KBG Investments, LLC v. Greenspoint Property Owners' Association, Inc.
KBG INVESTMENTS, LLC, Appellant v. GREENSPOINT PROPERTY OWNERSâ ASSOCIATION, INC., Appellee
Attorneys
William F. Harmeyer, Houston, TX, for appellant., James H. Leeland, Thomas Michael Bai-lases, Houston, TX, for appellee.
Full Opinion (html_with_citations)
OPINION
In this action by a property ownersâ association to enforce a restrictive covenant, the property owner challenges the summary judgment against it and the award of statutory damages for the prop *113 erty ownerâs violations of the covenant. Although we conclude that the property owner failed to raise a genuine issue of material fact precluding summary judgment, we hold that the statutory damages awarded constitute exemplary damages, which are available only if the claimant also is awarded more than a nominal amount of other damages for the cause of action. Because the property ownersâ association was awarded no actual damages, we conclude that the trial court erred in awarding it statutory damages. We therefore modify the trial courtâs judgment to eliminate the award of statutory damages and affirm the judgment as modified.
I. Background
Appellant KBG Investments, LLC owns a commercial tract in Greenspoint Subdivision, which is subject to a Declaration of Covenants, Conditions and Restrictions (âthe Declarationâ). Appellee Greenspoint Property Ownersâ Association, Inc. (âGreenspointâ) administers and enforces the provisions of the Declaration. According to Greenspointâs petition, KBG sought and obtained permission from the Architectural Review Committee to paint the exterior of its building a certain color and to post at specified locations two âInternational Market Placeâ signs. Rather than acting on this approval, KBG painted its building an unapproved bright yellow color and erected two âNow Openâ signs and two âInteiânational Flea Marketâ signs at non-approved locations.
Greenspoint sued for permanent injunc-tive relief requiring KBG to remedy the violations. In addition, Greenspoint sought declaratory relief that the lien it had placed on KBGâs property to secure payment of attorneysâ fees, costs, and interest was valid. Finally, Greenspoint sought foreclosure of the lien' and an award of statutory damages pursuant to section ⢠202.004(c) of the Texas Property Code. Greenspoint successfully moved for traditional summary judgment on "its request for a permanent injunction. The trial court additionally awarded Greens-point $10,400 in statutory damages, together with attorneyâs fees, costs, and interest.
In two issues, KBG argues that the trial court erred in granting summaryâ judgment and in awarding statutory damages.
II. Summary Judgment
A movant for traditional summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law. Tex. R. Crv. P. 166a(c); Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009). If the movant initially establishes a right to summary judgment on the issues expressly presented in the motion, then the burden shifts to the nonmovant to present to the trial court'any issues or evidence â that would preclude summary judgment. See City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678-79 (Tex.1979). When reviewing a traditional summary judgment, we consider all the evidence in the light most favorable to the nonmovant, crediting evidence favorable to the nonmovant if a reasonable factfinder could, and disregarding contrary evidence unless a reasonable factfinder could not. See Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex.2006).
A. Condition Precedent
KBG first argues that the trial court erred in granting Greenspointâs motion for summary judgment because Greenspoint neitherâ alleged nor proved that all conditions precedent had been performed or had occurred. The record does not support KBGâs argument. Greens-point alleged in its petition that â[a]ll con *114 ditions precedent to filing this suit and Plaintiffs right to recovery have been performed or have occurred.â A party that makes such a general averment in its pleading is required to prove that allegation only to the extent that it is specifically denied by the opposing party. See Tex. R. Civ. P. 54, Because KBG did not specifically deny that any condition precedent had been fulfilled, Greenspoint was not required to prove the contrary.
B. Affirmative Defenses of Estoppel, Laches, Unclean Hands, and Waiver
KBG next contends that the summary judgment must be reversed because a review of the entire record in the light most favorable to KBG reveals that there are material issues of fact regarding KBGâs affirmative defenses of estoppel, laches, unclean hands, and waiver. This argument, however, fails to take into consideration KBGâs burden in responsĂŠ to the summary-judgment motion.
