SYNERGY MEDSP a LLC and Michael Holloway v. 2715 Bissonnet, LLC

Texas Court of Appeals, 1st District (Houston)·Decided May 28, 2026·No. 01-24-00375-CV·Published

Opinion

Opinion issued May 28, 2026

In The

Court of Appeals

For The

First District of Texas

lease seven months after execution, Bissonnet sued Synergy and Holloway for breach of contract, claiming Synergy lacked the right to terminate the lease. Synergy counterclaimed for breach, seeking return of its deposit. Bissonnet successfully moved for summary judgment on its claim and on Synergy’s counterclaim for breach of contract.

In three issues, Synergy and Holloway argue that the trial court erred in finding that Synergy breached the lease due to untimely termination and granting summary judgment on that basis because the evidence created numerous questions of material fact regarding the timeliness of Synergy’s termination notice and there were also issues of material fact involving their affirmative defenses of impossibility and impracticability, all of which preclude summary judgment.

We affirm the trial court’s judgment.

Background

Appellee 2715 Bissonnet, LLC is a landlord for a shopping center at 2715 Bissonnet Street in the City of West University Place, Texas.1 Appellant Synergy MedSpa, LLC is a medical spa in the Houston area.

On September 24, 2021 ( “Lease Execution Date”), Synergy entered into a lease agreement with Bissonnet (“Lease”) for space in Bissonnet’s shopping center, where Synergy intended to “build out and operate a medical spa under a 60-

1 West University Place is a municipality within the City of Houston.

month term.”2 Appellant Michael Holloway, who owned and operated Synergy, signed a Guaranty Agreement under which he (1) “absolutely and unconditionally” guaranteed to pay all amounts owed by Synergy and (2) agreed to indemnify and hold harmless Bissonnet from “all loss, damage, cost, and expense” to Bissonnet in the event Synergy defaulted on the Lease.

The Lease

Under the Lease, Synergy is obligated to pay the guaranteed minimum monthly rental and other stated charges for the lease term beginning on the “Commencement Date,” defined as “that date that is one hundred fifty (150) days after the expiration of the Permit Period.” The term “Permit Period” is defined as “One Hundred Twenty (120) days from the Lease Execution Date.” According to Bissonnet, using the definitions in the Lease, the Commencement Date is calculated as follows:

Lease Execution Date: 9/24/2021 Permit Period: + 120 days Expiration of Permit Period: 1/22/2022 Commencement Period: + 150 days Commencement Date: 6/21/2022

During the Permit Period, Synergy was to obtain the required governmental or quasi-governmental permits needed for construction of its medical spa. The

Lease gave Synergy the unilateral right to terminate the Lease if it was not 2 The MedSpa Clinic was to specialize in weight loss treatments, hormone therapies, cosmetic procedures, and nutrition and fitness.

successful in obtaining the required permits before expiration of the Permit Period so long as Synergy provided Bissonnet written notice of termination on or before the expiration of the Permit Period. Specifically, the “Permit Contingency” clause provides that the

Tenant shall have a period of One Hundred Twenty (120) days from Lease Execution Date (“Permit Period”) within which to obtain required approvals and permits (“Permits”) from the applicable governmental or quasi-governmental authorities having jurisdiction over the Premises to perform Tenant’s construction at the Premises.

Tenant, at its sole cost and expense, shall prepare, process and submit all appropriate applications and other documentation required by all applicable governmental bodies and agencies to obtain the Permits within 60 days from Lease Execution. In such event the timelines shall be reasonably extended until such time that the normal functioning of the government or other agencies resume.

Tenant shall use reasonable diligence to obtain the Permits during the Permit Period and Landlord shall reasonably cooperate with Tenant in securing the Permits. If Tenant is not successful in obtaining the Permits prior to the expiration of the Permit Period, then Tenant shall have the right to terminate this Lease by providing written notice of termination to Landlord on or before the expiration of the Permit Period, in which event this Lease shall terminate without further obligation or liability by either party except for provisions which by their terms survive the termination hereof. If Tenant does not terminate this Lease pursuant to the foregoing provision on or before the expiration of the Permit Period, Tenant shall be deemed to have elected to continue this Lease and shall have no further right to terminate this Lease pursuant to this provision.

(Emphasis added.)

Bissonnet’s Lawsuit

Synergy did not submit its application to obtain the building permit for its medical spa “within 60 days from Lease Execution.” Nor did it provide written

notice of termination to Bissonnet on or before expiration of the Permit Period— January 1, 2022. Instead, Synergy sent a termination notice to Bissonnet on April 7, 2022, stating it was terminating the lease because it had not been able to “obtain the necessary permits and approvals for the construction” of its medical spa despite its “diligent and good faith efforts.” Two weeks later, on April 22, 2022, Synergy was advised that its “plans [were] approved and ready to issue for the contractor.”

Bissonnet sent a demand letter to Synergy and Holloway, requesting payment of all amounts due under the Lease and the Guaranty Agreement. When the amounts remained unpaid, Bissonnet sued Synergy and Holloway for breach of contract seeking to recover the outstanding rent. Bissonnet alleged in its petition that, due to Synergy’s “untimely termination of the lease,” Bissonnet was forced to find a replacement tenant, who ultimately became obligated to begin paying rent to Bissonnet on May 29, 2023. Bissonnet alleged that under the Lease, Synergy was liable for the amounts due from the Commencement Date—June 21, 2022—until the replacement tenant began to pay rent on May 29, 2023.

In its amended original answer, Synergy argued it was not liable on the Lease because its performance “was made impracticable without [Synergy’s] fault by the failure [of] the City of West University Place to issue the construction permit for the construction of the space to be used by [Synergy] under the lease contract.” According to Synergy, as soon as the Lease was executed, Synergy

“promptly prepared and filed all documentation necessary to obtain the Permit for the construction.” However, “the failure by the City of West University Place to issue the permit made the construction impossible,” and “therefore prevented [Synergy] from being able to perform its obligations under the lease contract.”

Synergy alleged that under the Lease, it had a unilateral right to terminate the Lease if it was “not successful in obtaining the Permits prior to the expiration of the Permit Period.” Normally, Synergy alleged, that date would have been January 22, 2022, but here, the City of West University Place did not approve the permits at any time during the 120-day period following the Lease Execution Date despite “all the efforts Synergy made to obtain the Permit.” Thus, relying on the Force Majeure provision of the Lease, Synergy argued that because the City had delayed in issuing the required permits and the delay was beyond the reasonable control of Synergy, the 120 days following the Lease Execution Date should have been excluded from the computation of the Permit Period. Synergy further argued that because the City’s delay continued until at least April 7, 2022—when Synergy issued its written notice of termination to Bissonnet—its notice of termination was timely.

Synergy separately argued that its performance of the Lease was made impossible because the equipment it required to operate the medical spa was not available and the financing it had negotiated was cancelled due to Federal Deposit

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SYNERGY MEDSP a LLC and Michael Holloway v. 2715 Bissonnet, LLC, (Tex. Ct. App. 2026).

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