Regency Advantage Limited Partnership, Ronald Berman, and Marc Eller, Petitioners v. the Bingo Idea-Watauga, Inc…

Summary

The Texas Supreme Court held that Regency Advantage Limited Partnership, as assignee, is not liable for a breach of the lease that occurred before it acquired the lease, and it is also not liable for a broker's commission absent an express assumption of that liability. Accordingly, the court reversed the trial court's judgment against Regency on the lease claims and affirmed the appellate court's judgment that the broker receives nothing. The decision rests on Restatement (Second) of Property §16.1 and Texas case law requiring express assumption for liability on assigned contracts.