Any issues that a non-movant contends avoid summary judgment must be expressed in a written response or answer to the motion. See Sandhu v. Pinglia Invs. of Tex., L.L.C., No. 14-08-00184-CV, 2009 WL 1795032, at *6 (Tex.App. â Houston [14th Dist.] June 25, 2009, pet. denied) (mem.op.). Such issues include any affirmative defenses that the nonmovant contends are sufficient to defeat summary judgment. See Clear Creek Basin Auth, 589 S.W.2d at 678 (â[T]he nonmovant must expressly present to the trial court any reasons seeking to avoid movantâs entitlement [to summary judgment], such as those set out in rules 93 and 94.... â); Sharma v. Vinmar Intâl, Ltd., 231 S.W.3d 405, 421-22 (Tex.App.â Houston [14th Dist.] 2007, no pet.) (characterizing the unclean-hands doctrine as an affirmative defense); Tex. R. Civ. P. 94 (identifying estoppel, laches, and waiver as affirmative defenses). Affirmative defenses that are raised in the nonmovantâs pleadings but are not expressly asserted in a summary-judgment response or other answer to the motion cannot be considered on appeal as grounds for reversal. See Tex. R. Civ. P. 166a(c); Clear Creek Basin Auth., 589 S.W.2d at 678.
The affirmative defenses of estop-pel, laches, and unclean hands are not mentioned in KBGâs summary-judgment response. Thus, we cannot consider these as grounds for reversal.
Waiver is mentioned in KBGâs summary-judgment response only in the con-clusory sentence, âOnly after the Plaintiff had effectively waived all its rights as to the Defendantâs actions, did the Plaintiff start making its assertions and demands.â KBG did not state the factual basis for its conclusion that Greenspoint had waived all of its rights before ever making an assertion or a demand. KBG neither referred to any law, nor cited any evidence.
Even assuming, without deciding, that this bare assertion was sufficient to raise the issue of whether summary judgment was precluded by the affirmative defense of waiver, KBG still was required to offer summary-judgment proof of each element of the defense. See Richardson v. Office Bldgs. of Hous., 704 S.W.2d 373, 376 (Tex.App. â Houston [14th Dist.] 1985, no writ) (citing Seale v. Nichols, 505 S.W.2d 251, 254 (Tex.1974)). âThe elements of waiver include (1) an existing right, benefit, or advantage held by a party; (2) the partyâs actual knowledge of its existence; and (3) the partyâs actual intent to relinquish the right, or intentional conduct inconsistent with the right.â Ulico Cas. Co. v. Allied Pilots Assân, 262 S.W.3d 773, 778 (Tex.2008) (citing Tenneco Inc. v. Enter. Prods. Co., 925 S.W.2d 640, 643 (Tex.1996)). In its response to the summary- *115 judgment motion, KBG mentioned none of these elements.
On appeal, it appears to be KBGâs position that Greenspointâs right to object to KBGâs paint and signs or to sue for KBGâs violation of the restrictive covenant was waived pursuant to Article V, Section 1 of the Declarations That section provides that no additions or improvements shall be erected or placed on the property âuntil the construction plans and specifications including ... colors [and] ... signs ... have been submitted to and approved in writing by the Architectural Review Committee .... â If the Architectural Review Committee âfails to approve or disapprove such plans and specifications within thirty (30) days after the receipt thereof, they shall be deemed to be approved.... â
KBG does not dispute Greenspointâs un-controverted evidence that KBG sought and obtained approval to paint the budding a certain color and to post two âInternational Market Placeâ signs in designated locations, and that KBG instead painted the building an unapproved color and erected four unapproved signs at other locations. KBG instead argues that the affidavit of Gurminder Singh, attached to its summary-judgment response, raised a genuine issue of material fact about whether Greenspoint failed to timely respond to a written request for approval of these modifications. KBG contends that by failing to timely respond to the modification request, Greenspoint tacitly approved KBGâs current paint and signage choices and waived its right to an injunction requiring KBG to repaint its building and remove its current signs. Specifically, Singh attested that after he was told that the buildingâs color was unacceptable, he met with Greenspointâs Board of Trustees in February 2012. Singh states that he asked the Board to âconsider allowing me to maintain the color,â and that the Board asked him âto write an explanation letter.â Singh says that he also asked âto be allowed to changeâmy signs,â and that he âwas told then to put it in writing.â According to Singh, he sent the letter in March 2012, but the Board âwas unresponsive.â In addition, Singh stated that after receiving a letter from Greenspointâs attorney in June 2012, he contacted the attorney and asked âthat they reconsider their complaint.â Singh says, âI was told to send a letter to the attorney and that they would present it. Again, I heard nothing for an extended period of time.â
We disagree that Singhâs affidavit constitutes evidence sufficient to raise a genuine issue of material fact about whether Greenspoint waived its right to enforce the Declaration by failing to timely respond to a written request made pursuant to Article V, Section 1. Under the terms of that section, Greenspointâs duty to timely approve or disapprove of a property ownerâs paint and signage choices is triggered by the Architectural Review Committeeâs âreceiptâ of the property ownerâs âplans and specifications.â There is no evidence that Singhâs March 2012 letter contained the âplans and specificationsâ required under Article V, Section 1, or that it was received by the Architectural Review Committee. Although Singh also attested that he was told to send a letter to Greenspointâs attorney sometime in or after June 2012, there is no evidence that he did so.
