SUIT ON EQUIPMENT LEASE NOT VIABLE AS SWORN ACCOUNT UNDER RULE 185
Houston Court of Appeals again states (albeit in a footnote) that failure to pay rental charges for loaned equipment is not actionable as a sworn account under Tex. R. Civ. P. 185 because when goods are merely leased, there is no sale through which title passes.
[The Fourteenth Court of Appeals ] has held that a party may not recover under a sworn account theory when the underlying transaction involved equipment rentals. See, e.g., AKIB Constr., Inc. v. Neff Rental, Inc., No. 14-07-00063-CV, 2008 WL 878935, at *1–3 (Tex. App.—Houston [14th Dist.] Apr. 3, 2008, no pet.) (mem. op.) (reversing summary judgment for plaintiff because a sworn account claim cannot be based on leased goods). See generally 1 Tex. Jur. 3d Accounts & Accounting § 80 (2004) (discussing the inapplicability of a sworn account claim for transactions not passing title to personal property from one party to another).
SOURCE: HOUSTON COURT OF APPEALS - FOURTEENTH DISTRICT - 14-11-00048-CV – 12/13/11