Erik Puente v. Javier R. Garza

Court of Appeals of Texas·Decided March 16, 2023·No. 13-21-00194-CV·Published

Opinion

NUMBER 13-21-00194-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

ERIK PUENTE, Appellant,

v.

JAVIER R. GARZA, Appellee.

On appeal from the 93rd District Court of Hidalgo County, Texas.

MEMORANDUM OPINION Before Justices Benavides, Longoria, and Tijerina Memorandum Opinion by Justice Tijerina

Appellant Erik Puente appeals from the trial court’s order granting appellee Javier

R. Garza’s Rule 91a motion to dismiss. See TEX. R. CIV. P. 91a. By two issues, Puente

asserts that trial court erred in granting Garza’s motion to dismiss because each of

Puente’s causes of action had a basis in law, and Garza’s motion did not comply with

Rule 91a.2. See id. We reverse and remand. I. BACKGROUND

Puente is Garza’s nephew. On February 21, 2011, Garza’s parents (Puente’s

grandparents) executed a document entitled “Deed of Gift With Reservation of Life

Estate,” transferring to Puente a 100% future interest in their residential homestead (the

property). According to Puente’s petition, he was unaware of this conveyance at the time

it was made. Subsequently, on July 8, 2011, a warranty deed purporting to convey

Puente’s interest in the property to Garza was executed.

On March 24, 2021, Puente filed a petition to set aside the July 8, 2011

conveyance and sought a declaratory judgment and recission of the alleged deed,

claiming that the deed was fraudulent. Puente asserted causes of action for fraud by non-

disclosure, common law fraud, and violation statutory fraud. Puente alleged the deed was

fictitious as he did not execute any deeds transferring the property to Garza. Puente

further claimed that he was unaware of either deed until sometime in December 2019.

Garza filed a Rule 91a motion to dismiss, asserting Puente’s suit was barred by

the statute of limitations.

The trial court held a hearing where Garza reiterated that Puente’s causes of action

were barred by the statute of limitations. The trial court granted Garza’s motion to dismiss

with prejudice on June 11, 2021. This appeal followed.

II. STANDARD OF REVIEW

“We review the merits of a Rule 91a motion de novo because the availability of a

remedy under the facts alleged is a question of law and the rule’s factual-plausibility

standard is akin to a legal-sufficiency review.” City of Dallas v. Sanchez, 494 S.W.3d 722,

2 724 (Tex. 2016) (per curiam); In re Union Pac. R.R. Co., 582 S.W.3d 548, 550 (Tex.

App.—Houston [14th Dist.] 2018, orig. proceeding). The motion to dismiss must identify

each cause of action to which it is addressed and specifically state the reasons the action

has no basis in law, no basis in fact, or both. TEX. R. CIV. P. 91a.2. The trial court “must

decide the motion based solely on the pleading of the cause of action, together with any

pleading exhibits permitted by the rules of civil procedure.” Reaves v. City of Corpus

Christi, 518 S.W.3d 594, 599 (Tex. App.—Corpus Christi–Edinburg 2017, no pet.) (citing

TEX. R. CIV. P. 91a.6).

We assess from the pleading whether an opposing party can ascertain the nature

of the controversy, its basic issues, and the type of evidence that might be relevant. Id. at

600. For instance, a claim has no basis in law when: “(1) the petition alleges too few facts

to demonstrate a viable, legally cognizable right to relief; and (2) the petition alleges

additional facts that, if true, bar recovery.” Id. at 608 (citing Guillory v. Seaton, LLC, 470

S.W.3d 237, 240 (Tex. App.—Houston [1st Dist.] 2015, pet. denied)). Further, Rule 91a

permits motions to dismiss based on affirmative defenses “if the allegations, taken as

true, together with the inferences reasonably drawn from them, do not entitle the claimant

to the relief sought.” Bethel v. Quilling, Selander, Lownds, Winslett & Moser, P.C., 595

S.W.3d 651, 656 (Tex. 2020). “Of course, some affirmative defenses will not be

conclusively established by the facts in a plaintiff’s petition. Because Rule 91a does not

allow consideration of evidence, such defenses are not a proper basis for a motion to

dismiss.” Id. at 654.

3 III. DISCUSSION

In his pleadings, Puente asserted that on February 21, 2011, his grandparents

transferred a 100% future interest in the property to him, on July 8, 2011, Garza

fraudulently executed a deed on Puente’s behalf transferring the property to Garza, and

Puente was unaware of such act until 2019. Garza pleaded the statute of limitations as

an affirmative defense, stating that the alleged fraudulent deed was executed in 2011,

and Puente’s suit was filed well after the four-year statute of limitations had expired. See

Bethel, 595 S.W.3d at 656; see also Little v. Smith, 943 S.W.2d 414, 420 (Tex. 1997)

(“Generally, in a case of fraud the statute of limitations does not commence to run until

the fraud is discovered or until it might have been discovered by the exercise of

reasonable diligence.”).

Garza was required to state specifically the reasons Puente’s causes of action had

no basis in law, no basis in fact, or both, when Puente allegedly did not discover the fraud

until 2019. See TEX. R. CIV. P. 91a.2. Construing Puente’s pleadings liberally and

accepting as true Puente’s assertion that he did not discover the July 8, 2011 deed until

2019, In re Union Pac. R.R. Co., 582 S.W.3d at 550, we are unable to conclude that the

four-year statute of limitations bars Puente’s claims. See id.; cf. Murphy v. Campbell, 964

S.W.2d 265, 270 (Tex. 1997) (providing that the discovery rule applies in fraud cases);

Reaves, 518 S.W.3d at 608 (“[D]ismissal is appropriate where the plaintiff fails to provide

fair notice of a legally cognizable claim for relief.”).

Garza maintains the statute of limitations applies to Puente’s causes of action

because the subject deed was “recorded, Puente was on notice of its existence, and

4 [Puente] should have exercised diligence to discover any defects.” Therefore, according

to Garza, Puente cannot rely on the fact that he did not “discover” the fraud until 2019

because he should have known about it in 2011 when the deed was recorded. See Berry

v. Berry, 646 S.W.3d 516, 524 (Tex. 2022) (reiterating the general rule that a recorded

deed constitutes constructive notice of the instrument). At the hearing, Garza made

similar arguments. However, there is no allegation in Puente’s petition that the July 8,

2011 deed was recorded, only that he somehow discovered the purported conveyance in

2019. Therefore, the trial court could not have considered whether the deed was, in fact,

recorded in 2011 and whether the recording of the deed barred Puente’s suit regardless

of Garza’s assertions at the hearing. See Reaves, 518 S.W.3d at 605 (explaining that “a

ruling on a 91a motion must not be based on extrinsic evidence . . . .”).

In addition, the trial court was prohibited from looking beyond the pleadings to

determine whether the deed was in fact recorded and whether Puente exercised

reasonable diligence in discovering its existence. See TEX. R. CIV. P. 91a.6 (noting that

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