Because there is legally insufficient evidence that Greenspointâs Architectural Review Committee received âplans and specificationsâ concerning KBGâs current paint and sign choices as required by Article V, Section 1 of the Declaration, there is no evidence that Greenspoint failed to timely approve or disapprove such plans and specifications. We accordingly overrule KBGâs first issue.
*116 III. Statutory Damages
Section,202.004(c) of the Texas Property Code provides that â[a] court may assess civil damages for the violation of a restrictive covenant in an amount not to exceed $200 for each day of the violation,â Tex. Prop. Code Ann. § 202.004(c) (West 2014) (emphasis added). Because the statute .places such an award within the trial courtâs discretion, we apply an abuse-of-discretion standard of review. Sanchez v. Southampton Civic Club, Inc., 367 S.W.3d 429, 433 (Tex.App. â Houston [14th Dist.] 2012, no pet.) (corrected op.). âAbuse of discretion,â however, âmeans different things in different contexts.â See Schuring v. Fosters Mill Vill. Cmty. Assân, 396 S.W.3d 73, 76 (Tex.App. â Houston [14th Dist.] 2013, pet. denied). Here, KBG argues that the âcivil damagesâ awarded to Greenspoint are âexemplary damages,â and that the restrictions found in Chapter 41 of the Texas Civil Practice and Remedies Code on awards of exemplary damages apply. This is a matter of statutory construction, which is a question of law subject to de novo review. See Tex. Depât of Transp. v. Needham, 82 S.W.3d 314, 318 (Tex.2002); see also Walker v. Packer, 827 S.W.2d 833, 840 (Tex.1992) (orig. proceeding) (âA trial court has no âdiscretionâ in determining what the law is or applying the law to the fĂĄcts.â).
Both our court and our sister court have concluded that these civil damages are punitive damage's. âDamages assessed under section 202.004(c) of the Property Code are unrelated to the type or extent of injury or harm.â Sanchez, 367 S.W.3d at 436. As such, they are âpunitive rather than compensatory.â Id. (citing Uptegraph v. Sandalwood Civic Club, 312 S.W.3d 918, 937 (Tex.App. â Houston [1st Dist.] 2010, no pet.)).
, KBG argues that because such damages are âpunitive rather than compensatory,â see id. they constitute âexemplary damagesâ under Chapter 41 of the Texas Civil Practice and Remedies Code. See Tex. Civ. Prac. & Rem. Code Ann. § 41.001(5) (West 2015) (ââExemplary damagesâ means any damages , awarded as a penalty or by way of punishment but not for compensatory purposes.âExemplary damagesâ includes punitive damages.â), KBG then argues that because Greenspoint recovered no actual damages, the award of statutory civil damages is precluded. See id. § 41.004(a) (â[E]xemplary damages may be awarded only if damages other than nominal damages are awarded.â).
In response, Greenspoint points out that our sister court has held that section 202.004(c) does not require proof of actual damages as a prerequisite to the assessment of statutory damages. See Uptegraph, 312 S.W.3d at 938 (â[E]vidence of actual damages is not a prerequisite to the assessment of damages under section 202.004(c).... â), But in neither Uptegraph nor Sanchez did the parties argue that Chapter 41 precludes recovery of these statutory damages in the absence of actual damages. The parties before us have not cited, and our own research has not discovered, any Texas case that has addressed that question.
