May 17, 2024 in Case Summaries

Levinger PC teamed with former Chief Justice Tom Phillips to convince the Texas Supreme Court to resurrect a breach of contract and constructive eviction lawsuit filed by their client, Westwood Motorcars, LLC, against its commercial landlord.  The Dallas court of appeals had reversed a significant judgment that Westwood had obtained following a jury trial, holding that an agreed judgment of possession in an eviction case filed in the justice of the peace court barred Westwood’s claims in district court because it meant that Westwood had voluntarily abandoned the premises.  The Supreme Court disagreed, holding that a justice-court judgment in an eviction suit determines only the right to immediate possession of the premises and is not a final determination of the parties’ ultimate rights, the wrongfulness of the eviction, or any other question.  Because the justice-court judgment does not bar a suit for damages in district court, and because the evidence showed that Westwood’s departure from the premises was not voluntary, the Supreme Court remanded the case for a determination of the landlord’s unaddressed issues.  Westwood Motorcars, LLC v. Virtuolotry, LLC, 689 S.W.3d 879 (Tex. 2024).

Courts:  Supreme Court of Texas

Subject Matter:  Business litigation