Elena Markovsky v. Kirby Tower, L.P. ( 2015 )


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  • Opinion issued December 15, 2015
    In The
    Court of Appeals
    For The
    First District of Texas
    ————————————
    NO. 01-13-00516-CV
    ———————————
    ELENA MARKOVSKY, Appellant
    V.
    KIRBY TOWER, L.P., Appellee
    On Appeal from the 11th District Court
    Harris County, Texas
    Cause No. 2009-03458
    MEMORANDUM OPINION
    This is the second appeal in this lawsuit, which arose out of a contract in
    which appellant Elena Markovsky agreed to purchase a condominium from
    appellee Kirby Tower, L.P.    In the first appeal, we affirmed a take-nothing
    judgment against Markovsky, the plaintiff below, but reversed the award of earnest
    money to Kirby Tower because it had not asserted an affirmative claim for relief.
    Markovsky v. Kirby Tower, LP, No. 01-10-00738-CV, 
    2011 WL 5429014
    (Tex.
    App.–Houston [1st Dist.] Nov. 10, 2011, pet. denied). On remand, the trial court
    granted Kirby Tower’s motion for summary judgment, awarding Kirby Tower the
    $300,000 in earnest money that had been held in escrow since the parties entered
    into the contract. In this appeal, Markovsky challenges the summary judgment and
    the trial court’s denial of her motion to enter judgment in her favor. We affirm.
    Background
    Markovsky and Kirby Tower negotiated a contract for a high-rise
    condominium that required Markovsky to place in escrow $300,000 in earnest
    money, which was 10 percent of the agreed purchase price. The contract gave
    Markovsky the right to terminate the contract and receive a full refund of the
    $300,000 if Kirby Tower failed to complete the unit by May 31, 2008.
    The condominium was not completed by May 31, 2008.                 Markovsky
    nevertheless continued to make changes to the unit plans, select unit upgrades, and
    specify cabinets and appliances to install in the unit before informing Kirby Tower,
    for the first time on November 5, 2008, that she wanted to terminate the contract
    and get a refund of her earnest money.        When Kirby Tower did not agree,
    2
    Markovsky sued Kirby Tower for declaratory judgment and breach of contract.
    Kirby Tower asserted defenses, but sought no affirmative relief.
    A jury found that Kirby Tower had breached the contract by not completing
    the condominium by May 31, 2008, but it also found that Markovsky waived this
    breach by continuing to proceed under the contract after that date. The trial court
    entered a take-nothing judgment against Markovsky and awarded Kirby Tower the
    earnest money plus accrued interest. Markovsky appealed, and we affirmed the
    take-nothing judgment, but reversed the trial court’s award of the earnest money to
    Kirby Tower because it had not asserted an affirmative claim for relief.
    On remand, Markovsky moved for entry of judgment, requesting a
    declaratory judgment awarding her the earnest money. The trial court denied the
    motion. Kirby Tower filed original counterclaims for breach of contract and
    declaratory judgment, requesting that the earnest money be awarded to it as
    liquidated damages, then moved for summary judgment on its counterclaims. In
    support of its motion for summary judgment, Kirby Tower submitted the contract,
    an affidavit of Andrew Osborne, the authorized representative of Kirby Tower’s
    general partner, setting forth facts regarding Markovsky’s termination of the
    contract, the trial court’s judgment, and this Court’s memorandum opinion
    affirming the take-nothing judgment.
