Rajinder Singh, Rita Kaur, Rajiv Chhabra and Gauri Chhabra v. Slawomir J. Skibicki and a & Skipol, Inc.

Court of Appeals of Texas·Decided December 3, 2015·No. 01-14-00825-CV·Published

Opinion

Opinion issued December 3, 2015

In The

Court of Appeals

For The

First District of Texas

individuals and entities (“the remaining owners”), including the four appellants in this case, Rajinder Singh, Rita Kaur, Rajiv Chhabra, and Gauri Chhabra (collectively, “Singh”). Skibicki later sued the remaining owners for breach of a settlement agreement and sought actual damages or, alternatively, specific performance of the terms of the agreement. Skibicki moved for summary judgment on his own claims, and the trial court ultimately rendered summary judgment in his favor. In four issues, Singh contends that: (1) the trial court erred in awarding Skibicki specific performance; (2) the settlement agreement limited Skibicki’s remedies to specific performance and injunctive relief, and he was not entitled to “specific performance of payment or a judgment for damages”; (3) the trial court improperly overruled his objections to Skibicki’s summary judgment evidence; and (4) Skibicki failed to establish that he complied with his obligations under the settlement agreement.

We affirm.

Background

In 2010, Skibicki invested in a real estate project involving the development of condominiums and commercial retail units in Houston (“the Project”) alongside the remaining owners, including the four appellants in this case—Singh, Kaur, and the Chhabras—and several other individuals and entities, including Indopol Houston, LLC, Naseem Hussain, Tahera Chowdhury, Enterprise Houston, Inc.,

Sharif Choudhury, SCH Investments, LLC, Amir Hussain, and SCH-Trident, Ltd.1 Skibicki invested over $1.5 million in the Project and obtained a 15% ownership interest in Indopol Houston.

Over the course of the next two years, the parties were involved in numerous disputes concerning the Project and the operation of Indopol Houston. In 2012, Skibicki and the remaining owners entered into a Compromise Settlement Agreement and Release (“the Agreement”), in which they agreed to release all claims against each other except for those arising out of the Agreement itself. The remaining owners also agreed to purchase Skibicki’s ownership interest in Indopol Houston for $1,776,475. The parties agreed to the following payment schedule:

(i) The sum of $400,000.00 (the “Initial Payment”) shall be due and payable on or before March 31, 2013. If, at any time prior to March 31, 2013, the [remaining owners] close on the sale of any condominium unit in Building 1 of the Project, [the remaining owners] shall pay to [Skibicki] the sum of $20,000.00 per unit and such amount shall be applied toward the Initial Payment. Such amount shall be due and payable upon the closing of the sale of each unit and [Skibicki] shall execute and deliver to [the remaining owners] a Partial Release of the Deed of Trust (described in subparagraph (iv) below)

covering such unit. Notwithstanding the number of units sold on or before March 31, 2013, the full amount of the Initial Payment shall be paid no later than March 31, 2013.

1 Of the remaining owners, only Singh, Kaur, the Chhabras, Tahera Chowdhury, Sharif Choudhury, and Enterprise Houston, Inc., appealed the trial court’s summary judgment ruling. Chowdhury, Choudhury, and Enterprise Houston voluntarily moved to dismiss their appeal, and this Court granted that motion on December 11, 2014. Thus, the only remaining appellants are Singh, Kaur, and the Chhabras.

(ii) The remainder of the Purchase Price, being $1,376,475.00 (the “Final Payment”), shall be due and payable on or before October 31, 2013; provided, however, [the remaining owners]

shall be entitled to eight (8) extensions of one (1) month each, provided that upon each monthly extension the Purchase Price shall be increased by $8,000.00 for the first five (5) extensions and by $10,000.00 for the next three (3) extensions. If all eight (8) extensions are exercised, the Final Payment shall be $1,446,475.00 and shall be due and payable on June 30, 2014.

In the event that [Skibicki] has not received the Final Payment by the then required due date, then it shall be deemed that [the remaining owners] have exercised their right for an extension.

The Agreement provided that the remaining owners would execute both a deed of trust and a security agreement for Skibicki’s benefit to secure their payment of the purchase price for his ownership interest in Indopol Houston. The Agreement required Skibicki to execute and deliver an assignment of his membership interest in Indopol Houston.

The Agreement also included the following provisions relevant to Skibicki’s remedies in the event the remaining owners defaulted on their obligations:

5. LIMITATION ON [SKIBICKI’S] REMEDIES. Upon any default by [the remaining owners] under this Agreement, including but not limited to, [the remaining owners’] failure to timely pay to [Skibicki] the Purchase Price in accordance with Paragraph 2.G of this Agreement, [Skibicki’s] sole and exclusive remedy shall be to enforce the specific terms of this Agreement and/or exercise its rights under the Deeds of Trust and Security Agreement securing [Skibicki].

....

7. REMEDIES. For the enforcement of any of the provisions of this Agreement, each party shall have the rights to specific performance and injunctive relief in the broadest sense necessary to

effect the protection and rights which the party has acquired under this Agreement. Further, [Skibicki’s] recordation of the Deed of Trust without providing [the remaining owners] with notice and opportunity to cure as required by Paragraph 2(G)(vi) will cause [the remaining owners] to sustain loss and damage which will be difficult to ascertain and measure, and for which [the remaining owners] will have no adequate remedy at law. It is, therefore, reasonable and necessary that [the remaining owners] be accorded the equitable remedies of specific performance and injunctive relief.

Skibicki and all of the remaining owners signed the Agreement.

On December 20, 2013, Skibicki filed suit against the remaining owners, alleging that he had complied with all conditions precedent to recovery and that the remaining owners had not fulfilled their payment obligations under the Agreement. Skibicki sought actual damages in his original petition for the remaining owners’ breach of the Agreement, and he later amended his petition to seek specific performance under section five of the Agreement. Skibicki alleged that if he could not collect damages from the remaining owners, he would not have an adequate remedy at law to compensate for the remaining owners’ breach, that he was “ready, willing, and able to perform” under the Agreement, and that he had performed his obligations under the Agreement.

Skibicki moved for summary judgment on his claim for breach of the Agreement. Skibicki argued that the remaining owners breached the Agreement when they failed to timely pay the purchase price for Skibicki’s membership interest in Indopol Houston. He argued that, as a result, he had incurred damages

in the amount of $1,846,475 and that he should recover that amount either as actual damages or through specific performance of the remaining owners’ payment obligations under the Agreement.

As summary judgment evidence, Skibicki attached his affidavit, in which he generally described his course of dealing with the remaining owners, as well as the remaining owners’ obligations under the Agreement. He averred that the remaining owners “have not timely delivered payment to me and thus failed to meet their obligations under the Agreement.” He also averred that he was entitled to specific performance under the Agreement and that he “was ready to perform and did perform [his] obligations under the Agreement.” He also attached a copy of the Agreement signed by all parties as summary judgment evidence, although this copy was not accompanied by either the deed of trust or the security agreement referenced within the Agreement and executed by the remaining owners, nor was the Agreement accompanied by a business records affidavit.

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Rajinder Singh, Rita Kaur, Rajiv Chhabra and Gauri Chhabra v. Slawomir J. Skibicki and a & Skipol, Inc., (Tex. Ct. App. 2015).

Rajinder Singh, Rita Kaur, Rajiv Chhabra and Gauri Chhabra v. Slawomir J. Skibicki and a & Skipol, Inc. (Rajinder Singh, Rita Kaur, Rajiv Chhabra and Gauri Chhabra v. Slawomir J. Skibicki and a & Skipol, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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