Southwest Properties, L.P. v. Lite-Dec of Texas, Inc.

OPINION

CATHERINE STONE, Justice.

This is a case of first impression involving the Sham Contract provision found in section 53.026 of the Texas Property Code. The parties dispute whether section 53.026 provides a method of allocating liability to a property owner or whether the provision applies only for purposes of filing and perfecting a mechanic’s lien. Because we find section 53.026 does not control liability, we reverse the judgment of the trial court and render judgment in favor of appellants.

Factual and Procedural Background

MF-SWP, a joint venture of Martin Fein Interests and Southwest…