587 S.W.3d 82
Tex. App.2019Background
- CPB (tenant) sold a Houston facility and entered a five‑year lease with "Frank Zhang or Assigns" as landlord; CPB paid a $34,560 security deposit and later surrendered possession and provided a forwarding address.
- CPB requested return of the deposit by email and certified mail after surrender; landlord did not return the deposit or timely provide an itemized accounting within 60 days.
- Landlord (Zhang and Daxwell) later asserted offsets (CAM charges, alleged holdover rent) but did not provide an itemized list until months after suit was filed.
- CPB sued under Tex. Prop. Code § 93.011 seeking return of the deposit, treble statutory damages, and attorney’s fees; trial court entered judgment for CPB for $103,780 plus interest and fees.
- Zhang argued he signed only on behalf of Daxwell (so he personally was not landlord); he also sought additional findings of fact/conclusions from the trial court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether trial court erred by denying request for additional/amended findings | CPB: findings were adequate; not prejudiced | Zhang/Daxwell: trial court should add/modify findings to clarify legal basis | Denial not reversible; requests were unnecessary or waived; no prejudice shown |
| Whether Zhang (individually) was landlord | CPB: lease names "Frank Zhang or Assigns" and Zhang signed/initialed many lease documents, so Zhang is a landlord | Zhang: lease payments/notice directed to Daxwell; he signed on behalf of Daxwell, not personally | Court: Lease unambiguously names Frank Zhang; no written assignment to Daxwell; Zhang and Daxwell are landlords |
| Whether landlord rebutted statutory presumption of bad faith for withholding deposit | CPB: landlord failed to timely return deposit or provide itemized list, so presumption of bad faith applies | Zhang/Daxwell: had reasons/records to justify withholding and offsets (CAM, holdover) | Court: landlord failed to overcome presumption and failed to prove reasonableness; statutory damages and forfeiture of right to withhold applied |
| Whether evidence supported trial court’s findings generally (sufficiency) | CPB: evidence supports findings and award under §93.011 | Zhang/Daxwell: evidence weighed against Zhang personally and supports assignment to Daxwell; insufficient proof of bad faith | Court: findings supported by record; legal and factual sufficiency standards met for CPB; appeals overruled |
Key Cases Cited
- Nicholas v. Envtl. Sys. (Int’l) Ltd., 499 S.W.3d 888 (Tex. App.—Houston [14th Dist.] 2016) (standards for requesting additional findings of fact and conclusions of law)
- Vickery v. Comm’n for Lawyer Discipline, 5 S.W.3d 241 (Tex. App.—Houston [14th Dist.] 1999) (trial court need not make unnecessary or contrary additional findings)
- FP Stores v. Tramontina US, Inc., 513 S.W.3d 684 (Tex. App.—Houston [1st Dist.] 2016) (commercial §93.011 bad‑faith standard and relation to residential §92.109 precedents)
- Eun Bok Lee v. Ho Chang Lee, 411 S.W.3d 95 (Tex. App.—Houston [1st Dist.] 2013) (presumption of bad faith when landlord fails to timely refund or itemize and burden shifts to landlord)
- Johnson v. Waters at Elm Creek, L.L.C., 416 S.W.3d 42 (Tex. App.—San Antonio 2013) (definition of bad faith and landlord’s burden to show honesty in fact)
- Pulley v. Milberger, 198 S.W.3d 418 (Tex. App.—Dallas 2006) (examples of evidence sufficient to rebut presumption of bad faith)