Kevin Tarr v. Lantana Southwest Homeowners' Association, Inc. ( 2015 )


Menu:
  •                                                                               ACCEPTED
    03-14-00714-CV
    5580877
    THIRD COURT OF APPEALS
    AUSTIN, TEXAS
    6/8/2015 11:50:37 AM
    JEFFREY D. KYLE
    CLERK
    No. 03-14-00714-CV
    _____________________________                 FILED IN
    3rd COURT OF APPEALS
    AUSTIN, TEXAS
    Court of Appeals                    6/8/2015 11:50:37 AM
    JEFFREY D. KYLE
    Third Judicial District of Texas                   Clerk
    Austin, Texas
    _____________________________________
    KEVIN TARR,
    Appellant,
    v.
    LANTANA SOUTHWEST HOMEOWNERS’ ASSOCIATION, INC.,
    Appellee.
    _______________________________
    REPLY BRIEF OF APPELLANT
    _______________________________
    On Appeal from the 98th District Court
    of Travis County, Texas
    Trial Court No. D-1-GN-12-002467
    Judge Rhonda Hurley, Presiding
    _______________________________
    Matthew Ploeger
    State Bar No. 24032838
    LAW OFFICE OF MATTHEW PLOEGER
    901 S. Mopac Expressway, Suite 300
    Barton Oaks Plaza, Building One
    Austin, Texas 78746
    P: 512.329.1926
    F: 512.298.1787
    Matthew@PloegerLaw.com
    Attorney for Appellant
    RECORD REFERENCES
    In this brief, the following record citation forms will be used:
    •   Clerk’s Record will be cited as “CR[page].”
    •   Supplemental Clerk’s Record will be cited as “SCR[page].”
    •   Tarr’s “Brief of Appellant” will be cited as “Br. at [page].”
    •   Lantana’s “Reply Brief of Appellee” will be cited as “Resp. at [page].”
    ii
    TABLE OF CONTENTS
    Record References .................................................................................................... ii
    Table of Contents ..................................................................................................... iii
    Index of Authorities ................................................................................................. iv
    Introduction ................................................................................................................1
    Argument....................................................................................................................4
    I. The trial court erred in granting summary judgment for Lantana on its
    claim that Westlake Recovery House breached the deed restriction...................4
    A. Lantana, not Tarr, had the burden to prove whether Westlake
    Recovery House was protected by the FHA and other laws. ........................4
    B. The evidence is more than sufficient to raise a genuine issue of
    material fact that WRH is a protected group home and, thus,
    permissible under the restriction and federal law. .........................................7
    C. Lantana’s assertion that the home violates the covenant because it is
    a “duplex” is a red herring. ..........................................................................10
    II. The trial court erroneously granted summary judgment on Mr. Tarr’s
    counterclaims based entirely on its erroneous summary judgment on the
    affirmative defenses. ..........................................................................................12
    III. The trial court erred in awarding attorney’s fees to the HOA based on a
    void and unenforceable injunction.....................................................................12
    A. Tarr did not agree that Lantana was entitled to recover attorney’s
    fees. ..............................................................................................................12
    B. To be a “prevailing party,” one must obtain some meaningful relief
    that materially alters the position of the parties. .........................................13
    Conclusion and Prayer .............................................................................................15
    Certificate of Compliance ........................................................................................17
    Certificate of Service ...............................................................................................17
    iii
    INDEX OF AUTHORITIES
    Cases
    AHF Community Development LLC v. City of Dallas,
    
    633 F. Supp. 2d 287
    (N.D. Tex. 2009) ..................................................................4
    Burch v. Coca-Cola Co.,
    
    119 F.3d 305
    (5th Cir. 1997) .................................................................................8
    Burka v. New York City Transit Auth.,
    
    680 F. Supp. 590
    (S.D.N.Y. 1988) ......................................................................10
    Celotex Corp. v. Catrett,
    
    477 U.S. 317
    (1986) ...............................................................................................4
    City of Livonia v. Dep’t of Soc. Servs.,
    
