HOUSTON — An appeals court ruled that a leasing company failed to establish a "meeting of the minds" when it comes to terms between parties to a settlement.
Justice Richard Hightower authored the March 12 opinion. Justices Evelyn Keyes and Russell Lloyd concurred in the reversal of the trial court's order.
The court remanded the case back to the trial court for further proceedings.
Leasing Ventures and Clarent Energy entered into a lease in 2016 and Leasing Ventures agreed to lease Clarent oilfield equipment for three years in exchange for lease payments. The money exchange was to eventually lead to Clarent owning the equipment outright, according to the opinion.
After making two payments, Clarent failed to continue paying for the equipment and Leasing Ventures sought to get the equipment back. It eventually sued Clarent for breach of the lease and guaranty, but Clarent denied the allegations and argued that Leasing Ventures had already taken back some of the equipment and never gave some of the equipment in the first place.
The trial court granted partial summary judgment in favor of Leasing Ventures on April 25, 2017, stating that Leasing Ventures should get possession of certain equipment, but the court did not enter an award for damages. The case then was scheduled for a bench trial.
Leasing Ventures offered Clarent a settlement in September 2017 that involved Clarent finding and returning the equipment, the company would dismiss the case.
After 90 days, 75% of the equipment was returned and the parties agreed to another 90-day period to continue the search for the rest of the equipment. However, over the next several months, Clarent decided not to honor the settlement agreement, according to the court document.
Leasing Ventures then argued that Clarent and breached the agreement and sought additional costs and attorney's fees. Clarent denied ever agreeing to a settlement.
The trial court then granted a motion for summary judgment to Leasing Ventures and awarded it $449,735 in damages, plus attorneys' fees. Clarent then appealed.
"We conclude that Leasing Ventures failed to establish that there was a meeting of the minds between the parties as to all material terms of the settlement as a matter of law," Hightower wrote. "Thus, the trial court erred in granting summary judgment in favor of Leasing Ventures on its claim for breach of the purported settlement agreement."
Texas First Court of Appeals case number: 01-18-00821-CV