Austin Bharadwaja and Ryan Bharadwaja/Michael Hays, Elizabeth Hays, and Panda Pal Property Management v. Michael Hays, Elizabeth Hays, and Panda Pal Property Management/Austin Bharadwaja and Ryan Bharadwaja

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS § AUSTIN BHARADWAJA and RYAN BHARADWAJA, § No. 08-24-00075-CV Appellants/Cross-Appellees, § Appeal from the v. § County Court at Law No. 7 MICHAEL HAYS; ELIZABETH HAYS; § of El Paso County, Texas and PANDA PAL PROPERTY, MANAGEMENT, LLC, § (TC# 2023-CCV00813) Appellees/Cross-Appellants. § MEMORANDUM OPINION In the underlying lawsuit, Appellants, Austin Bharadwaja and Ryan Bharadwaja, sued Appellees, Michael Hays, Elizabeth Hays, and Panda Pal Property, Management, LLC, on claims arising from contaminated water and a malfunctioning septic tank located on property the Bharadwajas leased from the Hayses. Following a bench trial, the trial court awarded the Bharadwajas partial relief on their claims. In three issues on appeal, the Bharadwajas assert the trial court erred by (1) failing to award civil penalties and a full rent credit on their two repair or remedy claims, (2) denying relief on their claim that the Hayses willfully violated a statute requiring ownership disclosure, and (3) arbitrarily reducing their attorney’s fees award. In their cross-appeal, the Hayses assert the trial court improperly admitted into evidence various water sample reports that the Bharadwajas failed to authenticate. In the alternative, the Hayses assert (1) the Bharadwajas failed to satisfy the statutory prerequisites for rent reduction, (2) there is insufficient evidence of diminished rent value and that the Bharadwajas mitigated their damages, (3) there is no evidence to support an award of hotel expenses, and (4) the trial court erred in awarding the Bharadwajas any attorney’s fees. We reverse in part, render in part, and affirm in part. I. FACTUAL BACKGROUND The Hayses are the owners of property leased to the Bharadwajas, and Panda Pal Property, Management, LLC (Panda Pal) is the company hired by the Hayses to manage the property. The Hayses and Bharadwajas entered into a residential lease agreement on June 14, 2023. The leased property included a house and a small “home on wheels” located behind the house. Rent in the amount of $2,800 was due monthly. Ryan Bharadwaja testified they were current on the rent. A. The Bharadwajas’ testimony regarding water system contamination The Bharadwajas moved into the residence on July 5th, and on that date, Ryan noticed “a horrible [very sulfuric] smell coming from the water.” He testified that they immediately notified Panda Pal and were told “the water was fine.” Ryan said they “just went about our day until I began to get sick from the water a few days later.” Ryan said he experienced nausea, diarrhea, a stomachache, and sweats. He said they stopped using the water, purchased bottled water, and stayed at a hotel. Ryan said, “for our own safety, we shouldn’t be staying in the house” and they stayed at the hotel from July 5th until July 18th, the date on which the septic tank was pumped after it overflowed into the house. On July 8th, the Bharadwajas informed Panda Pal that the water was not potable and was making them sick. Ryan said Panda Pal again insisted the water “was fine.” At this point, the Bharadwajas took it upon themselves to have the water tested through the County of El Paso and 2 the test revealed the presence of total coliform bacteria in the water. On July 13th, the Bharadwajas emailed Panda Pal again notifying it about the “foul smell from the water,” informing it that the water “failed the City’s water test,” and providing a copy of the test results showing the presence of coliform in the water. On August 4th, the Hayses’ attorney emailed the Bharadwajas’ attorney to state that the Hayses were “not in a position to afford the remediation and repair [of the well water condition], and therefore, [were] agreeable to terminating the Lease or considering an offer for [the Bharadwajas] to purchase the property at its appraised value on terms acceptable to” the owners.1 Attached to the email were “proposals for correcting the well water condition.” The Bharadwajas did not receive the full report on the testing ordered by Panda Pal until August 8th. The report showed the presence of total coliform bacteria in the water as well as a high level of arsenic. On August 17th, the Bharadwajas sued the Hayses in justice of the peace court alleging (1) failure to repair or remedy the contaminated water on the property, (2) failu