    3
    Five days before the summary-judgment hearing, Markovsky filed a
    response to the motion for summary judgment, in which she argued that she had
    not waived the completion date provision in the contract and that the summary-
    judgment evidence raised a fact issue on her breach and on her affirmative
    defenses. She also argued that this Court’s opinion did not prevent the trial court
    from entering a judgment in her favor awarding her the earnest money. The trial
    court granted Kirby Tower’s summary-judgment motion as to both its
    counterclaims and entered a declaratory judgment “that Kirby Tower, L.P. is
    entitled to the $300,000 earnest money, together with accrued interest, deposited
    by Plaintiff/Counter-Defendant Elena Markovsky relating to Unit 27-I at 2727
    Kirby, H[o]uston, Texas 77098.” 1
    1
    The trial court’s original summary-judgment order did not contain a Mother
    Hubbard clause and did not indicate whether relief was granted based upon Kirby
    Tower’s breach of contract claim, its declaratory judgment claim, or both. It also
    did not dispose of Kirby Tower’s request for attorney’s fees, and thus was not a
    final judgment. See McNally v. Guevara, 
    52 S.W.3d 195
    , 196 (Tex. 2001). We
    granted Markovsky’s motion to abate the appeal to permit the trial court to render
    a final judgment. See 
    id. (appellate court
    may abate appeal to permit trial court to
    render final judgment). The modified final judgment contains a Mother Hubbard
    clause, indicates that summary judgment is granted as to both of Kirby Tower’s
    counterclaims, and awards Kirby Tower $5,000 in conditional appellate attorney’s
    fees. Thus, the judgment is final and we have jurisdiction over this appeal. See 
    id. 4 Motion
    for Summary Judgment
    In her first issue, Markovsky contends that the trial court erred in granting
    summary judgment.
    A. Standard of Review and Applicable Law
    We review a trial court’s summary judgment de novo. Travelers Ins. Co. v.
    Joachim, 
    315 S.W.3d 860
    , 862 (Tex. 2010). If a trial court grants summary
    judgment without specifying the grounds for granting the motion, we must uphold
    the trial court’s judgment if any of the grounds are meritorious. Beverick v. Koch
    Power, Inc., 
    186 S.W.3d 145
    , 148 (Tex. App.—Houston [1st Dist.] 2005, pet.
    denied). When reviewing a summary judgment, we take as true all evidence
    favorable to the nonmovant, and we indulge every reasonable inference and
    resolve any doubts in the nonmovant’s favor. Valence Operating Co. v. Dorsett,
    
    164 S.W.3d 656
    , 661 (Tex. 2005).
    In a traditional summary-judgment motion, the movant has the burden to
    show that no genuine issue of material fact exists and that the trial court should
    grant judgment as a matter of law. TEX. R. CIV. P. 166a(c); KPMG Peat Marwick
    v. Harrison Cnty. Hous. Fin. Corp., 
    988 S.W.2d 746
    , 748 (Tex. 1999). A party
    moving for a traditional summary judgment on its affirmative claims must
    conclusively prove all essential elements of its claim. See Rhone–Poulenc, Inc. v.
    Steel, 
    997 S.W.2d 217
    , 223 (Tex. 1999). If the movant conclusively establishes its
    5
    cause of action, the burden shifts to the nonmovant to respond to the summary
    judgment. M.D. Anderson Hosp. & Tumor Inst. v. Willrich, 
    28 S.W.3d 22
    , 23
    (Tex. 2000).
    A party seeking summary judgment on its affirmative claims is not under
    any obligation to negate affirmative defenses.       Kirby Explor. Co. v. Mitchell
    Energy Corp., 
    701 S.W.2d 922
    , 926 (Tex. App.—Houston [1st Dist.] 1985, writ
    ref’d). A party raising an affirmative defense to defeat a motion for summary
    judgment must either (1) present a disputed fact issue on the opposing party’s
    failure to satisfy his own burden of proof or (2) establish at least the existence of a
    fact issue on each element of his affirmative defense by summary judgment proof.
    “Moore” Burger, Inc. v. Phillips Petrol. Co., 
    492 S.W.2d 934
    , 936–37 (Tex.
    1972). An affirmative defense will preclude a summary judgment only if each
    element of the affirmative defense is supported by summary judgment evidence.
    Kirby 
    Explor., 701 S.W.2d at 926
    .
    B. Did Kirby Tower’s summary-judgment evidence conclusively demonstrate
    that Markovsky breached the contract and that it was entitled to a
    declaratory judgment awarding it the earnest money?
