Apex Financial Corporation v. Loan Care

CourtCourt of Appeals of Texas
DecidedDecember 20, 2018
Docket05-17-00855-CV
StatusPublished

This text of Apex Financial Corporation v. Loan Care (Apex Financial Corporation v. Loan Care) 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 Corporation v. Loan Care, (Tex. Ct. App. 2018).

Opinion

AFFIRMED and Opinion Filed December 20, 2018

S In The Court of Appeals Fifth District of Texas at Dallas No. 05-17-00855-CV

APEX FINANCIAL CORPORATION, Appellant V. LOAN CARE, Appellee

On Appeal from the 44th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-17-05921

MEMORANDUM OPINION Before Justices Stoddart, Whitehill, and Boatright Opinion by Justice Whitehill

Appellant Apex Financial Corporation sued appellee Loan Care for a declaratory judgment

that Apex was entitled to equitable subrogation, damages, and attorney’s fees. After a bench trial,

the trial judge signed a take-nothing judgment against Apex. Apex appeals. We affirm.

I. BACKGROUND

A. Facts

We draw the following facts from the trial court’s findings of fact and the trial evidence:

This litigation arises from a series of conveyances and foreclosures concerning a

condominium in Richardson, Texas.

In 1989, Jose and Juanita Rocha bought the condominium subject to a purchase-money

deed of trust in favor of lender Florida Federal Savings Bank. The deed of trust was conveyed several times and was ultimately acquired by The Bank of New York Mellon Trust Company,

N.A. (“the bank”) in 2014.

Meanwhile, in 1995 the Rochas sold the condominium to Christina Rosales subject to a

contract for deed.

In 1997, the condominium’s condominium association foreclosed on the condominium for

nonpayment of assessments, late charges, and collection costs. Apex bought the condominium at

the foreclosure sale. Apex began making the payments on the original purchase-money loan, but

it never extinguished that loan or its related deed of trust lien against the property.

In June 2011, the association recorded a notice of lien against the condominium, again for

nonpayment of assessments, late charges, and collection costs.

Two months later, the association foreclosed on the condominium, and consequently Apex

lost its interest in it. There is no indication in the record that Apex redeemed its interest.

The condominium’s ownership changed hands a few times after that.

In October 2014, the bank foreclosed its purchase-money deed of trust. The foreclosure

deed listed Loan Care as the mortgage servicer.

B. Procedural History

In October 2015, Apex sued the bank and Loan Care alleging that (i) Apex attempted to

pay off the outstanding purchase-money loan balance before the October 2014 foreclosure sale

and (ii) the trustee refused Apex’s tender of an amount exceeding the loan amount and proceeded

to sell the condominium instead to the highest bidder. Apex sought a declaratory judgment that it

was equitably subrogated to the bank’s and Loan Care’s rights due to its payments towards the

purchase-money debt. Apex also requested damages of at least $30,000, punitive damages, and

attorney’s fees.

–2– Loan Care answered, asserting a general denial and affirmative defenses including the

statute of limitations and Apex’s “voluntary Action.” The record does not indicate that the bank

ever answered.

There was a one-day bench trial of Apex’s claims against Loan Care.

Several days later, the trial judge signed a take-nothing judgment in favor of Loan Care.

The judge later signed an order severing Apex’s claims against Loan Care from those against the

bank, making the interlocutory judgment final. The judge also signed findings of fact and

conclusions of law. The judge ruled that (i) Apex’s claims were time-barred, (ii) Apex’s payments

were voluntary, and (iii) Apex had no equitable subrogation rights against Loan Care, though it

might have such rights against the Rochas.

Apex timely appealed.

II. ANALYSIS

Apex presents one “issue” on appeal, with three parts:

The trial court erred in finding that (1) payments made by Appellant were voluntary; (2) that there was a statute of limitations applicable to the right of Appellant, standing in the shoes of the original borrowers, to extinguish the loan; and (3) that its status of non-owner of the property barred its right to extinguish the loan.

