Behzad Khalilnia v. Federal Home Loan Mortgage Corp

Court of Appeals of Texas·Decided March 21, 2013·No. 01-12-00573-CV·Published

Opinion

Opinion issued March 21, 2013.

In The

Court of Appeals

For The

First District of Texas

granting summary judgment, because fact issues exist regarding whether FHLMC demanded possession and whom has the superior right to possession; (3) lacked jurisdiction, because Behzad’s wife, Olga, was a necessary and indispensable party; and (4) abused its discretion in issuing an overbroad judgment that applies to Olga, who is not named in the suit. We hold that the trial court did not abuse its discretion in considering the challenged summary judgment evidence, the trial court properly granted summary judgment, and Behzad waived his objection to Olga’s absence. We therefore affirm.

Background

Behzad, as the sole grantor on a deed of trust on his and his wife’s home, defaulted on the note it secured. The property became the subject of a non-judicial foreclosure sale. FHLMC purchased the property at the sale in August 2010. Behzad and his family remained on the property after the foreclosure sale as tenants at sufferance. Thereafter, FHLMC entered into a month-to-month residential lease agreement with Behzad and Olga Khalilnia. The lease provided that either party could terminate the lease by providing thirty days’ written notice. The lease provided that any notice to the Khalilnias was to be sent to the “Tenant at the Property” by mail or hand-delivery, and was effective from the time notice was sent.

September 13, 2011, FHLMC exercised its right to terminate the lease agreement and notified the Khalilnias that they had to surrender the property in thirty days. Its agent, Felicia Brain, sent the notice via certified and first class mail, addressed to “Behzad Khalilnia And/or All Current Occupants Of [the property].” The notice sent by certified mail was delivered on September 27, 2011. On October 24, FHLMC sent notice to the Khalilnias that they had to vacate the Property within three days after receipt of the notice. This notice, too, was sent by certified and first class mail and addressed to “Behzad Khalilnia and/or all occupants of [the property].” The certified mail notice was returned unclaimed, but the first class mail notice was not returned.

When the Khalilnias failed to surrender the premises, FHLMC sued in the justice court for forcible entry and detainer, naming “Behzad Khalilnia And All Occupants of [the property]” as defendants. It secured a ruling in its favor. Behzad sought de novo review in the county civil court at law, which granted summary judgment in favor of FHLMC.

Discussion

I. Admissibility of Summary Judgment Evidence Behzad first contends that the October 24, 2011 notice to vacate and copies of the envelopes in which it was sent to Behzad are hearsay and thus the trial court improperly considered them as summary judgment evidence. Summary judgment

evidence must be presented in a form that would be admissible at trial. Friday v. Grant Plaza Huntsville Assocs., 713 S.W.2d 755, 756 (Tex. App.—Houston [1st Dist.] 1986, no writ). We review a trial court’s decision to admit or deny summary judgment evidence under an abuse of discretion standard. Owens-Corning Fiberglas Corp. v. Malone, 972 S.W.2d 35, 43 (Tex. 1998). A trial court abuses its discretion if it acts without reference to any guiding rules or principles. Carpenter v. Cimarron Hydrocarbons Corp., 98 S.W.3d 682, 687 (Tex. 2002). We must uphold an evidentiary ruling if there is any legitimate basis for it. Malone, 972 S.W.2d at 43.

Texas Rule of Evidence 803(6) provides that a business record is not excluded from evidence by the hearsay rule if it is:

in any form, of acts, events, conditions, opinions, or diagnoses, made at or near the time by, a person with knowledge, if kept in the course of a regularly conducted business activity, and if it was the regular practice of that business activity to make the memorandum, report, record, or data compilation . . . by affidavit that complies with Rule 902(10)

TEX. R. EVID. 803(6). Rule 902(10) sets out a form of affidavit to be used with business records under rule 803(6). TEX. R. EVID. 902(10). Rule 902(10) further provides that the form set out in the rule is not exclusive. Id. An affidavit that substantially complies with the form of affidavit set out in the rule will suffice. See Fullick v. City of Baytown, 820 S.W.2d 943, 944 (Tex. App.—Houston [1st Dist.] 1991, no writ).

The documents to which Behzad objects were accompanied by an affidavit from Berain, who averred that she was the custodian of those records. She further averred that she was providing the records as the custodian; that she had personal knowledge of the information contained in the records; that the records were made in the regular course of business; and that it was the regular practice of the business to keep such records. The affidavit therefore substantially complies with Texas Rule of Evidence 902(10) by averring to facts that satisfy Rule 803(6). See Fullick, 820 S.W.2d at 944. We hold that the trial court did not abuse its discretion in admitting this evidence under the business records exception to the hearsay rule.

II. Summary Judgment A. Standard of Review We review de novo the trial court’s ruling on a motion for summary judgment. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex. 2009). In a traditional motion for summary judgment, the movant must establish that no genuine issue of material fact exists and the movant is thus entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(c). When reviewing a summary judgment, we take as true all evidence favorable to the nonmovant and indulge every reasonable inference and resolve any doubts in the nonmovant’s favor. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005); Provident Life & Accid. Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex. 2003).

Traditional summary judgment is proper only if the movant establishes that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law. TEX. R. CIV. P. 166a(c). The motion must state the specific grounds relied upon for summary judgment. Id. A genuine issue of material fact exists if the non-movant produces more than a scintilla of probative evidence regarding the challenged element. See Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 600 (Tex. 2004); see also Forbes Inc. v. Granada Bioscis, Inc., 124 S.W.3d 167, 172 (Tex. 2003) (“More than a scintilla of evidence exists if it would allow reasonable and fair minded people to differ in their conclusions.”). A defendant moving for traditional summary judgment must conclusively negate at least one essential element of each of the plaintiff’s causes of action. Sci. Spectrum, Inc. v. Martinez, 941 S.W.2d 910, 911 (Tex. 1997).

When, as here, “a trial court’s order granting summary judgment does not specify the grounds relied upon, [we] affirm the summary judgment if any of the summary judgment grounds are meritorious.” FM Props. Operating Co. v. City of Austin, 22 S.W.3d 868, 872–73 (Tex. 2000). If the appellant fails to negate every possible ground upon which the judgment may have been granted, an appellate court must uphold the summary judgment. See Star-Telegram, Inc. v. Doe, 915 S.W.2d 471, 473 (Tex. 1995); Ellis v. Precision Engine Rebuilders, Inc., 68 S.W.3d 894, 898 (Tex. App.—Houston [1st Dist.] 2002, no pet.).

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Behzad Khalilnia v. Federal Home Loan Mortgage Corp, (Tex. Ct. App. 2013).

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