SBSB Eastham Secures Take-Nothing Judgment on Behalf of FedEx Freight in $7.5 Million Service Center Dispute

Lawsuit hinged on erroneous claims that FedEx Freight failed to maintain the property

CORPUS CHRISTI, Texas--(BUSINESS WIRE)--In a complete defense victory, Schouest, Bamdas, Soshea, BenMaier & Eastham PLLC (SBSB Eastham) has secured a take-nothing judgment for its client FedEx Freight, Inc. in a lawsuit filed by the Florida-based company Zamindari Real Estate Investment One, LLC. The plaintiffs were seeking more than $7.5 million in damages claiming FedEx had failed to maintain a leased service center facility in Corpus Christi, Texas, claims the defendants vigorously denied.

When Zamindari purchased the property in question in 2013, FedEx Freight was the sole tenant, occupying a large warehouse and office building. The service center was built the year prior by the previous owner as part of a lease agreement and construction rider with FedEx.

Once Zamindari took ownership, the company complained to its tenant that parts of the service center needed repair, including a sticking door, parts of the asphalt, roof, and other minor interior cosmetic problems along the front of the building. The two sides disagreed about which party was responsible for those repairs.

Upon closer inspection by an engineering consultant, these issues were determined to have been caused by shifts in the facility’s foundation due to soil moisture. The plaintiffs contended in the subsequent lawsuit that FedEx’s refusal to cover the repairs led to the extent of the damage and sought monetary damages for repairs as well as attorneys’ fees.

FedEx contended that there was no contract regarding structural damage or upkeep between the two parties, that it did nothing to cause the damage, that it complied fully with the lease agreement, and that the plaintiff was solely responsible for addressing the issues with the property.

After a full trial, the jury unanimously found in favor of FedEx Freight, resulting in a take-nothing judgment — meaning Zamindari recovered zero damages.

This outcome highlights the outstanding advocacy of SBSB Eastham partner Don Jones and FedEx in-house counsel Rob Ratton and Shelby Walton.

“The facts of the case were on our side from the start, and we are pleased that the jury saw that,” said Mr. Jones. “We maintained throughout the case that our clients had honored the terms of the lease but were not going to be forced to cover costs that were not their legal responsibility.”

The case is Zamindari Real Estate Investment One, LLC v. FedEx Freight, Inc., Cause No. 2019-DCV-6141-D, in the 105^th Judicial District Court of Nueces County, Texas.

About Schouest, Bamdas, Soshea, BenMaier & Eastham PLLC

SBSB Eastham is a group of experienced attorneys who have come together to form a law firm focused on client needs. The firm’s goal is to be the go-to resource at every stage of the legal process, bringing deeper experience, deeper commitment and deeper insights to help solve the most complex issues. In consultation or in the courtroom, the firm will aggressively pursue a client’s best interests. For more information about the firm and its team of attorneys, visit www.sbsb-eastham.com.