Two Briarlake Plaza LP F/K/A Behringer Harvard Briarlake Land LP v. Samsung Engineering America, Inc.

CourtCourt of Appeals of Texas
DecidedNovember 1, 2016
Docket01-15-01041-CV
StatusPublished

This text of Two Briarlake Plaza LP F/K/A Behringer Harvard Briarlake Land LP v. Samsung Engineering America, Inc. (Two Briarlake Plaza LP F/K/A Behringer Harvard Briarlake Land LP v. Samsung Engineering America, 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
Two Briarlake Plaza LP F/K/A Behringer Harvard Briarlake Land LP v. Samsung Engineering America, Inc., (Tex. Ct. App. 2016).

Opinion

Opinion issued November 1, 2016

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-15-01041-CV ——————————— TWO BRIARLAKE PLAZA LP F/K/A BEHRINGER HARVARD BRIARLAKE LAND LP, Appellant V. SAMSUNG ENGINEERING AMERICA, INC., Appellee

On Appeal from the 61st District Court Harris County, Texas Trial Court Case No. 2015-24793

MEMORANDUM OPINION

This appeal is from the trial court’s summary judgment in a declaratory

judgment action to construe provisions of a commercial lease relating to subletting

of parking spaces. The tenant, Samsung Engineering America, Inc., contends that

the lease permits parking spaces to be assigned to a sublessee along with the sublease of office space. The landlord, Two Briarlake Plaza LP f/k/a Behringer Harvard

Briarlake Land LP (“Briarlake”), on the other hand, argues that Samsung must obtain

separate consent for the assignment of parking spaces unless Samsung is subleasing

office space to an affiliate, for which Briarlake’s consent is not required. The parties

filed cross-motions for summary judgment, and the trial court entered a declaratory

judgment in favor of Samsung. Briarlake argues that the trial court erred because

the lease is unambiguous and Briarlake’s interpretation of the lease is the only

reasonable interpretation, or, in the alternative, the lease is ambiguous. Because we

conclude the lease is unambiguous and permits Samsung to assign parking when it

sublets office space, we affirm.

Background

In May 2012, Samsung signed a 12-year lease for approximately 160,000

rentable square feet of office space located in Two Briarlake Plaza, a commercial

office building in the Westchase area of Houston. The lease allotted Samsung four

parking spaces in the building’s parking facility for every 1,000 rentable square feet

leased, which amounted to over 600 parking spaces.

After the lease was signed, a dispute arose regarding the terms under which

Samsung could assign parking spaces to a sublessee. The summary-judgment record

contains sparse information regarding how the dispute arose, but it reflects that

Samsung sued Briarlake for a declaratory judgment to construe provisions of the

2 lease in April 2015. Samsung sought a declaration that pursuant to paragraph 7 of

Exhibit D of the lease, it was permitted to assign parking spaces in correlation to the

amount of any subleased office space and Briarlake could not terminate parking

spaces assigned in this fashion. Essentially, Samsung took the position that the lease

provided for the assignment of parking spaces along with any sublease of office

space. Relatedly, Samsung argued that Briarlake could terminate its right to parking

spaces under paragraph 7 only if Samsung tried to assign parking spaces apart from

an office space sublease without Briarlake’s consent.

Exhibit D of the lease governs parking. Paragraph 7 provides:

Except as otherwise provided for in Section 14, Tenant shall not assign or sublease any of the [Parking] Spaces without the consent of Landlord. Landlord shall have the right to terminate the parking agreement with respect to any Spaces that Tenant desires to sublet or assign.

Section 14 of the lease, titled “Tenant Transfers,” permitted Samsung to sublet office

space to an affiliate without Briarlake’s consent, and to a non-affiliated entity with

Briarlake’s consent. Section 14 defines a transfer as any “[s]ublease of all or part of

the Premises, or assignment, mortgage, hypothecation or other conveyance of an

interest in this Lease.” Paragraph 14.3 provides that Samsung may sublease office

space to an affiliate of Samsung without Briarlake’s prior consent. Paragraph 14.4

provides that a sublease of office space to a non-affiliated entity requires Briarlake’s

prior written consent. Paragraph 14.4 also sets forth the procedure by which

3 Samsung obtains this consent and sets forth the grounds upon which Briarlake may

withhold consent. The proposed assignment of parking spaces along with a sublease

of office space is not grounds for withholding consent to a sublease of office space.

In June 2015, Briarlake counterclaimed for its own declaratory judgment.

Briarlake sought a declaration that under paragraph 7, any assignment or sublease of

parking spaces by Samsung to a non-affiliate required Briarlake’s separate consent.

Briarlake also sought a declaration that it had an unqualified right to terminate

Samsung’s right to any parking spaces Samsung desired to sublet or assign. In

essence, Briarlake argued that Samsung was entitled to assign parking spaces only

when it sublet office space to an affiliate. In all other circumstances, Briarlake

argued that Samsung was required to obtain its separate consent to assignment of

parking spaces, whether those parking spaces were included in a sublease to a non-

affiliated entity, or were being assigned independent of a sublease of office space.

Briarlake also argued that, in addition to this consent requirement, it had an

unqualified right under paragraph 7 to terminate Samsung’s right to any parking

spaces that Samsung desired to assign or sublet in any circumstance, even when the

parking spaces were assigned in connection with an authorized office space sublease.

In July 2015, Samsung sublet 4,034 square feet of its office space to Trident

Retail Energy, LLC. The written sublease gave Trident the right to use four parking

spaces per 1,000 rentable square feet subleased (16 parking spaces), corresponding

4 to the ratio of spaces allotted per 1,000 square feet under its lease. After it received

a copy of the sublease, Briarlake notified Samsung on July 14, 2015 that it was

terminating Samsung’s right to the 16 parking spaces assigned to Trident.

In August 2015, Samsung moved for summary judgment, and Briarlake

responded and filed a cross-motion on its claim. Each party argued that the lease

was unambiguous and its interpretation of the lease was the only reasonable one. In

the alternative, each party argued that the lease was ambiguous and should be

interpreted by reference to parol evidence.

The trial court held a hearing on the cross-motions, denied Briarlake’s motion,

and granted Samsung’s motion. The parties entered into an agreement regarding the

amount of attorney’s fees to be awarded, and the trial court entered a final judgment

awarding Samsung attorney’s fees and stating:

It is ORDERED, ADJUDGED, and DECREED that, pursuant to the express, unambiguous language of the Office Lease, any transfer or sublease by Samsung pursuant to Section 14 of the Lease is excepted from the application of paragraph 7 of Exhibit D of the Lease, such that Samsung is free to assign or transfer parking spaces in correlation to the amount of lease space sublet by Samsung and that Briarlake is prohibited from terminating any parking spaces allotted to Samsung that Samsung transfers or subleases to a third party.

Briarlake appealed.

5 Discussion

In its first issue, Briarlake contends that the trial court erred by granting

summary judgment in favor of Samsung because the lease is unambiguous and

Briarlake’s interpretation of the lease is the only reasonable interpretation.

A. Standard of Review

We review a trial court’s summary judgment de novo. Travelers Ins. Co. v.

Joachim, 315 S.W.3d 860, 862 (Tex.

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Two Briarlake Plaza LP F/K/A Behringer Harvard Briarlake Land LP v. Samsung Engineering America, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/two-briarlake-plaza-lp-fka-behringer-harvard-briarlake-land-lp-v-samsung-texapp-2016.