R.J. Suarez Enterprises Inc. v. PNYX L.P.

380 S.W.3d 238, 2012 WL 3728008, 2012 Tex. App. LEXIS 7284
CourtCourt of Appeals of Texas
DecidedAugust 29, 2012
DocketNo. 05-11-00934-CV
StatusPublished
Cited by26 cases

This text of 380 S.W.3d 238 (R.J. Suarez Enterprises Inc. v. PNYX L.P.) 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
R.J. Suarez Enterprises Inc. v. PNYX L.P., 380 S.W.3d 238, 2012 WL 3728008, 2012 Tex. App. LEXIS 7284 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice LANG.

R.J. Suarez Enterprises Inc. (Suarez Enterprises) appeals the portion of the trial court’s final judgment finding in its favor on its claim for conversion, but ordering that it take-nothing in its suit against PNYX L.P., GAMR Ltd., Michael Mantas, an individual, and Sam Kim, individually and d/b/a Super Sub and Smoothie+. In a cross-appeal, PNYX, GAMR, [241]*241and Mantas appeal the portion of the trial court’s final judgment finding against them on their counterclaim for breach of the lease and ordering that they take nothing. Sam Kim did not file a brief in this appeal.

Suarez Enterprises raises four issues on appeal. We construe the issues to argue the trial court erred when it: Issue (l),(a) concluded replacement cost is not a proper measure of damages for conversion, rather it is the fair market value, and (b) concluded Suarez Enterprises failed to produce any evidence of fair market value; Issue (2)(a) concluded the return of the property plus damages for loss of use is not a proper measure of damages for conversion, (b) concluded Suarez Enterprises was not entitled to the return of the property plus damages for loss of use, and (c) found Suarez Enterprises judicially admitted it did not seek the return of the converted property; Issue (3) found the disputed property had some market value and Suarez Enterprises did not present evidence of the fair market value, only replacement cost; and Issue (4) denied Suarez Enterprises’ request for attorney’s fees and expenses because the conversion finding was based on and related to a contract. In a cross-issue, PNYX, GAMR, and Mantas argue the trial court erred when it rendered a judgment against them on their claim for breach of the lease because there was insufficient evidence to support the trial court’s findings of fact that Suarez Enterprises did not breach the lease.

We conclude the trial court did not err, as a matter of law, when it concluded that the proper measure of damages for conversion is the fair market value. Also, we conclude the evidence was sufficient to support the trial court’s findings of fact that the converted property had some market value and Suarez Enterprises did not present evidence of the fair market value, only replacement cost. In addition, we conclude the trial court did not err when it concluded Suarez Enterprises failed to produce any evidence of the fair market value of the converted property. Further, we conclude the trial court did not err when it denied Suarez Enterprises’ request for attorney’s fees. Finally, we conclude there was sufficient evidence to support the trial court’s findings of fact that Suarez Enterprises did not breach the lease. The trial court’s final judgment is affirmed.

I. FACTUAL AND PROCEDURAL BACKGROUND

Suarez Enterprises owned and operated a sandwich shop, leasing the premises where the shop was located. The real property where the leased premises was located was subsequently sold to GAMR, of which Mantas is the principal. Then, GAMR “transferred” the building to PNYX, the current owner of the property. Mantas is also the property manager for PNYX.

Suarez Enterprises notified PNYX that it did not intend to renew its lease. As a result, PNYX identified a new tenant, Sam Kim and Wha Kim d/b/a Super Sub and Smoothie-)-, who planned to open a sandwich shop on the premises.

Before the lease expired, Suarez Enterprises and PNYX disagreed over the ownership of a walk-in cooler, walk-in freezer, sandwich unit, beverage cooler, and ice machine. Each believed that under the terms of the lease it owned the disputed property. The lease expired on May 31, 2010, but PNYX agreed to a holdover tenancy for a few days in June. However, on June 5, 2010, PNYX, GAMR and Mantas took control of the disputed property. On June 7, 2010, Sam Kim took control of the walk-in cooler, walk-in freezer, and four-piece sandwich unit.

[242]*242Suarez Enterprises filed suit against PYNX, GAMR, Mantas, and Sam Kim alleging claims for conversion, violations of the Theft Liability Act, interference, defamation, and business disparagement.1 It also requested attorney’s fees. All of the defendants filed answers generally denying the claims. In addition, PNYX, GAMR, and Mantas asserted affirmative defenses and counterclaims for breach of the lease, trespass, and. tortious interference.

The case was tried by the court. The trial court found in favor of Suarez Enterprises on its claim for conversion, but ordered that it take nothing on its claim because it failed to present evidence of the fair market value of the property. The trial court found against Suarez Enterprises on its remaining claims and denied its request for attorney’s fees. Also, the trial court found against PNYX, GAMR, and Mantas on their counterclaims and ordered that they take nothing.

Suarez Enterprises raises issues that contain several subparts. For clarity, we do not address those issues and subparts in the order they were presented, but group and address similar arguments together.

II. THE APPROPRIATE MEASURE OF DAMAGES FOR CONVERSION

In issue one, subpart (a), and issue two, subpart (a), Suarez Enterprises argues the trial court erred when it concluded, as a matter of law, the replacement cost and the return of the property plus damages for loss of use are not proper measures of damages for conversion. They claim the trial court incorrectly concluded that the fair market value is the only proper measure of damages for conversion. Suarez Enterprises’ issue one, subpart (a), and issue two, subpart (a), challenge the trial court’s conclusion of law that “[t]he proper measure of damages of the disputed property is its market value at the time of the conversion.”

A. Standard of Review

An appellate court conducts a de novo review of a trial court’s legal conclusions. Bundren v. Holly Oaks Townhomes Ass’n Inc., 347 S.W.3d 421, 430 (Tex.App.-Dallas 2011, pet. denied); see also BMC Software Belgium N.V. v. Marchand, 83 S.W.3d 789, 794 (Tex.2002) (discussing special appearance).

B. Applicable Law

A plaintiff who establishes conversion is entitled to either (1) the return of the property and damages for its loss of use during the time of its detention, or (2) the value of the property. See Wiese v. Pro Am Svcs. Inc., 317 S.W.3d 857, 862 (Tex.App.-Houston [14th Dist.] 2010, no pet.); Varel Mfg. Co. v. Acetylene Oxygen Co., 990 S.W.2d 486, 497 (Tex.App.-Corpus Christi 1999, no pet.). However, the plaintiff may not generally recover in conversion both for the market value of the property and for loss of use. Varel, 990 S.W.2d at 497. Generally, the measure of damages for conversion is the fair market value of the property at the time and place of the conversion. United Mobile Networks L.P. v. Deaton, 939 S.W.2d 146, 147-48 (Tex.1997).

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Cite This Page — Counsel Stack

Bluebook (online)
380 S.W.3d 238, 2012 WL 3728008, 2012 Tex. App. LEXIS 7284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rj-suarez-enterprises-inc-v-pnyx-lp-texapp-2012.