    423 Mich. 466
    , 
    378 N.W.2d 402
    (1985)..............................................................11
    Gillebaard v. Bayview Acres Ass’n,
    263 S .W.3d 342 (Tex. App—Houston [1st Dist.] 2007, pet. denied) ..................5
    Hicks v. Falcon Wood Prop. Owners Ass’n,
    No. 03-09-00238-CV, 
    2010 WL 3271723
      (Tex. App.—Austin Aug. 19, 2010, no pet.) (mem. op.) ......................................6
    Intercontinental Group P’ship v. KB Home Lone Star L.P.,
    
    295 S.W.3d 650
    (Tex. 2009)................................................................................13
    Jeffrey O. v. City of Boca Raton,
    
    511 F. Supp. 2d 1328
    (S.D. Fla. 2007) ................................................................10
    Lund v. Leibl,
    No. 03-99-00032-CV, 
    1999 WL 546996
      (Tex. App.—Austin July 29, 1999, no pet.) (mem. op.)....................................4, 5
    McKey v. Occidental Chemical Corp.,
    
    956 F. Supp. 1313
    (S.D. Tex. 1997) ......................................................................7
    McKivitz v. Twp. of Stowe,
    
    769 F. Supp. 2d 803
    (W.D. Pa. 2010)....................................................................9
    Merrell Dow Pharm., Inc. v. Havner,
    
    953 S.W.2d 706
    (Tex. 1997)................................................................................10
    iv
    Mohamed v. Exxon Corp.,
    
    796 S.W.2d 751
    (Tex. App.—Houston [14th Dist.] 1990, writ denied) ...............8
    Norton v. Deer Creek Prop. Owners Ass’n, Inc.,
    No. 03-09-00422-CV, 
    2010 WL 2867375
      (Tex. App.—Austin July 22, 2010, no pet.) (mem. op.)......................................13
    Reg’l Econ. Cmty. Action Program, Inc. v. City of Middletown,
    
    294 F.3d 35
    (2d Cir. 2002) ..............................................................................9, 
    10 Taylor v
    . Principal Financial Group, Inc.,
    
    93 F.3d 155
    (5th Cir. 1996) ...................................................................................7
    United States v. City of Chicago Heights,
    
    161 F. Supp. 2d 819
    (N.D. Ill. 2001) ...................................................................11
    Wagner v. Fair Acres Geriatric Center,
    
