Apex Financial Corp. v. Brown

7 S.W.3d 820, 1999 Tex. App. LEXIS 9058, 1999 WL 1084223
CourtCourt of Appeals of Texas
DecidedDecember 3, 1999
Docket06-98-00155-CV
StatusPublished
Cited by40 cases

This text of 7 S.W.3d 820 (Apex Financial Corp. v. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apex Financial Corp. v. Brown, 7 S.W.3d 820, 1999 Tex. App. LEXIS 9058, 1999 WL 1084223 (Tex. Ct. App. 1999).

Opinion

OPINION

GRANT, Justice.

Timothy Brown, the original owner of the real property in issue, filed suit to set aside a sheriffs sale made pursuant to a judgment lien, contending that irregularities in the sheriffs sale resulted in a grossly inadequate sale price. The purchaser of the property (Apex Financial Corporation), the judgment creditor (Pagoda Trading Company, Inc.), and the sheriff who conducted the sheriffs sale (Jim Bowles) were all made defendants in the suit; and an original contractor on the property (Tim Bonner) intervened claiming a mechanic’s and materialman’s lien. The trial court entered summary judgment setting aside the complained-of sheriffs sale and thereafter ordered foreclosure and sale of the property pursuant to Bonner’s mechanic’s and materialman’s lien. Apex, the purchaser at the sheriffs sale, appeals the summary judgment and presents the following points for review:

(1) Did the judgment dispose of all issues and counterclaims before the court so as to be a final judgment?
(2) Was Brown precluded from challenging the sheriffs sale under the terms of a prior settlement agreement with Apex?
(3) Is there conclusive proof that an irregularity in the sheriffs sale caused the property to be sold for a grossly inadequate price, so as to justify the setting aside of the sheriffs sale on summary judgment?
(4) Is there conclusive proof that a mechanic’s and materialman’s lien existed in favor of Bonner, so as to justify foreclosure of the lien on summary judgment?

In 1992, Brown purchased the property in issue, located at 1107 Pleasant Run Road (the Pleasant Run property). Brown contracted with Bonner to build a home on the property, and in so doing, Brown granted Bonner a lien in the amount of $2,377,206 to secure payment for the con *825 struction. A written contract memorializing the lien was signed by both parties and acknowledged by a notary public. On July 6, 1994, Bonner filed the contract with the acknowledgment in the Dallas County clerk’s office. On February 15, 1995, Bonner filed a waiver of lien in the same records. Then, on March 27,1995, Bonner refiled the original contract and the original acknowledgment in an attempt to revive the hen.

In April of 1995, Pagoda recovered a final judgment against Brown and others in a suit styled Pagoda Trading Company, Inc. v. Pro-Moves, Inc., et al. in the United States District Court for the Eastern District of Missouri. In an effort to obtain satisfaction of this judgment, Pagoda perfected its judgment in the 116th District Court of Dallas County, Texas, and obtained a writ of execution against Brown in the amount of $1,146, 200. Pagoda then delivered the writ to Sheriff Bowles with instructions to execute and seh the Pleasant Run property and two additional real properties owned by Brown to satisfy the judgment. On June 4, 1996, the sheriff sold the three properties to Apex, who was the highest bidder at $800 cash. Although the sheriff sold the three properties as one lot, the sheriff, at Apex’s request, issued three separate deeds to the properties.

Shortly after the sale, Apex filed forcible detainer suits in the justice court seeking to evict the occupants of the other two properties. No such suit was filed for the Pleasant Run property, because it was still under construction and unoccupied. Pursuant to the forcible detainer suits, Brown and Apex entered into a settlement agreement which in relevant part provided the following: Brown would pay Apex $18,000 and upon payment, Apex would deed back the other two properties; agreed judgments would be entered in favor of Apex in the forcible detainer suits, but Apex would .not take any action pursuant to the judgments unless Brown defaulted in the aforementioned payment; and Brown would not appeal the agreed judgments or challenge in any way the validity of the sheriffs sale of June 4,1996.

On December 19, 1996, Brown filed suit against Apex, Pagoda, and Sheriff Bowles, seeking damages and an order setting aside the sheriffs sale as to the Pleasant Run property. Bonner- intervened in the suit, claiming a mechanic’s and materialman’s lien on the property and seeking foreclosure on the lien. Apex, Brown, Bonner, Pagoda, and Bowles all filed motions for partial summary judgment. On September 30, 1997, the trial court dismissed Pagoda pursuant to a Rule 11 agreement, granted Brown’s motion to set aside the sheriffs sale, and denied all other motions. Apex then filed its supplemental answer and counterclaim contending that Brown breached the earlier settlement agreement by challenging the validity of the sheriffs sale. On July 8, 1998, the trial court entered its final summary judgment setting aside the complained-of sheriffs sale and ordering foreclosure and sale of the Pleasant Run property pursuant to Bonner’s lien.

In reviewing a summary judgment record, this Court must determine whether a genuine issue of material fact exists that would preclude the entry of a summary judgment. Gonzalez v. Mission Am. Ins. Co., 795 S.W.2d 734, 736 (Tex.1990). The standards for reviewing a summary judgment are well established. The movant has the burden of showing that there is no genuine issue of material fact and that it is entitled to summary judgment as a matter of law. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985). In determining whether there is a disputed fact issue precluding summary judgment, evidence favorable to the nonmovant is taken as true, and all reasonable inferences are indulged in favor of the nonmov-ant with any doubts resolved in its favor. Nixon, 690 S.W.2d at 548^19.

The first point for us to address is whether the trial court’s summary judgment order disposed of all issues and counterclaims raised in the case, so as to be a final and appealable judgment.

*826 To be a final, appealable summary judgment, the trial court’s order must dispose of all parties and all issues before the court. Mafrige v. Ross, 866 S.W.2d 590, 591 (Tex.1993). If the order does not dispose of all issues and all parties, it is interlocutory; therefore, the case is not appealable absent severance. Maf-rige, 866 S.W.2d at 591. When a summary judgment order appears to be final, as evidenced by the inclusion of Mother Hubbard language purporting to dispose of all issues and all parties, the judgment will be treated as final for the purposes of appeal. Inglish v. Union State Bank, 945 S.W.2d 810, 811 (Tex.1997).

Apex contends that its breach of contract counterclaim against Brown was not disposed of by the trial court’s summary judgment; therefore, as such the judgment was not final. In support of this argument, Apex points out that its supplemental answer and counterclaim was not filed until after the trial court ruled on the summary judgment motion.

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Cite This Page — Counsel Stack

Bluebook (online)
7 S.W.3d 820, 1999 Tex. App. LEXIS 9058, 1999 WL 1084223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apex-financial-corp-v-brown-texapp-1999.