Richard Gill Co. v. Jackson's Landing Owners' Ass'n

758 S.W.2d 921, 1988 Tex. App. LEXIS 2435, 1988 WL 99646
CourtCourt of Appeals of Texas
DecidedSeptember 22, 1988
Docket13-87-496-CV
StatusPublished
Cited by22 cases

This text of 758 S.W.2d 921 (Richard Gill Co. v. Jackson's Landing Owners' Ass'n) 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
Richard Gill Co. v. Jackson's Landing Owners' Ass'n, 758 S.W.2d 921, 1988 Tex. App. LEXIS 2435, 1988 WL 99646 (Tex. Ct. App. 1988).

Opinion

OPINION

KENNEDY, Justice.

Jackson’s Landing Owners’ Association sued Bayhouse, Ltd., a Texas Limited Partnership, and one of the limited partners, The Richard Gill Company (TRGC), as the past managers and partial owners of a condominium project, for failure to pay properly assessed dues, and for negligent failure to keep the books of the condominium project in good order during the period of development. In a trial to the court, judgment was rendered for the Association for $14,484.09 in unpaid assessments, $7,063.74 as late fees on the assessments, $7,063.74 as pre-judgment interest on the assessments, $3,725.00 as actual damages for failure to keep the books in good order, $705.19 as prejudgment interest on actual damages, and $7,500.00 as attorney’s fees. Appellants bring four points of error complaining that the trial court erred in holding Bayhouse liable for the assessments, in disregarding TRGC’s status as a limited partner, and in awarding attorney’s and accountant’s fees to appellee.

Bayhouse, Ltd. is a limited partnership that was set up by Jack Turner, a Corpus Christi architect, and Corpus Christi Partners, Ltd., as general partners, and TRGC, as limited partner, for the purpose of converting the Bayshore Apartments into Jackson’s Landing Condominium. In accordance with the Texas Condominium Act, Tex.Prop.Code Ann. § 81.102 (Vernon 1984), Bayhouse filed a declaration of condominium in Nueces County on December 30, 1981, along with a copy of the bylaws of the owner’s association.

The declaration provided for Bayhouse to manage the condominium and perform the duties of the owners’ association during the development period, which would continue until 75% of the units were sold or three years from the date of the declaration, whichever came first. At that time the *923 owners’ association would be formed and would elect a board of directors to take over control of the condominium. On July 15, 1982, Bayhouse executed a management agreement under which TRGC took over the management of Jackson’s Landing on behalf of Bayhouse. TRGC continued to manage Jackson’s Landing until May 8, 1984, when the first owners’ association meeting was held.

At the first meeting, officers of the association and a board of directors were promptly elected. The board asked TRGC to turn the books over to the association in order for the association to do an accounting as required by the declaration. The accounting firm of Fancher & Co. was hired by the association to do the audit. The records TRGC gave to the association and that were passed on to Fancher, however, were inauditable in the opinion of the accountant. He had to do a large amount of work on the materials received to put them in an order which would permit the association to continue business. From the records that the accountant pieced together, the association noticed that Bayhouse, and TRGC as manager, had failed to properly make monthly assessments against itself for the units within the condominium that it still owned during the development period. Instead, Bayhouse had pro-rated certain expenditures it made on behalf of the condominium, by paying for a portion of the expenses itself. The association brought suit against Bayhouse and TRGC for the difference between these pro-rated amounts and the amounts that Bayhouse properly should have assessed against itself under the terms of the declaration. Bayhouse also brought suit for the accounting fees necessary to put the books in order, and for reasonable attorney’s fees.

Appellants’ first point of error is multifarious. It attacks the trial court’s award of assessments to appellee on the grounds that offsets to the award were proved as a matter of law or by the great weight and preponderance of the evidence, that Bayhouse had no obligation to pay assessments, and that most of the assessments are barred by the statute of limitations. Nevertheless, since appellants separately briefed each complaint within their first point, we will address each separately.

The first complaint we address is appellants’ contention that as a matter of law Bayhouse had no obligation, as developer, to pay assessments. Appellants claim that the declaration and bylaws which established the relationship between Bayshore ,and the future apartment owners in Jackson’s Landing did not obligate Bayshore to pay assessments on the number of apartments that it owned during the development period.

