as a result of which this Lease shall be terminated, then and in such event the option herein contained shall terminate immediately upon the termination of this Lease, and shall be of no further force and effect.

Section 20 of the lease agreement, entitled Merger of Titles, reads as follows:

Notwithstanding anything to the contrary, in the event lessee defaults under any of the terms, covenants and conditions of this Lease prior to Lessee dosing their option to purchase said land and Lessee fails to cure same within the time allowed under this Lease, if any, then without notice to Lessee at Lessor’s option, Lessee’s interest in and to the buildings, structures, and improvements situated on or within the demised premises shall cease and be merged with Lessor fee simple title and Lessee shall have no further interest, and/or claim thereto, (emphasis added)

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Related

Hitzelberger v. Samedan Oil Corp.
948 S.W.2d 497 (Court of Appeals of Texas, 1997)
Foreman v. Graham
693 S.W.2d 774 (Court of Appeals of Texas, 1985)
Shindler v. Harris
673 S.W.2d 600 (Court of Appeals of Texas, 1984)
Roark v. Allen
633 S.W.2d 804 (Texas Supreme Court, 1982)
Pitman v. Sanditen
626 S.W.2d 496 (Texas Supreme Court, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
611 S.W.2d 663, 1980 Tex. App. LEXIS 4216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pitman-v-sanditen-texapp-1980.