J. Michael Tiner and Martha Tiner v. Cynthia Tiner Johnson ( 2022 )


Menu:
  •                                    NO. 12-21-00174-CV
    IN THE COURT OF APPEALS
    TWELFTH COURT OF APPEALS DISTRICT
    TYLER, TEXAS
    J. MICHAEL TINER AND MARTHA                       §       APPEAL FROM THE 294TH
    TINER,
    APPELLANTS
    §       JUDICIAL DISTRICT COURT
    V.
    CYNTHIA TINER JOHNSON,                            §       VAN ZANDT COUNTY, TEXAS
    APPELLEE
    OPINION
    Appellants J. Michael Tiner and Martha Tiner appeal from the trial court’s granting of
    summary judgment, followed by the entry of a final judgment, in favor of Appellee Cynthia Tiner
    Johnson in Johnson’s suit seeking a declaration that an option contract to purchase land is illegal
    and void, as well as removal of a cloud on her title. The Tiners also argue that the trial court erred
    by failing to reform the option to comply with the rule against perpetuities, and they maintain that
    the trial court erred by dismissing their counterclaim for breach of contract. We affirm the trial
    court’s judgment.
    FACTUAL AND PROCEDURAL BACKGROUND
    On March 8, 1989, Johnson and the Tiners executed a Purchase and Sale Agreement (“the
    Agreement”) regarding real property located in Van Zandt County, Texas. Under the Agreement,
    the Tiners were the sellers, and Johnson was the buyer, of a fifty percent interest in the subject
    tract, for a purchase price of $50,800.87. Section 9 of the Agreement is entitled “OPTION and
    RIGHT OF FIRST REFUSAL.” Subsection 9.1 of the Agreement, entitled “Option,” provides as
    follows, in pertinent part:
    Purchaser hereby grants to Seller the option (the “Option”) . . . to repurchase the Property and any
    improvements subsequently located or constructed thereon . . . from Purchaser in accordance with
    the following requirements:
    (1) Seller must provide Purchaser with thirty (30) days[’] advance written notice of its intent to exercise
    this Option;
    (2) The consummation of the reconveyance of the Property and any new Improvements from Purchaser
    to Seller (the “Option Closing”) shall occur within thirty (30) days of Seller’s notice of its intent to
    exercise the Option;
    (3) At the Option Closing, Seller shall pay Purchaser a purchase price equal to the total of (i) the
    Purchase price . . . (iii) plus one-half (1/2) of the fair market value of all New Improvements, if
    any, located on the Property. . . .
    Subsection (6) of Section 9.1 provides that the “Option shall commence upon the Closing, and
    shall automatically terminate on March 31, 2089[,] at 11:59 p.m.”1 In addition, Section 10.10 states
    that the Agreement “shall bind and inure to the benefit of Seller and Purchaser and their respective
    heirs, administrators, executors, successors[,] and assigns.”
    On March 17, 2019, Johnson filed a lawsuit against the Tiners, seeking a declaration that
    the option is void because it constitutes an unreasonable restraint on alienation and violates the
    rule against perpetuities. Johnson also sought removal of the cloud on her title caused by the option.
    In her petition, Johnson asserted that the Agreement unambiguously provides that the option does
    not expire upon the death of either the seller or the purchaser. Johnson alleged that the Agreement
    and the recorded Memorandum of Option and Right of First Refusal created a cloud on her title
    because the “purported ‘Option’ . . . by its terms, may be exercised at any time before March 31,
    2089, at 11:59 p.m.” Johnson sought (1) a declaratory judgment that the option is illegal and void,
    and she therefore has no obligation to convey any interest in the property to the Tiners, (2) “an
    equitable decree removing the cloud on [her] title to the Property caused by the recorded Purchase
    and Sale Agreement and the recorded Memorandum of Option and Right of First Refusal[,]” (3)
    costs, and (4) attorney’s fees. Johnson pleaded that on March 20, 2019, an attorney representing
    the Tiners sent her a notice letter, which stated that the Tiners intend “to exercise their Option to
    repurchase their full fifty percent (50%) beneficial interest in the [p]roperty as set forth in Section
    9.1 of the Agreement.” The letter stated that pursuant to the Agreement, the Tiners would pay a
    purchase price of $50,800.87 plus closing costs and recording fees. The notice letter stated that the
    Tiners filed the Agreement, as well as a document entitled “Memorandum of Option and Right of
    First Refusal,” in the official public records of Van Zandt County, Texas, on March 23, 2018.
