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    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
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      <HR>
      <BR><BR>
      <META content=3DWordPerfect name=3DGenerator><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 11pt"><STRONG></STRONG></SPAN><IMG =
height=3D115=20
      src=3D"" width=3D115></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt"><STRONG>Opinion issued February =
21,=20
      2008</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><STRONG></STRONG></P>
      <P></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
WP=3D"BR2"><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">In=20
      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>Court of=20
      Appeals</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG>For=20
      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>First=20
      District of Texas</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>
      <HR align=3Dcenter width=3D"15%">
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>NO. <A=20
      name=3D5>01-05-00827-CV</A></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>__________</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>CYPRESS=20
      NORTHWEST ASSOCIATES, LTD., Appellant</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>V.</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>WAYNE=20
      DUDDLESTEN, LTD. AND BC ALLIANCE, INC.<A name=3D7></A>,=20
      Appellees</STRONG></SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>On =
Appeal=20
      from the<A name=3D8></A> 127th District Court</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG><A =

      name=3D10></A>Harris County, Texas</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Trial Court=20
      Cause No. 2004-07190</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>MEMORANDUM=20
      OPINION</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman"> =
</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>ON =

      REHEARING</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><SPAN=20
      style=3D"TEXT-DECORATION: underline"></SPAN>We withdraw our =
opinion and=20
      judgment issued on December 20, 2007 and issue the following in =
their=20
      stead. Appellees' motion for rehearing is denied.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The trial=20
      court granted Wayne Duddlesten, Ltd. and BC Alliance, Inc.'s =
(collectively=20
      "Duddlesten") motion for partial summary judgment on liability =
only and=20
      held that Cypress Northwest Associates, Ltd. ("Cypress") breached =
its=20
      contract with Duddlesten. A jury determined the consequential =
damages for=20
      the breach to be $1,110,000. Cypress argues that (1) the trial =
court erred=20
      in finding Cypress liable for breach of contract because there is =
no=20
      evidence that Cypress failed to comply with the contract, (2) the =
trial=20
      court improperly imposed two implied obligations upon Cypress, and =
(3) the=20
      trial court erred in failing to find that Duddlesten's breach of =
contract=20
      claim was barred by the four-year statute of limitations. We =
reverse and=20
      render in part and reverse and remand in part. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>
      <CENTER>Background</STRONG><A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_1_"><SUP>=20
      (1)</SUP></A></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Cypress and=20
      Duddlesten are real estate developers who own adjoining property =
along=20
      Barker Cypress Road near Highway 290 in northwest Harris County. =
Cypress=20
      is the developer of Riata Ranch, a 1,000-home residential =
subdivision.=20
      Duddlesten owns commercial property that lies between Riata Ranch =
and=20
      Barker Cypress Road. In March 1996, the parties entered into a =
Residential=20
      Development Agreement ("Development Agreement") related to the =
expansion=20
      of Riata Ranch. In the Development Agreement, for $271,772, =
Duddlesten=20
      conveyed a 21.9760-acre tract to Cypress. The north line of the =
tract was=20
      determined to be the south line of "a certain tract owned by =
Duddlesten."=20
      Duddlesten also agreed to dedicate a 100-foot easement across its=20
      property. The second paragraph of the Development Agreement =
concerns the=20
      dedication of the easement and states the following:</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">2.=20
      Additional Road Right of Way. Riata Ranch subdivision is to be =
accessed by=20
      three roads originating at Barker Cypress Road. The northernmost =
such=20
      entry road wholly traverses property owned by Duddlesten. =
Duddlesten has=20
      agreed, and by this Agreement further confirms and agrees to =
dedicate=20
      <EM>a one hundred foot (100') wide easement</EM>, sixty feet (60') =
of=20
      which shall be at no expense to Cypress, and the remaining portion =
of=20
      which shall be at a cost to Cypress of an amount equal to $12,000 =
per acre=20
      for the acreage, as determined by a surveyor, in excess of <EM>the =

