Aracely Enterprises, LLC v. Sesatty Enterprises, LLC

CourtCourt of Appeals of Texas
DecidedJuly 31, 2025
Docket13-24-00058-CV
StatusPublished

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Aracely Enterprises, LLC v. Sesatty Enterprises, LLC, (Tex. Ct. App. 2025).

Opinion

NUMBER 13-24-00058-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

ARACELY ENTERPRISES, LLC, Appellant,

v.

SESATTY ENTERPRISES, LLC, Appellee.

ON APPEAL FROM THE COUNTY COURT AT LAW NO. 9 OF HIDALGO COUNTY, TEXAS

MEMORANDUM OPINION

Before Chief Justice Tijerina and Justices West and Fonseca Memorandum Opinion by Justice West

Appellant Aracely Enterprises, LLC asserts that appellee Sesatty Enterprises, LLC

was not entitled to relief in the underlying forcible detainer proceeding because subject

matter jurisdiction was lacking. The county court denied appellant’s jurisdictional

challenge. We reverse and render. I. BACKGROUND

This litigation involves a dispute related to possession of a commercial plaza in

McAllen, Texas, that was owned by appellee. The parties agree that, beginning in 2022,

Aracely Gonzalez 1 leased units at the plaza in her individual capacity and on behalf of

Aracely Gonzalez Insurance and Financial Services, LLC, neither of which are parties in

this case. According to appellant’s counsel, these leases specified monthly rent in the

amount of “a thousand bucks or two thousand bucks” each. After entering the foregoing

leases, appellee and appellant entered into a “Real Estate Sale Agreement” (Sales

Agreement) on October 31, 2022, which purports to be a seller financing arrangement

whereby appellee agreed to sell the plaza to appellant for a sum of $1,100,000 with

monthly payments of $11,252.88. 2 The Sales Agreement states the parties will have an

attorney prepare a “[p]romissory note, deed of trust, and warranty deed with vendor’s

lien.”

According to Gonzalez, after execution of the Sales Agreement: (1) she was

introduced to the plaza’s tenants by Lisseth Sesatty3 as the new owner of the plaza;

(2) Sesatty instructed plaza tenants to remit all rental payments to Gonzalez; (3) Gonzalez

made $80,000 in repairs to and remodeling of the plaza; and (4) Gonzalez paid the

insurance and taxes for the plaza. Gonzalez claims that appellee was unable to perform

at closing because appellee does not have clean title to the plaza.

Aracely Gonzalez is the agent of appellant who later signed the subject real estate sales 1

agreement on appellant’s behalf. 2 The monthly payment is listed in print as $11,268 but is crossed out and replaced in handwriting

with $11,252.88. 3 Lisseth Sesatty is the agent of appellee who signed the Sales Agreement on appellee’s behalf.

2 In its brief, appellee agrees that it did not have clean title but avers that appellant

was unable to close anyway because it would have been unable to tender the required

$125,000 down payment at closing. After these developments, appellee offered to return

appellant’s earnest money deposit. 4 But according to appellee, appellant declined the

offer and instead asked appellee to keep the earnest money deposit and allow appellant

to pay $11,800 per month as rent for the plaza. Appellee agreed, and appellant began

making payments that varied, many of which were between $11,200 and $12,000.00.

Appellant claims it ceased making payments at some point because appellee

refused or was unable to close with tender of clean title. Then appellee sent appellant a

notice of eviction which stated that appellee would direct plaza tenants to remit rent

payments directly to appellee. Thereafter, appellee initiated a forcible detainer action in

the justice court seeking possession and $20,000 for five months of back rent. The justice

court granted possession to appellee and awarded it $11,200 in damages. Appellant

appealed to the county court where two hearings were held. The first hearing considered

the issue of possession. There, the parties each argued extensively that each was the

true owner of the plaza. Appellant highlighted the Sales Agreement, the lack of a lease

between the parties, and its control over the plaza. Appellee highlighted that “the deed”

to the plaza bears its name and that appellant failed to remit payments due. Appellee’s

counsel described the Sales Agreement as a seller-financed contract for deed, while

appellant’s counsel described it as a traditional mortgage transaction with a promissory

note, deed of trust, and warranty deed. The county court granted possession to appellee.

4 The parties do not identify the actual amount paid as the earnest money deposit. However, the

Sales Agreement specifies an initial deposit of $25,000. 3 The next day, appellant filed a plea to the jurisdiction asserting the justice court

and county court had no jurisdiction because the matter involved resolution of title issues.

After holding a second hearing, the county court denied the plea, and this appeal followed.

Concurrent with this litigation, the parties are also litigating their title dispute related

to the plaza in the 206th District Court.

II. STANDARD OF REVIEW

Whether a trial court has subject matter jurisdiction is a question of law, which we

review de novo. Hearts Bluff Game Ranch, Inc. v. State, 381 S.W.3d 468, 476 (Tex.

2012). In de novo review, no deference is given to the trial court's decision. See In re Est.

of Slaughter, 305 S.W.3d 804, 808 (Tex. App.—Texarkana 2010, no pet.) (citing Quick v.

City of Austin, 7 S.W.3d 109, 116 (Tex. 1998)). A defendant may challenge jurisdiction by

filing a plea to the jurisdiction. Mission Consol. Indep. Sch. Dist. v. Garcia, 372 S.W.3d

629, 635 (Tex. 2012). The plea may attack both facts as pleaded as well as the existence

of jurisdictional facts. Id.; Flores v. Tex. Dep’t of Crim. Just., 634 S.W.3d 440, 450 (Tex.

App.—El Paso 2021, no pet.). When a plea to the jurisdiction challenges the existence of

jurisdictional facts, the court’s review mirrors that of a summary judgement, and we

consider relevant evidence submitted by the parties. Garcia, 372 S.W.3d at 635.

III. DISCUSSION

Appellant argues by a single issue that the justice court and county court lacked

jurisdiction to grant possession to appellee. 5

5 Appellant also asserts two foundational issues that appellee does not contest on appeal. First,

appellant argues that its jurisdictional challenge does not fail despite being raised in a post judgment plea. We agree. A litigant may raise challenges to subject matter jurisdiction at any time, even for the first time on appeal. Tex. Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 445 (Tex. 1993); Goss v. City of 4 Appellee argues that the judgment should be affirmed because appellant violated

two statutes that required appellant to deposit rent money in the court registry during this

litigation.

A. Justice Court and County Court Jurisdiction

Appellant argues that a title issue exists depriving the justice court and county court

of jurisdiction in this litigation. We agree.

“For state trial courts of limited jurisdiction, ‘the authority to adjudicate must be

established at the outset of each case, as jurisdiction is never presumed.’” Town of

Anthony v. Lopez, 661 S.W.3d 667, 670 (Tex.

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