An analogous question was presentedâ but not answered â in Flores v. Millennium Interests, Ltd., 185 S.W.3d 427 (Tex.2005), a case addressing questions certified to the court by the Fifth Circuit Court of Appeals. In Flores, the Texas Supreme Court concluded that a âliquidated damagesâ provision in section 5.077(c) of the Texas Property. Code 1 was really a puni- *117 five-damages provision, and held that the claimants were not required to âprove actual harm or injury to recover statutory damages,â because the court found ânothing in the statute to suggest such a requirement.â Id. at 434 (emphasis added); see also Henderson v. Love, 181 S.W.3d 810, 817 n. 7 ((Tex.App. â Texarkana 2005, no pet.) (concluding that âthe court was speaking just of Section 5.077 standing alone and not speaking to whether thĂŠ provisions of Chapter 41 applyâ). Significantly, however, the court âdecline[d] to decide at this time whether these statutory damages are also âexemplary damagesâ within the meaning of Chapter 41.â See Flores, 185 S.W.3d at 434. The court accordingly did not answer the question of whether âa purchaser must also comply with the requirements of Chapter 41 [of the Texas Civil Practice and Remedies Code] to collect these statutory damages.â Id. (emphasis added). Three dissenting justices would have reached that question, and would have concluded that Chapter 41 did apply to the statutory damages at issue in that case. See id. (Brister, J., dissenting). 2
The Fifth Circuit has once again certified a similar issue to the Texas Supreme Court in connection with another statute that provides for a civil penalty without any actual damages: the Texas Optometry Act. 3 The two certified questions are:
1. Whether an action for a âcivil penaltyâ under the Texas Optometry Act is an âaction in which a claimant seeks damages relating tĂł a cause of actionâ within the meaning of Chapter 41 of the Texas Civil Practice and Remedies Code. In other words, are 'civil penalties awarded under Tex. Occ. Code § 351.605 âdamagesâ as that term is used in Tex. Civ. Prac. & Rem. Code § 41.002(a).
2. If civil penalties awarded under the Texas Optometry Act are âdamagesâ as that term is used in Tex. Civ. Prac. & Rem. Code § 41.002(a), whether they are âexemplary damagesâ such that Tex. Civ. Prac.- & Rem. Code § 41.004(a) precludes their recovery in any case where a â plaintiff does not receive damages . other than nominal damages.
Forte v. Wal-Mart Stores, Inc., 780 F.3d 272, 283 (5th Cir.2015). These are- similar to the two questions that we must answer in this appeal, but under a different statute. We stress, however, that we are not called upon to construe Chapter 41 in a general sense; we instead determine only the effect of Chapter 41 on section 202.004(c) of the Property Code, which concerns a trial courtâs discretionary award of specific statutory damages to a private litigant for conduct that is not otherwise unlawful and which, in the case before us, caused no actual damages. 4
*118 A. Does Greenspointâs lawsuit fall under Chapter 41?
Greenspoint argues that the claims arising from KBGâs violation of restrictive covenants are not governed by Chapter 41 because (1) Greenspoint did not seek âdamages,â as that term is used in the provision identifying Chapter 41âs scope; (2) unlike section 202.004, Chapter 41 makes proof of fraud, malice or gross negligence a prerequisite to an award of exemplary .damages; (8) section 202.004 provides a lower maximum amount of damages; and (4) if applied to section 202.004, Chapter 41 would nullify such claims for civil damages. We examine each in turn.
1, Chapter 41âs scope
â Greenspoint argues that statutory damages under section 202.004 fall outside of Chapter 41âs scope, because Chapter 41 âapplies to any action in which a claimant seeks damages relating to a cause of action.â See Tex. Civ. Prao. &Rem. Code Ann. § 41.002(a) (West 2015) (emphasis added). According to Greenspoint, this case falls outside Chapter 41 because âactual damages are not sought in claims for breach of restrictive covenants.â Greenspoint did not seek actual damages, but instead sought to enforce a restrictive covenant through the use of a permanent injunction. Greenspoint also sought âcivil damagesâ under section 202.004(c) of the Property Code. Greenspoint admits â and we agree â that these statutory âcivil damagesâ are not actual, compensatory, damages. See Sanchez, 367 S.W.3d at 436. Thus, Greenspointâs argument that this is not an âaction in which a claimant seeks damages relating to a cause of actionâ rests on the implicit assumption that âdamages,â as used in section 41.002(a), refers only to actual compensatory damages.