      easement property </EM>located within the sixty foot (60') portion =

      dedicated at no cost to Cypress. The parties agree that Duddlesten =
shall=20
      have authority to make the final determination as to the location =
of the=20
      right of way, subject to approval by the City of Houston Planning=20
      Commission. This purchase shall be accomplished within a four year =
period=20
      of the date hereof. All costs of this purchase and/or dedication =
shall be=20
      borne by Cypress provided, however, that the exact location of =
<EM>said=20
      easement </EM>shall be fixed by Cypress within two years from the =
date=20
      hereof. Duddlesten retains the right to approve the final =
geometric design=20
      of <EM>this easement </EM>as well as <EM>the easement </EM>for =
Riata Ranch=20
      Drive as shown on Exhibit "A", prior to recording any plat =
covering either=20
      <EM>the easement </EM>or roadway.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">(Emphasis=20
      added.) Three months later, rather than dedicate an easement as=20
      contemplated by the Development Agreement, Duddlesten executed a =
deed=20
      ("the Duddlesten Deed") conveying 1.0265 acres ("the Deeded =
Strip") to=20
      Cypress. The Duddlesten Deed conveyed all right, title and =
interest, if=20
      any, in and to </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">(d) any=20
      easements, rights-of-way, rights of ingress and egress or other =
interests=20
      in, on, or to any land, highway, street, road or avenue, open or =
proposed=20
      in, on, across from, in front of, abutting, adjoining or otherwise =

      appurtenant to [the Deeded Strip], as well as all rights, =
privileges and=20
      appurtenances owned by [Duddlesten] and in any way related to [the =
Deeded=20
      Strip] and other rights and interest of [Duddlesten] hereunder =
conveyed;=20
      provided, however, that such conveyance is without prejudice to, =
and does=20
      not transfer, any rights or benefits held by [Duddlesten], its =
successors=20
      and assigns to the extent they benefit any other properties owned =
by=20
      [Duddlesten] to which such rights are appurtenant . . . . =
</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The=20
      Duddlesten Deed included a restrictive covenant ("the Restrictive=20
      Covenant") </SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">limiting=20
      the acceptable uses of the land. The Restrictive Covenant=20
      states:</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The use of=20
      [the Deeded Strip] is hereby restricted to use as a roadway or =
road of=20
      [sic] right-of-way to provide vehicular access, ingress and egress =
to and=20
      from Barker Cypress Road to and from adjacent real property =
currently=20
      owned by [Cypress], for landscaping and other similar uses =
incidental to=20
      and associated with use as a roadway or road right-of-way, and for =
the=20
      additional purpose of the construction, installation, use, =
operation,=20
      maintenance, repair and replacement of underground public utility =
lines,=20
      including, but not limited to water, sanitary sewer, storm sewer,=20
      electricity and telephone.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">At the time=20
      the parties entered into the Development Agreement, Cypress was =
planning=20
      for the construction of a school near the intersection of Barker =
Cypress=20
      Road and Cypress-North Houston Road. It sought an additional =
access road=20
      in order to facilitate traffic around the proposed school. =
Duddlesten=20
      agreed because it believed the property would be more valuable if =
it was=20
      divided into two corner commercial lots by a road leading into the =

      neighborhood. The plans to build the school later were abandoned.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Cypress has=20
      not built a road across the Deeded Strip, claiming that neither =
the=20
      Development Agreement nor the Restrictive Covenant impose any =
obligation=20
      upon it to construct such a road. On March 12, 2001, Cypress =
executed a=20
      final plat of the Riata Ranch subdivision that did not include an =
access=20
      road across the Deeded Strip. Instead, the tract was platted as=20
      "Restricted Reserve 'C' Restricted to U.E. STM. S.E. &amp; =
Landscaping."=20
      The plat also showed a cul-de-sac abutting the Deeded Strip, which =
would=20
      prevent a roadway on the Deeded Strip from accessing the Riata =
Ranch=20
      subdivision. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Duddlesten=20
      filed suit on February 13, 2004, claiming that Cypress breached =
the=20
      express terms and implied obligations contained in the Development =