    49 F.3d 1002
    (3d Cir.1995) ...................................................................................9
    Wibbenmeyer v. TechTerra Communications, Inc.,
    No. 03-09-00122-CV, 
    2010 WL 1173072
      (Tex. App.—Austin Mar. 26, 2010, pet. denied) (mem. op.) ..............................14
    Rules
    TEX. R. CIV. P. 166a(i) .............................................................................................10
    v
    TO THE HONORABLE COURT OF APPEALS:
    Appellant Kevin Tarr respectfully submits this Reply Brief.
    INTRODUCTION
    Lantana largely ignores Tarr’s argument and authority hoping, perhaps, that
    this Court will ignore it, too.
    Burden of Proof
    Lantana attempts to improperly shift the burden of proof. Specifically, the
    deed restriction on which the HOA bases its claim expressly provides that it does
    not exclude uses that are protected by federal or state law, which includes the FHA’s
    protection of group homes for the handicapped. Thus, to prove breach, Lantana must
    prove that Mr. Tarr’s use of the property as a group home falls outside the deed
    restriction’s inclusive definition. Thus, the cases Lantana cites are inapposite. None
    of the cited cases involves a covenant that incorporates statutory protections into the
    definition of permissible uses, like the one here.
    But even if the covenant did not contain this provision and Lantana were
    correct that once the HOA otherwise establishes a breach the burden shifts to the
    homeowner, the First Summary Judgment would still have been erroneous. At the
    time of the first summary judgment, Lantana had not established any breach. Indeed,
    the issue of breach was not raised in Lantana’s first motion for summary judgment.
    Thus, under Lantana’s own position, the burden had not shifted to Tarr. It was not
    1
    until the second motion for summary judgment that Lantana purported to establish a
    breach of the covenant. But the trial court, relying entirely on the erroneous first
    summary judgment, ignored the evidence that the WRH residents were disabled
    under the FHA and related statutes.
    Evidence of Disability
    In its response, Lantana also ignores the evidence and case law holding such
    evidence sufficient to establish that residents of recovery facilities are protected.
    Rather than address the overwhelming weight of authority, Lantana asserts that it is
    irrelevant because some of it comes from other jurisdictions despite the fact that
    those courts were addressing the federal law at issue here. Moreover, despite
    Lantana’s mischaracterization, the supposedly superior law Lantana relies on is in
    no way inconsistent with case law from other federal or state courts cited by Tarr.
    Lantana simply fails to offer any response to Tarr’s argument and authority
    that evidence regarding the nature of a recovery home and requirements for
    admission to it constitute legally sufficient evidence that its residents satisfy the
    statutory definition of “disability.” In short, Lantana offers no supportable argument
    that the evidence proffered in the trial court did not create a genuine issue of material
    fact with respect to the disability of the Westlake Recovery House (“WRH”)
    residents or the applicability of the federal and state protections afforded to them.
    This Court should reverse and remand for a trial.
    2
    Attorney’s Fees
    Lantana apparently concedes that the trial court’s injunction is invalid and
    unenforceable. Lantana argues, however, that it should nevertheless be entitled to
    attorney’s fees because (1) Tarr agreed to the fees and (2) a bare finding of the breach
    of a restrictive covenant is sufficient to support a fee award. Both propositions are
    meritless. First, as Lantana well knows, Tarr stipulated only with respect to the
    amount of fees, not Lantana’s entitlement to fees in the first place. It is outrageous
    to suggest otherwise. Second, Lantana ignores the governing authority of this Court
    and the Texas Supreme Court that provides that, in order to be a “prevailing party”
    under the relevant fees statute, the party must obtain some meaningful relief that
    materially alters the position of the parties, whether the relief is monetary or
    injunctive. Here, Lantana received no damages award and, as Lantana concedes, the
    injunction is invalid and unenforceable. It obtained no actual relief and is not entitled
    to recover attorney’s fees. Thus, at the very least, this Court should vacate the
    attorney’s fees award in recognition that the injunction is invalid.
    3
    ARGUMENT
    I.    The trial court erred in granting summary judgment for Lantana on its
    claim that Westlake Recovery House breached the deed restriction.
    A.     Lantana, not Tarr, had the burden to prove whether Westlake
    Recovery House was protected by the FHA and other laws.
    Lantana assert that “Once a violation of deed restrictions are [sic] shown, the
    burden shi[f]ts to the person claiming Fair Housing Act protection.” Resp. at 29.
    But this burden-shifting approach simply does not apply here.
    Lantana first cites AHF Community Development LLC v. City of Dallas, 
    633 F. Supp. 2d 287
    (N.D. Tex. 2009), and Celotex Corp. v. Catrett, 
    477 U.S. 317
    (1986).
    Both of these cases, however, involve claims brought under the FHAA by someone
    claiming a disability; they do not involve purported violations of a restrictive
    covenant. Of course, when asserted as a claim, the individual asserting that claim
    bears the burden of proof. If these cases have any relevance to this issue, it is simply
    that it is the party asserting a claim, such as Lantana here, that has the burden of
    proof on that claim. Nothing in these cases suggests that Tarr has the burden to
    prove that his use of his property does not violate the covenant.
    Next, Lantana relies on Lund v. Leibl, No. 03-99-00032-CV, 
    1999 WL 546996
    (Tex. App.—Austin July 29, 1999, no pet.) (mem. op.). Lund involved a
    challenge to a temporary injunction. The homeowner argued that to obtain a
    temporary injunction, the plaintiff must establish an injury, which, the homeowner
    4
    argued, included showing that the home was not protected by the FHAA. The court
    rejected this contention, explaining that probable injury is not part of the temporary
    injunction analysis in a deed restriction case.
    Lantana’s reliance on Lund is misplaced. It is easily distinguished from this
    case by the fact that there, unlike here, the restrictive covenant did not incorporate
    federal and state law protections in defining what constitutes a permissible use. As
    the proponent of its claim, Lantana has the burden of proving that WRH is not a
    permissible use, including that it is not a protected group home. Lantana attempts
    to simply wave away this fact by asserting that the purpose of the provision is simply
    to acknowledge that state and federal law may trump the covenant and permit its
    violation. Resp. at 28. But no provision would be necessary if that were its purpose.
    Moreover, the restriction does not provide that a group home violates the covenant
    but is nevertheless allowed if the owner can establish the applicability of the statute.
    Rather, it provides that group homes are included within the definition of permissible
    residential use and, thus, do not violate the restriction in the first place.
    Because Lantana has the burden of proving that Tarr’s use is not a permissible
    use, it is Lantana’s burden to prove that WRH is not what it purports to be, a
    protected group home for recovering alcoholics and drug addicts. Gillebaard v.
    Bayview Acres Ass’n, 263 S .W.3d 342, 347 (Tex. App—Houston [1st Dist.] 2007,
    pet. denied); Hicks v. Falcon Wood Prop. Owners Ass’n, No. 03-09-00238-CV, 2010
    