We can test this assumption by examining the legislatureâs use of the word âdamagesâ within this same provision. See City of Lorena v. BMTP Holdings, L.P., 409 S.W.3d 634, 643 (Tex.2013) (âWe construe statutes to provide consistent meaning to the same word used throughout a statute.â (citing Needham, 82 S.W.3d at 318)), The legislature used the word âdamagesâ four times in the first three sentences of section 41.002 without specifying whether it was referring to compensatory damages, exemplary damages, or both. Unless the context indicates otherwise, we can presume that in using the same word in each of these instances, the legislature intended the word to be given the same meaning. See TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432, 439 (Tex.2011) (âUndefined terms in a statute are typically given their ordinary meaning, but if a different or more precise definition is apparent from the termâs use in the context of the statute, we apply that meaning.â (citing In re Hall, 286 S.W.3d 925, 928-29 (Tex.2009) (orig. proceeding))).
To determine whether the legislature used the word âdamagesâ in the first sentence of section 41.002 to refer only to compensatory damages, let us see how the same word is used in the next two sentences:
This chapter establishes the maximum damages that may be awarded in an action subject to this chapter, including an action for which damages are awarded under another law of this state. This chapter does not apply to the extent another law establishes a lower maximum amount of damages for a particular claim.
Tex. Crv. Phao. & Rem. Code Ann. § 41.002(b) (emphasis added). If, as Greenspoint contends, âdamagesâ refers exclusively to compensatory damages, then this subsection would mean that Chapter *119 41 establishes a maximum only for compensatory damages.
We know, however, that' âdamagesâ is not used in section 41.002(b) to refer exclusively to compensatory damages, because Chapter 41 in fact sets a maximum amount for exemplary damages. See id. § 41.008(b) (âExemplary damages awarded against a defendant may not exceed an amount ĂŠqual to the greater of: (1)(A) two times the amount of economic damages; plus (B) an amount equal to any noneco-nomic damages found by the jury, not to exceed $750,000; or (2) $200,000.â). 5 Because the legislature did not use the word âdamagesâ to refer exclusively to compensatory damages in the remainder of section 41.002, we will not read such a restriction into the legislatureâs use of the same word in the first sentence of this section. Cf. TGS-NOPEC Geophysical Co., 340 S.W.3d at 439 (âIf a statute uses a term with a particular meaning or assigns a particular meaning to a term, we are bound by the statutory usage.â).
2. Chapter 41âs requirement of proof of fraud, malice, or gross negligence
As a further argument that Chapter 41 does not apply to the civil damages awarded here, Greenspoint points out that section 202.004(c) does not require proof of a particular mens rea before civil damages may be assessed. Greenspoint contends that the absence of such a requirement in section 202.004(c) contrasts with section 41.003, which requires clear and convincing evidence of fraud, malice, or gross negligence as a prerequisite to recovery of exemplary damages. But there is no contrast between the two provisions, because the requirement that the claimant prove fraud, malice, or gross negligence does not apply â[i]f the claimant relies on a statute establishing a-cause of action and authorizing exemplary damages in specified circumstances or in conjunction with a specified culpable mental state.â Tex. Civ. Prac. <ž Rem. Code Ann. § 41:003(c) (West 2015); see id. § 41.003(a) (providing that proof of fraud, malice, or gross negligence is required â[ejxcept as provided in Subsection(c)â). The civil damages at issue here fall within that exception. Section 202.004 is a statute that establishes a cause of action. See Tex. Peop. ' Code Ann. § 202.004(b) (âA property ownersâ association or other representative designated by an owner of real property may initiate, defend, or intervene in litigation or an administrative proceeding affecting the enforcement of a restrictive covenant or the protection, preservation,, or operation of the property covered by the dedicatory instrument.â). The statute authorizes a trial court to âassess civil damagesâ of up to $200 for each day of the violation of a restrictive covenant, which is defined as âany covenant, condition, or restriction contained in a dedicatory instrument, whether mandatory, prohibitive, permissive, or administrative.â Id. §§ 202.001(4); 202.004(c). And, as discussed further infra, these âcivil damagesâ constitute âexemplary damages.â Thus, proof of fraud, malice, or gross negligence is not a prerequisite to the assessment of the damages authorized by section 202.004(c).
3. Scope of Chapter 4Vs exception for claims with lower damage limits
Greenspoint also contends that Chapter 41 does not apply to claims for civil damages under the Property Code because section 202.004(c) âestablishes a lower amount of. damages that could be awarded *120 to a plaintiff for this particular claim.â We need not address the question of whether section 202.004(c) in fact establishes a lower amount-of damages, because in any event, Greenspoint is mistaken about the scope of this exception.