    1. Breach of contract
    The elements of a breach-of-contract action are (1) the existence of a valid
    contract, (2) performance or tendered performance by the plaintiff, (3) breach of
    the contract by the defendant, and (4) damages sustained by the plaintiff as a result
    6
    of the breach. See Frost Nat’l Bank v. Burge, 
    29 S.W.3d 580
    , 593 (Tex. App.—
    Houston [14th Dist.] 2000, no pet.). A breach occurs when a party fails or refuses
    to do something she has promised to do. See Townewest Homeowners Ass’n v.
    Warner Commc’n Inc., 
    826 S.W.2d 638
    , 640 (Tex. App.—Houston [14th Dist.]
    1992, no writ).
    “Repudiation or anticipatory breach is a positive and unconditional refusal to
    perform the contract in the future, expressed either before performance is due or
    after partial performance.” Van Polen v. Wisch, 
    23 S.W.3d 510
    , 516 (Tex. App.—
    Houston [1st Dist.] 2000, pet. denied). To prove anticipatory breach, also called
    anticipatory repudiation, the plaintiff must show that the defendant repudiated the
    obligation without just excuse. Taylor Pub. Co. v. Sys. Mktg., Inc., 
    686 S.W.2d 213
    , 217 (Tex. App.—Dallas 1984, writ ref’d n.r.e.).
    2. Declaratory judgment
    The purpose of the Declaratory Judgments Act is to settle and afford relief
    from uncertainty and insecurity with respect to rights, status, and other legal
    relations. TEX. CIV. PRAC. & REM. CODE ANN. § 37.002(b) (West 2015). A
    declaratory judgment is appropriate only if a justiciable controversy exists,
    resolvable by the declaration sought, concerning the rights and status of the parties.
    Bonham State Bank v. Beadle, 
    907 S.W.2d 465
    , 467 (Tex. 1995); Russell v. Metro.
    Transit Auth. of Harris Cnty., 
    343 S.W.3d 825
    , 833 (Tex. App.—Houston [14th
    7
    Dist.] 2011, no pet.). There must be a real and substantial controversy involving a
    genuine conflict of tangible interests and not merely a theoretical dispute. 
    Id. 3. Analysis
    Here, Kirby Tower’s summary judgment evidence included the signed
    contract between itself and Markovsky. The contract provided “[i]f [Markovsky]
    is in default, [Kirby Tower’s] sole remedy shall be to terminate this Agreement in
    which event [Kirby Tower] will be entitled to retain the Earnest Money . . . .” The
    motion was also supported by this Court’s memorandum opinion affirming the
    take-nothing judgment against Markovsky based on the jury’s finding that she
    waived Kirby Tower’s failure to comply with the completion date provision, and
    Osborne’s affidavit, averring that Markovsky terminated the contract in November
    2008, while the condominium was still under construction, and did not purchase
    the condominium, as she had agreed to do. 2 But the legal effect of Markovsky’s
    waiver was to continue the contract, and thus, her termination of the contract
    constituted a breach. See Henry v. Masson, 
    333 S.W.3d 825
    , 841 (Tex. App.—
    Houston [1st Dist.] 2010, pet. denied) (“If the non-breaching party treats the
    contract as continuing after the breach, he is deprived of any excuse for
    terminating his own performance.”) (citing Long Trusts v. Griffin, 
    222 S.W.3d 412
    ,
    415–16 (Tex. 2007) (per curiam)); see also Hanks v. GAB Bus. Servs., Inc., 644
    2
    Markovsky agrees that she terminated the contract in November 2008.
    
    8 S.W.2d 707
    , 708 (Tex. 1982) (“A party who elects to treat a contract as continuing
    deprives himself of any excuse for ceasing performance on his own part.”).
