Michael Reid v. UDR Texas Properties, LLC UDR Texas Properties, LLC, Successor to UDR Texas Properties, LP UDR the Cliffs, LLC UDR, Inc. And Western Residential, Inc.
02-15-00108-CV
| Tex. App. | Nov 23, 2016Background
- Reid leased an apartment from UDR with a fixed-term lease ending December 27, 2008; lease required 60 days’ written notice to avoid month-to-month conversion and timely rent payment by the 3rd of the month.
- UDR sent a renewal/notice letter on October 13, 2008 stating if no new lease or no 60-day move-out notice, tenancy would convert to month-to-month at $924; Reid signed that letter on October 27 and also signed a Texas Apartment Association move-out form indicating he would vacate Dec 27, 2008.
- On December 1, 2008 Reid attempted to cancel his move-out notice, hand-marked the form “cancel,” initialed the October 13 letter selecting a six-month renewal at $755, and agreed to pay prorated rent for Dec 28–31; UDR prepared a new lease but Reid never signed it or paid the remaining December rent.
- UDR sent a December 5, 2008 notice to vacate for unpaid December rent and stated Reid’s occupancy was terminated; Reid vacated on December 27 and left no forwarding address. UDR treated him as month-to-month and later billed him for two months’ month-to-month rent plus fees.
- Reid sued UDR in December 2012 asserting multiple claims; UDR filed a breach-of-contract counterclaim on September 30, 2014. Trial occurred Oct–Nov 2014; the trial court rendered a take-nothing judgment on Reid’s claims and awarded UDR damages and attorney’s fees on its counterclaim.
Issues
| Issue | Reid's Argument | UDR's Argument | Held |
|---|---|---|---|
| Trial continuance for surprise counterclaim | Trial court erred by denying continuance because counterclaim filed 15 days before trial and he needed discovery | Motion to continue was untimely under local rules; counterclaim not a surprise | Denial affirmed; continuance denial not an abuse of discretion (motion untimely) |
| Limitations on UDR counterclaim | Counterclaim barred by limitations (accrued Jan 2009; filed Sept 2014) | Limitations is an affirmative defense Reid failed to plead or prove at trial; waived | Affirmative defense not pleaded — trial court properly did not bar counterclaim |
| Whether UDR’s notice to vacate canceled the lease | Notice to vacate terminated lease, precluding UDR recovery for breach | Lease required timely 60-day notice; Reid failed to comply so UDR could issue notice to vacate and still recover damages | Trial court’s finding Reid breached lease supported; UDR entitled to damages despite issuing notice to vacate |
| Legal sufficiency of evidence on breach | Evidence legally insufficient to support findings that Reid breached and UDR did not | Trial court heard evidence Reid failed to give proper notice and breached; findings supported | Court found evidence legally sufficient; Reid failed to show Castillo grounds for reversal |
Key Cases Cited
- Catalina v. Blasdel, 881 S.W.2d 295 (Tex. 1994) (standards for reviewing legal and factual sufficiency of trial-court findings)
- Ford Motor Co. v. Castillo, 444 S.W.3d 616 (Tex. 2014) (legal-sufficiency standards and the four Castillo factors)
- Joe v. Two Thirty Nine Joint Venture, 145 S.W.3d 150 (Tex. 2004) (abuse-of-discretion review for continuance denials)
- Woods v. William M. Mercer, Inc., 769 S.W.2d 515 (Tex. 1988) (party asserting affirmative defense must plead and prove it)
- White v. Moore, 760 S.W.2d 242 (Tex. 1988) (trial-court findings have force of jury answers)
- Jackson Hotel Corp. v. Wichita Cty. Appraisal Dist., 980 S.W.2d 879 (Tex. App.—Fort Worth 1998) (parties cannot concede questions of law that affect jurisdiction or other legal standards)
- Storck v. Tres Lagos Prop. Owners’ Ass’n, 442 S.W.3d 730 (Tex. App.—Texarkana 2014) (limitations defense must be timely pleaded)