' It is inborrect to say that the entirety of Chapter 41 is-inapplicable if another law establishes a lower amount of damages that could be awarded. The exception instead provides that Chapter 41 âdoes not apply to the extent another law establishes a lower maximum amount of damages for a particular-claim.â Tex. Crv. PRAC. & Rem. Code Ann. § 41.002(b) (emphasis added). This means that Chapter 41 âestablishes the maximum exemplary damage award, even when damages are awarded under another law, unless the other law âestablishes ĂĄ lower maximum amount of damages for a particular claim.â â Smith v. Davis, 462 S.W.3d 604, 612-13 (Tex.App. â Tyler 2016, pet. denied). If another law establishes a lower maximum amount of damages for a particular claim, then Chapter 41âs maximum-damages provision does not apply. That, however, is âthe extentâ to which Chapter 4i is rendered inapplicable. With the sole exception of the damages cap, all of Chapter 41âs provisions continue to apply â including the requirement that a claimant prove actual damages in more than a nominal amount before exemplary damages may be collected.
4. Effect of applying Chapter 41 to section 202.004
Greenspoint additionally argues that, because Chapter 41 precludes an award of penalty damages in the absence of actual damages, we would impermissibly nullify the civil-damages provision of section 202.004(c) if we hold that it is subject to the limitations of Chapter 41., See Tex. Govât Code Ann. § 311.023(6) (West 2013) (âIn construing a statute, whether or not the statute is considered ambiguous on its face, a court may consider among other matters the ... consequences , of a particular construction_â). 6 It is true that even if a party cannot recover actual damages, the party still must secure factual findings on their existence and amount before punitive damages may be awarded. See Nabours v. Longview Sav. & Loan Assân, 700 S.W.2d 901, 903 (Tex.1985) (stating, in a case in which the plaintiffs were granted injunctive relief, that â[e]ven in cases where actual damages are not recoverable, it is still necessary to allege, prove and secure jury findings on the existence and amount of actual damage sufficient to support an award of punitive damageâ). But Greenspointâs argument is based on the additional assumption that in a suit based on a property ownerâs violation of a restrictive covenant, the property ownersâ association could obtain only in-junctive relief, and could never prove actual damages.
Contrary to Greenspointâs position, the remedies of actual damages for past harm and injunctive relief to prevent future harm are not necessarily mutually exclusive. See, e.g., Noell v. City of Carrollton, 431 S.W.3d 682, 712 (Tex.App. â Dallas 2014, pet. denied) (â[A] court may properly grant injunctive relief to stop a wrong and remedy it, and award past damages to the *121 injured party for the. period of time the wrong existed.â (citing Marin Real Estate Partners, L.P. v. Vogt, 373 S.W.3d 57, 76-77 (Tex.App. â San Antonio 2011, no pet.))); Eberts v. Businesspeople Pers. Servs., Inc., 620 S.W.2d 861, 864 (Tex.Civ.App. â Dallas 1981, no writ) (â[I]f actual damages are proved, plaintiff may be entitled to damages for a breach that occurred before the suit was filed as well as to -an injunction restraining subsequent breaches.â), cited with approval in Schneider Natâl Carriers, Inc. v. Bates, 147 S.W.3d 264, 284-85 (Tex.2004); Ivic v. Gorsalitz, No. C14-88-00204-CV, 1989 WL 70574, at *1 (Tex.App. â Houston [14th Dist.] June 29,1989, no writ) (not designated for publication) (awarding actual damages for past violation of a restrictive covenant and permanently enjoining future violation); cf. Schneider Natâl Carriers, 147 S.W.3d at 285 (explaining that it âis a rule of general applicationâ that âfuture damages cannot be recovered if a permanent injunction issues to abate themâ) (emphasis added).