    Consequently, Kirby Tower’s summary-judgment evidence conclusively
    established the existence of a contract, Markovsky’s breach of the contract, and the
    parties’ agreement that Kirby Tower would be entitled to retain the $300,000
    earnest money in the event of Markovsky’s breach. Accordingly, Kirby Tower
    conclusively proved the essential elements of its breach of contract claim. See
    Rhone–Poulenc, 
    Inc., 997 S.W.2d at 223
    ; see also Barry v. Jackson, 
    309 S.W.3d 135
    , 142 (Tex. App.—Austin 2010, no pet.) (holding sellers entitled to earnest
    money where buyer breached contract for the purchase of a home). Moreover, in
    proving the essential elements of its breach claim, Kirby Tower conclusively
    showed that it was entitled to a declaratory judgment that it, and not Markovsky,
    was entitled to the $300,000 in earnest money. See 
    Beadle, 907 S.W.2d at 467
    .
    C. Did Markovsky raise a fact issue precluding summary judgment?
    Markovsky contends that she raised fact issues regarding breach and her
    affirmative defenses of compulsory counterclaim, limitations, and unenforceable
    penalty. We will address each of these contentions in turn.
    1. No evidence of retraction of repudiation or cure
    Markovsky argues that she raised a fact issue regarding breach because she
    adduced evidence demonstrating that she believed that she was legally entitled to
    9
    terminate the contract without penalty because Kirby Tower had not completed the
    condominium by the May 31, 2008 completion date. Markovsky relies on Jenkins
    v. Jenkins, 
    991 S.W.2d 440
    (Tex. App.—Fort Worth 1999, pet. denied), a case
    involving an ex-husband’s breach of his agreement to make alimony payments, in
    which the Fort Worth Court of Appeals wrote that “there is no repudiation if the
    refusal to perform is based upon a genuine mistake or misunderstanding as to
    matters of fact or law.” 
    Id. at 447
    (citing McKenzie v. Farr, 
    541 S.W.2d 879
    , 882
    (Tex. Civ. App.—Beaumont 1976, writ ref’d n.r.e.)).
    Despite this reference to a mistake or misunderstanding, the ex-husband who
    breached the contract did not claim mistake or misunderstanding, nor did he escape
    liability for his breach. Instead, the Fort Worth Court of Appeals affirmed the trial
    court’s award of alimony payments to the ex-wife’s estate based on the evidence
    that the ex-husband had breached the agreement by failing to make alimony
    payments as promised. 
    Id. at 448.
    Accordingly, despite its passing reference to a
    mistake or misunderstanding of law, Jenkins does not support Markovsky’s
    contention that her mistaken belief about the contract’s terms should allow her to
    escape liability for her uncured breach.
    Nor does Markovsky’s argument find support in McKenzie v. Farr, 
    541 S.W.2d 879
    (Tex. Civ. App.—Beaumont 1976, writ ref’d n.r.e.), the case from
    which Jenkins derived the quote upon which Markovsky relies. In McKenzie, the
    10
    plaintiff sued the defendants for anticipatory breach of a settlement agreement, but
    the appellate court held that the record conclusively showed that the defendants “at
    all times . . . made known their willingness to perform under the settlement
    agreement,” and therefore no anticipatory breach or repudiation occurred. 
    Id. at 881.
    Unlike in McKenzie, Markovsky never retracted her repudiation or cured her
    breach by paying the contract price.      The authorities simply do not support
    Markovsky’s contention that she can escape liability for an uncured breach on the
    basis that the breach was based on a unilateral misunderstanding of the contract’s
    terms. See New York Party Shuttle, LLC v. Bilello, 
    414 S.W.3d 206
    , 212 (Tex.
    App.—Houston [1st Dist.] 2013, pet. denied) (noting that unilateral mistake not
    known or induced by other party will not constitute grounds for relief and that even
    mutual mistakes must not routinely be relied upon to avoid results of an unhappy
    bargain, because parties should be able to rely on finality of freely bargained
    agreements).
    Here, Markovsky presented no evidence that she either retracted her
    repudiation or paid Kirby Tower the $3 million purchase price after learning that,
    contrary to her mistaken belief, payment actually was required by the contract’s
    terms. Accordingly, there is no evidence to support Markovsky’s claim that she
    did not repudiate the contract. Cf. Englehart v. Volunteer State Life Ins., 
    195 S.W.2d 798
    , 802–03 (no repudiation where party offered to perform and tendered
    11
    payments due after learning that its failure to perform was based upon a genuine
    mistake and misunderstanding); see also 
    Jenkins, 991 S.W.2d at 447
    (repudiation
    “is conduct that shows a fixed intention to abandon, renounce, and refuse to
    perform the contract”).   Consequently, Markovsky failed to raise a fact issue
    regarding breach. See 
    Jenkins, 991 S.W.2d at 447
    ; 
    Englehart, 195 S.W.2d at 802
    –
    03.
