Court Enters Take Nothing Judgment in Former Tenants' Security Deposit Lawsuit

Following a bench trial, a Bexar County Judge entered a Take Nothing Judgment in a lawsuit filed against D'Ann Harper Property Management Corporation by the former tenants of a managed property in San Antonio, Texas. Trey Wilson represented the Defendant in the suit.

The tenants filed their suit when -- after vacating the property -- the property manager withheld a portion of the security deposit to pay for damage to a door frame. The damage occurred during the term of the lease, but the Tenants demanded that the landlord make and pay for the repairs. Citing a provision in the standard TREC lease form that requires tenants to pay for all repairs to doors, windows and screens, the landlord refused. Thereafter, the tenants vacated and filed suit claiming that their security deposit was wrongfully withheld.

After considering the lease, the Tenants' testimony and various other exhibits admitted into evidence, the Court granted a verdict in favor of the property management company, and denied all of the Tenants' claims.

Wilson Secures Dismissal of Tenants' Suit Against Property Manager and Owner

Trey Wilson has secured dismissal of a Bexar County District Court lawsuit seeking a declaratory judgment over the term of a Residential Lease Agreement, and the Tenants' right to occupy a San Antonio, Texas rental home. The Tenants of the property claimed that they entered a 3 year lease, while the Owner maintained that the lease was for a 1 year term. The Owner, having recently retired from the U.S. Air Force, desired to settle down in San Antonio, and permanently occupy the property he had been using as a rental during his various tours in the military.

The Owner and his property manager, Coldwell Banker D'Ann Harper Realtors Property Management, indicated that the Lease would not be renewed, and demanded that the Tenants vacate the property at the end of the 1 year term. Rather than vacate, the Tenants hired a lawyer, who sued both the Owner and Coldwell Banker D'Ann Harper Realtors. The Defendants retained Trey Wilson, who immediately went on the offensive.

After reviewing the condition of the property, and noting that the Tenants had committed several violations of the Lease, Wilson filed an eviction proceeding in the Bexar County Justice Court. The Tenants objected to the eviction proceeding, claiming that the disputes should be reserved for consideration by the District Court handling their previously-filed declaratory judgment suit. Bexar County Justice of the Peace Steve Walker disagreed, and conducted an eviction trial which lasted approximately 3 hours.

The Owner and Coldwell Banker D'Ann Harper Realtors Property Management prevailed in the eviction trial, with Judge Walker ordering the Tenants to vacate based upon breaches of the written Lease Agreement (and notwithstanding the pending district court lawsuit).

Following this victory in the Justice Court, and given the fact that the Owner was granted immediate possession of the rental property, the Tenants agreed to dismiss their district court lawsuit in exchange for a short extension of time in which to vacate the property, and a refund of their security deposit.

The district court lawsuit was then dismissed with prejudice, with all claims against the Owner and Coldwell Banker D'Ann Harper Realtors Property Management denied.

Judgment for Plaintiffs Entered in Suit Against Property Management Company

On June 2, 2010, the Honorable Janet Littlejohn entered Final Judgment in a Bexar County lawsuit filed by Trey Wilson against a San Antonio real estate firm in October 2008. Wilson filed the suit on behalf of a Los Angeles, California real estate investor who, in 2006, purchased six homes in San Antonio, Texas. The homes were to be used as rental properties, and to eventually fund the Plaintiff's retirement.

After purchasing the homes, the Plaintiff -- a California nurse and home health care/hospice operator -- contracted with the real estate agent who represented her in the purchases to manage the properties. Under the terms of the written Property Management Agreement, the Texas realtors were required to collect rents from tenants, maintain the properties, file appropriate tax documents, and remit rental proceeds to the owner.

In early 2008, the Owner received an IRS form 1099 indicating that the rents collected by her San Antonio real estate management firm were almost double the amount remitted to her. Upon performing an audit of rents received versus those collected, the Owner demanded a complete accounting from the Texas realtors. The property managers were unable to account for the missing funds, including security deposits paid by various tenants of the rental properties.

The owner hired San Antonio real estate litigation attorney Trey Wilson in April 2008. After multiple meetings with the real estate agent and broker, and their attorneys, it became apparent that the missing funds could not be accounted for.

Wilson then filed the lawsuit, alleging that the Defendants breached the Property Mangement Agreement, breached their fiduciary duty to the Plaintiff (including the Texas Real Estate Commission Rules applicable to brokers and the Cannons of Ethics), committed common law fraud, and committed conversion of the missing funds.

The case went to jury trial on May 18, 2010 in the 150th District Court of Bexar County, Texas. On May 21, 2010, the jury returned a unanimous verdict in favor of the Plaintiff on her claims for breach of contract, breach of fiduciary duty, common law fraud, and conversion. In addition, the jury awarded Plaintiff attorneys' fees in the amount of $29,000.00.

Following the jury's finding that the Realtor and Broker had breached their fiduciary duty to Plaintiff, Wilson moved for equitable forfeiture of all commissions and fees paid to the real estate firm. Judge Littlejohn granted the request, and ordered fee forfeiture in the amount of $6,8880.00 -- representing all management fees and leasing commissions paid to the realtors.

The Judgment entered by the Court was for $67,336.75 (not including costs or pre-judgment interest), and contains an affirmative finding of knowing and intentional breach of the real estate professionals' fiduciary obligations to the property Owner.