Bobbie White v. Josefino Bencomo III

Court of Appeals of Texas·Decided May 6, 2015·No. 03-14-00812-CV·Published

Opinion

ACCEPTED

03-14-00812-CV

5173978

THIRD COURT OF APPEALS

AUSTIN, TEXAS

5/6/2015 12:53:18 PM

JEFFREY D. KYLE

CLERK

CAUSE NO. 03-14-00812-CV

FILED IN

IN THE COURT OF APPEALS 3rd COURT OF APPEALS FOR THE AUSTIN, TEXAS 5/6/2015 12:53:18 PM

3RD JUDICIAL DISTRICT OF TEXAS JEFFREY D. KYLE AUSTIN, TEXAS Clerk

BOBBIE WHITE,

Appellant,

VS.

JOSEFINO BENCOMO III,

Appellee

APPELLEE’S BRIEF

ORAL HEARING NOT REQUESTED

From the District Court, 26th Judicial District of Williamson County, Texas Trial Court Cause No. 14-0374-C26; the Honorable Donna King, Judge

Respectfully submitted,

FRED E. WALKER, P.C.

/s/Fred E. Walker

Fred E. Walker

Texas Bar No. 20700400

609 Castle Ridge Road, Suite 220 Austin, TX 78746

Tel. (512) 330-9977

Fax. (512) 330-1686

Fred@FredWalkerLaw.com

Attorney for Appellee

Table of Contents

I. Statement of the Case.......................................................................................5 II. Issues Presented................................................................................................7 III. Summary of the Argument..........................................................................7 IV. Argument .......................................................................................................8 A. A deed retaining a vendor’s lien is executory only in the sense that bare legal title remains in the seller to be automatically vested in the buyer upon payment of the purchase money. ................................................8 B. The Deed of Trust did not cure the transaction of being executory. ...23 C. Appellee’s interpretation of subchapter D does not undermine its intended purpose. .............................................................................................23 V. Prayer ...............................................................................................................24

Index of Authorities

Cases

Acker v. Texas Water Comm'n, 790 S.W.2d 299, 301 (Tex.1990) .......................12 Brown v. De La Cruz, 156 S.W.3d 560, 566 (Tex.2004).......................................15 Carroll v. Wied, 572 S.W.2d 93, 95 (Tex.Civ.App.-Corpus Christi 1978, no writ) .....................................................................................................................18 Flores v. Millennium Interests, Ltd., 185 S.W.3d 427, 429 (Tex.2005)................16 Flowers v. Zuniga, No. 11–06–00144–CV, 2008 WL 1723225, at *1, 2008 Tex.App. LEXIS 2664, at *2 (Tex.App.-Eastland Apr. 10, 2008, no pet.)

(mem. op.)...........................................................................................................15 Gaona v. Gonzales, 997 S.W.2d 784, 786–87 (Tex.App.-Austin 1999, no pet.) 18 Graves v. Diehl, 958 S.W.2d 468, 470 (Tex.App.-Houston [14th Dist.] 1997, no pet.) ......................................................................................................................17 Henderson v. Love, 181 S.W.3d 810, 812 (Tex.App.-Texarkana 2005, no pet.)16 Lexington Ins. Co. v. Strayhorn, 209 S.W.3d 83, 85 (Tex.2006) ..........................11 Marker v. Garcia, 185 S.W.3d 21, 26–27 (Tex.App.-San Antonio 2005, no pet.)

..............................................................................................................................19 Nguyen v. Yovan, 317 S.W.3d 261, 270 (Tex.App.-Houston [1st Dist.] 2009, pet. denied).........................................................................................................15 Reeder v. Curry, 294 S.W.3d 851, 856 (Tex.App.-Dallas, 2009 pet. denied) ...17 Sanchez v. Brandt, 567 S.W.2d 254, 259 (Tex.Civ.App.-Corpus Christi 1978, no writ)................................................................................................................19 Shook v. Walden, 304 S.W.3d 910, 917 (Tex.App.-Austin 2010, no pet.) .........12 Shook v. Walden, 368 S.W.3d 604, 623 (Tex. App. 2012), reh'g overruled (May 9, 2012), review denied (Oct. 26, 2012) ...........................................................14 Shook v. Walden, 368 S.W.3d 604, 627 (Tex. App. 2012), reh'g overruled (May 9, 2012), review denied (Oct. 26, 2012) ...........................................................10 State v. Shumake, 199 S.W.3d 279, 284 (Tex.2006) ...........................................11

