S&G Associated Developers, LLC and Stefanyk Development, Inc. v. Covington Oaks Condominium Owners Association, Inc.

361 S.W.3d 210, 2012 WL 292905, 2012 Tex. App. LEXIS 820
CourtCourt of Appeals of Texas
DecidedFebruary 1, 2012
Docket08-10-00192-CV
StatusPublished
Cited by7 cases

This text of 361 S.W.3d 210 (S&G Associated Developers, LLC and Stefanyk Development, Inc. v. Covington Oaks Condominium Owners Association, Inc.) 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
S&G Associated Developers, LLC and Stefanyk Development, Inc. v. Covington Oaks Condominium Owners Association, Inc., 361 S.W.3d 210, 2012 WL 292905, 2012 Tex. App. LEXIS 820 (Tex. Ct. App. 2012).

Opinion

OPINION

CHRISTOPHER ANTCLIFF, Justice.

This appeal concerns the Covington Oaks Condominiums, a four-phase residential development in Bexar County, Texas. Phases I, II, and III are under the governance of the Covington Oaks Condominium Owners Association, known as “COHOA.” For many years, COHOA has been in litigation with the owners of Phase IV regarding whether the entrance and private road used by the residents of Phases I, II, and III can also be used to access Phase IV. The trial court ultimately granted summary judgment in favor of COHOA. We affirm in part and reverse and remand in part.

Factual and Procedural Background

Although the record spans over two-thousand pages, the facts are poorly developed. It is clear, however, that land encompassing all four phases was deeded to the original developer in 1981. The original developer planned four phases of condominiums that would be served by a common gated entrance. Three phases of condominium buildings have been completed. These condominiums are connected to Brandéis Road, which fronts the development, by a common entrance and private road that circles through the development.

The original developer lost title to the Phase IV land, resulting in its severance from the remaining property. Phase IV apparently has no frontage to Brandéis Road, or any other public road, because COHOA owns a narrow strip of land separating it from Brandéis. Stefanyk Development, Inc. purchased the Phase IV property in 1993. In 1994, Don Stefanyk and John Garza formed S & G Associated Developers, L.L.C. to construct a condominium building on the Phase IV land.

A dispute subsequently arose as to whether Stefanyk Development and S & G have the right to use the entrance and road that serve Phases I, II, and III. In 1995, the parties entered into a compromise settlement agreement, whereby Ste-fanyk Development would build up to six condominium buildings, meeting certain specifications, on Phase IV. This agreement required Stefanyk Development to put up a temporary fence to separate Phase IV from the other phases during construction of the buildings. Once the temporary fence was completed, the agreement provided that Stefanyk Development could “open the gate in the iron perimeter fence located on the western boundary of the Covington Oaks Condominium Property along Brandéis Road.” When construction was complete, Stefanyk Development was required to “weld the temporary construction gate permanently closed, at which time Stefanyk Development and third-party residents of Phase IV shall enter the condominium regime through the existing security gates on Brandéis Road.” COHOA agreed to recommend to its members that Phase IV be annexed into their association and to present the issue for a vote on or before its 1996 annual meeting. Stefanyk Development and S & G subsequently built one six-unit building on Phase IV.

The record does not reflect what hap *214 pened between 1996 and 2001. 1 In August 2001, Stefanyk Development deeded a portion of the Phase IV land to Dan and Jean Villareal, but retained the portion upon which the condominium building had been constructed.

In December 2001, COHOA’s attorney sent Don Stefanyk and Dan Villareal a letter stating that the previous “proposed” settlement agreement was never consummated, that it had “been quite some time since the obligations under that agreement should have been performed,” and that COHOA therefore considered the agreement no longer valid. The letter demanded that an alternative entrance be constructed for Phase IV.

In March 2003, COHOA advised Stefa-nyk Development and the Villareals by letter that it intended to build a fence separating Phase IV from the rest of Cov-ington Oaks. The letter stated that “there will be an entrance to Phase IV provided from Brandéis to Phase IV, along the northern edge of The Covington Oaks’ property. Once the access easement for Phase IV is completed, [COHOA] will deactivate the gate codes provided to people associated with Phase IV.” The letter further stated that COHOA would provide the new entrance on Brandéis and would permit the Phase IV owners to pave a driveway if they wished to do so. Three days later, S & G commenced this suit against COHOA, and later that month, the Villareals filed a plea in intervention.

On March 11, 2005, the parties entered into a mediated settlement agreement. This agreement required Stefanyk Development to pay COHOA $15,000 by March 21, 2005. The agreement further provided that the parties would dismiss all claims and the Villareals would undertake certain actions, “[i]f Phase IV is annexed by the members of Covington Oaks Condominium Owners Association on before [sic] 90 days from the date of this agreement.” Shortly after entering into this agreement, Stefa-nyk Development deeded its portion of Phase IV to its attorney as “trustee.” 2 In November 2005, COHOA informed Stefa-nyk Development, S & G, and the Villare-als that, after three rounds of balloting, the proposed annexation of Phase IV failed.

In February 2007, COHOA filed a motion for summary judgment. The trial court conducted a hearing on the motion, but deferred consideration of it and instead allowed the petition to be amended to substitute the attorney for Stefanyk Development and S & G as plaintiff because the property had been transferred to him.

Subsequently, the sixth amended petition was filed, naming the attorney as plaintiff in his capacity as trustee. CO-HOA filed special exceptions to this petition, arguing that the attorney had no capacity to appear in place of Stefanyk Development and S & G. COHOA also filed an amended motion for summary judgment.

The trial court attempted to conduct a second summary judgment hearing. After hearing arguments regarding the attorney’s capacity to sue, the court abated the case so the attorney could transfer owner *215 ship of Phase IV back to Stefanyk Development, which would then be substituted as plaintiff.

The seventh amended petition was filed on August 3, 2007. It names only Stefa-nyk Development and S & G as plaintiffs. On September 4, 2007, the court heard argument on the amended motion for summary judgment, and on September 10, 2007, it signed an order granting the motion in all respects. This order was not a final judgment because it did not adjudicate the claims between the Villareals and Plaintiffs. Those claims were subsequently tried to the court, which entered a final take nothing judgment in June 2010. Plaintiffs then brought this appeal of the summary judgment.

Discussion

When the summary judgment was granted, Plaintiffs’ live pleading was the seventh amended original petition, which included several claims. First, Plaintiffs sought specific performance of the 2005 settlement agreement. They alleged that the agreement required COHOA to attempt to have Phase IV annexed. According to Plaintiffs, COHOA intentionally refused to solicit the necessary votes to accomplish this. They further alleged that they had an easement over COHOA’s property implied from existing use, implied from necessity, and by estoppel. 3

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Bluebook (online)
361 S.W.3d 210, 2012 WL 292905, 2012 Tex. App. LEXIS 820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sg-associated-developers-llc-and-stefanyk-development-inc-v-covington-texapp-2012.