The duty of apartment owners to pay assessments is set out in the declaration as follows: “§ 21.1.1 Commencing with the effective date of this Declaration each apartment owner shall be liable for a proportionate share of the common expenses. ...” The Texas Condominium Act also provides in § 81.204(a) that “[a]n apartment owner in a condominium regime is responsible for the apartment owner’s pro rata share of: (1) the expenses to administer the condominium regime and to maintain and repair the general common elements....” The question on appeal is whether the trial court correctly interpreted the declaration to include Bayhouse as an “apartment owner” subject to assessments during the development period.

The relevant portions of the declaration suggesting that Bayhouse is an apartment owner are:

§ 1.8 Declarant [Bayhouse] is the sole owner of the Property.
§ 9.1 The persons or entities, including the Declarant, who are, at the time of reference, the apartment owners shall constitute the Home Owners Association. ...

Bayhouse was the legal owner of the property consisting of unsold apartments within the condominium during the period of development. Section 9.1, moreover, clearly includes Bayhouse in the group that it refers to as “apartment owners.”

*924 Appellants contend, however, that other terms of the declaration providing that Bayhouse itself had the power to make and collect assessments, to advertise the development by posting signs on the property, and to perform routine maintenance on the common areas, all of which are not allowed for individual apartment owners, suggest that Bayhouse as developer was not intended to be an “apartment owner” under the declaration.

Appellee, however, points out that it is not inconsistent for Bayhouse to be considered an apartment owner and at the same time exercise powers specifically denied to individual owners in the declaration. The board of directors itself, though merely a group of individual owners, would eventually gain these same powers. The distinction is that Bayhouse was not acting in its capacity as an owner of individual apartments when it undertook maintenance or advertising, but in its capacity as an interim manager. This did not detract from Bayhouse’s status under either capacity, nor does it make the declaration ambiguous. The trial court correctly concluded that Bayhouse was an apartment owner under the declaration for the purpose of assessments.

The second complaint we address is appellants’ contention that most of the assessments claimed by appellee are barred by the four year statute of limitations for collection of a debt under Tex.Civ.Prac. & Rem.Code Ann. § 16.004(a)(3) (Vernon 1986).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

B.E.K. v. C.G.E.
Court of Appeals of Texas, 2024
Innerimages, Inc. v. Robert Newman
Court of Appeals of Tennessee, 2019
Laurel Road HOA, Inc. v. W.E. Freas and N. Freas
191 A.3d 938 (Commonwealth Court of Pennsylvania, 2018)
Vingcard A.S. v. Merrimac Hospitality Systems, Inc.
59 S.W.3d 847 (Court of Appeals of Texas, 2001)
Rio Grande Valley Gas Co. v. City of Edinburg
59 S.W.3d 199 (Court of Appeals of Texas, 2000)
Terrill v. Tuckness
985 S.W.2d 97 (Court of Appeals of Texas, 1998)
Ganz v. Lyons Partnership, L.P.
173 F.R.D. 173 (N.D. Texas, 1997)
D.S.A., Inc. v. Hillsboro Independent School District
975 S.W.2d 1 (Court of Appeals of Texas, 1997)
Rowe v. Rowe
887 S.W.2d 191 (Court of Appeals of Texas, 1994)
McMeens v. Pease
878 S.W.2d 185 (Court of Appeals of Texas, 1994)
Staff Industries, Inc. v. Hallmark Contracting, Inc.
846 S.W.2d 542 (Court of Appeals of Texas, 1993)
Goddard v. Fairways Development General Partnership
426 S.E.2d 828 (Court of Appeals of South Carolina, 1993)
Schindler v. Austwell Farmers Cooperative
829 S.W.2d 283 (Court of Appeals of Texas, 1992)
First Chicago Trust Co. v. Old Willow Falls Condominium Ass'n
593 N.E.2d 581 (Appellate Court of Illinois, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
758 S.W.2d 921, 1988 Tex. App. LEXIS 2435, 1988 WL 99646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-gill-co-v-jacksons-landing-owners-assn-texapp-1988.