    1
    Subsection 9.2 of the Agreement gave the Tiners a right of first refusal.
    2
    In their answer, the Tiners pleaded the affirmative defenses of (1) “unclean hands and/or
    estoppel,” (2) statute of limitations “and/or the doctrine of laches[,]” (3) waiver, (4) consent, and
    (5) acts of third parties over whom they lacked control. The Tiners also asserted a counterclaim
    for breach of contract, based upon Johnson’s refusal to convey the 50% interest in the property.
    Johnson entered a general denial of the allegations contained in the Tiners’ counterclaim and also
    asserted that the option violated the rule against perpetuities and constitutes an unreasonable
    restraint on alienation.
    Johnson filed a hybrid motion for summary judgment, in which she sought (1) a traditional
    motion for summary judgment as to her claims and the Tiners’ counterclaim, and (2) a no-evidence
    summary judgment as to the Tiners’ affirmative defenses. Johnson argued that the option is void
    because it violates the rule against perpetuities and constitutes an unreasonable restraint on
    alienation, and she asserted that there was no evidence of the Tiners’ affirmative defenses.
    Johnson’s motion requested a declaratory judgment that the option is illegal and void and she is
    not obligated to convey any interest in the property to the Tiners; an equitable decree removing
    the cloud on her title caused by the recorded Agreement and “the recorded Memorandum of Option
    and Right of First Refusal;” costs; post-judgment interest; necessary writs and processes to enforce
    the trial court’s judgment; and judgment that the Tiners take nothing as to their counterclaim. In
    addition to the Agreement and other documents related to the 1989 transaction between Johnson
    and the Tiners, Johnson attached as summary judgment evidence a signed contract to sell the
    property to a third party for $600,100.
    In their response to Johnson’s motion for summary judgment, the Tiners asserted that the
    option is enforceable because it is for a “limited and specific” duration, and the right to exercise
    the option is personal to the Tiners and does not pass to their heirs, administrators, executors,
    successors, and assigns. Specifically, the Tiners asserted that the option is not an unreasonable
    restraint on alienation and does not violate the rule against perpetuities, and they argued that
    genuine issues of material fact exist as to their affirmative defenses.
    The Tiners filed a motion for leave to file an amended answer and a supplemental response
    to Johnson’s motion for summary judgment. In their motion for leave, the Tiners asserted that
    Section 5.043 of the Texas Property Code mandates reformation of “commercial instruments
    creating property interests that violate the Rule against Perpetuities[,]” including the Agreement.
    See Yowell v. Granite Operating Co., 
    620 S.W.3d 335
     (Tex. 2020). The Tiners sought “to assert
    3
    reformation as an affirmative defense” and “leave to file a Supplemental Response to Plaintiff’s
    Motion for Summary Judgment.” In her response to the Tiners’ motion for leave, Johnson asserted
    that the motion should be denied because it ignores her argument that the option constitutes an
    unreasonable restraint on alienation and that the motion “is based entirely on a recent case that has
    no bearing on any issue before the Court.” Johnson maintained that the trial court should grant her
    motion for summary judgment “based on the legal conclusion that the purported option is an
    unreasonable restraint on alienation.”
    The trial court did not rule on the Tiners’ motion for leave. The trial judge signed an order
    granting Johnson’s motion for summary judgment, and two days later, the trial court signed a final
    judgment, in which it stated that its ruling on Johnson’s motion for summary judgment resolved
    all issues and ordered that (1) the Tiners’ “alleged option” to repurchase a fifty percent interest in
    the property “is illegal and void[,]” (2) Johnson is not obligated to convey any interest in the
    property to the Tiners, (3) the cloud on Johnson’s title caused by the recorded Agreement and the
    recorded “Memorandum of Option and Right of First Refusal” is removed, 2 (4) Johnson would
    recover costs, (5) Johnson is awarded post-judgment interest, (6) Johnson would have all writs and
    processes that may be necessary to enforce the trial court’s judgments and decrees, and (7) the
    Tiners take nothing as to their counterclaim. The Tiners filed a motion for new trial, which the trial
    court denied in a written order. This appeal followed.
