Williamson Music 1st, LLC, and Raymond Gore, an Individual v. EQYInvest Owner II, Ltd, LLP

Texas Court of Appeals, 6th District (Texarkana)·Decided September 15, 2026·No. 06-25-00107-CV·Published

Opinion

In the

Court of Appeals

Sixth Appellate District of Texas at Texarkana

No. 06-25-00107-CV

WILLIAMSON MUSIC 1ST, LLC, AND RAYMOND GORE, AN INDIVIDUAL, Appellants V.

EQYINVEST OWNER II, LTD, LLP, Appellee

On Appeal from the 342nd District Court Tarrant County, Texas

Trial Court No. 342-346924-23

Before Stevens, C.J., van Cleef and Rambin, JJ.

Memorandum Opinion by Justice Rambin

MEMORANDUM OPINION

This is an appeal from a bench trial on the amount of damages due to a landlord of a commercial-leased premises after the tenant stopped paying rent and was subsequently locked out. Appellants, Williamson Music 1st, L.L.C. as tenant and Raymond Gore as tenant’s guarantor (collectively, Williamson), appeal the trial court’s judgment. Appellants contend in two issues that the evidence at trial was legally insufficient to support the (1) damages awarded for breach of the lease, specifically due to the landlord’s failure to mitigate damages; and (2) award of attorney’s fees.1 We find legally sufficient evidence to support damages for breach of the lease. We reverse the award of attorney’s fees. We therefore affirm in part and reverse in part. I. Background Williamson Music signed a shopping center lease agreement (Lease) with Appellee, EQYInvest Owner II, Ltd., LLP, as landlord. Gore signed the Lease as a guarantor. The Lease term began in April 2022, was to continue for approximately three years, and would have expired on July 31, 2025. Rent was $5,857.33 per month, which on an annual basis is $70,288.00 per year.

Williamson ceased paying rent in August 2023, and EQY locked Williamson out of the premises on August 18, 2023.

1 This appeal was transferred to this Court from the Second Court of Appeals pursuant to a Texas Supreme Court docket equalization order. See TEX. GOV’T CODE ANN. § 73.001 (Supp.). Accordingly, we apply the precedent of the Second Court of Appeals in deciding this case. See TEX. R. APP. P. 41.3.

EQY later sued Williamson for breach of the Lease and the guaranty. After a bench trial, the trial court entered judgment for EQY and awarded it breach of contract damages, including past-due rent in the amount of $170,484.37, attorney’s fees in the amount of $86,725.00, additional fees on appeal, court costs, and pre- and post-judgment interest on those amounts. II. Legal-Sufficiency Standard of Review In both its issues, Williamson challenges the legal sufficiency of the evidence to support the trial court’s judgment. “When reviewing the legal sufficiency of the evidence, we consider ‘whether the evidence at trial would enable reasonable and fair-minded people to reach the verdict under review.’” 425 Soledad, Ltd. v. CRVI Riverwalk Hosp., LLC, 709 S.W.3d 551, 561 (Tex. 2024) (quoting City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex. 2005)). “We credit favorable evidence if a reasonable factfinder could and disregard contrary evidence unless a reasonable factfinder could not.” Id. (citing City of Keller, 168 S.W.3d at 827); see Upshaw v. Lacado, LLC, 650 S.W.3d 61, 74 (Tex. App.—Fort Worth 2021, pet. denied).

[W]hen reviewing a legal-sufficiency challenge . . . , we view all evidence in the light most favorable to the verdict, and we overturn such a judgment only if there is a complete absence of evidence proving a vital fact, the rules of law or evidence bar the court from weighing the only evidence proving a vital fact, the evidence offered to prove a vital fact is no more than a mere scintilla, or the evidence conclusively disproves the existence of a vital fact.

Westwood Motorcars, LLC v. Virtuolotry, LLC, 689 S.W.3d 879, 885–86 (Tex. 2024) (citing City of Keller, 168 S.W.3d at 807, 810); see Upshaw, 650 S.W.3d at 73–74. “But no matter what evidence is or is not considered, our ultimate test is ‘whether the evidence at trial would enable reasonable and fair-minded people to reach the verdict under review.’” Upshaw, 650 S.W.3d at 74 (quoting City of Keller, 168 S.W.3d at 827).

