Brownhawk, L.P. v. Monterrey Homes, Inc.
327 S.W.3d 342
| Tex. App. | 2010Background
- Brownhawk, L.P. and Monterrey Homes, Inc. entered into an earnest-money contract (Sept. 21, 2006) for Brownhawk to convey unimproved land in El Paso County with Brownhawk to complete specified improvements by May 31, 2007.
- Monterrey paid $25,000 initially and $200,000 later into escrow; city approval of preliminary subdivision plat required changes, including a drainage flume.
- An April 30, 2007 amendment extended Brownhawk’s deadline to May 30, 2007 with a 45-day automatic extension and tied closing to ‘Completion of Development’ as defined by Brownhawk’s remaining obligations and Monterrey’s Builder obligations.
- The amendment subdivided responsibilities: Brownhawk to finish earthwork, sidewalks, streets, and utilities; Monterrey to complete certain rock/retaining walls and sidewalks along Dos Palmas Drive, with closing not delayed by Monterrey’s non-completion of those items.
- Monterrey could terminate if Brownhawk failed to complete improvements by the amended deadline; Brownhawk alleged Monterrey failed to construct By-Builder improvements; the parties never closed.
- On Aug. 16, 2007 Monterrey terminated the contract; Brownhawk sued for breach; Monterrey counterclaimed for Brownhawk’s failure to meet the extended deadline.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether finding fourteen (drainage-related plans) is supported | Brownhawk argues Monterrey’s drainage-flume revisions required by revised plans void Monterrey’s knowledge/consent. | Monterrey contends revisions occurred post-amendment and Brownhawk agreed to follow the original amendment plans. | Overruled; issue deemed non-reversible on this basis. |
| Whether Brownhawk breached (finding fifteen) and Monterrey did not (finding sixteen) | Brownhawk contends Monterrey’s failure to construct By-Builder improvements excused its own nonperformance. | Monterrey argues Brownhawk failed to complete improvements by the amended deadline, justifying its termination and Brownhawk’s breach. | Brownhawk’s breach claim is unsupported; Monterrey did not breach; finding fifteen and sixteen affirmed (Brownhawk breached). |
| Attorney’s fees award adequacy | Brownhawk contends the $49,450 attorney’s fees award is unsupported. | Monterrey asserts the fee affidavit supports a reasonable award. | Affirmed; the award was supported by evidence and not an abuse of discretion. |
Key Cases Cited
- Anderson v. City of Seven Points, 806 S.W.2d 791 (Tex. 1991) (sufficiency review standards for findings of fact)
- Quick v. Plastic Solutions of Texas, Inc., 270 S.W.3d 173 (Tex.App.-El Paso 2009) (sufficiency review depending on burden of proof)
- O'Neil v. Mack Trucks, Inc., 542 S.W.2d 112 (Tex. 1976) (context for sufficiency review and standard)
- Driver Pipeline Co., Inc., 134 S.W.3d 195 (Tex. 2004) (material breach sequencing in mutual breach scenarios)
- Mustang Pipeline Co., Inc. v. Driver Pipeline Co., Inc., 134 S.W.3d 195 (Tex. 2004) (relationship of breach chronology in contract disputes)
- Raw Hide Oil & Gas, Inc. v. Maxus Exploration Co., 766 S.W.2d 264 (Tex.App.-Amarillo 1988) (no-evidence and great-weight standards of review)
- Tate v. Tate, 55 S.W.3d 1 (Tex.App.-El Paso 2000) (no-pet portion of appellate standards)
- Ames v. Ames, 776 S.W.2d 154 (Tex. 1989) (standard for factual sufficiency review)
- Kimsey v. Kimsey, 965 S.W.2d 690 (Tex.App.-El Paso 1998) (weight/credibility and sufficiency review)
- Ragsdale v. Progressive Voters League, 801 S.W.2d 880 (Tex. 1990) (attorney’s fees and discretion framework)
- Alford v. Johnston, 224 S.W.3d 291 (Tex.App.-El Paso 2005) (evidence sufficiency for fee awards)
- F-Star Socorro, L.P. v. City of El Paso, 281 S.W.3d 103 (Tex.App.-El Paso 2008) (fee award reasonableness standards)
- Manon v. Tejas Toyota, Inc., 162 S.W.3d 743 (Tex.App.-Houston [14th Dist.] 2005) (fee-shifting and reasonableness considerations)
