Bever Properties, LLC and Jesse M. Taylor, D.D.S., P.A. v. Jerry Huffman Custom Builder, L.L.C.
05-13-01519-CV
| Tex. App. | Jul 31, 2015Background
- Bever Properties and Taylor, P.A. sued JHCB, PPOC, Kirwan, and Cheung over defects, fraud, and related claims tied to a planned office-condominium project at 4708 Plano Parkway.
- JHCB developed the property, formed the PPOC as the condo regime, and prepared a declaration describing the regime and signage rules, though initial representations suggested no strict condominium regime.
- The Taylors were promised signage flexibility, but after closing Bever Properties acquired the unit and the PPOC imposed restrictions limiting stand-alone illuminated signage.
- The trial court granted JNOV on fraud and related claims; the jury previously found common law and statutory fraud against JHCB and conspiracy by Cheung and the PPOC, as well as fiduciary breaches and damages.
- On appeal, the court addressed whether reliance disclaimers and merger clauses in the sales agreement bar fraud claims, whether conspiracy claims survive, and whether TUCA-based fiduciary duties apply to Cheung.
- The court ultimately affirmed the trial court’s JNOV, concluding the disclaimer-of-reliance clause was enforceable under the totality of circumstances and negated reliance for fraud claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the disclaimer of reliance bars fraud claims | Bever Properties argues law of the case requires reinstating fraud claims despite the disclaimer. | JHCB/others contend the disclaimer and merger clauses preclude justifiable reliance as a matter of law. | Disclaimers enforceable; fraud claims barred. |
| Whether conspiracy to commit fraud can survive when underlying fraud fails | If JHCB committed common law fraud, Cheung and PPOC conspiracies should stand. | Without underlying fraud, conspiracy claims fail as a matter of law. | Conspiracy claims fail without underlying fraud. |
| Whether Cheung owed a fiduciary duty to Taylor, P.A. under TUCA and derivative claims | Cheung owed fiduciary duties derivatively to Taylor, P.A. through Bever Properties, and TUCA sections create recoveries for adverse effects. | Taylor, P.A. was not a unit owner; no direct or derivative fiduciary duty under TUCA. | No TUCA-based fiduciary duty owed to Taylor, P.A.; unpleaded derivative claim rejected. |
| Whether punitive damages and attorney’s fees were properly denied given no actual damages | Damages awards existed; punitive and attorneys’ fees should follow from fraud. | Without actual damages, punitive damages and attorney’s fees are unrecoverable. | No punitive damages or attorneys’ fees awarded; judgment affirmed. |
Key Cases Cited
- Schlumberger Tech. Corp. v. Swanson, 959 S.W.2d 171 (Tex. 1997) (reliance element of fraud; contract may waive reliance through clear provisions)
- Forest Oil Corp. v. McAllen, 268 S.W.3d 51 (Tex. 2008) (contractual disclaimer factors; negotiations; business awareness in assessing boilerplate clauses)
- Italian Cowboy Partners, Ltd. v. Prudential Ins. Co. of Am., 341 S.W.3d 323 (Tex. 2011) (clarity and negotiation considerations for enforceability of reliance disclaimer)
- Hudson v. Wakefield, 711 S.W.2d 628 (Tex. 1986) (law-of-case doctrine governs questions of law decided on appeal)
- Paradigm Oil, Inc. v. Retamco Operating, Inc., 372 S.W.3d 177 (Tex. 2012) (flexible application of law-of-case and contract interpretation in successive appeals)
- Sbrusch v. Fort Bend Cnty Drainage Dist., 818 S.W.2d 392 (Tex. 1991) (standard for affirming JNOV; no-evidence review framework)