      Agreement and the Restrictive Covenant by failing to construct a =
road=20
      across the Deeded Strip. Both parties moved for summary judgment =
on the=20
      issue of liability. The trial court granted Duddlesten's motion =
and denied=20
      Cypress's motion. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The case=20
      proceeded to trial solely on the issue of damages. The trial court =

      instructed the jury that Duddlesten "was entitled to have an =
<EM>entry=20
      road</EM> cross the commercial property in question into Riata =
Ranch" and=20
      asked that the jury determine "the difference between the market =
value of=20
      the commercial property having an <EM>entry road</EM> into Riata =
Ranch=20
      Subdivision that crosses the property owned by [Duddlesten] and =
the market=20
      value of that commercial property without an entry road." =
(Emphasis=20
      added.) The jury awarded Duddlesten $1,110,000 in damages. Cypress =
appeals=20
      the trial court's order granting Duddlesten's motion for summary =
judgment.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>Summary Judgment</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Our review=20
      of a trial court's decision to grant summary judgment is de novo.=20
      <EM>Valence Operating Co. v. Dorsett</EM>, 164 S.W.3d 656, 661 =
(Tex.=20
      2005). In a traditional summary judgment motion, the movant must =
show that=20
      there is no genuine issue of material fact and that he is entitled =
to=20
      judgment as a matter of law. Tex. R. Civ. P. 166a(c); =
<EM>Pustejovsky v.=20
      Rapid-Am. Corp.</EM>, 35 S.W.3d 643, 645-46 (Tex. 2000). In =
deciding=20
      whether a disputed material fact issue precludes summary judgment, =
we take=20
      evidence favorable to the nonmovant as true, and indulge every =
reasonable=20
      inference and resolve any doubts in favor of the nonmovant. =
<EM>Provident=20
      Life &amp; Accid. Ins. Co. v. Knott</EM>, 128 S.W.3d 211, 215 =
(Tex. 2003).=20
      When, as here, the trial court does not specify the grounds upon =
which it=20
      ruled, the summary judgment may be affirmed if any of the grounds =
stated=20
      in the motion is meritorious. <EM>W. Invs., Inc. v. Urena</EM>, =
162 S.W.3d=20
      547, 550 (Tex. 2005); <EM>Mayes v. Goodyear Tire &amp; Rubber =
Co.</EM>,=20
      144 S.W.3d 50, 55 (Tex. App.--Houston [1st Dist.] 2004, no pet.). =
When, as=20
      here, competing motions for summary judgment are filed, and one is =
granted=20
      and the other denied, the reviewing court must review the summary =
judgment=20
      evidence presented by both sides and determine all questions =
presented.=20
      <EM>Comm'rs Court of Titus County v. Agan</EM>, 940 S.W.2d 77, 81 =
(Tex.=20
      1997). <STRONG></STRONG></SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>The=20
      standard of review for interpreting an unambiguous contract is de =
novo.=20
      <EM>MCI Telecomms. Corp. v. Tex. Utils. Elec. Co.</EM>, 995 S.W.2d =
647,=20
      650-51 (Tex. 1999); <EM>Atlantic Lloyds Ins. Co. v. Butler</EM>, =
137=20
      S.W.3d 199, 209 (Tex. App.--Houston [1st Dist.] 2004, pet. =
denied).=20
      Whether a contract is ambiguous is a question of law that is also =
reviewed=20
      de novo. <EM>Butler</EM>, 137 S.W.3d at 209. =
<STRONG></STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>Breach of Contract</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">In issue=20
      one, Cypress contends that the trial court erred in finding =
Cypress liable=20
      for breach of contract because there is no evidence that it failed =
to=20
      comply with any express provision of the Development Agreement. =
Cypress=20
      further complains that the Duddlesten Deed's restrictive covenant =
imposes=20
      no affirmative obligation on Cypress, and there is no evidence =
that=20
      Cypress violated the Deed's restrictive covenant. In issue two, =
Cypress=20
      asserts that the trial court erred by "improperly imposing two =
'implied'=20
      obligations on Cypress that are not contained in or supported by =
the=20
      language of the Development Agreement." The two "implied" =
obligations are=20
      that (1) Cypress must construct a road on the Deeded Strip and (2) =
Cypress=20
      must grant an easement across its land and construct a road on it =
as an=20
      extension of the Deeded Strip roadway. Cypress contends that the =
trial=20
      court erred in concluding that the Development Agreement requires =
Cypress=20
      to construct a roadway on the Deeded Strip.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The law=20
      concerning contract interpretation is well-settled. <EM>Id.</EM> =
When=20
      construing a written contract, our primary concern is to give =
effect to=20
      the true intent of the parties as expressed in the instrument. =
<EM>Forbau=20
      v. Aetna Life Ins. Co.</EM>, 876 S.W.2d 132, 133 (Tex. 1994). If a =
written=20
      contract is worded in such a way that it can be given a definite =
legal=20
      meaning, then the contract is not ambiguous. <EM>Nat'l Union Fire =
Ins. Co.=20
      v. CBI Indus., Inc.</EM>, 907 S.W.2d 517, 520 (Tex. 1995). If the =
contract=20
      is unambiguous, the court must enforce the contract as written.=20
      <EM>Transcon. Gas Pipeline Corp. v. Texaco, Inc.</EM>, 35 S.W.3d =
658, 665=20
      (Tex. App.--Houston [1st Dist.] 2000, pet. denied). </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">To prevail=20
      on a breach of contract claim, Duddlesten was required to prove =
(1) a=20
      valid enforceable contract, (2) Duddlesten and Cypress signed the =
contract=20
      or were in privity with a contract signatory, (3) Duddlesten =
performed its=20
      contractual obligations,<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_2_"><SUP>=20
      (2)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman"> =
(4)=20
      Cypress breached its contract, and (5) Cypress's breach caused=20
      Duddlesten's injury.<EM> See Valero Mktg. &amp; Supply Co. v. =
Kalama=20
      Int'l</EM>, 51 S.W.3d 345, 351 (Tex. App.--Houston [1st Dist.] =
2001, no=20
      pet.). It is uncontested that there was a valid contract. The real =

