Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—TexAppCt: RV Resort Not Liable For Allegedly Misrepresenting Leases, (Jan 31, 2013)

By Jody Coultas, J.D.

A RV resort owner, Caribbean Cowboy, LLC, was not liable under the Texas Deceptive Trade Practices-Consumer Protection Law (DTPA) for alleged misrepresentations of its sale of RV lots and services, according to a Texas appellate court (Rymes v. Caribbean Cowboy, LLC, January 30, 2013, Stone, C.). A jury’s findings were upheld on appeal as fully supported by the evidence.

RV tenants Jim and Carol Rymes, Doug and Betty Vaughn, Joe and Patsy Cramer, and Frank Schultz entered into leases for lots at Caribbean Cowboy’s RV Resort. The leases were for the lifetime of the tenants. The tenants sued Caribbean Cowboy for violations of the DTPA asserting that the leases were void because they contained insufficient legal descriptions.

A jury found Caribbean Cowboy liable under the DTPA claim filed by Doug and Betty Vaughn and awarded them damages. The jury found in favor of Caribbean Cowboy on other tenants’ claims.

In order to prevail on a DTPA claim, a consumer must establish that the defendant violated a specific provision of the DTPA, and that the violation was a producing cause of the consumer’s injury.

DTPA Claims

The jury’s verdict on liability was supported by the evidence, according to the court. The tenants argued that the evidence did not support the jury’s finding because Caribbean Cowboy misrepresented whether the tenants were purchasing or leasing the lots and the ability of their heirs to inherit the lots, the size of the lots, and the availability of Wi-Fi service. Because the leases expressly stated the terms of the transaction and the rights of the heirs, the evidence failed to establish that the tenants relied on any oral representation regarding ownership of the lots or the inheritance rights of the lessees’ heirs. Given the conflicting testimony regarding the size of the lot and any alleged representations, the jury could have found that no representation was made. Although the tenants testified to the contrary, the jury could have found that Wi-Fi service was made available and worked properly.

Damages

Based on the evidence presented at trial, the jury could properly find that the tenants were not entitled to damages, according to the court. The only evidence of damages presented was the amount each of the tenants paid for their lease and for improvements. Therefore, the jury was presented a range of damages from zero to the total amount paid. The tenants appealed the decision because all of the tenants relied on the same representations, but the jury awarded the Vaughns’ damages. Unlike with the other tenants, Caribbean Cowboy failed to disclose that leach lines for a septic system had been placed beneath the lot leased by the Vaughns. The jury refused to find that the Vaughns were entitled to recover the full amount paid for the lease and their improvements, the jury’s award was within a proper range of damages. Because the disclosure issue was unique to the Vaughns, the jury’s finding that the remaining tenants were not entitled to recover any damages was proper.

Although the jury found that Caribbean Cowboy made a negligent misrepresentation to the tenants, the jury could have found that the negligent misrepresentation did not result in any of the damages claimed. Since no evidence was presented regarding the damages that resulted from the misrepresentation, it was within the jury’s province to award zero damages, according to the court.

Attorney’s Fees

The court upheld the jury’s finding that, with the exception of Doug and Betty Vaughn, the tenants were not entitled to recover attorney’s fees. The jury’s limited award of attorneys’ fees was supported by the limited damages the jury awarded to the Vaughns on their DTPA claim and the jury’s rejection of all other DTPA claims.

The case is No. 04-12-00032-CV.

Attorneys: John D. Payne for Jim Rymes.

Companies: Caribbean Cowboy, LLC.

Cases: StateUnfairTradePractices TexasNews