BBVA USA v. Taylor Corynn Carey, Terrence MacDonald Carey, and Morgan Leigh Carey

CourtCourt of Appeals of Texas
DecidedMarch 6, 2025
Docket13-23-00230-CV
StatusPublished

This text of BBVA USA v. Taylor Corynn Carey, Terrence MacDonald Carey, and Morgan Leigh Carey (BBVA USA v. Taylor Corynn Carey, Terrence MacDonald Carey, and Morgan Leigh Carey) 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
BBVA USA v. Taylor Corynn Carey, Terrence MacDonald Carey, and Morgan Leigh Carey, (Tex. Ct. App. 2025).

Opinion

NUMBER 13-23-00230-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

BBVA USA, Appellant,

v.

TAYLOR CORYNN CAREY, TERRENCE MACDONALD CAREY, AND MORGAN LEIGH CAREY, Appellees.

ON APPEAL FROM THE 404TH DISTRICT COURT OF CAMERON COUNTY, TEXAS

MEMORANDUM OPINION

Before Chief Justice Tijerina and Justices Peña and Cron1 Memorandum Opinion by Chief Justice Tijerina

Appellant PNC Bank, N.A. (BBVA), as successor in interest to BBVA USA, appeals

1 The Honorable Nora L. Longoria, former Justice of this Court, did not participate in this opinion

because her term of office expired on December 31, 2024. In accordance with the appellate rules, she was replaced on panel by Justice Jenny Cron. the trial court’s summary judgment in favor of appellees Taylor Corynn Carey, Terrence

Macdonald Carey, and Morgan Leigh Carey (the Careys). By what we construe as five

issues, BBVA contends that the trial court improperly granted the Careys’ traditional

motion for summary judgment and improperly denied BBVA’s traditional motion for

summary judgment. We affirm.

I. BACKGROUND

The Careys own a condominium unit in fee simple located on South Padre Island,

Texas (the Property), and they executed a lease on the Property on June 25, 1976, which

ends on December 31, 2046. On December 22, 2008, Patricia Edith Ariat Infante (the

Tenant) “purchased the leasehold interest in the Property pursuant to an Assignment of

Leasehold interest with Vendor’s Lien, a note, and a deed of trust” (the Lease). The

Tenant financed her purchase of the leasehold estate with a mortgage from BBVA.

In 2018, the Tenant did not pay the Lease payments and the ad valorem taxes for

the Property. On March 29, 2019, the Careys sent a letter (the Default Notice) to the

Tenant and BBVA asking the Tenant to pay the lease amount of $2,043.34 by April 30,

2019, or else the Lease would terminate. The Default Notice informed BBVA that, as the

mortgagee of the Property, it had ninety days to cure the Tenant’s default. It is undisputed

that BBVA received the Default Notice on April 2, 2019, and did not cure the Tenant’s

default.

The Tenant failed to make the required payment, and the Careys sent an eviction

notice to her on May 1, 2019, indicating that the Tenant’s right of possession was

terminated and demanding that she vacate the Property. The Careys sent a copy of the

2 eviction notice to BBVA. On May 2, 2019, the Careys, via W.R. Carey Corporation, sent

BBVA a notice of default and termination of right of possession (the Advanced

Termination Notice) reiterating that the Careys had notified BBVA that the Tenant had

defaulted, it had ninety days from the date of the Default Notice sent on March 29, 2019,

to cure the default, and BBVA’s interest in the Property would terminate if it did not timely

cure the Tenant’s default.

On May 7, 2019, without curing the Tenant’s default, BBVA filed a suit for

foreclosure against the Tenant and obtained a judgment for possession on June 18, 2019.

BBVA took possession of the Property on July 1, 2019. BBVA then paid $48,990.69 in

past due taxes on the Property. On August 2, 2019, the Careys sent BBVA a notice of

eviction (the Lender Eviction Notice), which notified BBVA that BBVA’s right in the

Property was terminated because it failed to cure the Tenant’s default within sixty days of

the Advanced Termination Notice and asked BBVA to vacate the Property or the Careys

would file a suit against BBVA. The Careys changed the locks on August 11, 2019.

On September 20, 2019, BBVA sent the Careys a letter demanding possession of

the Property, asserting it did not dispute the validity of the Lease, and offering to pay the

past-due amounts owed on the Lease beginning from July 1, 2019, the date BBVA claims

it took possession of the Property. On October 21, 2019, the Careys informed BBVA that

the leasehold interest in the Property had terminated because BBVA had not cured the

Tenant’s default within the prescribed time under the Lease. The Careys have had

continuous possession of the Property thereafter.

On November 13, 2019, BBVA filed an original petition against the Careys for

3 breach of contract, reentry, unlawful lockout, and for a declaratory judgment. BBVA sued

on the alternative theory of equitable subrogation. On January 3, 2022, BBVA filed a

traditional motion for summary judgment arguing that it was entitled to summary judgment

for breach of contract because: (1) the Lease was a valid and enforceable contract;

(2) BBVA is a third-party beneficiary to the contract; (3) the Careys breached the Lease

by (a) not “providing at least 90 days’ notice before terminating the

Lease”; (b) “terminating the Lease before [BBVA] had obtained title and possession to the

Property”; (c) “demanding payments for periods before [BBVA] obtained title and

possession to the Property,[;] and [(d)] wrongfully excluding [BBVA] from the Property”;

and (4) the Careys’s breach caused BBVA injury, “specifically identified as a loss of the

value of the Property, in the amount of $163,848.76.” BBVA claimed it was entitled to

traditional summary judgment on its claim “for reentry because the undisputed

facts . . . establish that [the Careys] violated Texas Property Code [§] 92.0081.” BBVA

sought traditional summary judgment on its unlawful lockout claim on the basis that the

Careys “intentionally [and unlawfully] locked [BBVA] out of the Property” because

(1) BBVA “did not owe . . . any past due rent[,] . . . (2) the Lease does not give [the

Careys] the right to lock [BBVA] out for nonpayment of rent,” and (3) the Careys “did not

provide [BBVA] with adequate notice before the lockout under” § 92.0081 of the property

code.

Next, BBVA claimed that it was entitled to traditional summary judgment on its

request for a declaratory judgment. BBVA said the following:

All facts and allegations set forth above are included herein for all purposes.

4 [BBVA] also brought this action under the Uniform Declaratory Judgments Act.

Under Chapter 37.004(a) of the Texas Civil Practices and Remedies Code, a party under a written contract or whose rights are affected by a contract, “may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise and obtain a declaration or rights, status, or other legal relations thereunder.”

A justiciable controversy exists since [BBVA] asserts that it is entitled to possession of the Property under the Lease and seeks a determination from the Court of the amount owed under the Lease from the time it acquired title and possession to the Property until the time it was unlawfully locked out of the Property and that it is in fact entitled to possession of the Property.

The matter is ripe since [the Careys] have unlawfully taken possession of the Property from [BBVA].

Finally, as to its entitlement to traditional summary judgment on its claim for alternative

relief, BBVA stated the following: “In the alternative, if the Court denies any part of

[BBVA’s] motion for summary judgment, [BBVA] asks the Court to sign an order

specifying the facts that are established as a matter of law and directing any further

proceedings as are just.”

On March 28, 2022, the Careys filed a counter-petition for declaratory judgment

“granting them sole and exclusive title to the Property . . .

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BBVA USA v. Taylor Corynn Carey, Terrence MacDonald Carey, and Morgan Leigh Carey, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bbva-usa-v-taylor-corynn-carey-terrence-macdonald-carey-and-morgan-leigh-texapp-2025.