It is not difficult to imagine a situation in which both damages and injunctive relief are available. For example, the Declarations in this case provide that â[n]o use shall be permitted which is offensive by reason of odor ... or pollution,â a situation that is analogous to a trespass to land. The property owner instead is required to maintain the property in a âsafe, clean and attractive condition at all times.â If the owner does not, then Greenspoint can have such maintenance performed, âand the Owner or lessee shall be liable for the cost thereof.â 7 Thus, if a property owner violated these maintenance-and-use provisions and refused to .cure them, then Greenspoint. could do so, and the reasonable amounts it expended to perform necessary maintenance would be evidence of the existehee and amount of its actual compensatory damages. Faced with repeated violations, Greenspoint additionally could seek injunctive relief, such as that available in a trespass action. Cf. City of Arlington v. City of Fort Worth, 873 S.W.2d 765, 769 (Tex.App. â Fort Worth 1994, writ dismâd w.o.j.) (â[Injunction is the proper remedy to restrain repeated or'continuing trespasses where the âremedy at law is inadequate because of the nature of the injury, or the multiplicity of actions necessary to obtain redress.â).
Finally, as the Texas Supreme Court has stated, the âprime canonâ of statutory construction is that âwe .construe statutes by first looking to.the statutory language for the Legislatureâs intent, and only if we cannot discern legislative intent in the language'of the statute itself.do we resort to canons of construction or other aids.â Tex. Lottery Commân v. First State Bank of DeQueen, 325 S.W.3d 628, 639 (Tex.2010) (citing City of Rockwal l v. Hughes, 246 S.W.3d 621, 626 (Tex.2008)). Where a statuteâs unambiguous language discloses the legislatureâs intent that the statute will prevail to the extent that it conflicts with another law, we must give effect to that language. . See id . Here, the legislature has stated unambiguously that, with certain exceptions inapplicable here, âthe. provisions, of [Chapter 41] prevail over all other law to the extent of any conflict.â Tex. Civ. Prac. & Rem. Code Ann *122 § 41.002(c) (emphasis added). 8 Thus, assuming, without deciding, that Chapter 41 conflicts with section 202.004(c) in that Chapter 41 makes an award of actual damages a prerequisite to an award of exemplary damages while section 202.004 contains no such requirement, then Chapter 41 prevails.
We therefore conclude that Chapter 41 applies.
B. Are the civil damages under section 202.004(c) of the Texas Property Code exemplary damages under Chapter 41?
Chapter 41 defines exemplary damages as âany damages awarded as a penalty or by way of punishment but not for compensatory purposes_ âExemplary damagesâ includes punitive damages.â See Tex. Civ. PRAC. & Rem.- Code Ann. § 41.001(5) (West 2015). Our court already has determined that the civil damages under section 202.004(c) of the Texas Property Code âare punitive rather than compensatory.â Sanchez, 367 S.W.3d at 436. -Under this precedent, civil damages under section 202.004(c) of the Property Code fall squarely within Chapter 41âs definition of exemplary damages.
In arguing to the contrary, Greenspoint likens its claim for violation of a restrictive covenant to a claim for breach of contract. According to Greenspoint, it would be nonsensical to treat the statutory civil damages at issue here as exemplary damages because exemplary damages are not available for a breach of contract. In other words, Greenspoint argues that it is nonsensical to construe the statute as providing for an award of damages that would not have been available for a common-law breach-of-contract claim. We have rejected that interpretation, concluding instead that â[djamages assessed under section 202.004 of the Property Code are unrelated to the type or extent of injury or harm caused by the violation.â Sanchez, 367 S.W.3d at 436. Thus, we already have construed section 202.004 to authorize the assessment of non-compensatory, punitive damages that are not available in a common-law breach-of-contract claim.
Greenspoint also attempts to distinguish civil damages under section 202.004 from exemplary damages under Chapter 41 by pointing out that the civil damages at issue are discretionary. See Tex. PROP. Code Ann. § 202.004(c) (âA court may assess civil damages for the violation of a restrictive covenant in an amount not to exceed $200 for each day of the violationâ). Greenspoint states that, â[b]y contrast, provided a plaintiff meets the evidentiary standards under Chapter 41, he should be able to recover exemplary damages.â This is incorrect; an award of exemplary damages under Chapter 41 also is discretionary. See Tex. Civ. PRAC. & Rem.Code Ann. § 41.010(b) (West 2015) (âSubject to the [cap on exemplary damages], the determination of whether to award exemplary damages and the amount of exemplary damages to be awarded is within the discretion of the trier of factâ).
Chapter 41 is broad in scope, and with certain limited exceptions that are inapplicable here, its provisions âprevail over all other law to the extent of any conflict.â Id. § 41.002(c). While the Tex- *123 as Property Code would allow the recovery of these âcivil damagesâ without any proof of actual damages, Chapter 41 does not, and Chapter 41 prevails. It is undisputed that Greenspoint neither alleged nor introduced evidence of actual damages. 9 We therefore conclude that the trial court abused its discretion in awarding Greens-point statutory damages. We accordingly sustain KBGâs second issue.
