Red Roof Inns, Inc v. Donna Jolly and James Glick

Court of Appeals of Texas·Decided December 15, 2011·No. 14-10-00344-CV·Published

Opinion

Reversed and Rendered and Majority, Concurring, and Dissenting Opinions filed December 15, 2011.

In The

Fourteenth Court of Appeals

NO. 14-10-00344-CV

RED ROOF INNS, INC., Appellant

V.

DONNA JOLLY AND JAMES GLICK, Appellees

On Appeal from the 125th District Court Harris County, Texas

Trial Court Cause No. 2008-47688

MAJORITY OPINION1

A motel owner appeals a trial court’s judgment in favor of motel guests based upon jury findings that the motel owner violated the Texas Deceptive Trade Practices Act, asserting that the evidence at trial would not enable reasonable and fair-minded people to find that the motel owner represented that the motel was secure. Because we

1 This opinion is a majority opinion as to Section III.B. Justice Jamison concurs in the disposition but not the reasoning in this opinion as to Section III.A.

conclude the evidence is legally insufficient to support the trial court’s judgment, we reverse and render judgment in favor of the motel owner.

I. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiffs/appellees Donna Jolly and James Glick (hereinafter ―the Guests‖)

brought suit against defendant/appellant Red Roof Inns, Inc. (hereinafter, the ―Motel‖), asserting claims for negligence and violations of the Texas Deceptive Trade Practices Act (―DTPA‖) following their stay at an establishment owned and operated by the Motel. According to the pleadings, the Guests traveled to the Houston area to visit a relative in a hospital. The Guests attempted to lease a motel room from three or four different establishments, but none had vacancies. The Motel had a room available at its location in West Houston. According to the testimony at trial, there was a security guard on duty in the motel lobby at the time the Guests checked in between 2:30 a.m. and 3:00 a.m., and received a card key to their room. The Guests alleged that during their stay at the motel, their room was burglarized and jewelry valued at $50,000 was taken from the room and never recovered.

The Guests brought suit against the Motel, alleging the Motel was negligent and that it engaged in a false, misleading, or deceptive act or practice in leasing the motel room by (1) representing that goods or services are or would be a particular standard, quality, or grade when they were of another, and (2) failing to disclose information about goods or services that was known at the time of the transaction and that such failure to disclose information was intended to induce the Guests into a transaction they would not have entered had the information been disclosed. Following a trial on the merits, the jury found as follows:

The Motel had been negligent and that its percentage of responsibility was five percent. The Motel had engaged in a false, misleading, or deceptive act or practice that the Guests relied upon to their detriment and that was a producing cause of the

Guests’ damages. ―False, misleading, or deceptive act or practice‖ was defined as a violation of subsection (7) or (24) of section 17.46(b) of the DTPA. The Motel did not knowingly violate the DTPA or engage in any unconscionable action or course of action. The Guests suffered damages of $25,000 as a result of the occurrence in question. A reasonable fee for the necessary services of the Guests’ attorney through trial is $25,000.

The Guests elected to recover under their DTPA claim, and the trial court rendered judgment on this claim, awarding the Guests $25,000 in damages, pre-judgment interest, $25,000 in attorney’s fees, and court costs.

On appeal, the Motel asserts in three issues that (1) the evidence is legally insufficient to support the jury finding that the Motel violated the DTPA; (2) the evidence is factually insufficient to support the jury finding that the Motel violated the DTPA; and (3) the trial court erred by not applying the percentage of responsibility found by the jury in rendering judgment on the Guests’ DTPA claim.

II. STANDARD OF REVIEW

When reviewing the legal sufficiency of the evidence, we consider the evidence in the light most favorable to the challenged finding and indulge every reasonable inference that would support it. City of Keller v. Wilson, 168 S.W.3d 802, 823 (Tex. 2005). We must credit favorable evidence if a reasonable factfinder could and disregard contrary evidence unless a reasonable factfinder could not. See id. at 827. Our task is to determine whether the evidence at trial would enable reasonable and fair-minded people to find the facts at issue. See id. The factfinder is the only judge of witness credibility and the weight to give to testimony. See id. at 819.

III. ANALYSIS

In its first issue, the Motel asserts the evidence is legally insufficient to support the jury’s finding that the Motel violated the DTPA by either (1) representing that its goods or services are or would be of a particular standard, quality, or grade when they were of

another, or (2) failing to disclose information about goods or services that was known at the time of the transaction if such failure to disclose information was intended to induce the Guests into a transaction they would not have entered had the information been disclosed. See TEX. BUS. & COM. CODE ANN. § 17.46(b)(7),(24) (West 2002).

A. Is the evidence legally sufficient to support the jury’s finding under DTPA section 17.46(b)(7)?

Under the applicable standard of review, the evidence is legally insufficient to support a finding that the Motel made an express representation that its goods or services would be of a particular standard, quality, or grade when they were of another.2 The Guests do not argue that the record contains legally sufficient evidence of such an express misrepresentation. The Guests argue that the evidence is legally sufficient to support a finding that the Motel represented that its premises was ―a safe, secure, and monitored property‖ when the motel was actually ―a crime-afflicted property that was not operated or monitored in a secure manner.‖ The Guests do not assert that the record contains evidence of an express representation in this regard; rather, the Guests argue that there is legally sufficient evidence of such a representation based upon the following:

(1) evidence that Glick inquired at the front desk as to whether there were safes available for the Guests’ use and that the clerk told him that safes were not available because the safe at the front desk was only for the Motel’s property;

(2) evidence that a security guard was present in the lobby when the Guests checked into the motel; and

2 The dissenting justice cites a general definition of ―false, misleading, or deceptive acts or practices‖ taken from Spradling v. Williams, 566 S.W.2d 561, 562 (Tex. 1978). See post at p.2 (citing two cases for general definition taken from the Spradling case). But the jury charge in the case under review did not contain this definition. Such a general definition does not apply under the version of the DTPA applicable to the case under review; the applicable version of the DTPA limits the term ―false, misleading, or deceptive acts or practices‖ to the acts enumerated in the subdivisions of section 17.46(b). See Tex. Bus. & Comm. Code Ann. §§ 17.46(d), 17.50(a)(1) (West 2011).

(3) evidence that the clerk in the lobby gave the Guests a card key to gain entry to their room.

Regarding the evidence that the front-desk clerk told Glick that safes were not available for the Guests’ use and that the safe at the front desk was only for the Motel’s property, under the applicable standard of review, this evidence would not allow reasonable and fair-minded people to find the Motel represented that its premises were secure. See West Anderson Plaza v. Feyznia, 876 S.W.2d 528, 534 (Tex. App.—Austin 1994, no pet.) (holding that statement was too vague to imply representation that the tenant had only one day under the lease to hire a guard).

1. What is the legal standard for determining if a representation may be implied under the DTPA?

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