      question is whether Cypress breached either the Right of Way =
provision of=20
      the Development Agreement or the Deed's restrictive =
covenant.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>Deed v.=20
      Easement</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">The Development =
Agreement:=20
      Additional Right of Way provision, by its express terms, =
contemplates the=20
      creation and existence of <EM>an easement on property owned by=20
      Duddlesten</EM>. However, Duddlesten, extra-contractually, opted =
to deed=20
      the property instead of dedicating an easement. Consequently, =
Duddlesten=20
      no longer owns the property and, pursuant to the express language =
of the=20
      deed, has no "right, title [or] interest" to the property beyond =
what is=20
      found in the Restrictive Covenant. Simply put, the Additional =
Right of Way=20
      provision does not create any obligations <EM>with respect to =
property=20
      owned by Cypress</EM>--including the Deeded Strip. It only creates =

      obligations with respect to property owned by Duddlesten. =
Therefore, the=20
      provision in the Development Agreement relied upon by Duddlesten =
for its=20
      breach of contract claim does not apply to the use of the deeded =
property=20
      at issue in this lawsuit. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Duddlesten =
nevertheless=20
      argues that we should read the language of the Right of Way =
provision=20
      piecemeal, ignoring the language referencing the creation and =
existence of=20
      an easement on Duddlesten's property, to find an obligation on the =
part of=20
      Cypress to allow access across the Deeded Strip. Specifically, =
Duddlesten=20
      argues that the first two sentences in the provision, along with =
the=20
      provision's reference to a "right of way," creates this obligation =
to=20
      provide access. We disagree. To read the provision piecemeal as =
Duddlesten=20
      suggests would require us to ignore that the provision =
contemplates the=20
      creation and existence of an easement. Here, Duddlesten chose to =
deed the=20
      property instead of grant an easement. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Duddlesten deeded =
the=20
      property contemplated by the easement to Cypress within months of =
creating=20
      the Development Agreement, and Duddlesten does not complain that =
Cypress=20
      failed to comply with its corresponding financial obligations =
under the=20
      contract. As mentioned above, instead of dedicating the roadway =
easement=20
      as required by the contract, Duddlesten deeded land according to =
its own=20
      specifications as to the size and shape of the tract. =
Consequently, we=20
      hold that, contrary to the trial court's finding, Cypress did not =
breach=20
      the Development Agreement, and the trial court erred in concluding =
that=20
      the Development Agreement required Cypress to construct a roadway =
on the=20
      Deeded Strip. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We next turn to =
examine=20
      whether Cypress' conduct breached the Deed's restrictive covenant. =

      </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG>Restrictive=20
      Covenant</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Cypress asserts =
that there=20
      is no evidence that it violated the Duddlesten Deed's restrictive=20
      covenant, which imposes no affirmative obligation on Cypress. The =
parties=20
      dispute the meaning of the Restrictive Covenant imposed by =
Duddlesten upon=20
      the Deeded Strip when it conveyed the land to Cypress. Duddlesten =
contends=20
      that Cypress violated the Restrictive Covenant when it caused the =
final=20
      plat for Section 10 of Riata Ranch to be recorded in May 2001.=20
      <STRONG></STRONG>The plat showed a cul-de-sac at the end of Riata =
Ranch=20
      Road, blocking access to the subdivision through the Deeded Strip. =