Ward v. Malone, 115 S.W.3d 267, 270–71 (Tex.App.-Corpus Christi 2003, pet.

denied) ................................................................................................................17 Zapata v. Torres, 464 S.W.2d 926, 928 (Tex. Civ. App. 1971) .............................8 Zuniga v. Velasquez, 274 S.W.3d 770, 771 (Tex.App.-San Antonio 2008, no pet.) ......................................................................................................................15 Statutes

Tex. Prop. Code § 5.066..........................................................................................4 Tex. Prop. Code § 5.077..........................................................................................4 Tex. Prop. Code Ann. § 5.079(a) .........................................................................14 Texas Property Code Chapter 5, Subchapter D .......................................passim Other Authorities

Highlights of Some Recent Texas Laws Related to Executory Contracts for Deeds...................................................................................................................23

I. Statement of the Case Appellee foreclosed on Appellant’s home and filed a forceable entry and detainer suit seeking to evict Appellant from the property. Appellant brought this action to quiet title on April 15, 2014 asking the court to set aside Appellee’s foreclosure of the property on the flawed theory that Appellee failed to comply with Tex. Prop. Code § 5.066 Appellant further sought statutory damages arising from Appellee’s failure to provide Appellant with annual accounting statements in accordance with Tex. Prop. Code § 5.077.

Appellant’s claims are based upon her erroneous theory that Appellee’s sale of the property is an executory contract governed by Texas Property Code Chapter 5, Subchapter D because the warranty deed conveying title to Appellant’s property contains a reservation of a vendor's lien to secure payment of the promissory note given in partial consideration for the purchase of the property.

Appellant obtained an ex-parte Temporary Restraining Order on April 16, 2015 - without providing notice to Appellee’s attorney - despite the fact that Appellant’s attorney and Appellee’s attorney had been attempting to negotiate a settlement for several months before the TRO was filed. The court held a hearing on Appellant’s request for a Temporary Restraining Order on April 25, 2014. The parties agreed to submit the matter to the court by filing cross motions for summary judgment. Appellee further agreed to, and subsequently did, rescind the foreclosure to allow Appellant another opportunity to cure the arrearage and reinstate the note.

Appellee filed his motion for summary judgment on June 17, 2014.

Appellant filed her motion for summary judgment on June 18, 2014. The court held a hearing on the competing motions for summary judgment on August 12, 201 and entered a docket entry on August 15, 2014 ruling in favor of Appellee. Appellant filed a motion to reconsider on September 15, 2014. The court signed a Summary Judgment Order on September 25, 2014. The court denied Appellant’s motion to reconsider on December 2, 2014. Appellant filed her notice of appeal on December 22, 2014.

II. Issues Presented

Is a deed retaining a vendor's lien to secure a purchase money loan executory as between the vendor and vendee such that the transaction is within the meaning of “executory contract” as contemplated by Texas Property Code Chapter 5, Subchapter D?

Does the holder of a real estate note secured with a vendor’s lien and a deed of trust lien have an obligation to comply with the provisions of Texas Property Code Chapter 5, Subchapter D?

III. Summary of the Argument

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Graves v. Diehl
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Marker v. Garcia
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Shook v. Walden
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Carroll v. Wied
572 S.W.2d 93 (Court of Appeals of Texas, 1978)
Reeder v. Curry
294 S.W.3d 851 (Court of Appeals of Texas, 2009)
Kirk v. Barnett
566 S.W.2d 122 (Court of Appeals of Texas, 1978)
Ward v. Malone
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Brown v. De La Cruz
156 S.W.3d 560 (Texas Supreme Court, 2004)
Nguyen v. Yovan
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