Elia Cornejo Lopez and Leonel Lopez v. Norma Linda Castellano

CourtCourt of Appeals of Texas
DecidedFebruary 25, 2010
Docket13-08-00336-CV
StatusPublished

This text of Elia Cornejo Lopez and Leonel Lopez v. Norma Linda Castellano (Elia Cornejo Lopez and Leonel Lopez v. Norma Linda Castellano) 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.

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Elia Cornejo Lopez and Leonel Lopez v. Norma Linda Castellano, (Tex. Ct. App. 2010).

Opinion

NUMBER 13-08-00336-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI - EDINBURG

ELIA CORNEJO LOPEZ AND LEONEL LOPEZ, Appellants,

v.

NORMA LINDA CASTELLANO, Appellee.

On appeal from the 138th District Court of Cameron County, Texas.

MEMORANDUM OPINION

Before Chief Justice Valdez and Justices Rodriguez and Garza Memorandum Opinion by Justice Rodriguez

Appellants Elia Cornejo Lopez and Leonel Lopez appeal a summary judgment

granted in favor of appellee Norma Linda Castellano on the Lopezes' conversion and

common-law fraud claims. By six issues, the Lopezes contend that the trial court erred in granting summary judgment because material fact issues remain. We affirm in part and

reverse and remand in part.

I. FACTUAL AND PROCEDURAL BACKGROUND 1

South Texas ACP Management, LLC (South Texas ACP) was created in 2006 as

a limited liability company. Cesar Roel Perez is the sole manager of South Texas ACP,

and Castellano, Perez's mother-in-law, is a member—allegedly its sole member.

The Lopezes assert in their petition that, in May 2007, they were beginning

negotiations with Perez and South Texas ACP to buy an interest in South Texas ACP.

According to the petition, they discussed the expansion of the Playground Fun Center a/k/a

Playground Action Park in Brownsville, Texas, which was to include the building of a

skating rink facility adjacent to the existing facility. As set out in their petition, as a sign of

good faith, Elia Lopez deposited $100,000 into a Wells Fargo Bank account; the funds

were to be held in escrow until the Lopezes completed a due diligence investigation of the

business.

After the Lopezes discovered that Perez allegedly made misrepresentations

regarding the financial condition of South Texas ACP, the ownership of South Texas ACP's

assets, and the existence of liens against South Texas ACP's assets, they demanded the

return of their money. According to allegations in the petition, Perez and South Texas ACP

failed to return the money and failed to provide an accounting.2 On August 9, 2007, the

1 Castellano filed no appellee's brief to assist us in the resolution of this case. Accordingly, we decide this appeal based on the brief filed by the Lopezes and the record before us.

2 Although it is not clear from the record, it appears as if $50,000 of the $100,000 was placed in the registry of the trial court. The Lopezes have requested that the trial court release that m oney to them . The location or use of the rem aining $50,000 is disputed.

2 Lopezes sued South Texas ACP, Perez, and Castellano for common-law fraud and

conversion. On December 10, 2007, the Lopezes filed a second amended petition which

added factual allegations regarding the fraud and conversion claims.

On December 14, 2007, Castellano filed a hybrid no-evidence and traditional motion

for summary judgment.3 The Lopezes responded, filing their response on February 5,

2008, and their supplemental response on February 11, 2008.4 Both responses were filed

timely—more than seven days before the summary judgment hearing. See TEX . R. CIV.

P. 166a(c) ("Except on leave of court, the adverse party, not later than seven days prior to

the day of hearing may file and serve opposing affidavits or other written response.");

Haynes v. City of Beaumont, 35 S.W.3d 166, 172-73 (Tex. App.–Texarkana 2000, no pet.).

On February 11, 2008, the Lopezes also filed a third amended petition. In this

petition, they added allegations of statutory fraud in a real estate transaction, see TEX . BUS.

& COM . CODE ANN . § 27.01 (Vernon 2009), negligence, and gross negligence.5

On February 13, 2008, Castellano filed objections to the Lopezes' summary

judgment evidence, and in the alternative, a reply to the Lopezes' response and

supplemental response. Relevant to this appeal, Castellano specifically objected to Elia

3 As evidence, Castellano attached her affidavit and the affidavit of Perez to her m otion. She also attached excerpts of the Lopezes' deposition testim ony and docum ents regarding South Texas ACP's form ation, filing, and regulations.

4 The Lopezes attached the following evidence to their response: (1) Elia Lopez's affidavit; (2) a 2006 Deed of Trust, Security Agreem ent, and Financing Statem ent (Deed of Trust); (3) one of South Texas ACP's interrogatory responses; (4) a copy of a check in the am ount of $100,000 m ade payable to Cesar Perez; (5) a docum ent titled "Roller Boogie"; and (6) a W ells Fargo Bank account transaction receipt and inquiry inform ation on what appears to be the sam e account. No evidence was attached to the Lopezes' supplem ental response.

5 The Lopezes claim to have added civil conspiracy as a new cause of action in their third am ended petition. However, only the title, "Civil Conspiracy," appears in this petition. It offers nothing m ore to advance this claim .

3 Lopez's affidavit, arguing that it contained hearsay.6 See TEX . R. EVID . 801. The Lopezes

did not assert the application of any hearsay exception. See id. at R. 803. Nor did the

Lopezes raise any objections to Castellano's evidence. In her reply, Castellano also

objected to the filing of the Lopezes' third amended petition as untimely. No written rulings

on Castellano's objections appear in the record.

The hearing on Castellano's motion, originally set for February 5, 2008, was

rescheduled for February 11, 2008, and then again for February 20, 2008. At the February

20 hearing, counsel presented argument. Counsel for Castellano again objected to Elia

Lopez's affidavit—specifically, to Lopez's statement that Perez told her that Castellano was

in possession of the $100,000. At the end of the hearing, without expressly ruling on

Castellano's objection, the trial court granted Castellano's motion for summary judgment.

On February 26, 2008, Castellano filed a motion to sever the claims against her

from the claims alleged against Perez and South Texas ACP. The Lopezes filed a fourth

amended petition on April 1, 2008, arguing that all causes of action were not addressed

in the summary judgment motion. In this fourth amended petition, filed after the summary

judgment hearing, the Lopezes added two new causes of action identified as civil

conspiracy and malicious prosecution/intentional infliction of emotional distress. On that

same day, the Lopezes responded to Castellano's motion to sever, again asserting that not

all causes of action against her were addressed in the summary judgment motion.

6 In addition to the hearsay objection, Castellano objected to Elia Lopez's affidavit arguing that it contained legal conclusions and unsupported factual conclusions. She also objected to the Deed of Trust as unauthenticated and incom plete and to South Texas ACP's interrogatory response on the basis that the Lopezes represented that it was Castellano's response. Castellano filed no objections to the copy of the check, the "Roller Boogie" docum ent, or the W ells Fargo Bank receipt and inquiry inform ation.

4 On April 18, 2008, the trial court signed its judgment granting Castellano's motion

for summary judgment and ordering that the Lopezes take nothing by their suit against

Castellano. The judgment stated that the trial court: heard Castellano's no-evidence and

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