From our private database of 35,600+ case briefs...
SP Terrace, LP v. Meritage Homes of Texas, LLC
Texas Court of Appeals
334 S.W.3d 275 (2010)
Meritage Homes of Texas, LLC (plaintiff) entered into a development contract with SP Terrace, LP (defendant). Under the contract, SP Terrace was responsible for improving the overall subdivision, including filing a subdivision plat with the local government. After the plat was filed, Meritage Homes would then purchase the lots in a series of transactions. The total price of the contract was $2,688,000. Meritage Homes deposited 10 percent, or $268,000, with SP Terrace as earnest money. The contract stated that Meritage Homes could recover the earnest money if SP Terrace failed to file the subdivision plat by December 31, 2005, the date specified as substantial completion. On the other hand, if Meritage Homes breached the contract, SP Terrace was entitled to keep the earnest money as liquidated damages. Also, if Meritage Homes caused a delay in SP Terrace’s performance, the substantial-completion deadline would be extended for the period of that delay. Meritage Homes and SP Terrace met on November 30, 2005. At that time, SP Terrace was prepared to file the subdivision plat, but Meritage Homes requested changes to the plat and requested that SP Terrace delay the filing of the plat to accommodate the changes. The parties attempted to work together on these changes, but in February Meritage Homes declared that SP Terrace was in breach. Meritage Homes then demanded a return of its earnest money. SP Terrace refused, and Meritage Homes filed this lawsuit, alleging breach of contract. SP Terrace filed a counterclaim, alleging that it was entitled to keep the earnest money and that SP Terrace had incurred additional damages. SP Terrace also alleged that the liquidated-damages clause was an unenforceable penalty. Meritage Homes filed a motion for summary judgment. The trial court granted the motion, and SP Terrace appealed.
Rule of Law
Holding and Reasoning (Bland, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 619,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 619,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.