IV. Conclusion
We conclude that Greenspoint carried its burden to establish that KBG violated the restrictive covenant by painting the exterior of its building an unapproved col- or and by posting unapproved signs. The burden therefore shifted to KBG to introduce evidence sufficient to raise a genuine issue of material fact precluding summary judgment. Because KBG failed to meet that burden, we affirm the portion of the judgment granting Greenspoint permanent injunctive relief.
We further conclude that statutory âcivil damagesâ under section 202.004(c) of the Texas Property Code are exemplary damages, and as such, are unavailable where the claimant sustains no other damages.
We accordingly modify the trial courtâs judgment to eliminate the award of statutory damages, and affirm the judgment as modified. 10
. Act of May 18, 2001, 77th Leg., R.S., ch. 693, § 1, sec. 5.077, 2001 Tex. Gen. Laws 1319, 1326, amended by Act of May 26, 2005, 79th Leg., R.S., ch. 978, § 5, 2005 Tex Gen. Laws *117 3280, 3282, and Act of May 30, 2015, 84th Leg., R.S., ch. 996, § 6, 2015 Tex Sess. Law Serv. 3528, 3528-29 (West).
. The courts that have addressed that question concluded that the statutory damages at issue in Flores constituted exemplary damages to which Chapter 41 applies. See Smith v. Davis, 462 S.W.3d 604, 613 (Tex.App.â Tyler 2015, pet. denied) (op. on rehâg); Henderson, 181 S.W.3d at 816-17.
. Tex. Occ. Code Ann. §§ 351.001-608 (West 2012 & Supp.2014).
. We express no opinion on whether the attorney general's claim for civil penalties for certain statutory violations would fall under Chapter 41. See AEP Tex. N. Co. v. SPA Pipe, Inc., No. 03-06-00122-CV, 2008 WL 5210919, at *5 n. 8 (Tex. App. â Austin Dec. 12, 2008, pet. dismâd) (mem.op.) ("Although when construing statutes, we are required to read statutes as a whole, we are also limited by the facts as they are presented in an appeal.â).
. In fact, until 2003, Chapter 41 did not limit the recovery of any other type of damages. In 2003, section 41.0105 was added, which provides, "In addition to any other limitation under law, recovery of- medical or health care expenses incurred is limited to the amount actually paid or incurred by or on behalf of the claimant.â Id. § 41.0105 (West 2015).
. Although section 41.003 exempts claims for statutory damages from the requirement that the claimant prove fraud, malice, or gross negligence, Chapter 41's requirement that the claimant prove actual damages as a prerequisite to an award of exemplary damages contains no similar exemption for statutory-damage claims. Compare Tex. Civ. Prac. & Rem. Code Ann. § 41.003 with id. § 41.004 (âExcept [where a claimant ... elects to have his recovery multiplied under another statute], exemplary damages may be awarded only if damages other than nominal damages are awarded.â). -
. Even in the absence of such a provision in its declarations, some property owners' associations have a statutory right-to reasonably use self-help to enforce restrictive covenants. â See Tex. Prop. Code Ann. § 215.009(c) (West 2014) (providing that a master mixed-use property ownersâ association âmay â use self-help to enforce its restrictive covenants against a residential or commercial property owner as necessary to prevent immediate harm to a person or property, or as otherwise reasonable") (emphasis added).
. As previously discussed, Chapter 41 does not apply "to the extent another law establishes a lower maximum amount of damages for a particular claim." Id. § 41.002(b). It also does not apply to actions under (1) the Texas Free Enterprise and Antitrust Act of 1983; (2) the Deceptive Trade Practices-Consumer Protection Act "except as specifically provided in Section 17.50 of that Act"; (3) Chapter 36 of the Human Resources Code; or (4) Chapter 21 of the Insurance Code. Id. § 41.002(d).
. Greenspointâs attorneyâs fees are not "damages.â See In re Nalle Plastics Family Ltd. P'ship, 406 S.W.3d 168, 173 (Tex.2013) (orig. proceeding) ("While attorney's fees for the prosecution or defense of a claim may be compensatory in that they help make a claimant whole, they are not, and have never been, damages.â),
. The award of attorney's fees was not challenged on appeal.