We overrule Apex’s issue because Apex does not brief its challenge to Loan Care’s

limitations defense, which was one independent basis of the trial court’s judgment.

An appellant must attack all independent bases or grounds that fully support a judgment.

Oliphant Fin. LLC v. Angiano, 295 S.W.3d 422, 423 (Tex. App.—Dallas 2009, no pet.). If the

appellant fails to attack an independent ground, we must accept its validity, thus making any error

in the other grounds supporting the judgment harmless. See id. at 424; see also St. John Missionary

Baptist Church v. Flakes, 547 S.W.3d 311, 312 (Tex. App.—Dallas 2018, pet. pending) (en banc).

–3– Moreover, an appellant does not satisfy its obligations by merely asserting in an issue that

a ground for the judgment is incorrect; the appellant must also support that issue with proper

argument, authorities, and record references. See TEX. R. APP. P. 38.1(i); see also Kasper v.

Meadowwood Ranch Estates, Inc. Prop. Owners Ass’n, No. 05-07-00982-CV, 2008 WL 3579379,

at *2 (Tex. App.—Dallas Aug. 15, 2008, no pet.) (mem. op.) (affirming judgment because

appellants inadequately briefed their challenge to one independent basis). We are not responsible

for doing the legal research that might support a party’s contentions, and a brief fails if it does not

provide existing legal authority that can be applied to the facts of the case. Bolling v. Farmers

Branch Indep. Sch. Dist., 315 S.W.3d 893, 895, 896 (Tex. App.—Dallas 2010, no pet.).

Here, Apex has not adequately briefed its challenge to the trial court’s limitations ruling.

To begin, Apex’s sole limitations record reference in its argument is a citation to the trial court’s

adverse conclusion of law on limitations. However, there are no record references supporting an

argument that the conclusion was wrong.

Furthermore, it is undisputed that Apex’s brief presents no substantive argument about

limitations. Rather Apex’s brief mentions limitations in its above quoted statement of the issue

and later repeats that sentence verbatim in the summary of the argument and again in the argument

itself. Finally, the brief’s argument section makes one last mention of limitations as follows: “The

Rochas certainly had that right to pay off their loan [ahead of any foreclosure sale], without being

limited by any statute of limitations and Appellant, in their shoes, also had that same right.” The

sentence is unsupported by legal authority, record reference, or logical argumentation. The brief

says nothing else about limitations.

To reverse the judgment, we would have to independently research from scratch the law of

limitations as to equitable subrogation claims, including applicable accrual rules, and apply that

law to the facts of this case, all without any assistance from Apex. This we cannot do without

–4– interjecting ourselves in the case as appellant’s advocate when appellant did not so act itself. See

State Bar of Tex. v. Evans,

Related

Wagner & Brown, Ltd. v. Sheppard
282 S.W.3d 419 (Texas Supreme Court, 2008)
Fredonia State Bank v. General American Life Insurance Co.
881 S.W.2d 279 (Texas Supreme Court, 1994)
Blanks v. Liberty Mutual Fire Insurance Co.
196 S.W.3d 451 (Court of Appeals of Texas, 2006)
Oliphant Financial LLC v. Angiano
295 S.W.3d 422 (Court of Appeals of Texas, 2009)
McIntyre v. Wilson
50 S.W.3d 674 (Court of Appeals of Texas, 2001)
Bolling v. Farmers Branch Independent School District
315 S.W.3d 893 (Court of Appeals of Texas, 2010)
In Re Estate of Miller
243 S.W.3d 831 (Court of Appeals of Texas, 2008)
State Bar of Texas v. Evans
774 S.W.2d 656 (Texas Supreme Court, 1989)
Staton Holdings, Inc. v. Tatum, L.L.C.
345 S.W.3d 729 (Court of Appeals of Texas, 2011)
In the Interest of B.A.B.
124 S.W.3d 417 (Court of Appeals of Texas, 2004)
St. John Missionary Baptist Church v. Flakes
547 S.W.3d 311 (Court of Appeals of Texas, 2018)

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