Transcontinental Realty Investors, Inc. v. John T. Lupton Trust

286 S.W.3d 635, 2009 Tex. App. LEXIS 3999, 2009 WL 1492918
CourtCourt of Appeals of Texas
DecidedMay 29, 2009
Docket05-06-00151-CV
StatusPublished
Cited by17 cases

This text of 286 S.W.3d 635 (Transcontinental Realty Investors, Inc. v. John T. Lupton Trust) 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
Transcontinental Realty Investors, Inc. v. John T. Lupton Trust, 286 S.W.3d 635, 2009 Tex. App. LEXIS 3999, 2009 WL 1492918 (Tex. Ct. App. 2009).

Opinion

*639 OPINION

Opinion by

Justice BRIDGES.

Transcontinental Realty Investors, Inc. (TCI) appeals the trial court’s judgment in favor of the John T. Lupton trust (the Trust), Henry Billingsley, Lucy Billingsley, Crow-Billingsley Hutton Branch # 1, Ltd., Crow-Billingsley Midway Road South A, Ltd., and Crow-Billingsley 544/Carrollton, Ltd. (the Billingsley Defendants). The trial court's final judgment incorporated two summary judgments, one in favor of the Trust and one in favor of the Billingsley Defendants. Because we conclude there are no genuine issues of material fact on TCI’s claims, we affirm the trial court’s judgment.

BACKGROUND

The claims in this lawsuit arise out of TCI’s desire to purchase unimproved real property owned by the Trust in Irving, Texas. On May 1, 2002, TCI and the Trust entered into a written contract of sale, under which TCI would purchase the property from the Trust for $9 million (the Original Contract). The Original Contract provided for initial earnest money of $100,000 and a closing date of June 30, 2002. The Original Contract’s closing date was extended by written amendment several times without incident, and TCI paid a total of $350,000 in earnest money. TCI’s claims arise out of its final attempt to extend the closing date for purchase of the property. The Trust sold the property to the Billingsley Defendants instead, and this lawsuit ensued.

TCI alleges two different oral agreements, one relevant to its breach of contract claim against the Trust, and one relevant to its fraud and negligent misrepresentation claims against the Billings-ley Defendants. The first oral agreement TCI alleges was between TCI and the Trust. TCI alleges that on April 25, 2003, the Trust offered to extend the closing date for two weeks for an additional earnest money payment of $200,000 (the Trust Oral Agreement). TCI alleges it accepted this offer, and the Trust agreed to execute a written amendment reflecting these terms, but instead the Trust sold the property to the Billingsley Defendants. The Trust Oral Agreement is the basis for TCI’s breach of contract claim against the Trust.

The second oral agreement TCI alleges was between TCI’s representative Gene Phillips and Henry Billingsley. TCI alleges Henry Billingsley promised to buy the property from the Trust and sell it to TCI (the Billingsley Oral Agreement), and in reliance, TCI gave up its efforts to extend its right to purchase the property under the Original Contract. Under the Billings-ley Oral Agreement, TCI would pay Bill-ingsley $1 million for an option to purchase the property from him in twelve months, for an option price of $7 million plus 16 percent interest over twelve months, plus any prorated property taxes. The Bill-ingsley Oral Agreement is the basis for TCI’s fraud and negligent misrepresentation claims against the Billingsley Defendants.

Standard of Review

In three issues, TCI argues the trial court erred in granting summary judgment against TCI on its breach of contract and conspiracy claims against the Trust and its fraud and negligent misrepresentation claims against the Billingsley Defendants. In reviewing the trial court’s decision to grant summary judgment, we apply well-known standards. See Tex. R. Civ. P. 166a(c); Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985). A defendant who moves for summary judgment must show the plaintiff has no cause of action. A defendant may meet this burden *640 by either disproving at least one essential element of each theory of recovery or conclusively proving all elements of an affirmative defense. See Wornick Co. v. Casas, 856 S.W.2d 732, 738 (Tex.1993). A matter is conclusively established if ordinary minds cannot differ as to the conclusion to be drawn from the evidence. See Triton Oil & Gas Corp. v. Marine Contractors & Supply, Inc., 644 S.W.2d 443, 446 (Tex.1982). After the movant has established a right to summary judgment, the burden shifts to the nonmovant to present evidence creating a fact issue. See Kang v. Hyundai Corp., 992 S.W.2d 499, 501 (Tex.App.-Dallas 1999, no pet.).

We review a no-evidence summary judgment under the same legal sufficiency standard used to review a directed verdict. See Tex. R. Civ. P. 166a(i); Gen. Mills Rests., Inc. v. Tex. Wings, Inc., 12 S.W.3d 827, 832-33 (TexApp.-Dallas 2000, no pet.). Thus, we must determine whether the nonmovant produced more than a scintilla of probative evidence to raise a fact issue on the material questions presented. Gen. Mills, 12 S.W.3d at 833. When analyzing both traditional and no-evidence summary judgments, we consider the evidence in the light most favorable to the nonmovant. See Nixon, 690 S.W.2d at 549 (traditional summary judgment); Gen. Mills, 12 S.W.3d at 833 (no-evidence summary judgment).

Breach of Contract Claim Against the Trust

In its second issue, TCI alleges the trial court erred in granting the Trust’s motion for summary judgment on TCI’s breach of contract claim. Some additional facts are relevant to this claim. Under a “Reinstatement and Third Amendment to Contract” and two extensions, the closing date for sale of the property had been extended to April 28, 2003. TCI alleges that in April 2003, the parties negotiated for an extension of the closing date, and on April 25, the Trust Oral Agreement resulted from those negotiations. However, on April 29, 2003, the Trust’s attorneys sent a letter to TCI confirming that the Original Contract had expired and was terminated.

On May 2, 2003, TCI and the Trust signed a “Reinstatement and Fourth Amendment” to the Original Contract. Under the fourth amendment, the closing date would be extended to May 15, 2003 for an additional earnest money deposit of $1.15 million, a sum substantially more than the amount of earnest money TCI had been required to pay under any of the previous amendments to the Original Contract. Nonetheless, there is no dispute TCI agreed to the fourth amendment and executed it. The fourth amendment required TCI to deposit the earnest money with the title company on or before 3 p.m. on May 2. If the additional earnest money was not deposited as required, the fourth amendment would be “null and void and the contract shall be deemed terminated ....” TCI did not pay the additional $1.15 million in earnest money. Although TCI delivered a check for that amount to the title company, the check did not arrive until approximately 3:45 p.m., forty-five minutes after the deadline. 2 The check was voided and returned to TCI’s attorney on May 5, 2003. As a result, the fourth amendment was rendered null and void as *641 of 3 p.m. on May 2, 2003, and the Original Contract was terminated.

Because the fourth amendment was rendered void by its own terms, TCI argues, the Trust Oral Agreement should control, and TCI should have been permitted to extend the closing date for $200,000.

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Bluebook (online)
286 S.W.3d 635, 2009 Tex. App. LEXIS 3999, 2009 WL 1492918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transcontinental-realty-investors-inc-v-john-t-lupton-trust-texapp-2009.