      Duddlesten argues that, in violation of the Restrictive Covenant, =
the=20
      cul-de-sac has prevented the future use of the Deeded Strip as a =
roadway.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">In addition, the =
subdivision=20
      plat shows an arrow pointed at the Deeded Strip, next to which is =
written,=20
      "RESTRICTED RESERVE "C" RESTRICTED TO U.E., STM. S.E. &amp; =
LANDSCAPING."=20
      This language provides that Cypress plans utility and storm =
easements=20
      across the Deeded Strip, as well as landscaping. Duddlesten =
contends that=20
      these uses violate the Restrictive Covenant. Cypress has argued =
that the=20
      Restrictive Covenant does not bar this activity because Cypress is =
not=20
      using the property, which has been left as open space. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Restrictive =
covenants are=20
      subject to the same general rules of construction as contracts.=20
      <EM>Pilarcik v. Emmons</EM>, 966 S.W.2d 474, 478 (Tex. 1998). Like =
a=20
      contract, a restrictive covenant is unambiguous if it can be given =
a=20
      certain or definite legal meaning. <EM>Id</EM>. Whether =
restrictive=20
      covenants are ambiguous is a matter of law for the court to =
decide.=20
      <EM>City of Pasadena v. Gennedy</EM>, 125 S.W.3d 687, 692 (Tex.=20
      App.--Houston [1st Dist.] 2003, pet. denied). At common law, =
covenants=20
      restricting the free use of land are not favored, but will still =
be=20
      enforced when they are confined to a lawful purpose and are =
clearly=20
      worded. <EM>Id</EM>. at 693. All doubts concerning a restrictive=20
      covenant's terms are resolved in favor of the free and =
unrestricted use of=20
      the land, and any ambiguity must be strictly construed against the =
party=20
      seeking to enforce the covenant. <EM>Id</EM>. The Texas Property =
Code=20
      states that "[a] restrictive covenant shall be liberally construed =
to give=20
      effect to its purposes and intent." Tex. Prop. Code Ann. =A7 =
202.003(a)=20
      (Vernon 2007). In <EM>Gennedy,</EM> we noted the potential =
conflict in the=20
      common law and statutory law, but do not intend to resolve this =
potential=20
      conflict in this case for the same reasons that we did not do so =
in=20
      <EM>Gennedy</EM>. <EM>See</EM> <EM>Gennedy</EM>, 125 S.W.3d at =
695.=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Regardless of =
whether we=20
      subject the Restrictive Covenant to a liberal or strict =
construction, the=20
      outcome remains the same. The plain language reveals that the =
parties=20
      intended that Cypress would not use the property for any other =
purpose=20
      than as "a roadway or road of [sic] right-of-way to provide =
vehicular=20
      access, . . . landscaping and other similar uses incidental to and =

