PROVIDENCE LAND SERVICES, LLC v. Jones

353 S.W.3d 538, 2011 WL 4506108
CourtCourt of Appeals of Texas
DecidedSeptember 29, 2011
Docket11-09-00298-CV
StatusPublished
Cited by19 cases

This text of 353 S.W.3d 538 (PROVIDENCE LAND SERVICES, LLC v. Jones) 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
PROVIDENCE LAND SERVICES, LLC v. Jones, 353 S.W.3d 538, 2011 WL 4506108 (Tex. Ct. App. 2011).

Opinion

OPINION

TERRY McCALL, Justice.

This appeal arises from a dispute between a landlord and its tenants concerning residential lake lots located at Lake . Colorado City. The controversy concerns the duration of the written real estate leases executed by the tenants and the landlord’s predecessors-in-interest. After a bench trial, the trial court determined that one category of leases constituted ninety-nine year leases and that another category of leases constituted tenancies at will. The landlord appeals the trial court’s ruling on the ninety-nine year leases, and the tenants of the leases determined to be tenancies at will are appealing that ruling. We affirm in part and reverse and render in part.

Background Facts

Graydon M. and Inez Howell previously owned the land where the lake lots are located. Beginning in the 1970s, the Howells began to lease individual lots to people who wanted lake property. The lake lots were known as the “Howell Properties,” and they consisted of forty-three total lots. The underlying litigation involved twenty-five of these lots.

The Howells and their tenants executed written lease agreements for each of the lots. The terms of the leases were drafted by the Howells without the aid of an attorney. With respect to the duration'of the leases, the leases can be classified into three categories: (1) leases that expressly provided that they were “indefinite”; (2) leases with no express end date; and (3) leases with fixed termination dates. The trial court labeled these categories respectively as “Indefinite Term Leases,” “No End Term Leases,” and “Fixed Term Leases” in the court’s judgment. We will also use these descriptions for the sake of clarity.

Graydon Howell died in 1988. After his death, Inez Howell continued to administer Howell Properties until her death in 1996. The Howells’ daughter, Carolyn Howell, assumed control of Howell Properties after her mother’s death. She continued to administer the lots until her death in 2007.

There were no disputes concerning the duration of the leases during the lifetimes of Graydon, Inez, and Carolyn. The events giving rise to this underlying action occurred when control of Howell Properties passed to Carolyn’s brother, Rex Glenn Howell, at her death in 2007. Rex conveyed the lots to appellant, Providence Land Services, LLC, in January 2008. Soon after acquiring the lake lots, Providence sent new leases to the tenants proposing new lease terms including thirty-day termination provisions and higher lease payments. Providence based this action on its assertion that the leases signed by the tenants and the Howells were tenancies at will. The tenants instituted the underlying action against Providence in an effort to establish that their original leases were long-term leases as a result of written and verbal agreements that they had made with the Howells. 1

*541 Indefinite Term Leases

In its first issue, Providence attacks the trial court’s construction of the Indefinite Term Leases. These leases provided as follows with respect to their duration:

For the sum of $_, the receipt of which is hereby acknowledged, a like annual rental of $ _ payable each year on or before _, Lessor will lease to Lessee the following described lot or parcel of ground on shores of Lake Colorado City, for residential purposes only, for the period from this date until Indefinite, under the following stipulations, agreements, and restrictions.

The trial court determined that the use of the word “indefinite” to define the end date of the leases’ duration was ambiguous as a matter of law. Accordingly, the trial court considered the oral testimony and documentary evidence submitted by the tenants to the effect that they and the Howells intended to create long-term leases by the use of the term “indefinite.” The tenants presented a great deal of evidence regarding their work to clear the lake lots for occupancy and the substantial improvements that they made on the lake lots based upon the expectancy of being there many years. The trial court ultimately interpreted the duration of the Indefinite Term Leases to be ninety-nine years from the date when they were entered.

The trial court’s determination that the use of the term “indefinite” was ambiguous is a threshold issue that we must resolve. Whether a contract is ambiguous is a question of law for the court to decide by looking at the contract. Nat’l Union Fire Ins. Co. of Pittsburgh, Pa. v. CBI Indus., Inc., 907 S.W.2d 517, 520 (Tex.1995). In construing a contract, we must ascertain the true intentions of the parties as expressed in the writing. J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223, 229 (Tex.2003). In the absence of fraud or mistake, the writing alone will be deemed to express the intention of the parties, and courts will enforce an unambiguous instrument as written. Cherokee Water Co. v. Forderhause, 641 S.W.2d 522, 524 (Tex.1982); Sun Oil Co. (Del.) v. Madeley, 626 S.W.2d 726 (Tex.1981); Rutherford v. Randal, 593 S.W.2d 949 (Tex.1980); City of Pinehurst v. Spooner Addition Water Co., 432 S.W.2d 515 (Tex.1968). The court is not looking for the subjective intent of the parties, which, as here, is conflicting and in fact creates an ambiguity in the language of the instrument; instead, it is the objective intent, the intent expressed or apparent in the writing, which is sought. Forderhause, 641 S.W.2d at 525; City of Pinehurst, 432 S.W.2d at 518.

A contract is not ambiguous if it is so worded that it can be given a definite or certain legal meaning. Wal-Mart Stores, Inc. v. Sturges, 52 S.W.3d 711, 728 (Tex.2001). An ambiguity does not arise simply because the parties advance conflicting interpretations of the contract. Id. In this regard, parol evidence cannot be admitted to create an ambiguity. Nat’l Union Fire Ins. Co., 907 S.W.2d at 520. Rather, a contract is only ambiguous if its language is subject to two or more reasonable interpretations. See Monsanto Co. v. Boustany, 73 S.W.3d 225, 229 (Tex.2002).

The key word in our analysis is use of the word “indefinite” to define the end date of the term of the leases. As set out above, the leases defined their duration as “for the period from this date until Indefinite.” 2 The tenants contend that “indefinite” is subject to two meanings: a “legal

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Bluebook (online)
353 S.W.3d 538, 2011 WL 4506108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/providence-land-services-llc-v-jones-texapp-2011.