Since this was a bench trial, we add: “A trial court’s findings of fact issued after a bench trial have the same weight, and are judged by the same appellate standards, as a jury verdict.” Tex. Outfitters Ltd., LLC v. Nicholson, 572 S.W.3d 647, 653 (Tex. 2019) (citing Anderson v. City of Seven Points, 806 S.W.2d 791, 794 (Tex. 1991)). “When neither party requests findings of fact and conclusions of law following a nonjury trial, all fact findings necessary to support the trial court’s judgment are implied.” Shields Ltd. P’ship v. Bradberry, 526 S.W.3d 471, 480 (Tex. 2017). III. Damages for Breach of the Lease and Mitigation In its first issue, Williamson claims the evidence was legally insufficient to support the trial court’s damages award for breach of the Lease. Williamson asserts that it presented evidence that EQY failed to mitigate damages, and that EQY failed to rebut this evidence.

A. Applicable Law The Texas Supreme Court stated,

A landlord should not be allowed to collect rent from an abandoning tenant when the landlord can, by reasonable efforts, relet the premises and avoid incurring some damages. We therefore recognize that a landlord has a duty to make reasonable efforts to mitigate damages when the tenant breaches the lease and abandons the property, unless the commercial landlord and tenant contract otherwise.

Austin Hill Country Realty, Inc. v. Palisades Plaza, Inc., 948 S.W.2d 293, 299 (Tex. 1997). The Texas Supreme Court announced this duty under the common law. Id. at 295 (“Because there is no statute addressing this issue, we look to the common law.”). “We hold that the landlord’s duty to mitigate requires the landlord to use objectively reasonable efforts to fill the premises when the tenant vacates in breach of the lease.” Id. at 299. “We stress that this is not an absolute

duty. The landlord is not required to simply fill the premises with any willing tenant; the replacement tenant must be suitable under the circumstances.” Id.

The landlord’s duty to mitigate is also a matter of statute. Section 91.006 of the Texas Property Code states, “A landlord has a duty to mitigate damages if a tenant abandons the leased premises in violation of the lease.” TEX. PROP. CODE ANN. § 91.006(a). What is “a duty,” though? In 2007, the Dallas Court of Appeals described the statutory duty in terms consistent with the Palisades Plaza common law duty by stating, “A landlord has a duty to make reasonable efforts to mitigate damages when the tenant breaches the lease and abandons the property.” Landry’s Seafood House-Addison, Inc. v. Snadon, 233 S.W.3d 430, 436 (Tex. App.— Dallas 2007, pet. denied) (citing TEX. PROP. CODE ANN. § 91.006; Palisades Plaza, 948 S.W.2d at 299). Thereafter, the Dallas Court of Appeals went a step further, holding, “The rule in Palisades Plaza has since been codified[.]” White v. Harrison, 390 S.W.3d 666, 675 (Tex. App.—Dallas 2012, no pet.) (citing TEX. PROP. CODE ANN. § 91.006(a)).

While not going so far as to say that the statutory duty is an express codification of Palisades Plaza, the Fort Worth Court of Appeals has applied Section 91.006 and Palisades Plaza hand-in-hand. Hoppenstein Props., Inc. v. Schober, 329 S.W.3d 846, 849 (Tex. App.— Fort Worth 2010, no pet.) (citing TEX. PROP. CODE ANN. § 91.006; Palisades Plaza, 948 S.W.2d at 299).2 Also, though not expressly adopting the “codification” language of White, the

2 The timing here is of interest. The sequence was an opinion by the Texas Supreme Court in January 1997, then the statute, then an opinion on rehearing in July 1997, which did not cite the brand-new statute. See Palisades Plaza, 948 S.W.2d at 294 (“We withdraw our opinion of January 10, 1997, and substitute the following in its place.”). For present purposes, it is enough that the Fort Worth Court of Appeals has applied Palisades Plaza and the statute hand-in-hand. Hoppenstein Props., Inc., 329 S.W.3d at 849. Therefore, we need not resolve whether Section 91.006 formally codified the Palisades Plaza common law duty.

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Williamson Music 1st, LLC, and Raymond Gore, an Individual v. EQYInvest Owner II, Ltd, LLP, (Tex. Ct. App. 2026).

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