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D.R. Horton - Texas, Ltd. and DRHI, Inc. v. Savannah Properties Associates, L.P.
416 S.W.3d 217
| Tex. App. | 2013
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Background

  • Court of Appeals (Texas, Second District, Fort Worth) affirmed a summary judgment for Savannah Properties Associates, L.P. against D.R. Horton – Texas, Ltd. (DRH) and DRH I, Inc. on release, res judicata, novation, and limitations defenses, plus no-evidence breach claims.
  • First suit involved DRH/DRHI vs Savannah/CHS over 800 lots in Savannah Addition; settlement merged the Horton and Continental contracts and released DRH/DRHI from related claims.
  • Settlement paragraph 6 released all claims related to the Horton Contract, Continental Contract, Amended Contract, or Savannah Addition; paragraph 7 preserved surviving duties under the Amended Contract and related documents.
  • Second suit (2009) asserted breach of contract, breach of warranty, and negligence for soil preparation; Savannah asserted release defense (and later res judicata, novation, limitations).
  • Trial court granted Savannah’s release and related defenses and no-evidence summary judgment on breach/warranty/negligence; Horton/DRHI appealed; the court affirmed, noting the release was dispositive and that amended pleadings post-submission without leave could not defeat the release.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether denial of a continuance for discovery was an abuse of discretion Horton/DRHI sought more time to depose experts and complete discovery Savannah argues no error; movant failed to show needed evidence and due diligence No abuse; continuance denial affirmed
Whether the settlement release bars the second suit’s claims Claims fall outside the release due to surviving Amended Contract duties Release covers claims arising from Horton/Continental Amended Contract and Savannah Addition Release dispositive; claims released; affirmed on release defense
Whether the fraudulent inducement claim (added after the hearing) survives no-evidence judgment Fraudulent inducement pleaded in later amendments should be considered Amendments filed after hearing without leave cannot be considered; no-evidence proper No error; amendments filed post-hearing without court permission cannot defeat summary judgment on this claim
Whether need to address res judicata/noviation/limitations and no-evidence breach/warranty/negligence claims given release These issues were raised Release controls; other issues moot if release bars claims Release control; other issues unnecessary to resolve; judgment affirmed on release

Key Cases Cited

  • BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789 (Tex. 2002) (standard for abuse-of-discretion review of continuance/summary judgment)
  • In re Nitla S.A. de C.V., 92 S.W.3d 419 (Tex. 2002) (orig. proceeding; standard for not substituting own judgment in continuance)
  • Ford Motor Co. v. Castillo, 279 S.W.3d 656 (Tex. 2009) (affidavits and Rule 166a(g) continuance prerequisites)
  • Two Thirty Nine Joint Venture, 145 S.W.3d 150 (Tex. 2004) (factors for evaluating continuance for discovery)
  • Taylor v. Sunbelt Mgmt., Inc., 905 S.W.2d 743 (Tex. App.—Houston [14th Dist.] 1995) (amendments after summary judgment hearing without leave not considered)
  • W. Tex. Gas, Inc. v. 297 Gas Co., 864 S.W.2d 681 (Tex. App.—Amarillo 1993) (amendments after hearing without leave not considered)
  • Austin v. Countrywide Homes Loans, 261 S.W.3d 68 (Tex. App.—Houston [1st Dist.] 2008) (need for leave to amend after summary judgment hearing)
  • Beaumont v. Excavators & Constrs., 870 S.W.2d 123 (Tex. App.—Beaumont 1993) (contractual releases and non-parties' duties limitations)
  • Keck, Mahin & Cate v. Nat'l Union Fire Ins. Co. of Pittsburgh, Pa., 20 S.W.3d 692 (Tex. 2000) (parol evidence limits on release interpretation)
Read the full case

Case Details

Case Name: D.R. Horton - Texas, Ltd. and DRHI, Inc. v. Savannah Properties Associates, L.P.
Court Name: Court of Appeals of Texas
Date Published: Nov 7, 2013
Citation: 416 S.W.3d 217
Docket Number: 02-12-00349-CV
Court Abbreviation: Tex. App.