    2. Affirmative defenses
    It is undisputed that Markovsky filed her answer asserting affirmative
    defenses less than seven days before the summary judgment hearing, without
    requesting leave of court. Kirby Tower argues that Markovsky thus waived her
    affirmative defenses. See Sosa v. Central Power & Light, 
    909 S.W.2d 893
    , 895
    (Tex. 1995) (party who files pleading asserting affirmative defenses within seven
    days of summary-judgment hearing must obtain leave of court); Shoemake v.
    Fogel, Ltd., 
    826 S.W.2d 933
    , 937 (Tex. 1992) (affirmative defenses waived if not
    pleaded).
    We “will presume leave was granted ‘when a summary judgment states that
    all pleadings were considered, and when . . . the record does not indicate that [a]
    pleading was not considered, and the opposing party does not show surprise.’”
    Mensa-Wilmot v. Smith Int’l, Inc., 
    312 S.W.3d 771
    , 778 (Tex. App.—Houston [1st
    Dist.] 2009, no pet.) (quoting Cont’l Airlines, Inc. v. Kiefer, 
    920 S.W.2d 274
    , 276
    12
    (Tex. 1996)). Markovsky argues that the trial court’s summary-judgment order
    states that the trial court considered Kirby Tower’s “Motion for Summary
    Judgment . . . any response, and any reply . . . ,” and that we should therefore
    presume leave was granted, because her response addresses her affirmative
    defenses.
    We disagree. It is not enough for the summary-judgment order to state that
    the trial court considered Markovsky’s response; the order must affirmatively state
    or show that the trial court considered Markovsky’s late-filed pleading—her
    answer—to support a presumption that leave to file the answer was granted.3 See
    Cont’l 
    Airlines, 920 S.W.2d at 276
    (court presumes leave was granted “when a
    summary judgment states that all pleadings were considered”); Prohold Ltd. v.
    Mitchell Energy & Dev. Corp., No. 01-00-01133-CV, 
    2002 WL 221527
    , at *4 n.2
    (Tex. App.—Houston [1st Dist.] Feb. 14, 2002, pet. denied) (appellate court would
    not presume leave was granted to file late-filed pleading where summary-judgment
    order did not state that all pleadings were considered and only stated that the trial
    court “reviewed the Motion, all exhibits, and the other evidence in the record”); cf.
    Espeche v. Ritzell, 
    65 S.W.3d 226
    , 230 (Tex. App.—Houston [14th Dist.] 2001)
    3
    This is particularly true here, where the summary-judgment order specifically
    states that Kirby Tower’s reply was considered. The reply pointed out that
    Markovsky had not filed a pleading asserting her affirmative defenses, and asked
    the trial court to deny Markovsky leave to file an untimely pleading because
    granting leave would be unfair and prejudicial.
    13
    (presuming leave granted where summary-judgment order did not state that
    pleadings were considered, but included reference to third party beneficiary that
    was only included in late-filed amended pleading), rev’d on other grounds, 
    65 S.W.3d 226
    (Tex. 2002); Burns v. Seascape Owners Ass’n, Inc., No. 01-11-00752-
    CV, 
    2012 WL 3776513
    , at *7 (Tex. App.—Houston [1st Dist.] Aug. 30, 2012, no
    pet.) (leave presumed where summary-judgment order recited “Having considered
    the pleadings and all evidence, the Court finds the motion is meritorious and
    should be granted.”); see also McIntyre v. Wilson, 
    50 S.W.3d 674
    , 684 (Tex.
    App.—Dallas 2001, pet. denied) (leave to file not presumed where summary-
    judgment order did not state that all pleadings on file were considered). On this
    record, we conclude Markovsky waived her affirmative defenses.