    UNREASONABLE RESTRAINT ON ALIENATION
    In issue one, the Tiners argue that the trial court erred by granting summary judgment in
    favor of Johnson because the agreement does not constitute an unreasonable restraint on alienation
    and does not violate the rule against perpetuities. Because the issue of whether the option
    constitutes an unreasonable restraint on alienation is dispositive, we address it first.
    2
    The trial court’s final judgment declared the option in the Agreement void and also declared the recorded
    document entitled “Memorandum of Option and Right of First Refusal” void. Johnson’s motion for summary
    judgment did not seek a declaration or any other relief regarding the right of first refusal, and Johnson’s motion did
    not even refer to the right of first refusal. A summary judgment is presumed to dispose of only those issues expressly
    presented to the trial court. City of Beaumont v. Guillory, 
    751 S.W.2d 491
    , 492 (Tex. 1988). Accordingly, we presume
    that by referencing the document with the phrase “right of first refusal” in its title, the trial court did not intend to rule
    as to the validity of the right of first refusal. See id; see also TEX. R. CIV. P. 166a(c). Therefore, we will not modify
    the trial court’s final judgment.
    4
    Summary Judgment Standard of Review
    We review a trial court’s summary judgment order de novo. Provident Life & Accident
    Ins. Co. v. Knott, 
    128 S.W.3d 211
    , 215 (Tex. 2003). When, as here, the trial court’s order granting
    summary judgment does not specify the grounds relied on for its ruling, “we must affirm the
    summary judgment if any of the theories presented to the trial court and preserved for appellate
    review are meritorious.” Id. at 216.
    The movant for traditional summary judgment must establish that there is no genuine issue
    of material fact and it is entitled to judgment as a matter of law. See TEX. R. CIV. P. 166a(c);
    Randall’s Food Mkts., Inc. v. Johnson, 
    891 S.W.2d 640
    , 644 (Tex. 1995). A defendant who
    conclusively negates at least one essential element of the nonmovant’s cause of action is entitled
    to summary judgment as to that cause of action. See Johnson, 891 S.W.2d at 644. If the moving
    party produces evidence entitling it to summary judgment, the burden shifts to the nonmovant to
    present evidence that raises a material fact issue. Walker v. Harris, 
    924 S.W.2d 375
    , 377 (Tex.
    1996). In determining whether there is a disputed material fact issue precluding summary
    judgment, evidence favorable to the nonmovant will be taken as true. Nixon v. Mr. Prop. Mgmt.
    Co., 
    690 S.W.2d 546
    , 548-49 (Tex. 1985). We review the summary judgment record “in the light
    most favorable to the nonmovant, indulging every reasonable inference and resolving any doubts
    against the motion.” City of Keller v. Wilson, 
    168 S.W.3d 802
    , 824 (Tex. 2005).
    Analysis
    The relevant facts, including the 1989 Agreement and the Tiners’ 2019 attempt to exercise
    the fixed-price option contained therein, are not in dispute. Rather, this appeal turns upon the legal
    question of whether, in ruling upon Johnson’s motion for summary judgment, the trial court
    correctly concluded that the option either constitutes an unreasonable restraint on alienation or
    violates the rule against perpetuities. Because the trial court did not specify the ground upon which
    it granted summary judgment, we may affirm the trial court’s judgment if we conclude that
    summary judgment was proper as to either of the grounds Johnson asserted in her motion. See
    Knott, 128 S.W.3d at 216.
