James Burkholder, Mike Morgan, Joe Urbanek, Melissa Grebb, Ruthie Ewers, Benjamin Bujanda, Fred Cordova, and Laguna Bay Condominium Association, Inc. v. Timothy Wilkins
504 S.W.3d 485
| Tex. App. | 2016Background
- Wilkins (unit owner) settled an earlier 2013 suit with Laguna Bay Condominium Association (COA) under an agreement requiring certain repairs (including securing an engineering report and repairing his unit within specified timeframes).
- COA obtained engineering guidance and undertook complex-wide repairs but did not repair Wilkins’s unit within six months; COA later issued Wilkins a $91,316 special assessment (his pro rata share) for common-area repairs.
- Wilkins refused to pay the assessment, withheld dues, and alleged COA initiated foreclosure efforts; he then sued for breach of contract, fiduciary duty, and fraud and sought a temporary injunction to bar collection/foreclosure.
- At the temporary-injunction hearing Wilkins submitted an affidavit, the Settlement, engineer reports, photos of damage/mold, and remediation proposals; COA disputed practicability of the Settlement but introduced no evidentiary support.
- Trial court granted a temporary injunction preventing collection/foreclosure and found likely success on the merits, irreparable harm without an adequate legal remedy, and that the balance of equities favored injunctive relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wilkins proved likely irreparable injury/no adequate remedy at law | Wilkins: foreclosure threatened loss of unique bay-front property — money damages inadequate; affidavit and other evidence show imminent foreclosure | COA: Wilkins failed to show irreparable harm; relied on COA repair plan and assessment; challenged affidavit-based proof | Held: Wilkins met burden — evidence (including unobjected-to affidavit + other documents) supported likely irreparable injury and no adequate legal remedy; injunction justified |
| Whether Wilkins’ affidavit could be considered at the temporary-injunction hearing | Wilkins: affidavit admissible because COA did not object (and affidavit summarized other evidence) | COA: affidavits are generally inadmissible to support temporary injunction absent agreement (Millwrights) | Held: COA did not object in trial court, so affidavit was properly considered on appeal; affidavit formed part of competent evidence supporting injunction |
| Whether balance of equities favored injunction | Wilkins: foreclosure would cause significant, irreparable harm to him; COA offered no evidentiary proof of greater harm from the injunction | COA: injunction impedes top-down repair plan and harms 29 other owners by delaying building repairs | Held: Trial court did not abuse discretion — COA produced no evidence of its asserted harm while Wilkins produced evidence of likely severe injury; balance favors injunction |
Key Cases Cited
- Butnaru v. Ford Motor Co., 84 S.W.3d 198 (Tex. 2002) (elements and purpose of temporary injunction; abuse-of-discretion review)
- Millwrights Local Union Number 2484 v. Rust Eng’g Co., 433 S.W.2d 683 (Tex. 1968) (generally affidavits may not prove temporary-injunction elements absent agreement)
- El Paso Dev. Co. v. Berryman, 729 S.W.2d 883 (Tex. App.—Corpus Christi 1987) (foreclosure can be irreparable injury for unique real property)
- N. Cypress Med. Ctr. Operating Co. v. St. Laurent, 296 S.W.3d 171 (Tex. App.—Houston [14th Dist.] 2009) (real property uniqueness and inadequacy of money damages)
- Shamoun & Norman, LLP v. Yarto Int’l Grp., LP, 398 S.W.3d 272 (Tex. App.—Corpus Christi 2012) (procedural allowance for interlocutory appeal of temporary injunction)
- Bocquet v. Herring, 972 S.W.2d 19 (Tex. 1998) (abuse of discretion requires decisions not supported by guiding legal principles or evidence)
