White, Larry and VSC LLC v. Harrison, Mike

390 S.W.3d 666, 2012 WL 6191348
CourtCourt of Appeals of Texas
DecidedDecember 12, 2012
Docket05-10-01611-CV
StatusPublished
Cited by39 cases

This text of 390 S.W.3d 666 (White, Larry and VSC LLC v. Harrison, Mike) 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
White, Larry and VSC LLC v. Harrison, Mike, 390 S.W.3d 666, 2012 WL 6191348 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice FITZGERALD.

Appellee Mike Harrison sued appellants Larry White and VSC, LLC for breach of a commercial lease. The case was tried to the court, and the trial court signed a judgment in favor of Harrison — and jointly and severally against White and VSC — in the amount of $356,579.12, plus attorney’s fees and interest. In nine issues, appellants challenge the trial court’s (a) rejection of their affirmative defenses, (b) exclusion of a witness, (c) validation of the guaranty signed by White, and (d) inclusion of certain property taxes in the damages calculation. We affirm the trial court’s judgment.

Background

VSC, as tenant, entered into a ten-year lease with Harrison, as landlord, in October 2003 (the “Lease”). White, who was VSC’s manager, signed the Lease for VSC and, on the same day, signed a personal guaranty on his own behalf (the “Guaranty”). The leased premises was located on California Crossing in Dallas County, and VSC’s business operated there until September 2004. Around that time, appellants requested permission from Harrison — as the Lease required — to assign the Lease to James Davis; permission was denied. Nevertheless, appellants “transitioned control” of the premises to Davis. For almost two years, Harrison accepted rent payments from Davis. But in the Fall of 2006, Davis’s payments became untimely and incomplete. In a series of letters to White, Harrison and his attorney demanded payment from VSC; White did not respond to the letters.

In December 2006, Harrison instituted a forcible entry and detainer action against appellants, but the cause was never heard. 1 *671 In the meantime, Davis and Harrison met, along with their respective attorneys, and entered into an agreement concerning back rent owed and forbearance on the FED (the “Davis Agreement”). 2 Appellants were not participants in the Davis Agreement. Indeed, the Davis Agreement stated specifically that it was not creating a landlord-tenant relationship with Davis, that Davis possessed the property subject to the approval of VSC, and that the original Lease and Guaranty remained in full force and effect. Specifically, the Davis Agreement acknowledged the following:

It is hereby acknowledged that nothing in this Agreement is intended to create a Landlord-Tenant relationship between HARRISON and DAVIS. The occupancy of the Premises by DAVIS to date is as a result of whatever understanding or agreement that may have existed between VSC, as Tenant, and DAVIS, to which understanding or agreement HARRISON was not a party. The Lease between HARRISON, as Landlord, and VSC, as Tenant, as guaranteed by WHITE, is not intended to be affected by this Agreement and remains in full force and effect. The right of DAVIS to occupy the Premises of the Lease arises out of whatever understanding or agreement that may exist between VSC and DAVIS. Notwithstanding the fact that no Landlord-Tenant relationship exists between HARRISON and DAVIS, HARRISON agrees to continue to indulge the occupancy of DAVIS in the Premises of the Lease as long as all terms and conditions of the Lease are satisfied in a timely and proper manner. If the understanding or agreement between DAVIS and VSC should terminate and DAVIS should lose sufferance from VSC to occupy the Premises, the Lease will continue in full force and effect and HARRISON will continue to recognize VSC, as Tenant, and WHITE, as the Guarantor of the Tenant’s obligations under the Lease.

Davis paid what he promised in the Davis Agreement, but he subsequently stopped paying rent again, and Harrison demanded páyment from both Davis and VSC. Eventually, Davis left the premises; the parties disagree as to whether he voluntarily abandoned the property or Davis forced him to leave. Harrison paid property taxes on the leased premises from 2007 through 2009. He prepared the property to be re-leased, but he did not re-lease the premises until 2010.

Harrison sued VSC and White for unpaid rent and reimbursement for taxes paid and expenses on the property. 3 The trial court found in favor of Harrison. White and VSC have appealed.

Affirmative Defenses

A number of appellants’ arguments in this Court are based on affirmative defenses. The trial court found that appellants had not produced credible evidence of each of these defenses. 4 As de *672 fendants, appellants bore the burden of pleading and proving those affirmative defenses. See Holland v. Lovelace, 352 S.W.3d 777, 788 (Tex.App.-Dallas 2011, pet. denied). When parties attack the legal sufficiency of an adverse finding on an issue on which they had the burden of proof, they must demonstrate on appeal that the evidence establishes, as a matter of law, all vital facts in support of the issue. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 241 (Tex.2001). Accordingly, we will sustain the issue only if the contrary proposition is conclusively established. Id. When parties attack the factual sufficiency of an adverse finding on an issue on which they had the burden of proof, they must demonstrate on appeal that the adverse finding is against the great weight and preponderance of the evidence. Id. at 242. We consider and weigh all of the evidence, and we will set aside a verdict on the issue only if the evidence is so weak or if the finding is so against the great weight and preponderance of the evidence that it is clearly wrong and unjust. Id. If a party offers no credible evidence on an issue where he bears the burden of proof, we must overrule his challenges to the sufficiency of the evidence supporting the verdict against him.

Ratification

In their first issue, appellants contend that Harrison ratified Davis’s “takeover” of the Lease. The elements of ratification are: (1) approval by act, word, or conduct; (2) with full knowledge of the facts of the earlier act; and (3) with the intention of giving validity to the earlier act. Motel Enterprises, Inc. v. Nobani, 784 S.W.2d 545, 547 (Tex.App.-Houston [1st Dist.] 1990, no writ) (citing Jamail v. Thomas, 481 S.W.2d 485, 490 (Tex.Civ. App.-Houston [1st Dist.] 1972, writ ref'd n.r.e.)). A party ratifies an agreement when — after learning all of the material facts — he confirms or adopts an earlier act that did not then legally bind him and that he could have repudiated. Avary v. Bank of America, N.A., 72 S.W.3d 779, 788 (Tex.App.-Dallas 2002, pet. denied).

Thus, to establish a ratification, appellants were required to prove that Harrison confirmed Davis as his new tenant, replacing VSC, under the Lease. The only evidence in the record, however, is to the contrary.

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Cite This Page — Counsel Stack

Bluebook (online)
390 S.W.3d 666, 2012 WL 6191348, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-larry-and-vsc-llc-v-harrison-mike-texapp-2012.