    The common law regarded the tying up of property as an evil, and two doctrines were
    therefore established to prevent it: (1) the rule that all interests should be alienable and (2) the rule
    against perpetuities. O’Connor v. Thetford, 
    174 S.W. 680
    , 681 (Tex. Civ. App.—San Antonio
    1915, writ ref’d). An unreasonable restraint on alienation is void. Gray v. Vandver, 
    623 S.W.2d
                                                5
    172, 174 (Tex. App.—Beaumont 1981, no writ). Texas courts have looked to the Restatement of
    Property to determine issues regarding alleged unreasonable restraints on alienation, and we will
    do likewise. See, e.g., Sonny Arnold, Inc. v. Sentry Sav. Ass’n, 
    633 S.W.2d 811
    , 813-15 (Tex.
    1982) (citing RESTATEMENT OF PROPERTY §§ 401, 404 (1944)); Randolph v. Terrell, 
    768 S.W.2d 736
    , 738-39 & n.1, 3 (Tex. App.—Tyler 1987, writ denied) (citing RESTATEMENT (SECOND) OF
    PROPERTY (DONATIVE TRANSFERS) §§ 3.1-3.4, 4.2(3), 4.4 (1983)); Perritt Co. v. Mitchell, 
    663 S.W.2d 696
    , 698 (Tex. App.—Fort Worth 1983, writ ref’d n.r.e.) (citing RESTATEMENT                                       OF
    PROPERTY § 413 (1944)).
    Section 404 of the original Restatement of Property defines a restraint on alienation as “an
    attempt by an otherwise effective conveyance or contract to cause a later conveyance . . . to impose
    contractual liability on the one who makes the later conveyance when such liability results from a
    breach of an agreement not to convey; or . . . to terminate or subject to termination all or part of
    the property interest conveyed.” RESTATEMENT OF PROPERTY § 404(1)(b), (c). In Randolph v.
    Terrell, this Court considered whether an option agreement contained in a deed constituted an
    unreasonable restraint against alienation. Randolph, 768 S.W.2d at 737. The option at issue in
    Randolph gave the sellers the right to repurchase the property from the buyer for a fixed price of
    $2,220. Id. Using the guidelines set forth in the Restatement (Second) of Property, 3 this Court
    concluded that the option granted the seller the right to repurchase the land during the sellers’
    lifetimes for a fixed price, plus the market value of any improvements made by the buyer. Id. at
    739. This Court further concluded that because “[t]he option retained by the vendors was to last
    only for their lifetimes,” the duration of the option was “sufficiently limited,” that it did not
    constitute an unreasonable restraint on alienation, and that the option would expire upon the death
    of the surviving seller. Id. at 739-40.
    In Procter v. Foxmeyer Drug Company, the Dallas Court of Appeals was called upon to
    determine whether an option constituted an invalid restraint on alienation. Procter v. Foxmeyer
    Drug Co., 
    884 S.W.2d 853
     (Tex. App.—Dallas 1994). In Procter, the appellant and the appellee
    3
    The Restatement (Second) of Property (Donative Transfers) provides that the factors to consider in
    determining the reasonableness of the restraint include whether (1) the restraint is limited in duration, (2) the restraint
    is limited to permit a substantial variety of types of transfers, (3) the restraint is limited as to the number of persons to
    whom transfer is prohibited, (4) the restraint tends to increase the value of the subject property, (5) the restraint is
    imposed upon an interest that is not otherwise readily marketable, or (6) the restraint is imposed upon property that is
    not readily marketable. RESTATEMENT (SECOND) OF PROPERTY (DONATIVE TRANSFERS) § 4.2(3)(a)-(f) (1981); see
    Randolph v. Terrell, 
    768 S.W.2d 736
    , 738 (Tex. App.—Tyler 1987, writ denied).
