Supreme Court
Westwood Motorcars, LLC v. Virtuolotry, LLC
- Case number: 22-0846
- Legal category: Real Property
- Subtype: Landlord Tenant
- Set for oral argument: February 20, 2024
Case Summary
This case concerns the preclusive effect of an agreed judgment awarding possession of leased premises to the landlord in an eviction proceeding on a related suit by the tenant for damages in district court.
Westwood is an automobile dealer, and Virtuolotry was Westwood’s landlord. When Westwood attempted to renew its lease under the terms of the lease contract, Virtuolotry rejected the renewal and attempted to terminate the lease.
Westwood sued Virtuolotry in district court for a declaratory judgment that Westwood had properly renewed the lease. A few weeks later, Virtuolotry initiated eviction proceedings and was awarded immediate possession of the premises by the justice court. Westwood appealed to the county court, but the parties ultimately entered an agreed judgment in that court awarding Virtuolotry immediate possession of the premises.
Westwood then amended its district court petition to add damages claims for breach of the lease and constructive eviction. After a jury trial, the trial court rendered judgment for Westwood, awarding it over $1 million in damages. The court of appeals reversed, reasoning that the agreed judgment in the eviction proceeding precluded Westwood’s damages claim.
Westwood filed a petition for review, arguing that the court of appeals erred in its holding that the agreed judgment precludes Westwood’s damages claims. The Supreme Court granted the petition.
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