Collective Asset Partners LLC v. Michael Ken Schaumburg, Schaumburg Architects, P.C.
432 S.W.3d 435
Tex. App.2014Background
- CAP, a 2007 asset management partnership, purchased an approximately 13.88‑acre Fort Worth area property.
- Schaumburg, an architect, provided information about the Property and discussed a joint venture with CAP and Urban Contractors, Inc.
- CAP financed the purchase with Legends Bank; appraisal valued the Property at $10.25 million.
- CAP’s loan was for $5 million; bank foreclosed in 2009 after CAP defaulted.
- CAP alleged failure to disclose the Property’s location in a 100‑year flood plain and alleged overstatement of value.
- Trial court granted summary judgment for Schaumburg; CAP appeals, arguing material facts remained in dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Negligent misrepresentation duty and causation | CAP claimed Schaumburg knowingly provided false information | Schaumburg had no privity and no false information; issues were developable despite flood plain | No genuine fact issue; no false information or proximate cause; judgment affirmed |
| Negligence and professional negligence duty | Contract/JV documents created duty to CAP | No professional services contract; no duty | No duty under contract; summary judgment affirmed |
| Gross negligence | CAP sought punitive-like relief for gross negligence | Based on underlying negligence fail; no grounds for gross negligence | affirmed; dependent on failure of negligent claim, which was lacking |
| Common law fraud | Schaumburg knew or reckless misrepresentation regarding development/value | No false representation; proximate cause lacking | No false representation proven; summary judgment affirmed |
| Statutory fraud under Tex. Bus. & Com. Code §27.01 | Alleged false representations/promises inducing contract | Statements about development were true; no false representation under section 27.01(a)(1) | Statutory fraud not established; judgment affirmed |
Key Cases Cited
- Bank of Tex., N.A. v. Glenny, 405 S.W.3d 310 (Tex. App.—Dallas 2013) (elements of negligent misrepresentation include reliance and causation)
- McCamish, Martin, Brown & Loeffler v. F.E. Appling Interests, 991 S.W.2d 787 (Tex. 1999) (negligent misrepresentation elements and proximate cause)
- W. Inv., Inc. v. Urena, 162 S.W.3d 547 (Tex. 2005) (summary judgment standard; burden shifts after movant shows no genuine issue)
- IHS Cedars Treatment Ctr. of DeSoto, Tex., Inc. v. Mason, 143 S.W.3d 794 (Tex. 2004) (conclusive negation of one essential element supports summary judgment)
- Dukes v. Philip Johnson/Alan Ritchie Architects, P.C., 252 S.W.3d 586 (Tex. App.—Fort Worth 2008) (duty depends on contract; professional services contract creates duty; ethics not controlling)
- Carpet Serv., Inc. v. George A. Fuller Co. of Tex., Inc., 802 S.W.2d 343 (Tex. App.—Dallas 1990) (liberal pleading construction; effectuate full relief)