Carlos Lamas v. Luis Raul Sandoval Gonzalez

Court of Appeals of Texas·Decided August 30, 2022·No. 08-21-00095-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

CARLOS LAMAS, § No. 08-21-00095-CV Appellant, § Appeal from the v. § 34th Judicial District Court LUIS RAUL SANDOVAL GONZALEZ, § of El Paso County, Texas Appellee. § (TC# 2020DCV4095)

MEMORANDUM OPINION

This interlocutory appeal arises from the trial court’s grant of a temporary injunction in favor of Appellee Luis Raul Sandoval Gonzalez (Sandoval). In his original petition, Sandoval alleged that he was buying a house from Appellant Carlos Lamas through a contract for deed. Sandoval claimed that he made regular mortgage payments under the contract, but Lamas later refused to accept payments and attempted to evict Sandoval from the house through several forcible entry and detainer actions. Sandoval sought a temporary injunction that would ensure his ability to continue making payments and enjoy the property during the pendency of the suit, which the trial court granted. Lamas challenges that ruling. For the following reasons, we affirm the trial court’s order and remand this case to the trial court for further proceedings.

I. FACTUAL AND PROCEDURAL BACKGROUND A. Procedural History In his original petition, Sandoval alleged that in June 2015 he entered a contract for deed with Lamas to purchase a house in El Paso, Texas. Sandoval claimed that after making a $20,000 down payment and monthly mortgage payments under the contract for several years, Lamas filed multiple actions for forcible entry and detainer in a justice court to remove Sandoval and his tenants from the house. His petition also claims that Lamas tried to prevent him from making mortgage payments, thereby “engineering a false default [on the contract] so that [Lamas] can take the property back—confiscating the $20,000.00 down payment without right or justification.”

Sandoval sued for breach of contract, requested a declaratory judgment, and also sought a temporary injunction preventing Lamas from filing further forcible entry and detainer actions against Sandoval and any tenants residing in the house. In part, he relied on TEX.PROP.CODE ANN. § 5.066(a) that restricts a seller’s remedies if a buyer has made more than 48 payments under a contract for deed.

As for injunctive relief, he asked the trial court to: (1) order Lamas to provide login information to the mortgage servicer’s online portal so that he (Sandoval) could continue making mortgage payments, or alternatively, that Lamas accept mortgage payments and forward them to the mortgage servicer; (2) enjoin Lamas from interfering with any lease agreements between Sandoval and any third-party tenants; (3) enjoin Lamas from filing any additional forcible entry and detainer proceedings; (4) enjoin Lamas from interfering with the homeowners insurance policy and to name Sandoval as a beneficiary of the policy; and (5) order Lamas to provide Sandoval with a general warranty deed upon completion of Sandoval’s obligations under the contract for deed. After Lamas answered the suit, the trial court heard Sandoval’s request for a temporary injunction

in which the parties presented the evidence recounted below.

B. Sandoval’s Hearing Testimony and Evidence1 Sandoval testified that he first met Lamas through a Craigslist advertisement for the sale of a house in El Paso, Texas. Lamas’s advertisement sought a buyer who could make an initial down payment on the house and continue to make monthly payments on a pre-existing mortgage until the mortgage was paid off, at which point title to the house would pass from Lamas to the buyer.

In June 2015, Sandoval and Lamas signed a document titled “Contrato de Transpaso,”

(written in Spanish) which appears to be a contract for deed to the house. Lamas drafted the document. Under its terms, Sandoval was to make an initial $20,000 down payment, to be followed by monthly payments of $549.89 on Lamas’s pre-existing mortgage with Bank of America until the mortgage was paid in full. To allow for those payments, Lamas provided Sandoval with login information to the bank’s online portal and payment system. That same day, Sandoval and Lamas also signed an “Assignment of Real Estate Contract and Sale Agreement,” which provided that Lamas would transfer the house’s title and his interest to Sandoval based on the terms of a copy of the contract for deed that had been translated into English.

Sandoval paid an initial $2,000 portion of the $20,000 down payment, and moved into the house, claiming it as his homestead. A handwritten receipt that appears to be attached to the Contrato de Transpaso also states "Balance of $18,000 for a total of $20,000.” Sandoval then began to make monthly payments on the mortgage. Sandoval asserted that from June 2015 to September 2020, a period of around 62 months, he did not miss any monthly mortgage payments.

1 The parties are well familiar with the testimony presented below. We summarize only that testimony relevant to the several issues necessary for our decision. See TEX.R.APP.P. 47.4 (“If the issues are settled, the court should write a brief memorandum opinion no longer than necessary to advise the parties of the court’s decision and the basic reasons for it.”).

At some point, Select Portfolio Servicing, Inc. (SPS) became the mortgage servicer.

Sandoval moved to Mexico. While he was gone, he rented the house to tenants, but he moved back into the house about two to three months before the injunction hearing. While acknowledging that he worked in Mexico, he claimed to still live in the house “intermittently.” When Sandoval had the house rented, he claimed that Lamas ran off two renters and threatened to evict another.

In October 2020, Lamas changed the password on the bank’s login portal without explanation, preventing Sandoval from making further payments on the mortgage. Sandoval then sent Lamas a $2,280.00 personal check via certified mail for the October 2020 through January 2021 mortgage payments. Sandoval also sent a separate check through his attorney for the February 2021 payment. Prior to the temporary injunction hearing, Lamas had filed three forcible entry and detainer actions in a justice court to evict Sandoval.

The record also reflects some dispute over the authenticity of Lamas’s signature on some documents. As for that issue, Sandoval presented testimony from Samuel Madrid who notarized the contract documents. While Madrid was not present when the Spanish version of the contract for deed was signed, his signature is present on both the “Assignment of Real Estate Contract” and the translated version of the contract for deed. Madrid recalled notarizing the documents and stated that if his signature was present on the documents, it meant that he followed his standard practice of verifying a person’s identification while he was physically present with the person.

Madrid’s office assistant translated the handwritten contract for deed from Spanish to English. And Madrid, who is fluent in Spanish, stated that the original contract for deed provided “that the compensation of $18,000 was given and a total of $20,000 was paid.”

C. Lamas’s Hearing Testimony and Evidence Lamas related a different version of events. He testified that he was a co-owner of the house with Sandra Lamas Marquez, to whom he was married at the time the contract for deed was signed. But he later admitted that the couple was divorced almost two years before the contract for deed was executed. And he did not know whether Marquez was awarded any interest in the house in the divorce.

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