    5 WL 3271723
    , at *7 (Tex. App.—Austin Aug. 19, 2010, no pet.) (mem. op.). But
    Lantana made no effort to show that WRH is not the permissible residential group
    home that it is. It did not even depose any of the then-residents or discover any
    evidence that admission to WRH does not require a statutory disability.
    In any case, even if this burden-shifting approach did apply here, it would not
    have the effect Lantana asserts. At the time of the First Summary Judgment on the
    FHA “affirmative defense,” Lantana had proffered no evidence of any violation.
    Rather, Lantana merely asserted that the federal and state protections simply did not
    apply. CR168-75. Thus, even under Lantana’s view, the burden had not shifted
    to Tarr to adduce any evidence that his home was protected by the FHA.
    All of Lantana’s protestations that only the first summary judgment matters
    must fail. At the time of the first summary judgment, the burden had not shifted to
    Tarr under Lantana’s own burden-shifting argument. Lantana did not argue or
    present evidence establishing that Tarr had violated the covenant. Thus, Tarr had no
    obligation, even under Lantana’s position, to present evidence that his use of the
    property was protected by federal and state law. This, in addition to all of the other
    reasons argued here and in Tarr’s opening brief, Lantana’s assertion that the First
    Summary Judgment governs the entire case must be rejected.
    6
    B.     The evidence is more than sufficient to raise a genuine issue of
    material fact that WRH is a protected group home and, thus,
    permissible under the restriction and federal law.
    Rather than respond to the authority and argument presented in Appellant’s
    opening brief regarding the type and sufficiency of evidence of disability, Lantana
    asks this Court simply to ignore it. Lantana asserts that none of Appellant’s cases
    are relevant in view of the supposed governing authority. But the authority Lantana
    cites is in no way inconsistent with Tarr’s arguments and authority and does not
    suggest that his evidence is legally insufficient to survive summary judgment.
    After citing a number of unrelated cases discussing the federal summary
    judgment standards—which are, of course, of little relevance here and shed little
    light on the sufficiency of Mr. Tarr’s evidence of disability—Lantana cites three
    cases regarding disability claims, none of which is inconsistent with the authority
    Mr. Tarr cites. The first two, Taylor v. Principal Financial Group, Inc., 
    93 F.3d 155
    (5th Cir. 1996), and McKey v. Occidental Chemical Corp., 
    956 F. Supp. 1313
    (S.D.
    Tex. 1997), merely state the uncontroversial point that “disability” requires more
    than showing impairment; as discussed in Appellant’s opening brief, it requires a
    showing that the impairment was substantially limiting in daily life. Lantana does
    not even attempt to explain why Tarr’s evidence of substantial limitation is
    insufficient. Nor does Lantana attempt to explain how these cases are inconsistent
    with the widespread and diverse authority holding that admission to a group home
    7
    recovery facility is prima facie evidence of disability. Nor does Lantana attempt to
    explain how one might otherwise prove disability for a fluid and changing
    population of residents.
    Last, Lantana cites Burch v. Coca-Cola Co., 
    119 F.3d 305
    (5th Cir. 1997), a
    Fifth Circuit case that Lantana asserts governs.1 But Burch is in no way inconsistent
    with the authority cited by Appellant Tarr. To begin with, as with Lantana’s other
    cases, Burch did not involve a deed restriction claim against a group recovery facility
    but an individual discrimination claim against an employer. Thus, the Burch court
    did not address the issue presented in this case, namely, what evidence is sufficient
    to establish that a group home is protected under the FHA and related statutes. It is
    in no way inconsistent with the authority cited in Tarr’s opening brief holding that
    the nature of a recovery facility and admission requirements are sufficient evidence
    of a resident’s disability, including limitation in a major life activity. Br. at 34-42.
    Overwhelming authority—indeed, Lantana cites no opposing authority—holds that
    the type of evidence presented in the trial court here is sufficient. Id.; see, e.g., Reg’l
