George Wood v. Matthew D. Wiggins, Jr.

Court of Appeals of Texas·Decided November 16, 2021·No. 01-18-00630-CV·Published

Opinion

Opinion issued November 16, 2021

In The

Court of Appeals

For The

First District of Texas

final, appealable judgment; (2) there is no basis for a partition; (3) the statute of limitations does not bar his claims; (4) the statute of frauds does not apply; (5) the trial court erred in applying laches; (6) the trial court erred in ordering a contingent remedy; (7) the doctrine of unclean hands does not bar his equitable claims; (8) the trial court erred by finding against him on his breach of contract claim; (9) the trial court erred in failing to find damages or in the amount of damages awarded; (10) there is insufficient evidence to support the trial court’s finding that he had no interest in the Hidden Lake property; (11) he was entitled to attorney’s fees based on Wiggins’s breach of contract; and (12) the trial court abused its discretion in admitting a hearsay document related to the settlement of accounts as to six properties.

Because we hold that the trial court’s judgment did not properly reimburse Wood for the $259,208.76 which the trial court found, and the parties agreed, was owed to Wood for various expenses on a number of jointly owned properties, we modify the judgment to provide that after the net proceeds from the sale of the five properties are equally divided between Wood and Wiggins, the sum of $259,208.76 should be subtracted from Wiggins’s share and awarded to Wood.

We affirm the judgment as modified.

Background

Wood and Wiggins are experienced real estate investors who met in 2004 during a foreclosure sale. Beginning in May 2006, Wood and Wiggins agreed to jointly purchase properties together, and sometimes included others in the purchases, with the intent of repairing and selling the properties “within a reasonable time.” The properties were purchased at tax or foreclosure sales. Profits and losses on each property would be split according to the proportionate share of ownership. The parties had no written agreement or established policies about how to handle the property acquisition, management, rental, or sale of the jointly owned properties.

On some occasions, Wood would purchase the property to be co-owned by Wiggins (and sometimes other co-owners). On other occasions, Wiggins would purchase the property to be co-owned by Wood (and sometimes other co-owners). At some point and by some method (either repayment or offset from another property) the non-purchasing co-owner would reimburse the purchasing party for his portion of the property, which would be equally owned by all parties. Deeds would be issued to each owner to file with the respective county. There was never a particular or consistent deadline or method for repayment. Repayment could occur days, weeks, months or even years later without complaint by any owner.

Between 2006 and 2008, Wood and Wiggins bought, sometimes jointly and sometimes with other co-owners, the following properties:

Property Bought Sold

303 22nd Avenue North, Texas City, TX 77590 November 6, 2006 STILL OWNED (“22nd Avenue”)

4401 24th Street East;

Dickinson, TX 77539 August 2006 May 2007 (“24th Street”)

4426 Waverly Canyon, League City, TX 77573 April 2007 REDEEMED – July 2009 (“4426 Waverly Canyon”)

4430 Waverly Canyon, League City, TX 77573 April 2007 REDEEMED – July 2009 (“4430 Waverly Canyon”)

2410 East Bayshore Drive, San Leon, TX 77539 February 6, 2007 STILL OWNED (“Bayshore Drive”)

611 Biscayne Bend, League City, TX 77573 April 2007 REDEEMED – July 2009 (“Biscayne Bend”)

4427 Champions Court, League City, TX 77573 December 5, 2006 February 15, 2007 (“Champions Court”)1 923 Dogwood Road, Kemah, TX 77565 October 2006 February 2008 (“Dogwood Road”)

2002 Fairfield Court South, League City, TX 77573 October 6, 2006 STILL OWNED (“Fairfield Court”)

1 The parties dispute ownership of Champions Court. Wood contends he alone purchased the property.

Property Bought Sold

121 Hidden Lake Drive, League City, TX 77573 February 5, 2008 February 7, 2012 (“Hidden Lake”)2 605 Jennings Street, Texas City, TX 77590 February 6, 2007 STILL OWNED (“Jennings Street”)

