TX STATETexas Court of Appeals, 4th District (San Antonio)
2001

II Deerfield Ltd. Partnership v. Henry Building, Inc.

41 S.W.3d 259Texas Court of Appeals, 4th District (San Antonio) • Decided 2001Enforced

HOLDING

Deerfield and Henry Building settled a construction dispute but then Deerfield refused to participate in an architects' meeting required by the settlement to determine final payment. The Texas Court of Appeals ruled that Deerfield breached the settlement agreement by blocking this required step. The court enforced the full judgment against Deerfield, establishing that you cannot escape a contractual obligation by preventing the other party from completing their part of the deal.

KEY FINDINGS

Change Order

If you sign a settlement agreement, you must actually perform all required steps—you cannot block meetings or processes and then claim the other side didn't perform.

Dispute Resolution

Courts will hold you liable for preventing conditions that must happen before payment is due. Don't refuse to participate in required inspections, meetings, or architect reviews.

Retention

Settlement agreements are binding contracts. Blocking a final payment determination meeting is a material breach that can result in full judgment against you plus attorney's fees.

FULL COURT OPINION