    Econ. Cmty. Action Program, Inc. v. City of Middletown (“RECAP”), 
    294 F.3d 35
    ,
    1
    Notably, Lantana appears to labor under the misimpression that Texas state courts are bound by
    interpretations of the Fifth Circuit. State courts are bound by the authority of higher state courts
    and the United States Supreme Court. Other federal or state authority, even from the Fifth Circuit,
    is persuasive but not binding. See Mohamed v. Exxon Corp., 
    796 S.W.2d 751
    , 753 (Tex. App.—
    Houston [14th Dist.] 1990, writ denied).
    8
    47-48 (2d Cir. 2002); Wagner v. Fair Acres Geriatric Center, 
    49 F.3d 1002
    , 1010
    (3d Cir.1995); McKivitz v. Twp. of Stowe, 
    769 F. Supp. 2d 803
    , 822 (W.D. Pa. 2010)
    (holding that admission to facility is sufficient evidence of disability). Lantana
    offers nothing to support its assertion that this Court should ignore and reject this
    authority.
    Further, the Burch court held merely that the plaintiff’s testimony in that
    employment discrimination case—which was limited to the temporary effects of
    being inebriated, i.e., falling down while drunk—was not sufficient. 
    Id. at 315-16.
    Further, the plaintiff testified that his drinking had not affected his work. 
    Id. at 316
    n.9. Thus, in Burch, unlike here, there was no evidence of the permanent effects of
    alcohol or drug dependency. Indeed, the court specifically noted that such evidence
    would be sufficient to establish disability.               
    Id. The evidence
    here clearly
    demonstrates that the WRH residents suffer long-term and continuing limitations in
    living far beyond the temporary effects of inebriation. Each resident testified
    regarding his inability to function normally in everyday life and work as a result of
    their addictions even when they are not actively drinking or taking drugs. 2 See Br.
    2
    Lantana’s assertion that Tarr waived any request that the trial court reconsider the improper First
    Summary Judgment is meritless. The issue was clearly before the trial court in the form of Tarr’s
    response to Lantana’s second motion for summary judgment. Lantana’s assertion that hearings
    must be had on a separate motion for reconsideration is meritless. Resp. at 44-45. Moreover, as
    discussed above, Tarr does not have the burden of proof on this issue and the first summary
    judgment on “affirmative defenses” is a nullity. Further, under Lantana’s burden-shifting
    approach, at the time of the first summary judgment, the burden had not shifted to Tarr because it
    9
    at 40-42; SCR23-37. See, e.g., 
    RECAP, 294 F.3d at 47-48
    (inability to “caring for
    one’s self” without relapse is necessarily a limitation in a major life activity); Jeffrey
    O. v. City of Boca Raton, 
    511 F. Supp. 2d 1328
    , 1334-35 (S.D. Fla. 2007) (same);
    Burka v. New York City Transit Auth., 
    680 F. Supp. 590
    , 600 n.18 (S.D.N.Y. 1988)
    (same); see generally Br. at 34-42.
    Taking all inferences in Mr. Tarr’s favor, as the Court must, there is certainly
    more than a mere scintilla of evidence that the residents of WRH are disabled within
    the statutory definition.3
    C.      Lantana’s assertion that the home violates the covenant because it
    is a “duplex” is a red herring.
    Lantana baselessly states that it is “without dispute” that the home is a duplex.
    First, this entire issue is a red herring and cannot constitute a second purported
    violation of the restrictions. The term “duplex” does not appear in paragraph 4.1 of
    the restrictions. Nor is there any evidence that the appearance or structure of the
    home is anything other than that of a single-family residential.4
    was not until the second motion for summary judgment that Lantana put the breach issue before
    the trial court.
    3
    TEX. R. CIV. P. 166a(i); Merrell Dow Pharm., Inc. v. Havner, 
    953 S.W.2d 706
    , 711 (Tex. 1997).
    4
    Notably, as the photographs of the home that Lantana submitted show, there is no second front
    entry door, the backyard has not been subdivided, and the utilities have not been sub-metered.
    CR370. Further, Lantana did not submit the findings of the City of Austin Code Enforcement
    inspector following inspections in August and September 2012 that were initiated by the
