Case Brief: Chastain v. Koonce and the Issue of Unconscionability

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Citation:

Chastain v. Koonce, 700 S.W.2d 579 (Tex. 1985)

Facts:

In 1979, Charles Koonce and J.P. Stroud decided to sell lots of property on their farm. Koonce and Stroud claimed that some of these plots were for residential use, and others were for commercial use. The Chastains, along with other residential buyers, decided to purchase plots for residential use. After the purchases were made, a company decided to buy a plot of land next door to the Chastains. This plot was one that was claimed to be for residential use only. After several unsuccessful complaints made by the Chastains and fellow residents, the issue was taken to court.

Procedural History:

The plaintiffs, Chastains and residents, took the issue to court. The trial court ruled in favor of the plaintiffs based on jury findings of unconscionable actions. However, the court of appeals reversed the trial court judgment in favor of the defendants, finding no evidence of unconscionability and refused to consider whether the purchasers were consumers within the meaning of the DTPA (Deceptive Trade Practices-Consumer Protection Act).

Issue:

Can the plaintiffs legally recover from the land purchases under the basis of unconscionability?

Rule:

Unconscionable action or course of action is defined by statute to describe an act which: A. Takes advantage of the lack of knowledge, ability, or capacity of a person to a grossly unfair degree; or B. Results in a gross disparity between the value received and the consideration paid in a transaction involving the transfer of consideration.

Analysis:

There is no evidence that the plaintiffs were taken advantage of to a grossly unfair degree.

Conclusion:

Though the plaintiffs have standing to sue under the DTPA, the court of appeals' judgment affirms that there is no evidence of unconscionability. Petitioners' motion for rehearing is overruled.

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