Dillard v. Freeland

714 S.W.2d 378, 1986 Tex. App. LEXIS 7954
CourtCourt of Appeals of Texas
DecidedJune 26, 1986
Docket13-85-374-CV
StatusPublished
Cited by8 cases

This text of 714 S.W.2d 378 (Dillard v. Freeland) 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
Dillard v. Freeland, 714 S.W.2d 378, 1986 Tex. App. LEXIS 7954 (Tex. Ct. App. 1986).

Opinion

OPINION

KENNEDY, Justice.

Appellants, Dan Dillard and Sandra Dillard, brought suit to set aside a trustee’s deed, for damages for wrongful foreclosure and damages for fraud. The trial court’s judgment granted instructed verdicts in favor of the defendants on all causes of action. On appeal to this Court, we reversed the judgment of the trial court and ordered a new trial “on appellant Dillard’s cause of action for damages for wrongful foreclosure, if any, caused by the inadequate notice, if found to exist, on the demand for late payment and intent to accelerate.” In all other matters, the judgment of the trial court was affirmed. Dillard v. Broyles, 633 S.W.2d 636, 645 (Tex.App.—Corpus Christi 1982, writ ref’d n.r. *380 e.), cert. denied, 463 U.S. 1208, 103 S.Ct. 3539, 77 L.Ed.2d 1389 (1983). Upon remand, the trial court rendered judgment in favor of both appellees. Appellants bring four points of error. We affirm the judgment of the trial court.

Appellants, by their first point of error, complain that the trial court erred in failing to define proximate cause. “Failure to submit a definition or explanatory instruction shall not be deemed a ground for reversal of the judgment unless a substantially correct definition or explanatory instruction has been requested in writing and tendered by the party complaining of the judgment.” TEX.R.CIV.P. 279; see also Ryan Mortgage Investors v. Fleming-Wood, 650 S.W.2d 928, 933 (Tex.App.—Fort Worth 1983, writ ref’d n.r.e.). Appellants did not request an instruction on proximate cause in writing. We overrule appellant’s first point of error.

Appellants, in their second point of error, complain that the trial court erred in awarding judgment for appellees because there was no evidence to support the jury’s finding that appellees gave notice of their intent to accelerate the maturity of the note. In considering a “no evidence” or “insufficient evidence” point of error, we will follow the well-established test set forth in Dyson v. Olin Corp., 692 S.W.2d 456 (Tex.1985); Glover v. Texas General Indemnity Co., 619 S.W.2d 400 (Tex. 1981); Garza v. Alviar, 395 S.W.2d 821 (Tex.1965); Allied Finance Co. v. Garza, 626 S.W.2d 120 (Tex.App.—Corpus Christi 1981, writ ref’d n.r.e.); Calvert, No Evidence and Insufficient Evidence Points of Error, 38 Texas L.Rev. 361 (1960).

The Court, in Ogden v. Gibraltar Savings Association, 640 S.W.2d 232 (Tex.1982), expounded on the notice necessary when foreclosing under a deed of trust:

Where the holder of a promissory note has the option to accelerate maturity of the note upon the maker’s default, equity demands notice be given of the intent to exercise the option.... In the case of a mortgage secured by a deed of trust, such notice must afford an opportunity to cure the default and bring home to the mortgagor that failure to cure will result in acceleration of the note and foreclosure under the power of sale.

Id. at 233; see Cortez v. Brownsville National Bank, 664 S.W.2d 805, 809 (Tex.App.—Corpus Christi 1984, no writ); Crow v. Heath, 516 S.W.2d 225, 228 (Tex.Civ.App.—Corpus Christi 1974, writ ref’d n.r. e.). In order to avail himself of this right of acceleration, the noteholder must make a clear, positive, and unequivocal declaration in some manner of the exercise of that right. Crow, 516 S.W.2d at 228.

Appellee Freeland, the attorney hired by appellee Sanchez for the foreclosure, testified:

Q. What attempts did you make to collect the note that had been turned over to you?
A. Well, my initial contact was by phone and I talked to Mr. Dillard and at that time there was a question raised by warranty features on the house. I made demand of him for payment of the note and told him that if he didn’t pay the delinquent installments, that the note would be called and the property posted for sale.
Q. When you say the note would be called, what is that? What is the legal term for it?
A. Not only the installments that were past due and owing would become due and owing but the future payments on the note so that the entire balance of the note would be due.

Freeland gave appellants notice of the acceleration of the maturity date of the note by letter in June of 1977. Freeland further testified that this conversation with appellant regarding intent to accelerate occurred prior to the June, 1977 letter. Therefore, there is evidence that appellees gave notice of their intent to accelerate the maturity date of the note. We overrule appellants’ second point of error.

Appellants, by their third point of error, complain that the trial court erred in sup *381 pressing evidence of appellee Freeland’s conduct in past foreclosures. Appellants, in their fourth point of error, complain that the trial court erred in refusing to submit appellants’ requested special issues.

This court, in Dillard v. Broyles, 683 S.W.2d 636, 645 (Tex.App. — Corpus Christi 1982, writ ref’d n.r.e.), cert, denied, 463 U.S. 1208, 103 S.Ct. 3539, 77 L.Ed.2d 1389 (1983), clearly limited the reversal to particular fact issues: 1

The judgment of the trial court is reversed, and a new trial is ordered on appellant Dillard’s cause of action for damages for wrongful foreclosure, if any, caused by the inadequate notice, if found to exist, on the demand for late payment and intent to accelerate. In all other matters, the judgment of the trial court is affirmed.

In a wrongful foreclosure cause of action, if an illegal or wrongful sale of the property is made under a power of sale contained in a mortgage or deed of trust, the mortgagee or trust deed mortgagee will be held liable to the mortgagor for the damages sustained. Owens v. Grimes, 539 S.W.2d 387, 389 (Tex.Civ.App. — Tyler 1976, writ ref’d n.r.e.) (and cases cited therein). The trial court properly sustained the appellees’ objection to the introduction of evidence regarding other deeds of trust involving appellee Freeland. Those deeds of trust were irrelevant to the issue before the court, whether the mortgagee gave notice of intent to accelerate the note and notice of the acceleration of the maturity date of the note.

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Bluebook (online)
714 S.W.2d 378, 1986 Tex. App. LEXIS 7954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dillard-v-freeland-texapp-1986.