    However, even if we were to presume leave to file the original answer
    within seven days of the hearing was granted, we would nevertheless conclude that
    Markovsky failed to raise a fact issue regarding the three affirmative defenses she
    addresses on appeal.
    a. Compulsory counterclaim
    Markovsky argues that Kirby Tower was precluded from asserting its
    counterclaims on remand because they were compulsory counterclaims that should
    have been asserted before the first appeal. When a counterclaim is compulsory, it
    “must be asserted in the initial action and cannot be asserted in later actions.”
    14
    Ingersoll-Rand Co. v. Valero Energy Corp., 
    997 S.W.2d 203
    , 207 (Tex. 1999); see
    also Moore v. First Fin. Res. Enters., Inc., 
    277 S.W.3d 510
    , 515 (Tex. App.—
    Dallas 2009, no pet.) (“[A] party’s failure to assert a compulsory counterclaim
    precludes that party from asserting it in later lawsuits.”). But the remand was not a
    “later action” and Markovsky cites no authority for the proposition that a
    compulsory counterclaim may not be asserted on remand if permitted by the
    appellate court mandate. We hold that Markovsky did not establish the existence
    of a fact issue on this affirmative defense.
    b. Limitations
    Markovsky argues that she raised a fact issue about whether Kirby Tower’s
    counterclaims are barred by the four-year statute of limitations. However, Kirby
    Tower pleaded anticipatory repudiation as an affirmative defense in its First
    Amended Answer on August 4, 2009, less than one year after Markovsky
    terminated the contract. Because Kirby Tower’s breach of contract and declaratory
    judgment counterclaims relate back to this affirmative defense, they are not barred
    by limitations. See Bacchus Indus., Inc. v. Frontier Mech. Contrs., 
    36 S.W.3d 579
    ,
    586 (Tex. App.—El Paso 2000, pet. denied) (“Because the counterclaim relates to
    the affirmative defense Frontier raised in its First Amended Answer, we believe the
    counterclaim was timely filed.”); see also TEX. CIV. PRAC. & REM. CODE ANN.
    § 16.068 (West 2015) (“If a filed pleading relates to a . . . defense that is not
    15
    subject to a plea of limitation when the pleading is filed, a subsequent amendment
    or supplement to the pleading that changes the facts or grounds of liability or
    defense is not subject to a plea of limitation unless the amendment or supplement
    is wholly based on a new, distinct, or different transaction or occurrence.”).
    Accordingly, Markovsky did not raise a fact issue on limitations.
    c. Unenforceable penalty
    “An assertion that a liquidated damages provision constitutes an
    unenforceable penalty is an affirmative defense, and the party asserting penalty
    bears the burden of proof.” SP Terrace, L.P. v. Meritage Homes of Tex., LLC, 
    334 S.W.3d 275
    , 278 (Tex. App.—Houston [1st Dist.] 2010, no pet.) (citing Urban Tel.
