Opinion
NO. 01-15-01000-CV
07-28-2016
AMERICAN HOMES 4 RENT, Appellant v. JOHN G. KIRK AND MELANIE D. KIRK, Appellees
On Appeal from the County Court at Law No. 3 Galveston County, Texas
Trial Court Case No. CV-0073968
MEMORANDUM OPINION
This appeal arises from the trial court's grant of a default judgment against appellant American Homes 4 Rent. The judgment awarded appellees John G. Kirk and Melanie D. Kirk $10,250 in damages for their inability to use the stove in their rented home and $3,500 in attorney's fees. On appeal, American Homes challenges the sufficiency of the evidence for both the amount of the damages and attorney's fees. However, because the default judgment did not dispose of all claims and therefore was interlocutory, we dismiss this appeal for lack of jurisdiction.
Background
John and Melanie Kirk rented a house in League City from American Homes for $2,750 per month. During a walk-through inspection, the Kirks discovered that the gas stove did not work properly. However, they moved into the property in February 2014. The stove was not repaired in the next seven months.
In September 2014, the stove "completely malfunctioned and shot a blue flame out from under the control knob," forcing the Kirks to cut the gas connection. The Kirks claim that they repeatedly asked American Homes to repair the stove, but that the initial repair and replacement attempts failed. From September 14 through the weekend after Thanksgiving, the stove continued to malfunction, until American Homes finally was able to repair it. The Kirks vacated the property on January 1, 2015. They assert that American Homes failed to return their security deposit of $2,750.
The Kirks filed suit, claiming breach of contract, negligence, breach of fiduciary duty, statutory damages for failure to return their security deposit, exemplary damages, and attorney's fees. American Homes failed to answer the petition, and the Kirks moved for a default judgment awarding damages for their claims that they missed work and were forced to eat at restaurants. The motion for default judgment requested incurred expenses of $13,500 and $4,479 in attorney's fees. The motion did not mention the failure to return the deposit, and it did not specifically address any other particular cause of action.
The trial court held a hearing on the default judgment, and Mr. Kirk appeared as the sole witness. His attorney asked several questions about damages relating to the deposit, the stove's failure, and his need to leave the home.
The trial court granted a default judgment. The order stated:
. . . the Defendant is ordered to pay Plaintiff:The default judgment order did not address the Kirks' other claims for damages, such as the failure to return the safety deposit. The order also lacked any language specifically indicating finality.
1. $10,250 for damages suffered due to the inability to use the stove and the subsequent turning off the gas to the house.
The court grants attorney's fees in the amount of $3,500.00 and court costs of $398.00.
American Homes filed a motion to vacate the judgment and order a new trial, claiming that its failure to appear and file an answer was unintentional. The trial court denied the motion. American Homes filed a notice of appeal "seeking to alter the trial court's judgment."
Analysis
American Homes challenges the legal and factual sufficiency for the amount of damages and attorney's fees assessed in the trial court's default judgment.
As a general rule, an appeal may be taken only from a final judgment unless a statute authorizes an interlocutory appeal. CMH Homes v. Perez, 340 S.W.3d 444, 447 (Tex. 2011); Lehmann v. Har-Con Corp., 39 S.W.3d 191, 195 (Tex. 2001). A judgment is final when it disposes of all remaining claims and parties. Lehmann, 39 S.W.3d at 200. Default judgments, like summary judgments, are not presumed to dispose of all issues in a case. Id. at 199-200. When an order does not dispose of all claims still pending in a case, it is not a final order, but merely interlocutory. Id. at 206. To determine whether an order disposes of all pending claims and parties, this court looks to the record in the case. Id. at 205-06.
In their response brief on appeal, the Kirks asserted that the default judgment's award of damages included statutory damages for failure to return the security deposit. See TEX. PROP. CODE § 92.109. American Homes argued in its reply brief that this statutory claim regarding the return of the deposit was not addressed in the court's default judgment. We agree with American Homes, and further conclude that because the default judgment did not address this claim, it was not a final and appealable judgment. See Lehmann, 39 S.W.3d at 206. The parties were notified about this jurisdictional defect and the prospect of involuntary dismissal of the appeal. See TEX. R. APP. P. 42.3(a). No response was filed in support of this court's appellate jurisdiction.
Conclusion
The default judgment in this case did not purport to be a final judgment in any way, nor did it address all the claims at issue. We dismiss this appeal for lack of jurisdiction because the default judgment did not dispose of all claims and was therefore interlocutory. See TEX. R. APP. P. 42.3(a), 43.2(f).
Michael Massengale
Justice Panel consists of Justices Higley, Bland, and Massengale.