Allan R. Avery v. LLP Mortgage, Ltd.

Court of Appeals of Texas·Decided October 29, 2015·No. 01-14-01007-CV·Published

Opinion

Opinion issued October 29, 2015

In The

Court of Appeals

For The

First District of Texas

BACKGROUND

On June 26, 2006, Centamark Luxury Homes, Ltd. [Centamark] executed two promissory notes to New South Federal Savings Bank [New South]. Note 1 was in the amount of $1,692,750.00 and Note 2 was in the amount of $775,600. On the same day, Avery executed personal guarantees of the notes to New South.

In December 2009, New South was closed by the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation [FDIC] was appointed as receiver. The FDIC sold a portion of New South’s assets, including the notes and guarantees, to Beal Bank. Beal Bank, in turn, transferred the notes and guarantees to LPP.

On October 31, 2011, LPP filed suit against Avery, alleging breach of the notes and their accompanying guarantees. On January 15, 2011, LPP filed its Second Amended Motion for Summary Judgment, which the trial court granted. This appeal follows.

PROPRIETY OF SUMMARY JUDGMENT On appeal, Avery contends the trial court erred in granting summary judgment (1) after failing to sustain Avery’s objections to LPP’s summary judgment evidence; (2) because LPP’s summary judgment evidence is insufficient to establish its capacity to sue Avery; (3) because the summary judgment evidence

is insufficient to support an award of attorney’s fees to LPP; and (4) because the summary judgment evidence is insufficient to establish LPP’s damages. Standard of Review We review de novo the trial court’s ruling on a summary judgment motion.

Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex. 2009). To prevail on a traditional motion for summary judgment, a movant must establish that no genuine issues of material fact exist and that it is entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(c); Mann Frankfort, 289 S.W.3d at 848. We review all the evidence in the light most favorable to the nonmovant, crediting favorable evidence if reasonable jurors could do so, and disregarding contrary evidence unless reasonable jurors could not. Mann Frankfort, 289 S.W.3d at 848. We must indulge every reasonable inference and resolve any doubts in the nonmovant’s favor. Sw. Elec. Power Co. v. Grant, 73 S.W.3d 211, 215 (Tex. 2002). If the movant meets its burden, then the burden shifts to the nonmovant to raise a genuine issue of material fact precluding summary judgment. See Centeq Realty, Inc. v. Siegler, 899 S.W.2d 195, 197 (Tex. 1995). Evidentiary Objections In his first issue, Avery contends the trial court erred by not sustaining his objections to the affidavit of Tom Martin, which was attached to LPP’s motion for

summary judgment. Specifically, Avery objects to the following assertions in Martin’s affidavit:

1. “CLMG Corp. is the authorized loan servicer for LPP Mortgage Ltd.”

2. “the Office of Thrift Supervision ordered the closing of New South . . . and the Federal Deposit Insurance Corporation (“FDIC”) was appointed Receiver for New South”

3. “LPP Mortgage Ltd is the legal owner and holder of Note 1”

4. “LPP Mortgage Ltd. is the legal owner and holder of Note 2”

Although not clear from his brief, to the extent that Avery is complaining about defects in the form of the affidavit, his complaints are waived because he did not obtain written ruling on his objections. Dolcefino v. Randolph, 19 S.W.3d 906, 925–27 (Tex. App.—Houston [14th Dist.] 2000, pet. denied). However, to the extent that Avery is complaining that these statements were conclusory, such objection is a defect as to the substance of the affidavit, and can be made at any time. McMahan v. Greenwood, 108 S.W.3d 467, 498 (Tex. App.—Houston [14th Dist.] 2003, pet. denied); Choctaw Props., L.L.C. v. Aledo I.S.D., 127 S.W.3d 235, 241 (Tex. App.—Waco 2003, no pet.) (holding that conclusory affidavit is substantively defective.).

“A conclusory statement is one that does not provide the underlying facts to support the conclusion.” Choctaw Props., L.L.C., 127 S.W.3d at 242 (quoting Rodriguez v. Wal–Mart Stores, Inc., 52 S.W.3d 814, 823 (Tex. App.—San Antonio 2001), rev’d on other grounds, 92 S.W.3d 502 (Tex. 2002)). As such, a conclusory

statement is not proper summary judgment proof. Rizkallah v. Conner, 952 S.W.2d 580, 587 (Tex. App.—Houston [1st Dist.] 1997, no writ). Thus, we examine the summary judgment evidence provided in support of the alleged conclusory statements.

1. “CLMG Corp. is the authorized loan servicer for LPP Mortgage Ltd.”

Avery argues that there is no personal knowledge or evidentiary support for the above-referenced statement by Martin. However, this sentence of the affidavit provides in its entirety:

I [Tom Martin] am, and at all time material hereto, have been employed by CLMG Corp. as a Portfolio Manager. In that position, I am aware that CLMG Corp. is the authorized loan servicer for LPP Mortgage Ltd. (referred to as “LPP”), and custodian of records relating to the loans at issue discussed below. I am authorized to make this affidavit on behalf of CLMG Corp., and on behalf of LPP.

When, as here, an affiant’s summary-judgment affidavit contains testimony

that identifies his status as a record’s custodian and establishes his relationship with the facts of the case in a manner sufficient to demonstrate the facts at issue, the personal knowledge requirement for summary judgment affidavits may be satisfied. See Kyle v. Countrywide Home Loans, Inc., 232 S.W.3d 355, 360–61 (Tex. App.—Dallas 2007, pet. denied) (holding affiant’s testimony that she was both a foreclosure specialist and custodian of records for mortgagee with respect to mortgagor’s loan was sufficient to identify the custodian’s position and responsibilities, meeting personal knowledge requirement); Stucki v. Noble, 963

S.W.2d 776, 780 (Tex. App.—San Antonio 1998, pet. denied) (holding personal- knowledge requirement was satisfied when affidavit sufficiently described relationship between affiant and the case so that it may have been reasonably assumed that she had personal knowledge of facts stated in her affidavit).

Here, Martin’s affidavit identified himself as a Portfolio Manager for CLMG, and, because of that position, as well as his position as its custodian of records, he was aware that CLMG Corp. was the authorized loan servicer for LPP. This information was sufficient to demonstrate Martin’s personal knowledge of the challenged assertion.

2.“the Office of Thrift Supervision ordered the closing of New South .

. . and the Federal Deposit Insurance Corporation (“FDIC”) was appointed Receiver for New South”

In his affidavit, Martin states that his knowledge regarding the above-

referenced statements was based on several documents that were attached to his affidavit. Specifically, Exhibit A to Martin’s affidavit is what Martin describes as a “true and correct copy of the Notice . . . that on December 18, 2009, the FDIC as Receiver for New South sold certain assets to Beal Bank and all rights arising from those assets[,].” and is a printout of a press release from the FDIC website. It is from the same website as Exhibit 2 of Victor C. Serafino’s1 affidavit, which was

1 Serafino was an attorney for LPP at trial, and his affidavit explains how many of the documents filed in support of LPP’s motion for summary judgment were accessed through government websites.

also attached as LPP’s summary judgment evidence. In his affidavit, Serafino explains how he accessed the FDIC website and provides a URL address for the same.

Exhibit B to Martin’s affidavit is what he alleges is a “true and correct copy of the redacted Purchase and Assumption Agreement[.]” Exhibit B to Martin’s affidavit is the same as Exhibit 3 of Serafino’s affidavit, and Serafino explains that he obtained the Purchase and Assumption Agreement by accessing the FDIC’s website, and again he provides a URL address for the same.

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