      associated with uses as a roadway or road right-of-way . . . =
."</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We agree with =
Cypress that=20
      the Restrictive Covenant does not obligate Cypress to do anything =
with its=20
      own land. A lease provision that says the premises are only to be =
used for=20
      a particular purpose does not obligate "the lessee to use or =
continue to=20
      use the premises for that purpose; such a provision is a covenant =
against=20
      a noncomplying use, not a covenant to use." <EM>Universal Health =
Servs.,=20
      Inc. v. Renaissance Women's Group, P.A.</EM>, 121 S.W.3d 742, 747 =
(Tex.=20
      2003). </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Similarly, the =
Restrictive=20
      Covenant limits use of the Deeded Strip. Cypress indicated on the=20
      subdivision plat that the Strip could be used for landscaping, =
utility,=20
      and storm easements. Cypress has thus allowed for the possibility =
that=20
      these easements could be used in ways which could potentially =
interfere=20
      with the restrictive covenant, but it is unclear from the summary =
judgment=20
      record whether Cypress actually has used the land for any =
noncomplying=20
      purpose in violation of the covenant. The filing of the plat, in =
and of=20
      itself, does not constitute a breach of the Restrictive Covenant, =
as the=20
      plat alone does not indicate that Cypress has used the Deeded =
Strip in any=20
      way that violates the covenant.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">The summary =
judgment record=20
      reveals, however, that the land has been or is currently being =
landscaped,=20
      though it is unclear what sort of alterations have been made. =
Landscaping=20
      does not violate the Restrictive Covenant <EM>per se</EM>, but it =
may be=20
      if the landscaping on the Deeded Strip interferes with the land's=20
      potential use as a roadway. Without evidence regarding the nature =
and=20
      scope of the landscaping on the Deeded Strip, it nevertheless =
cannot be=20
      determined whether Cypress has violated the terms of the =
Restrictive=20
      Covenant. Thus, whether Cypress has violated the Restrictive =
Covenant=20
      presents a question of fact that we cannot resolve on the summary =
judgment=20
      record before us. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Because a fact =
question=20
      exists regarding the nature and scope of use of the Deeded Strip, =
the=20
      trial court erred in finding, as a matter of law, that Cypress =
breached=20
      the restrictive covenant.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We sustain issue=20
      one.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>Implied=20
      Obligations</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>In issue=20
      two, Cypress asserts that the trial court erred by "improperly =
imposing=20
      two 'implied' obligations on Cypress that are not contained in or=20
      supported by the language of the Development Agreement." The two =
"implied"=20
      obligations are that (1) Cypress must construct a road on the =
Deeded Strip=20
      and (2) Cypress must grant an easement across its land and =
construct a=20
      road on it as an extension of the Deeded Strip roadway. =
</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">The trial court =
instructed=20
      the jury, and thus found as a matter of law, that Duddlesten "was =
entitled=20
      to have an <EM>entry road</EM> cross the commercial property<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_3_"><SUP>=20
      (3)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New Roman"> =
in=20
      question into Riata Ranch Subdivision at the time the Plat was =
filed in=20
      May 2001 [the contract] and that such Plat failed to include such=20
      <EM>entry road </EM>[the breach]." (Emphasis added.) The charge =
further=20
      asked that the jury determine "the difference between the market =
value of=20
      the commercial property having an <EM>entry road</EM> into Riata =
Ranch=20
      Subdivision that crosses the property owned by [Duddlesten] and =
the market=20
      value of that commercial property without an <EM>entry road</EM>." =

      (Emphasis added.) </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>In moving=20
      for summary judgment in the trial court, Duddlesten claimed that =
"there=20
      was clearly an implied obligation on Cypress to construct the =
street." On=20
      appeal, Duddlesten now concedes that "Cypress is correct that the=20
      Residential Development Agreement does not require Cypress to =
actually=20
      build a road . . . . In other words, Cypress was not obligated to=20
      construct the road, but it was obligated to provide access to the=20
      subdivision by a road." "For that reason, Duddlesten[, on appeal,=20
      addressed] only Cypress's argument that it had no implied =
obligation to=20
      grant an easement across its property." Though the Development =
Agreement=20
      makes no mention of such an obligation, Duddlesten argues that =
access to=20
      the Riata Ranch subdivision would be impossible without the =
construction=20
      of a road traversing both Duddlesten's and Cypress's property and =
would=20
      thus create a "road to nowhere." Duddlesten, however, has deeded =
the=20
      property and retained no "right, title [or] interest" in =
it.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Implied covenants =
are not=20
      favored by law and will only be read into a contract when =
necessary to=20
      give effect to the plain, unmistakable intent of the parties. =
<EM>In re=20
      Bass</EM>, 113 S.W.3d 735, 743 (Tex. 2003). An implied covenant =
must=20
      appear to be so clearly within the contemplation of the parties =
that they=20
      deemed it unnecessary to express it in writing. <EM>Danciger Oil =
&amp;=20
      Ref. Co. v. Powell</EM>, 154 S.W.2d 632, 635 (Tex. 1941). It is =
not enough=20
      to say that an implied covenant is necessary in order to make the =
contract=20
      fair or that without such a covenant the contract would operate =
unjustly.=20
      <EM>Id</EM>. An implied covenant must arise from the presumed =
intention of=20
      the parties as gathered from the agreement as a whole.=20
      <EM>Id</EM>.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Duddlesten asks =
this Court=20
      to impose an unwritten, "implied" obligation on Cypress that, if =
actually=20
      agreed to by the parties, would have been barred by the statute of =
frauds.=20
      An easement is an interest in land to which the statute of frauds =
applies,=20
      and any grant of an easement must be in writing. <EM>Cummins v. =
Travis=20
      County Water Control &amp; Improvement Dist. No. 17</EM>, 175 =
S.W.3d 34,=20
      51 (Tex. App.--Austin 2005, pet. denied). The easement which =
Duddlesten=20
      promised to grant is one which attaches to the land itself and =
passes with=20
      it, and thus, is an easement appurtenant to the land. <EM>See Drye =
v.=20
      Eagle Rock Ranch, Inc.</EM>, 364 S.W.2d 196, 203 (Tex. 1962). As =
such, it=20
      is an interest in land which requires a writing to create or =
transfer.=20
      <EM>See</EM> Tex. Prop. Code Ann. =A7 5.021 (Vernon 2004); =
<EM>Drye</EM>,=20
      364 S.W.2d at 203.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_4_"><SUP>=20
      (4)</SUP></A></SPAN><SPAN style=3D"FONT-FAMILY: Times New =
Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">The Development =
Agreement=20
      contains no mention of Cypress's property, no requirement that a =
roadway=20
      would even be built on the Deeded Strip, and no statement of =
Duddlesten's=20
      alleged intent that its easement, and ultimately deeded property =
was "to=20
      create two, more valuable corner commercial lots," a goal that =
could only=20
      be accomplished with an additional easement across Cypress's land. =