    6
    signed a merger agreement, which provided that if a warehouse were no longer being used to
    conduct business, appellant retained the option to repurchase the warehouse “for a purchase price
    equal to the book value as set forth on the Final Balance Sheet of such facility and fixtures.” Id. at
    856. Another paragraph of the merger agreement provided that all of the agreement’s terms and
    provisions “shall be binding upon and inure to the benefit of the parties hereto and their respective
    successors and assigns.” Id. at 857. The appellee filed suit, seeking a declaratory judgment that
    the option constituted an unreasonable restraint on alienation, and the trial court granted appellee’s
    motion for summary judgment and found that the option was “unenforceable and void as an
    unreasonable restraint on alienation.” Id. The Procter court concluded that the fixed-price
    purchase option, which was of unlimited duration, was void because it constituted “an
    unreasonable restraint on alienation as a matter of law.” Id. at 862. In addition, the Procter court
    held that because it determined that the option was void as a matter of law, any fact issue regarding
    breach of the void option would be immaterial. Id. In performing its analysis, the Procter court
    discussed three policy reasons for the rule preventing unreasonable restraints on alienation, as set
    forth in the original Restatement of Property: (1) balancing the current property owner’s desire to
    prolong his control over the property and a latter owner’s desire to be free from the dead hand, (2)
    better utilization of society’s wealth by reducing fear due to uncertain investments and helping
    assets to flow to those who would put the assets to their best use, and (3) keeping property available
    to satisfy the owner’s current exigencies, thereby stimulating the competitive theory basis of the
    economy. Id. (citing RESTATEMENT OF PROPERTY, Pt. I, intr. note (1944)).
    The Restatement (Third) of Property reworded the original Restatement’s provisions
    regarding restraints on alienation. See Navasota Resources, L.P. v. First Source Tex., Inc., 
    249 S.W.3d 526
    , 538 (Tex. App.—Waco 2008, pet. denied). Section 3.1(3) of the Restatement (Third)
    of Property provides that a servitude 4 is invalid as violative of public policy if it “imposes an
    unreasonable restraint on alienation under § 3.4 or § 3.5.” RESTATEMENT (THIRD) OF PROPERTY:
    SERVITUDES § 3.1(3) (2000) (emphasis added). “A servitude that imposes a direct restraint on
    alienation of the burdened estate is invalid if the restraint is unreasonable. Reasonableness is
    determined by weighing the utility of the restraint against the injurious consequences of enforcing
    4
    The Restatement (Third) of Property: Servitudes defines “servitude” as “(1) . . . a legal device that creates
    a right or an obligation that runs with land or an interest in land.” RESTATEMENT (THIRD) OF PROPERTY: SERVITUDES
    § 1.1 (2000).
    7
    the restraint.” Id. § 3.4. The rule set forth in Section 3.4 “applies to servitudes that directly restrain
    alienation of interests in land,” including “options to purchase land[.]” Id. § 3.4, cmt. b.
    An option constitutes a promissory restraint on alienation. Randolph, 768 S.W.2d at 738-
    39. Direct restraints on alienation are valid only if they are reasonable. RESTATEMENT (THIRD) OF
    PROPERTY: SERVITUDES § 3.4. “The harmful effects that may flow from restraints on alienation
    include impediments to the operation of a free market in land, limiting the prospects for
    improvement, development, and redevelopment of land, and limiting the mobility of landowners
    and would-be purchasers.” Id. § 3.4, cmt. c. “In determining the injurious consequences likely to
    flow from enforcement of a restraint on alienation, the nature, extent, and duration of the restraint
    are important considerations.” Id. “The standard against which the impact of a restraint is to be
    measured is that of the property owner free to transfer property at his or her convenience at a price
    determined by the market.” Id. The more a restraint interferes with the owner’s ability to transfer,
    the stronger the purpose justifying a direct restraint on alienation must be. Id. The reasonableness
    of an option to purchase land is determined by the duration of the option and its price. Id. § 3.4,
    cmt. e. “If the price is fixed, the effect of the option is to discourage the improvement of the land,
    and the option is unreasonable unless its duration is specified.” Id. “Even if the duration is
    specified, an option for a lengthy period may be unreasonable unless the length is justified by the
    purpose, or unless it is clear that the parties expressly bargained over the specified duration.” Id.
    As set forth in the Restatement (Third) of Property, we determine the reasonableness of the
    option in this case by weighing the utility of the restraint against the injurious consequences of
    enforcing the restraint, and we examine the option’s duration and price. Id. §§ 3.1, 3.4, 3.4 cmt. e.
