Darin G. Cyphers, Individually and as Duly Authorized Agent of Presidential One Enterprises, LLC v. Dennis D. Cunningham, Individually and for and on Behalf of Margaret M. Cunningham

Court of Appeals of Texas·Decided August 15, 2024·No. 02-23-00148-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-23-00148-CV

DARIN G. CYPHERS, INDIVIDUALLY AND AS DULY AUTHORIZED AGENT OF PRESIDENTIAL ONE ENTERPRISES, LLC, Appellants

V.

DENNIS D. CUNNINGHAM, INDIVIDUALLY AND FOR AND ON BEHALF OF MARGARET M. CUNNINGHAM, Appellee

On Appeal from the 352nd District Court Tarrant County, Texas

Trial Court No. 352-317616-20

Before Kerr, Birdwell, and Womack, JJ.

Memorandum Opinion by Justice Birdwell

MEMORANDUM OPINION

Appellant Darin Cyphers—acting as an agent for his company, Presidential One Enterprises, LLC—filed an unlawful mechanic’s lien on property owned by Margaret Cunningham. Consequently, when Margaret sold her property, the title company withheld a portion of her sales proceeds, and Margaret—represented by her son, Appellee Dennis Cunningham—sued to challenge the lien’s validity.1 While the case was pending, the title company released the withheld funds. Nonetheless, the parties proceeded to a bench trial on Cunningham’s remaining requests for relief and on Cyphers’s counterclaims, and the trial court found in Cunningham’s favor and awarded him costs and attorney’s fees.

Cyphers now appeals, complaining that (1) the trial court lacked subject matter jurisdiction to award Cunningham attorney’s fees because he lacked standing to challenge the lien’s validity and by the time of trial his claims were moot anyway;

1 Although the style of the case indicates Dennis’s participation both in his individual capacity and as Margaret’s representative, it is undisputed that the property at issue was owned by Margaret alone. The trial court did not distinguish between Dennis’s two capacities in its judgment or findings of fact and conclusions of law.

Similarly, while Cyphers was named as a defendant in both his individual capacity and as an agent of Presidential One Enterprises, LLC, it is undisputed that the lien at issue was filed in Presidential One Enterprise’s name, and Presidential One Enterprises—not Cyphers individually—was the party that filed counterclaims. But again, the trial court did not distinguish between the two in its judgment or findings and conclusions.

The parties gloss over these distinctions in their briefs and do not raise them as issues on appeal, nor do they ask us to modify the judgment on this basis. Therefore, we do not address them.

(2) there was insufficient evidence to support the fee award because Cunningham failed to segregate his recoverable fees from his nonrecoverable fees; and (3) the trial court erred by denying Cyphers relief on his counterclaims. Because the trial court had subject matter jurisdiction to adjudicate the lien’s validity, because Cyphers failed to preserve his fee-segregation argument, and because there are unchallenged alternative grounds for the trial court’s rejection of Cyphers’s counterclaims, we will affirm.

I. Background

In 2014, Margaret’s roof was damaged. According to her neighbor—

Cyphers—Margaret agreed to sell him her property via a reverse mortgage in exchange for his completing the necessary repairs. But Margaret never signed a contract memorializing this alleged agreement, nor did she ever sign anything transferring her home to Cyphers. Nonetheless, Cyphers, acting through his company, Presidential One Enterprises, LLC (together “Cyphers”), arranged for repairs to be completed in 2015.2 Cyphers later claimed that Margaret’s son— Dennis—had assured him that, despite the lack of a written contract, Cyphers would be reimbursed for the cost of repairs or would receive a right of first refusal when Margaret sold her home. So, when Cyphers saw Margaret preparing to sell the home in 2019, he believed her to be reneging on her commitments, and he filed a

The parties dispute the extent to which the repairs were completed and 2

whether the repairs were performed in a good, workmanlike manner.

mechanic’s lien3 on Margaret’s home for the alleged cost of the completed repairs: $33,131.