16607 John Silver Road, Jamaica Beach, TX 77554 May 2, 2006 February 12, 2007 (“John Silver Road”)

1321 Lone Oak Drive, League City, TX 77573 August 2007 May 2, 2008 (“Loan Oak Drive”)

401 Oaklawn Street, League City, TX 77573 February 6, 2007 STILL OWNED (“Oaklawn Street”)

730 Oklahoma, Bacliff, TX 77518 October 4, 2007 June 2, 2009 (“Oklahoma”)

2634 Pueblo Court, League City, TX 77573 May 1, 2007 June 23, 2008 (“Pueblo Court”)

2802 Sealy Avenue, Galveston, TX 77550 January 2, 2007 STILL OWNED (“Sealy Avenue”)

211 Sharnoll Circle, League City, TX 77573 December 5, 2006 May 20, 2008 (“Sharnoll Circle”)

2 The parties dispute ownership of Hidden Lake. Wiggins contends he alone purchased Hidden Lake with funds borrowed from Wood, and that he repaid Wood for the entire purchase price a few days later.

Property Bought Sold

2205 Southern Hills Drive, League City, TX 77573 January 2, 2007 July 29, 2009 (“Southern Hills Drive”) 1101 Tremont Street, Galveston, TX 77550 September 4, 2007 STILL OWNED (“Tremont Street”) 639 Warsaw Drive, Hitchcock, TX 77563 May 1, 2007 August 29, 2008 (“Warsaw Drive”)

Many of the parties’ joint properties were damaged by Hurricane Ike in September 2008. Wiggins wanted to sell all the jointly owned properties, many at a loss, but Wood wanted to keep the properties indefinitely. After Hurricane Ike, Wood and Wiggins did not jointly acquire any additional property.

In March or April 2007, Wiggins purchased three properties at a tax sale:

(1) 4430 Waverly Canyon, (2) 611 Biscayne Bend, and (3) 4426 Waverly Canyon (collectively, the “Waverly Canyon Properties”). On April 4, 2007, Wood paid Wiggins $135,000—his 50 percent share of the $270,000 purchase price for the Waverly Canyon Properties. That same month, Wiggins signed deeds to Wood for a one-half interest in the Waverly Canyon Properties. Wood testified he was not able to record the deeds because they had no property descriptions. Wood did not record the deeds to the Waverly Canyon Properties until September 27, 2010.

For properties bought at a tax sale, the original owner or person who owed the back taxes has a certain amount of time—two years for homestead properties and six months or 180 days for non-homestead properties—in which to seek a redemption of the property by paying the purchase price plus a penalty. JPMorgan Chase Bank, N.A. (“Chase”) held first lien mortgages on the Waverly Canyon Properties and, as a non-homesteader, had six months in which to enforce its right to redemption of these properties.

Chase sued Wiggins in April 2008 to enforce its right to redemption. In May 2009, the trial court entered summary judgment in the redemption lawsuit in favor of Chase’s successor, the Bank of New York Mellon (“BNYM”), finding that the Waverly Canyon Properties were redeemed. As a result, BNYM tendered the $348,714.17 redemption premium to Wiggins, who was the sole title holder. As Wood was not a record-title holder to the Waverly Canyon Properties, he was not made a party to the redemption lawsuit. Wiggins admitted he did not inform Wood in writing of the redemption lawsuit, or otherwise involve him in the proceedings, though he testified that Wood was aware of the lawsuit.

After receiving the redemption premium, Wiggins executed redemption deeds to the original owners. Thereafter, BNYM foreclosed its liens against the Waverly Canyon Properties, became the owners, and conveyed the properties to third parties, warranting that it was conveying a 100 percent fee-simple interest. It was not until

September 27, 2010, that Wood recorded his deeds to the Waverly Canyon Properties. BNYM filed the underlying lawsuit against Wood and Wiggins, seeking a declaratory judgment as to the validity and effect of the redemption deeds and Wood’s late-recorded deeds. The trial court granted BNYM summary judgment, and the case proceeded on Wood’s and Wiggins’s crossclaims against each other.

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George Wood v. Matthew D. Wiggins, Jr., (Tex. Ct. App. 2021).

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