    The price of the option in this case is fixed at $50,800.87, and the Agreement provides that the
    option will not expire until March 31, 2089, at 11:59 p.m., over one hundred years after the parties
    executed the Agreement. Moreover, the Agreement states that it shall bind and inure to the benefit
    of the buyers, the sellers, and their heirs, administrators, executors, successors, and assigns.
    The facts presented here are not identical to the facts in either Randolph or Procter;
    however, because the price of the option is far below the land’s present market value and the
    duration of the option is approximately one hundred years (during which it would also pass to the
    heirs, administrators, executors, successors, and assigns of both parties), we conclude that this case
    is more closely analogous to the facts presented in Procter. Upon weighing the utility of the
    restraint against the injurious consequences of enforcing it, we conclude that the fixed-price option
    8
    for such a lengthy period constitutes an unreasonable restraint on alienation because its length is
    not justified by its purpose, and it is not clear that the parties expressly bargained over the duration
    of the option. Id. § 3.4, § 3.4 cmt. e; see also Procter, 
    884 S.W.2d at 857, 862
    . Therefore, summary
    judgment in favor of Johnson on the ground that the option is void because it constitutes an
    unreasonable restraint on alienation was proper, and we need not address Johnson’s argument
    regarding the rule against perpetuities. See TEX. R. APP. P. 47.1; Knott, 128 S.W.3d at 216;
    Johnson, 891 S.W.2d at 644; see also generally Meduna v. Holder, No. 03-02-00781-CV, 
    2003 WL 22964270
    , at *5 (Tex. App.—Austin Dec. 18, 2003, pet. denied) (mem. op.) (holding that an
    unreasonable restraint on alienation is void and unforceable, but the entire deed is not rendered
    void). We overrule issue one.
    REFORMATION OF THE OPTION
    In issue two, the Tiners argue that the trial court erred by failing to reform the option to
    comply with the rule against perpetuities. Specifically, the Tiners assert that the Texas Supreme
    Court’s opinion in Yowell v. Granite Operating Company and Section 5.043 of the Texas Property
    Code mandate reformation rather than declaring the option void.
    Section 5.043(a) of the Texas Property Code, which is entitled “Reformation of Interests
    Violating Rule Against Perpetuities,” provides that “[w]ithin the limits of the rule against
    perpetuities, a court shall reform or construe an interest in real or personal property that violates
    the rule to effect the ascertainable general intent of the creator of the interest.” TEX. PROP. CODE
    ANN. § 5.043(a) (West 2021). The statute also states that courts “shall liberally construe and apply
    this provision to validate an interest to the fullest extent consistent with the creator’s intent.” Id.
    In Yowell, the Texas Supreme Court held that Section 5.043 “imposes a duty on courts to reform
    or construe property interests that violate the [r]ule [against perpetuities].” Yowell, 620 S.W.3d at
    352. The Yowell court was not presented with arguments regarding an alleged violation of the rule
    against unreasonable restraints on alienation. See id. at 340. We therefore conclude that Yowell is
    inapposite.
    Section 5.043 of the Texas Property Code speaks solely of reforming interests that violate
    the rule against perpetuities; that is, Section 5.043 does not reference interests that violate the rule
    prohibiting unreasonable restraints on alienation, and Section 5.043 does not require that
    unreasonable restraints on alienation be reformed. See TEX. PROP. CODE ANN. § 5.043. In
    9
    construing a statute, we begin with the plain and common meaning of its words. Kruse v.
    Henderson Tex. Bancshares, Inc., 
    586 S.W.3d 118
    , 121 (Tex. App.—Tyler 2019, no pet.).
    “Words and phrases shall be read in context and construed according to the rules of grammar and
    common usage.” 
    Id.
     at 121-22 (citing TEX. GOV’T CODE ANN. § 311.011(a) (West 2013)). “We
    presume that every word of the statute has been used for a purpose, and that every word excluded
    from the statute has also been excluded for a purpose.” Id. (citing Laidlaw Waste Sys. (Dallas),
    Inc. v. City of Wilmer, 
    904 S.W.2d 656
    , 659 (Tex. 1995)).