    Network Corp. v. Liquidity Solutions, 
    277 S.W.3d 917
    , 919 (Tex. App.—Dallas
    2009, no pet.).   Thus, to avoid summary judgment based upon this defense,
    Markovsky was required to raise a fact issue regarding whether the liquidated
    damages stipulated—$300,000, or 10% of the purchase price of the
    condominium—was “disproportionate to actual damages.”           See 
    id. (quotation marks
    omitted). Generally, this requires the party claiming unenforceable penalty
    to submit evidence of the actual damages incurred. See 
    id. Here, the
    only evidence Markovsky offered to support this defense was an
    excerpt from the deposition of Kirby Tower’s sales manager, Doug Husid, stating
    that he personally “believed” that Kirby Tower would be able to sell the
    16
    condominium for an unspecified amount “more” than the amount Markovsky had
    agreed to pay once the building was constructed. Markovsky adduced no evidence
    that Kirby Tower actually sold the condominium for any amount, nor did she
    submit any other evidence relating to Kirby Tower’s actual damages. Other courts
    have held similar liquidated damages provisions to be reasonable and enforceable
    in real estate transactions, where it has long been recognized that actual damages
    can be difficult to quantify. See, e.g., Chan v. Montebello Dev. Co., No. 14-08-
    00936-CV, 
    2008 WL 2986379
    , *5 (Tex. App.—Houston [14th Dist.] July 31,
    2008, no pet.) (“The negotiated amount of earnest money, $92,000, or ten percent
    of the total purchase price of $920,000, is a reasonable amount of liquidated
    damages in a real estate transaction such as this one.”); Elliott v. Henck, 
    223 S.W.2d 292
    , 295 (Tex. Civ. App.—Galveston 1949, writ ref’d n.r.e.) (earnest
    money provision providing for liquidated damages to seller that was ten percent of
    purchase price was not unenforceable penalty); cf. Phillips v. Phillips, 
    820 S.W.3d 785
    , 789–90 (Tex. 1991) (contractual provision providing that non-breaching party
    was entitled to 10 times actual damages was an unenforceable penalty). We thus
    conclude that Markovsky failed to raise a fact issue on whether the liquidated
    damages provision constitutes an unenforceable penalty.
    17
    We hold that the trial court did not err in granting Kirby Tower’s motion for
    summary judgment, and we overrule Markovsky’s first issue.4
    Motion for Entry of Judgment
    In her second issue, Markovsky contends that the district court erred in
    denying her motion for entry of judgment, in which Markovsky sought a judgment
    ordering the release of the earnest money to her.
    In the first appeal, we affirmed the trial court’s take-nothing judgment
    against Markovsky on all of her claims, including her declaratory judgment claim
    in which she sought a declaration that she was entitled to the release of the earnest
    money based on Kirby Tower’s failure to satisfy the May 31, 2008 completion
    date. Markovsky, 
    2011 WL 5429014
    , at *7. Accordingly, on remand, Markovsky
    was precluded from re-litigating her declaratory judgment claim for a declaration
    that she was entitled to the earnest money based on Kirby Tower’s failure to
    complete construction by May 31, 2008. See Briscoe v. Goodmark Corp., 
    102 S.W.3d 714
    , 716 (Tex. 2003) (“questions of law decided on appeal . . . will govern
    4
    Markovsky also argues that the trial court improperly relied upon its own
    recollections of the 2010 trial in deciding to grant summary judgment. We do not
    address this complaint because we have concluded that the summary-judgment
    evidence is sufficient to support the grounds raised in the motion for summary
    judgment. See Camp Mystic, Inc. v. Eastland, 
    399 S.W.3d 266
    , 278 (Tex. App.—
    San Antonio 2012, no pet.); see also Provident Life & Accident Ins. Co. v. Knott,
    
    128 S.W.3d 211
    , 216 (Tex. 2003) (if trial court’s order does not specify grounds
    for summary judgment ruling, court of appeals affirms summary judgment if any
    theory presented to the trial court and preserved for appellate review is
    meritorious).
    18
    the case throughout its subsequent stages”); Cessna Aircraft Co. v. Aircraft
    Network, LLC, 
    345 S.W.3d 139
    , 144 (Tex. App.—Dallas 2011, no pet.) (“When an
    appellate court remands a case with specific instructions, the trial court is limited
    to complying with the instructions and cannot re-litigate issues controverted at the
    former trial.”); In re Henry, 
    388 S.W.3d 719
    , 728 (Tex. App.—Houston [1st Dist.]
    2012, pet. denied) (in considering the case on remand, the trial court is bound by
    the law of the case). Accordingly, the trial court properly denied Markovsky’s
    motion for entry of judgment. See 
    Briscoe, 102 S.W.3d at 716
    ; Cessna Aircraft
    
    Co., 345 S.W.3d at 144
    ; In re 
    Henry, 388 S.W.3d at 728
    .
    We overrule Markovsky’s second issue.
    Conclusion
    We affirm the trial court’s judgment.
    Rebeca Huddle
    Justice
    Panel consists of Justices Massengale, Brown, and Huddle.
    19