Apparel Mfg. Co., Inc. v. Vantage Properties, Inc., 20183
| Decision Date | 05 March 1980 |
| Docket Number | No. 20183,20183 |
| Citation | 597 S.W.2d 447 |
| Parties | APPAREL MANUFACTURING COMPANY, INC., Appellant, v. VANTAGE PROPERTIES, INC., Appellee. |
| Court | Texas Court of Appeals |
Barry L. Elliott, Hoppenstein & Prager, Dallas, for appellant.
Robert Harms Bliss, Cleveland, Guy, Clinton, Bliss & Hughes, Dallas, for appellee.
Before AKIN, CARVER and HUMPHREYS, JJ.
Apparel Manufacturing Company, Inc., a tenant, appeals from a judgment in favor of its landlord, Vantage Properties, Inc., for unpaid rentals, contractual interest, and attorney's fees. Apparel Manufacturing complains that the trial court denied it the opportunity to plead and prove its defense and counterclaim based upon usury. We affirm the judgment because we hold that the usury laws do not apply to a rental transaction of real property.
In 1975 Vantage, as landlord, and Apparel, as tenant, entered into a formal lease for a shopping center space for the retail sale of women's sportswear. The lease term was five years and the monthly rental consisted of $450 for the first year and $480 for the second through the fifth year. The terms of the lease included a provision that:
In the event any rental is not received within 10 days after its due date for any reason whatsoever, it is agreed that the amount thus due shall bear interest at the maximum contractual rate which could legally be charged in the event of a loan of such rental to Tenant in the state where the Demised Premises are located (but in no event to exceed 11/2% per month), such interest to accrue continuously on any unpaid balance due to Landlord by Tenant during the period commencing with the aforesaid due date and terminating with the date on which Tenant makes full payment of all amounts owing to Landlord at the time of said payment. Any such increase shall be payable as additional rent hereunder, shall not be considered as a deduction from percentage rental, and shall be payable immediately on demand. (Emphasis added.)
When Apparel fell behind in its rent, Vantage began sending statements demanding a late charge which Apparel characterized as a "charge" of usury even though none of the statements were ever paid.
Apparel reasons that any late charge was interest ; that since the unpaid rental was less than the $5,000.00 minimum debt warranting a 11/2% per month rate for a corporate debtor under Tex.Rev.Civ.Stat.Ann. art. 1302-2.09 (Vernon Supp.1979), the maximum rate was fixed at 10% by Tex.Rev.Civ.Stat.Ann. art. 5069-1.02 (Vernon 1967), that the late charge on the statements exceeded 10%...
To continue reading
Request your trial
-
Varel Mfg. Co. v. Acetylene Oxygen Co.
...Coating Co., 602 S.W.2d 278, 281 (Tex.Civ.App.--Dallas 1980, writ ref'd n.r.e); Apparel Mfg. Co., Inc. v. Vantage Properties, Inc., 597 S.W.2d 447, 448-49 (Tex.Civ.App.--Dallas 1980, writ ref'd n.r.e.); Southwest Park Outpatient Surgery, Ltd. v. Chandler Leasing Division, 572 S.W.2d 53, 55 ......
-
Rivera v. At & T Corp.
...and the late fees charged are not construed as "interest" under Texas usury law. See Apparel Manufacturing Company, Inc. v. Vantage Properties, Inc., 597 S.W.2d 447, 449 (Tex. Civ.App. — Dallas 1980) (holding that "a rental contract is not a `lending transaction' and that the usury statutes......
-
Russell Scott Jones & Westex Notrees, LP v. R.O. Pomroy Equip. Rental, Inc.
...(citing Transamerican Leasing Co. v. Three Bears, Inc., 586 S.W.2d 472 (Tex.1979)); Apparel Mfg. Co. v. Vantage Props., Inc., 597 S.W.2d 447, 448 (Tex.Civ.App.-Dallas 1980, writ ref'd n.r.e.). The parties, instead, contracted for the rental of a compressor and a loader. Under Texas law, pre......
-
Russell Scott Jones & Westex Notrees, LP v. R.O. Pomroy Equip. Rental, Inc.
...(citing Transamerican Leasing Co. v. Three Bears, Inc., 586 S.W.2d 472 (Tex. 1979)); Apparel Mfg. Co. v. Vantage Props., Inc., 597 S.W.2d 447, 448 (Tex. Civ. App.—Dallas 1980, writ ref'd n.r.e.). The parties, instead, contracted for the rental of a compressor and a loader. Under Texas law, ......