    neighbor’s allegations, because the inspector concluded that the home is, in fact, not a duplex.
    CR482.
    10
    Indeed, Lantana’s sole complaint is that there are unrelated persons occupying
    the home for which Tarr receives compensation. But as explained here and in Tarr’s
    opening brief, a group home for recovering alcoholics and drug addicts does not
    violate paragraph 4.1. Further, Lantana simply ignores the authority that holds that
    a group home may, without violating any restrictive covenant, receive income for its
    operations.5 See, e.g., United States v. City of Chicago Heights, 
    161 F. Supp. 2d 819
    , 844 (N.D. Ill. 2001) (The FHA “does not require group home providers to give
    away their services, to operate at a loss, nor to declare a particular tax status. If it
    did, there would be far fewer residences for disabled persons than there presently
    are.”); Rhodes v. Palmetto Pathway Homes, Inc., 
    303 S.C. 308
    , 
    400 S.E.2d 484
    ,
    485-86 (1991); City of 
    Livonia, 378 N.W.2d at 431
    (holding that the fact that
    residents may be required to pay for services does not “transform the nature of the
    activities conducted in the home from residential to commercial.”); see generally Br.
    at 24-31.
    Thus, contrary to Lantana’s contention, the “duplex” provision of the
    covenants does not constitute a purported second violation of the restrictions. If the
    home is protected by the FHA and related statutes, then its internal physical structure
    5
    Lantana makes a rather outsized point that the focus is “income producing” rather than “for
    profit.” Indeed, this is a point made in Tarr’s opening brief. The term “for profit” is taken from
    Lantana’s own pleadings in this case.
    11
    (even if there were any evidence that it was altered) and the receipt of compensation
    are immaterial.
    II.    The trial court erroneously granted summary judgment on Mr. Tarr’s
    counterclaims based entirely on its erroneous summary judgment on
    the affirmative defenses.
    The bulk of Lantana’s response on this point is simply a procedural history
    and a reiteration of its assertion that Burch disposes of relevant case law. As
    discussed above, it does not. Indeed, Lantana raises no additional arguments in this
    section.
    III.   The trial court erred in awarding attorney’s fees to the HOA based on a
    void and unenforceable injunction.
    Lantana does not contest that the injunction is void and unenforceable.6
    Rather, it merely says it does not matter because (1) Tarr allegedly agreed to the fees
    award and (2) case law from other districts says that breach is all that is needed to
    be a prevailing party. Both of Lantana’s assertions are wrong.
    A.      Tarr did not agree that Lantana was entitled to recover attorney’s
    fees.
    Lantana’s assertion that Tarr agreed that Lantana was entitled to fees is
    disingenuous. In fact, Tarr stipulated only to the amount of fees, not that Lantana is
    6
    Moreover, Lantana does not request that this Court remedy the obvious defects in the injunction.
    Nor could it, because Lantana has waived any right to complain about the injunction by repeatedly
    moving for and submitting final judgments that include the invalid injunction and failing to cross
    appeal on this issue.
    12
    entitled to recover any fees in the first place. As the trial court (and Lantana)
    recognized, Tarr had the right to challenge all other issues, including Lantana’s
    entitlement to fees. “No part of this Final Modified Judgment or the prior orders of
    this Court are agreed to by Tarr except the amount of reasonable and necessary
    attorney’s fees set forth above, and Tarr reserves his right to appeal from every other
    ruling in this Judgment and those prior orders.” CR623 (App-A) (emphasis added).
    For Lantana to assert otherwise is a gross mischaracterization of the record.
    B.     To be a “prevailing party,” one must obtain some meaningful relief
    that materially alters the position of the parties.
    Lantana’s assertion that the attorney’s fees award was based not on the
    injunction but, rather, the alleged breach alone entirely misses the point of Tarr’s
    argument that it was not a “prevailing party” under section 5.06 and is contrary to
    this Court’s and the Texas Supreme Court’s precedents.
    In Norton v. Deer Creek Prop. Owners Ass’n, Inc., No. 03-09-00422-CV,
    