      Accordingly, there is no evidence to support the trial court's =
implied=20
      finding that Cypress must create an easement over its property as =
a matter=20
      of law, and the trial court erred in submitting an instruction =
containing=20
      an implied finding to the jury based on a breach of the =
Development=20
      Agreement.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We sustain issue=20
      two.</SPAN></P><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG>Statute=20
      of Limitations</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>In issue=20
      three, Cypress argues that Duddlesten's breach of contract claim =
was=20
      barred by the four-year statute of limitations because either (1) =
the=20
      discovery rule does not apply to Duddlesten's claim or, (2) if the =

      discovery rule does apply, Duddlesten had actual notice of =
Cypress's=20
      intentions more than four years before it filed suit. </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman"><STRONG>Standard =
of Review=20
      </STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG>The=20
      determination of whether the statute of limitations has run on a=20
      particular cause of action is a question of law that we also =
review de=20
      novo. <EM>See Knott</EM>, 128 S.W.3d at 221. As a general rule, a =
cause of=20
      action begins to run when facts come into existence that authorize =
a party=20
      to seek a judicial remedy. <EM>Id</EM>.<STRONG> </STRONG>A breach =
of=20
      contract claim accrues when the contract is breached. <EM>Stine v. =

      Stewart</EM>, 80 S.W.3d 586, 592 (Tex. 2002). </SPAN></P>
      <P><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG>Analysis</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Cypress first =
argues that=20
      Duddlesten should have been aware of the facts that led to its =
breach of=20
      contract claim in September of 1999, when Cypress filed a =
development plat=20
      with the City of Houston that did not include an access road =
through the=20
      Deeded Strip. But, as Duddlesten points out, this plat was =
preliminary and=20
      subject to change. Cypress further argues that, after a meeting on =

