W.W. Laubach Trust/The Georgetown Corp. v. Georgetown Corp./W.W. Laubach Trust

80 S.W.3d 149, 2002 WL 1204935
CourtCourt of Appeals of Texas
DecidedJuly 26, 2002
Docket03-01-00037-CV
StatusPublished
Cited by40 cases

This text of 80 S.W.3d 149 (W.W. Laubach Trust/The Georgetown Corp. v. Georgetown Corp./W.W. Laubach 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
W.W. Laubach Trust/The Georgetown Corp. v. Georgetown Corp./W.W. Laubach Trust, 80 S.W.3d 149, 2002 WL 1204935 (Tex. Ct. App. 2002).

Opinion

MARILYN ABOUSSIE, Chief Justice.

Appellant W.W. Laubach Trust (“the Trust”) appeals the district court’s judgment awarding damages and attorney’s fees against the Georgetown Corporation (“TGC”) for breach of contract and trespass. In four issues, the Trust contends that the district court erred by: (1) granting TGC’s motion for partial summary judgment; (2) granting declaratory judgment on the construction of a lease provision; (3) denying the Trust’s request for termination of the lease; and (4) awarding a clearly erroneous amount of damages for its breach of contract and trespass claims. In two issues, cross appellant TGC contends that the court erred by failing to find that the Trust’s trespass and breach of contract claims were barred by limitations. We will affirm in part and reverse and remand in part the judgment of the district court.

BACKGROUND

In 1965, W.W. Laubach leased property in Williamson County to TGC for the purpose of operating the Inner Space Caverns. Section 301(A) of the ninety-nine-year lease provides for rents in the form of a percentage of three categories of revenue:

Lessee shall pay to the lessor as rent during the term of this lease an annual amount equal to the sum of (1), (2), and (3), viz:
(1)Ten per cent (10%) of the gross amount received by Lessee during such Lease Year from the sale of admissions to the cavern upon the leased premises and from the operation of any concession in connection with such cavern involving the furnishing of services (e.g., pony ride and merry-go-round), computed after deducting from such gross receipts all taxes (exclusive of Lessee’s income taxes) paid on account of such receipts; plus
(2) Five per cent (5%) of the gross amount received by Lessee during such Lease Year from the sale of items of food, drink, and merchandise in connection with operation of the cavern, computed after deducting from such gross receipts all taxes (exclusive of Lessee’s income taxes) paid on account of such receipts; plus
(3) Fifty per cent (50%) of the net income of Lessee in such Lease Year from any use of the leased premises other than those uses specified in (1) and (2) above, computed in accordance with standard accounting principles and without deduction on account of any income taxes of Lessee or real estate taxes payable by Lessee. In determining such net income, deduction for Lessee’s general and administrative expenses shall be an amount equal to ten per cent (10%) of Lessee’s gross receipts.

(Emphasis added.) The parties dispute the construction of section 301(A)(3) and therefore disagree over the manner of calculating the rental due for this third category of revenue. Article 8 of the lease agreement grants TGC the option to lease additional parcels of land located across Interstate 35 from the leased property. In 1967, Laubach, as settlor, transferred *153 all the leased and optioned property to the Trust.

In May 1986, one of the Trust’s trustees learned of two unauthorized billboards on the property, one on a leased parcel, and one on an option parcel that TGC had not leased from the Trust. TGC had leased both parcels to Pearce Outdoor Display, Inc. (“Pearce”) for the purpose of erecting advertising billboards. Four years later in a letter dated June 6, 1990, the Trust notified TGC that it considered the lease to be in default. The Trust itemized four areas of default, two of which are relevant to the present case: (1) failure to pay the proper amount of rent, and (2) failure to provide a true and accurate accounting of revenues and rent. Pursuant to section 701 of the lease, the Trust gave TGC thirty days to correct these deficiencies.

On July 5, 1990, TGC responded to the Trust’s notification by requesting clarification and attempting to cure the alleged defaults. TGC tendered accountings and two checks, one in the amount of $1,416.81 for outstanding taxes, and one in the amount of $10,500 for rental revenues it had received on the billboard located on the unleased option parcel. TGC contended that pursuant to section 301(A)(3)- of the lease agreement, it owed no rent for the billboard located on the leased property because “10% of [TGCJ’s gross receipts exceeded any rental income from the sign.”

On October 10, 1990, the Trust filed its original petition seeking declaratory judgment on the parties’ disputed construction of section 301(A)(3) of the lease and for conversion. Although both parties claimed that section 301(A)(3) was unambiguous, they asserted conflicting interpretations. On May 14, 1991, TGC filed a motion for partial summary judgment requesting a declaration that in calculating its rental obligation, section 301(A)(3) entitled TGC to deduct from its third category revenue ten percent of its gross receipts from all three revenue sources. On May 31, the Trust filed a motion for partial summary judgment requesting a declaration that section 301(A)(3) only entitled TGC to deduct from its third category revenue ten percent of its gross receipts from those other revenue sources not covered by sections 301(A)(1) and 301(A)(2). On August 26, the trial court rendered an order granting TGC’s motion and denying the Trust’s motion.

On April 6, 1992, six years after the trustee first discovered the presence of the billboards, the Trust filed its second amended petition. Despite the trial court’s order granting TGC’s motion for partial summary judgment as to the construction of section 301(A)(3), the Trust sought a declaratory judgment specifically on the meaning of “gross receipts” as found in that provision. In addition, the Trust’s second amended petition sought (1) declaratory judgment on past rentals received by TGC and owed to the Trust; (2) rescission of a portion of the lease; (3) actual and punitive damages for conversion of the billboard rentals, (4) damages for trespass 1 resulting from the construction of the billboard on lease-option property or, alternatively, an injunction ordering TGC to remove it; (5) damages for breach of contract; (6) termination of the lease; (7) damages for quantum meruit; and (8) attorney’s fees. After a bench trial, the trial court denied the Trust’s claims for declaratory judgment, rescission, conversion, termination of the lease, and quantum meruit. The court found that the *154 Trust was entitled to recover damages on its trespass and breach of contract claims and awarded the Trust $7,795.35 in actual damages, $31,000 in attorneys fees, and $100,000 in punitive damages. The court also awarded TGC $7,425. 2

DISCUSSION

Summary Judgment

In its first issue, the Trust contends that the district court erred by granting TGC’s motion for summary judgment. Because the propriety of a summary judgment is a question of law, we review the trial court’s decision de novo. Natividad v. Alexsis, Inc., 875 S.W.2d 695, 699 (Tex.1994); Texas Dep’t of Ins. v. American Home Assurance Co., 998 S.W.2d 344, 347 (Tex.App.Austin 1999, no pet.).

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Bluebook (online)
80 S.W.3d 149, 2002 WL 1204935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ww-laubach-trustthe-georgetown-corp-v-georgetown-corpww-laubach-texapp-2002.