    2010 WL 2867375
    (Tex. App.—Austin July 22, 2010, no pet.), this Court, applying
    Texas Supreme Court authority, explained that to be entitled to attorney’s fees as a
    “prevailing party” under section 5.06, the party must obtain “actual relief on the
    merits of his claim” that “materially alters the legal relationship between the parties
    by modifying the defendant’s behavior in a way that directly benefits the plaintiff.”
    
    Id. at *8
    (quoting Intercontinental Group P’ship v. KB Home Lone Star L.P., 
    295 S.W.3d 650
    , 654 (Tex. 2009)); see also Wibbenmeyer v. TechTerra
    13
    Communications, Inc., No. 03-09-00122-CV, 
    2010 WL 1173072
    , at *10 (Tex.
    App.—Austin Mar. 26, 2010, pet. denied) (mem. op.) (explaining that the party must
    have obtained relief from the court that effect a “material alteration of the legal
    relationship of the parties”). Thus, the touchstone is not a naked finding of breach
    but, rather whether any material relief or change in the position of the parties is
    obtained.
    The main case on which Lantana relies is Nash v. Peters, 
    303 S.W.3d 359
    (Tex. App.—El Paso 2009, no pet.). To the extent that Nash, which involved issues
    regarding the jurisdiction of justice courts, stands for the proposition that a party
    “prevails” even if it does not obtain any actual relief (be it monetary or injunctive),
    it was wrongly decided and is in direct opposition to the governing precedent of this
    Court and the Texas Supreme Court.         Indeed, the Nash court cited precisely the
    same inapposite authority on which Lantana relies. None of the cases cited by the
    Nash court and Lantana even address the issue, much less stand for the proposition
    that a bare finding of breach of a restrictive covenant without any actual relief is
    sufficient to “prevail” and be entitled to attorney’s fees.
     Jim Rutherford Investments, Inc. v. Terramar Beach Community
    Association, 
    25 S.W.3d 845
    , 853 (Tex. App.—Houston [14th Dist.]
    2000, pet. denied). The issue in this case was the reasonableness of the
    amount of fees, not who prevailed. Further, a permanent injunction was
    entered. Thus, the issue of whether a party prevails where it obtains no
    material relief was not raised or addressed.
    14
     Munson v. Milton, 
    948 S.W.2d 813
    , 815 (Tex. App.—San Antonio
    1997, pet. denied). This case did not even involve attorney’s fees or
    what constitutes a prevailing party.
     Briargrove Park Property Owners, Inc. v. Riner, 
    867 S.W.2d 58
    , 61
    (Tex. App.—Texarkana 1993, writ denied). In this case, the plaintiff
    was awarded money damages. Thus, the issue of whether a party
    prevails where it obtains no material relief was not raised or addressed.
     City of Houston v. Muse, 
    788 S.W.2d 419
    , 424 (Tex. App.—Houston
    [1st Dist.] 1990, no writ). In this case, a permanent injunction was
    awarded. Thus, the issue of whether a party prevails where it obtains
    no material relief was not raised or addressed.
     Anderson v. New Property Owners’ Association of Newport, Inc., 
    122 S.W.3d 378
    , 390 (Tex. App.—Texarkana 2003, pet. denied). Holding
    that a defending party is not entitled to fees.
     Pebble Beach Property Owners’ Association v. Sherer, 
    2 S.W.3d 283
    ,
    291-92 (Tex. App.—San Antonio 1999, pet. denied). Holding that a
    defending party is not entitled to fees.
     Inwood North Homeowners’ Association, Inc. v. Meier, 
    625 S.W.2d 742
    , 743-44 (Tex. Civ. App.—Houstion [1st Dist.] 1981, no writ). A
    permanent injunction was granted. Thus, the issue of whether a party
    prevails where it obtains no material relief was not raised or addressed.
    These cases simply do not support or even suggest that a bare finding of
    breach where no relief is granted that materially alters the positions of the parties is
    sufficient. Courts exist to provide relief, not mere rhetorical vindication. Something
    must result from the determination of breach. Otherwise, the suit is just a waste of
    the parties’ and court’s time and resources that should not be encouraged by the
    availability of attorney’s fees.
    CONCLUSION AND PRAYER
    Appellant Mr. Tarr prays that the Court reverse the trial court’s judgment and
    remand for trial on both the HOA’s breach claim and Appellant’s counterclaims.
    15
    Appellant further prays that the Court vacate the injunction and award of attorney’s
    fees. Appellant also prays for such other and further relief to which he may be justly
    entitled.
    Respectfully submitted,
    /s/ Matthew Ploeger
    Matthew Ploeger
    State Bar No. 24032838
    LAW OFFICE OF MATTHEW PLOEGER
    901 S. Mopac Expressway, Suite 300
    Barton Oaks Plaza, Building One
    Austin, Texas 78746
    P: 512.329.1926
    F: 512.298.1787
    Matthew@PloegerLaw.com
    Attorney for Appellant
    16
    CERTIFICATE OF COMPLIANCE
    Pursuant to Texas Rule of Appellate Procedure 9.4(i)(3), I hereby certify that
    this brief contains 3,904 words. This is a computer-generated document created in
    Microsoft Word, using 14-point typeface for all text, except for footnotes which are
    in 12-point typeface. In making this certificate of compliance, I have relied on the
    word count provided by the software used to prepare the document.
    /s/ Matthew Ploeger
    Matthew Ploeger
    CERTIFICATE OF SERVICE
    I hereby certify that I served a true and correct copy of the foregoing Brief of
    Appellant on all counsel of record on June 8, 2015, as listed below:
    Gregory B. Godkin                          Via Electronic Service
    Roberts Markel Weinberg, PC
    2800 Post Oak Blvd., 57th Floor
    Houston, TX 77056
    713.840.1666–telephone
    713.840.9404–facsimile
    /s/ Matthew Ploeger
    Matthew Ploeger
    17
    