    The Tiners cite no authorities for the proposition that Section 5.043 also applies to interests
    that violate the rule prohibiting unreasonable restraints on alienation, and we are aware of none.
    Applying the rules of statutory construction to Section 5.043 of the Texas Property Code, we
    conclude that if the Legislature intended Section 5.043 to require reformation of interests that
    violate the rule against unreasonable restraints on alienation, it would have said so. See 
    id.
     We
    must presume that the Legislature’s omission of the rule against unreasonable restraints on
    alienation from the explicitly stated purview of Section 5.043 was purposeful. See 
    id.
     Therefore,
    we conclude that Section 5.043 does not require reformation of interests that violate the rule
    prohibiting unreasonable restraints on alienation, and the trial court did not err by declaring the
    option void rather than reforming it. See id.; see also generally Gray, 623 S.W.2d at 174.
    Accordingly, we overrule issue two.
    COUNTERCLAIM FOR BREACH OF CONTRACT
    In issue three, the Tiners contend that the trial court erred by dismissing their counterclaim.
    Specifically, the Tiners assert that Johnson failed to convey title to the subject property pursuant
    to the purported option to repurchase the property. As explained above, we conclude that the trial
    court did not err by finding that the option constitutes an unreasonable restraint on alienation,
    declaring the option void, and granting summary judgment in favor of Johnson. See Meduna, 
    2003 WL 22964270
    , at *5; Gray, 623 S.W.2d at 174.
    A void agreement is no agreement at all; that is, it binds no one and is a mere nullity. XTO
    Energy, Inc. v. Goodwin, 
    584 S.W.3d 481
    , 494 (Tex. App.—Tyler 2017, pet. denied) (citing Watts
    v. Pilgrim’s Pride Corp., No. 12-04-00082-CV, 
    2005 WL 2404111
    , at *3 (Tex. App.—Tyler Sept.
    30, 2005, no pet.) (mem. op.)). Furthermore, a void agreement has no legal effect and cannot be
    rendered enforceable by defenses, such as waiver, estoppel, or ratification. Watts, 
    2005 WL 10
    2404111, at *3. Because the option contained in the Agreement constitutes an unreasonable
    restraint on alienation and is void, it is axiomatic that the Tiners cannot enforce the option by
    asserting a counterclaim for breach of contract. See Goodwin, 584 S.W.3d at 494; Watts, 
    2005 WL 2404111
    , at *3. Therefore, the trial court did not err by granting summary judgment in favor of
    Johnson as to the Tiners’ counterclaim for breach of contract. Accordingly, we overrule issue three.
    DISPOSITION
    Having overruled each of the Tiners’ issues, we affirm the trial court’s judgment. All
    pending motions are overruled as moot.
    JAMES T. WORTHEN
    Chief Justice
    Opinion delivered June 8, 2022.
    Panel consisted of Worthen, C.J., Hoyle, J., and Neeley, J.
    (PUBLISH)
    11
    COURT OF APPEALS
    TWELFTH COURT OF APPEALS DISTRICT OF TEXAS
    JUDGMENT
    JUNE 8, 2022
    NO. 12-21-00174-CV
    J. MICHAEL TINER AND MARTHA TINER,
    Appellants
    V.
    CYNTHIA TINER JOHNSON,
    Appellee
    Appeal from the 294th District Court
    of Van Zandt County, Texas (Tr.Ct.No. 19-00093)
    THIS CAUSE came to be heard on the oral arguments, appellate record and
    briefs filed herein, and the same being considered, it is the opinion of this court that there was no
    error in the judgment.
    It is therefore ORDERED, ADJUDGED and DECREED that the judgment of
    the court below be in all things affirmed, all costs of this appeal are assessed against the
    Appellants, J. MICHAEL TINER AND MARTHA TINER, and that the decision be certified to
    the court below for observance.
    James T. Worthen, Chief Justice.
    Panel consisted of Worthen, C.J., Hoyle, J., and Neeley, J.
    

Document Info

Docket Number: 12-21-00174-CV

Filed Date: 6/8/2022

Precedential Status: Precedential

Modified Date: 6/13/2022