      February 11, 2000, Duddlesten either knew or should have known =
about=20
      Cypress's plans not to construct a road through the Deeded Strip. =
At the=20
      meeting, Cypress showed Duddlesten documents from the City of =
Houston=20
      Planning Commission, including a development plat that showed the =
Deeded=20
      Strip not being used as an access road. Duddlesten contends that =
he did=20
      not discuss the access road at the meeting in February because the =
meeting=20
      centered on property west of Barker Cypress Road. He claims that =
Cypress=20
      intentionally drew his attention away from the access road by =
displaying=20
      the property west of Barker Cypress Road in color and the rest of =
the=20
      property in black-and-white. Duddlesten asserts that "Cypress =
breached the=20
      [Development] Agreement and the restrictive covenants in the =
[Duddlesten]=20
      Deed on May 21, 2001, when it caused the final plat for Riata =
Ranch,=20
      Section 10, to be recorded." </SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Duddlesten filed =
suit on=20
      February 13, 2004, within four years of the date that Cypress =
recorded the=20
      final plat for the subdivision. <EM>See</EM> Tex. Civ. Prac. &amp; =
Rem.=20
      Code Ann. =A7 16.051 (Vernon 1997) (stating that every action for =
which=20
      there is no statute of limitations must be brought within four =
years after=20
      the cause of action accrues); <EM>see also</EM> <EM>Stine</EM>, 80 =
S.W.3d=20
      at 592 (noting that the statute of limitations for breach of =
contract=20
      claims is four years). </SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">Duddleston's only potential =
breach of=20
      contract claim remaining is for breach of the restrictive =
covenant.=20
      Duddleston argues that, as a matter of law, this claim accrued on =
the date=20
      that the final plat was filed and he filed his claim within four =
years of=20
      this date.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_5_"><SUP>=20
      (5)</SUP></A> We disagree. On its face, the final plat does not =
breach any=20
      of the terms of the restrictive covenant. However, as we note =
above, there=20
      is a fact issue regarding what, if anything, Cypress has done to =
the=20
      property since it was deeded and, specifically, if its landscaping =
of the=20
      property breached the terms of the restrictive covenant. Because =
this fact=20
      issue exists, there is also a fact issue as to when the claim for =
the=20
      alleged breach arose. Accordingly, Cypress is not entitled to =
rendition on=20
      its cross-motion on this issue. </SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We overrule issue =
three.
      <CENTER><STRONG>Conclusion</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">We reverse the =
trial court's=20
      summary judgment on liability and render judgment that Cypress did =
not=20
      breach the Development Agreement, and we remand the remaining =
claims for=20
      further proceedings consistent with this opinion.</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">George C. Hanks,=20
      Jr.</SPAN></P>
      <P><SPAN style=3D"FONT-FAMILY: Times New =
Roman">Justice</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-FAMILY: Times New Roman">Panel consists of =
Justices=20
      Hanks, Bland, and Wilson.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D85187#N_6_"><SUP>=20
      (6)</SUP></A></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman"></SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">=20
      <P><A name=3DN_1_>1. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The =
information=20
      contained herein was found in the parties' pleadings.=20
      <P><A name=3DN_2_>2. </A>In its motion for summary judgment, =
Cypress=20
      asserted that Duddlesten had breached its contract by failing to=20
      <EM>dedicate</EM> a roadway easement. <EM>See Russell v. City of=20
      Bryan</EM>, 919 S.W.2d 698, 702 (Tex. App.--Houston [14th Dist.] =
1996,=20
      writ denied) ("Dedication is defined as the appropriation of land, =
or an=20
      easement therein, by the owner, for the use of the public, and =
accepted=20
      for such use by or on behalf of the public."). Joe L. Thomas, =
attorney and=20
      officer with the Duddlesten Companies, testified that, under the=20
      <EM>Russell</EM> definition, Duddlesten has not so dedicated a =
roadway=20
      easement.=20
      <P><A name=3DN_3_>3. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The jury =
was=20
      instructed that "the land in question means the commercial reserve =

      property of Plaintiff on Barker Cypress Road."=20
      <P><A name=3DN_4_>4. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The =
doctrine of=20
      easement by estoppel or estoppel <EM>in pais</EM>, an exception to =
the=20
      requirement of a writing to create an easement, does not apply in =
this=20
      case. Three elements are necessary to the creation of an easement =
by=20
      estoppel: (1) a representation, communicated, either by word or =
action, to=20
      the promisee; (2) the communication was believed; and (3) the =
promisee=20
      relied on the communication to his detriment. <EM>Drye v. Eagle =
Rock=20
      Ranch, Inc.</EM>, 364 S.W.2d 196, 211 (Tex. 1962); <EM>Murphy v.=20
      Long</EM>, 170 S.W.3d 621, 625 (Tex. App.--El Paso 2005, pet. =
denied).=20
      There is no evidence in the record that Cypress ever communicated, =
either=20
      by its words or actions, to Duddlesten that it would create an =
easement on=20
      its property. Therefore, this exception to the Statute of Frauds =
does not=20
      apply.=20
      <P><A name=3DN_5_>5. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">Duddleston =
argues=20
      that he is not asserting the discovery rule with respect to the =
accrual of=20
      his breach of contract claims.</SPAN><SPAN=20
      style=3D"FONT-FAMILY: Times New Roman">=20
      <P><A name=3DN_6_>6. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The =
Honorable Davie=20
      L. Wilson, retired Justice, Court of Appeals, First District of =
Texas at=20
      Houston, sitting by=20
assignment.</SPAN></P></TD></TR></TBODY></TABLE></BODY></HTML>

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