Document Info

Docket Number: 03-14-00714-CV

Filed Date: 6/8/2015

Precedential Status: Precedential

Modified Date: 9/29/2016

Authorities (24)

regional-economic-community-action-program-inc-and-united-states-of , 294 F.3d 35 ( 2002 )

Margaret C. Wagner, by Her Next Friend George M. Wagner v. ... , 49 F.3d 1002 ( 1995 )

mack-w-taylor-jr-plaintiff-counter-v-the-principal-financial-group , 93 F.3d 155 ( 1996 )

Burch v. Coca-Cola Co. , 119 F.3d 305 ( 1997 )

United States v. City of Chicago Heights , 161 F. Supp. 2d 819 ( 2001 )

JEFFREY O. v. City of Boca Raton , 511 F. Supp. 2d 1328 ( 2007 )

Rhodes v. Palmetto Pathway Homes, Inc. , 303 S.C. 308 ( 1991 )

Merrell Dow Pharmaceuticals, Inc. v. Havner , 953 S.W.2d 706 ( 1997 )

Pebble Beach Property Owners' Ass'n v. Sherer , 2 S.W.3d 283 ( 1999 )

Intercontinental Group Partnership v. KB Home Lone Star L.P. , 295 S.W.3d 650 ( 2009 )

City of Livonia v. Department of Social Services , 423 Mich. 466 ( 1985 )

Celotex Corp. v. Catrett, Administratrix of the Estate of ... , 106 S. Ct. 2548 ( 1986 )

Burka v. New York City Transit Authority , 680 F. Supp. 590 ( 1988 )

McKIVITZ v. Township of Stowe , 769 F. Supp. 2d 803 ( 2010 )

Munson v. Milton , 948 S.W.2d 813 ( 1997 )

Nash v. Peters , 303 S.W.3d 359 ( 2009 )

INWOOD NORTH HOMEOWNERS'ASS'N, INC. v. Meier , 625 S.W.2d 742 ( 1981 )

Anderson v. New Property Owners' Ass'n of Newport, Inc. , 122 S.W.3d 378 ( 2003 )

Jim Rutherford Investment Inc. v. Terramar Beach Community ... , 25 S.W.3d 845 ( 2000 )

City of Houston v. Muse , 788 S.W.2d 419 ( 1990 )

View All Authorities »