Because of Cyphers’s lien, when Margaret sold her home to a third party, the title company withheld $50,000 from her sales proceeds.4 Margaret demanded that Cyphers remove the lien, and when he refused, Dennis filed suit on her behalf (hereinafter, “Cunningham”).5 Cunningham sought to quiet title to the property and pleaded for relief under Chapter 37 of the Civil Practice and Remedies Code (the Declaratory Judgments Act) and Section 53.160 of the Property Code (which provides for the summary removal of a mechanic’s lien).6 A few months into the suit, and for unspecified reasons, the title company released the withheld funds to Cunningham. Nonetheless, Cunningham continued to seek recovery of his costs and attorney’s fees, exemplary damages, and the interest

3 See Tex. Prop. Code Ann. §§ 53.001(5) (defining “[m]echanic’s lien” to encompass any lien provided by Chapter 53), 53.021(1) (providing for statutory lien in favor of a person who “under a contract with the owner or the owner’s agent . . . labors or furnishes labor or materials for construction or repair of an improvement”).

4 Dennis did not know why the title company withheld $50,000 rather than $33,131.

Dennis initially filed the claims on Margaret’s behalf as her attorney in fact, but 5

Margaret died while the case was pending, so Dennis continued to pursue her claims on behalf of her estate.

Section 53.160 of the Property Code provides for a summary “motion to 6

remove the claim or lien” in a “suit brought . . . to declare a claim or lien invalid or unenforceable.” Id. § 53.160(a). Cunningham invoked this statute in his petition, seemingly treating the statute as an independent cause of action.

that had accrued while the money was being withheld. Meanwhile, Cyphers counterclaimed for breach of contract, promissory estoppel, and quantum meruit.

Following a bench trial, the trial court entered judgment for Cunningham and awarded him costs and attorney’s fees, citing Section 37.009 of the Civil Practice and Remedies Code and Section 53.156 of the Property Code among other sources of authority. See Tex. Civ. Prac. & Rem. Code Ann. § 37.009 (authorizing costs and attorney’s fees in a declaratory judgment proceeding); Tex. Prop. Code Ann. § 53.156 (authorizing costs and attorney’s fees in a proceeding to declare a lien invalid). The trial court also signed findings of fact and conclusions of law.

In the findings and conclusions related to Cyphers’s counterclaims, the trial court determined that Cyphers had failed to prove the existence of a contract or promise to pay and that all of Cyphers’s counterclaims were barred by the statute of limitations. It further found that, although Cyphers had alleged being owed $33,131, he had “submitted checks totaling [just] $7,603.54 that may have been paid,” and such checks were mere “pictures” of instruments that were “non-negotiated or endorsed.” 7

7 Cyphers’s trial exhibits included photographs of the faces of several checks.

In his testimony, Cyphers acknowledged that he had taken the photographs prior to the checks’ being deposited and that, although he could have obtained copies of the endorsed, negotiated checks through his online banking system, he had not obtained or produced documentation confirming that the checks had been cashed. He further acknowledged that one of the checks had not been made payable to anyone at the time it was photographed, but he explained that due to his “lack of hearing . . . [he] was unable to understand the spelling of [the man’s] name” when he wrote the check.

II. Discussion

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Darin G. Cyphers, Individually and as Duly Authorized Agent of Presidential One Enterprises, LLC v. Dennis D. Cunningham, Individually and for and on Behalf of Margaret M. Cunningham, (Tex. Ct. App. 2024).

Darin G. Cyphers, Individually and as Duly Authorized Agent of Presidential One Enterprises, LLC v. Dennis D. Cunningham, Individually and for and on Behalf of Margaret M. Cunningham (Darin G. Cyphers, Individually and as Duly Authorized Agent of Presidential One Enterprises, LLC v. Dennis D. Cunningham, Individually and for and on Behalf of Margaret M. Cunningham) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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