Aridaman Singh v. Shawn Moeenuddin and Nworen Moeenuddin

CourtCourt of Appeals of Texas
DecidedMarch 17, 2022
Docket05-20-00573-CV
StatusPublished

This text of Aridaman Singh v. Shawn Moeenuddin and Nworen Moeenuddin (Aridaman Singh v. Shawn Moeenuddin and Nworen Moeenuddin) 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
Aridaman Singh v. Shawn Moeenuddin and Nworen Moeenuddin, (Tex. Ct. App. 2022).

Opinion

Affirm and Opinion Filed March 17, 2022

In The Court of Appeals Fifth District of Texas at Dallas No. 05-20-00573-CV

ARIDAMAN SINGH, Appellant V. SHAWN MOEENUDDIN AND NWOREN MOEENUDDIN, Appellees

On Appeal from the 429th Judicial District Court Collin County, Texas Trial Court Cause No. 429-05612-2019

MEMORANDUM OPINION Before Justices Myers, Molberg, and Garcia Opinion by Justice Myers This case concerns whether a vendor’s lien existed on the sale of a house and,

if so, whether the purchasers of the house at a subsequent foreclosure sale, appellees

Shawn Moeenuddin and Nworen Moeenuddin, were subject to the vendor’s lien.

Aridaman Singh brings four issues on appeal contending the trial court erred by

denying his motion for summary judgment seeking foreclosure of his vendor’s lien

and granting appellees’ motion for summary judgment seeking dismissal of Singh’s

claims. We affirm the trial court’s judgment. BACKGROUND

On October 26, 2018, Singh signed a “General Warranty Deed” transferring

the house to 33 Inc. The deed recited that the consideration for the transaction was

“Cash and other good and valuable consideration, the receipt and sufficiency of

which are hereby acknowledged.” The deed made no mention of a vendor’s lien.

Four days later, on October 30, 2018, 33 Inc. signed a deed of trust in favor

of Singh (Singh deed of trust) securing a $179,000 note for a loan from Singh to 33

Inc. The deed of trust said the note was dated October 30, 2018. The deed of trust

stated, “the debt is secured by this deed of trust and by a vendor’s lien on the

property, which is expressly retained in a deed to Grantor of even date.” The deed

of trust also stated it was “subordinate to the superior lien securing” the $245,000

note “executed by 33 Inc. [sic] payable to the order of M.R. Cavenee Ltd.”

That same day, October 30, 2018, 33 Inc. executed a “Warranty Deed with

Vendor’s Lien” transferring the property to We Are Homehunters, LLC. That deed

stated the consideration was cash and a note for $245,000 payable to M.R. Cavenee

Ltd. That deed also stated, “The note is secured by a first and superior vendor’s lien

and superior title retained in this deed in favor of M.R. Cavenee Ltd.” We Are

Homehunters executed a deed of trust in favor of M.R. Cavenee Ltd. (Cavenee deed

of trust) stating, “the debt is secured by this deed of trust and by a vendor’s lien on

the property, which is expressly retained in a deed to Grantor of even date.”

All of the above deeds and deeds of trust were recorded by January 22, 2019.

–2– On May 7, 2019, the Cavenee deed of trust was foreclosed. Appellees

purchased the property at the foreclosure sale for $264,000.

On October 7, 2019, Singh sued appellees asserting he had a vendor’s lien on

the property securing the $179,000 note from 33 Inc. He prayed for judicial

foreclosure of the vendor’s lien. Appellees filed a counterclaim seeking a

declaratory judgment that the Cavenee deed of trust was superior to Singh’s vendor’s

lien and that Singh’s vendor’s lien was extinguished by the foreclosure of the

Cavenee deed of trust. Appellees also alleged they were bona fide purchasers who

took fee simple title to the property free of any lien, claim, or encumbrance,

including Singh’s claim of a vendor’s lien.

Both sides moved for summary judgment. The trial court granted appellees’

motion for summary judgment, denied Singh’s, and ordered that “all attorneys’ fees

and costs are taxed against the party incurring the same.”

SUMMARY JUDGMENT

Singh contends the trial court erred by granting appellees’ motion for

summary judgment and by denying his motion for summary judgment.

Standard of Review

The standard for reviewing a traditional summary judgment is well

established. McAfee, Inc. v. Agilysys, Inc., 316 S.W.3d 820, 825 (Tex. App.—

Dallas 2010, no pet.). The movant has the burden of showing that no genuine issue

of material fact exists and that it is entitled to judgment as a matter of law. Tex. R.

–3– Civ. P. 166a(c). In deciding whether a disputed material fact issue exists precluding

summary judgment, evidence favorable to the nonmovant will be taken as true. In

re Estate of Berry, 280 S.W.3d 478, 480 (Tex. App.—Dallas 2009, no pet.). Every

reasonable inference must be indulged in favor of the nonmovant and any doubts

resolved in its favor. City of Keller v. Wilson, 168 S.W.3d 802, 824 (Tex. 2005).

We review a summary judgment de novo to determine whether a party’s right to

prevail is established as a matter of law. Dickey v. Club Corp., 12 S.W.3d 172, 175

(Tex. App.—Dallas 2000, pet. denied).

When, as here, both parties move for summary judgment, each party bears the

burden of establishing that it is entitled to judgment as a matter of law. Guynes v.

Galveston Cty., 861 S.W.2d 861, 862 (Tex. 1993); Howard v. INA Cty. Mut. Ins.

Co., 933 S.W.2d 212, 216 (Tex. App.—Dallas 1996, writ denied). Neither party can

prevail because of the other’s failure to discharge its burden. Howard, 933 S.W.2d

at 216. When both parties move for summary judgment, we consider all the evidence

accompanying both motions in determining whether to grant either party’s motion.

FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868, 872 (Tex. 2000). When

the trial court grants one motion and denies the other, the reviewing court should

determine all questions presented. Id. The reviewing court should render the

judgment that the trial court should have rendered. Id. When a trial court’s order

granting summary judgment does not specify the grounds relied upon, the reviewing

–4– court must affirm the summary judgment if any of the summary judgment grounds

are meritorious. Id.

Vendor’s liens

There are two types of vendor’s liens on real estate: express and equitable.

An express vendor’s lien is created when the deed conveying the property expressly

reserves a lien for the purchase price. See State v. Forest Lawn Lot Owners Ass’n,

254 S.W.2d 87, 91 (Tex. 1953). The express vendor’s lien is a creature of contract.

Bond v. Bumpass, 100 S.W. 1047, 1050 (Tex. App.—Dallas 1936), aff’d, 114 S.W.

1172 (Tex. 1938).

An equitable vendor’s lien arises when no express lien is reserved in a deed

and the purchase money is not paid. In that situation, a lien arises by implication in

favor of the vendor to secure payment of the purchase money. McGoodwin v.

McGoodwin, 671 S.W.2d 880, 882 (Tex. 1984). The equitable vendor’s lien is not

dependent on a reservation in the deed. See Bond, 100 S.W.2d at 1050.

Bona Fide Purchaser

A bona fide purchaser is one who buys property in good faith for valuable

consideration and without actual or constructive notice of any outstanding claims of

a third party. Madison v.

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Related

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