Harry A. Bouknight, Jr. v. LLanelly Enterprises

Texas Court of Appeals, 1st District (Houston)·Decided March 31, 2026·No. 01-22-00863-CV·Published

Opinion

Opinion issued March 31, 2026

In The

Court of Appeals

For The

First District of Texas

which was the sole issue presented by the plaintiff in his live pleading—the trial court properly granted JNOV.

We affirm.

Background

This dispute has a genesis in a 2012 lawsuit brought by Bouknight against Chris Wilmot for fraudulent inducement related to an employment contract. See Wilmot v. Bouknight, 466 S.W.3d 219, 223 (Tex. App.—Houston [1st Dist.] 2015, pet. denied). Following a bench trial, in June 2013, Bouknight received a $1,337,500.00 judgment against Wilmot (the 2013 judgment), which this Court affirmed on appeal. See id. at 226.

According to Bouknight, in December 2012—after the 2012 bench trial but before the 2013 judgment was signed—Wilmot contracted to purchase real property located at 5339 Tilbury Drive, Houston, Texas (“the Property”) from Chandler Custom Homes. Wilmot and his wife were identified as the only buyers of the Property. In connection with the construction of a house on the Property, Wilmot selected custom upgrades for the flooring, fencing, and finishes. And Wilmot, through his wholly owned engineering company WCW International, paid $100,000.00 in earnest money under the purchase agreement. A $3.75 million title insurance policy was also taken out on the Property, with Wilmot as the proposed

insured. Further, the title company sent Wilmot wiring instructions in advance of closing. All of these documents referred to Wilmot, individually, as the buyer.

But in January 2013, Wilmot’s sales agent instructed the title company to “redo the writing instructions with the purchasers’ names as follows: Llanelly Enterprises Limited. Please make sure that Chris Wilmot’s name is nowhere on the wiring documents and deed.” That same day, the purchase contract was amended to name Llanelly as the buyer. And Wilmot signed the amended purchase contract on behalf of Llanelly.

This change was purportedly made because Wilmot asked to borrow money from Tunde J. Afolabi to finance the purchase, but Afolabi declined. Afolabi and Wilmot had been friends and business partners for several years. Afolabi, however, offered to purchase the Property through his company, Llanelly, and lease it to Wilmot.

The day after the amended purchase contract was signed, Afolabi, as purported director of Llanelly, executed a power of attorney designating Wilmot to act as Llanelly’s “Agent for the purchase of the underlisted property 5339 Tilbury Drive, Houston, Texas 77056.”

About a week later, Afolabi wired $3,749,972.00 to Charter Title Company to pay for the purchase of the Property. The wire transfer does not mention Llanelly or contain reference to the payment being made by Afolabi on behalf of Llanelly.

But the title company’s ledger reflects that this payment was made by “Tunde Afolabi/Llanelly Enterprises.”

And, on February 8, 2013, a deed to the Property was executed by seller Chandler Custom Homes to Llanelly as the buyer (the “Deed”). A title policy was also issued naming Llanelly as the insured on the Property.1 Thereafter, Llanelly purported to lease the Property to Wilmot as a tenant.

The Lease to Purchase Agreement states that “[t]he amount being financed is US $3,750,000” and that Wilmot would pay an annual payment in the amount of $238,500 to Llanelly for ten years, with a final payment of $1,875,000 to be made on the 10th anniversary of the lease agreement. But Wilmot failed to make any of these payments and was purportedly evicted in December 2018.

Also in December 2018, prior to Wilmot’s eviction, Bouknight, attempting to collect on his 2013 judgment against Wilmot, filed an application for turnover seeking, in part, turnover of the Property, arguing that Wilmot, not Llanelly, actually owns the Property. After several hearings on Bouknight’s application for turnover, the trial court granted the application in part, appointing a receiver for the limited purpose of receiving and holding an instrument that released any rights and interest

1 The title company refunded the $100,000 earnest money deposit to WCW after the sale to Llanelly closed.

Wilmot has in the Property. Specifically, the order provided that the Property was being conveyed to a receiver for the limited purpose of holding such property interest

until after such time as non-party Llanelly Enterprises, Ltd. may be properly served with process in an action . . . to determine whether the rights and interests of [Wilmot] in the Property, if any, are subject to turnover by law, as well as the beneficial and legal ownership of the Property, and the rights and interests of [Wilmot], if any, in the Property, and a final determination on these issues has been made by this Court.

Wilmot was permitted to continue living on the Property until the trial court determined whether Wilmot or Llanelly owned the Property.

Bouknight then filed the underlying suit for declaratory relief against just Llanelly. Bouknight did not name Wilmot as a defendant. Nevertheless, Bouknight sought a declaration of Wilmot’s, as well as Llanelly’s, ownership interest in the Property in order to establish that the Property could be subject to Bouknight’s requested turnover relief requested against Wilmot.

Bouknight also brought claims against Llanelly for common law fraud and conspiracy,2 alleging that Wilmot and Llanelly conspired to commit fraud by “concealing [Wilmot’s] ownership of the Property through execution and filing of a purported deed that identifies Llanelly as the owner of the Property even though Wilmot is the true owner.” Bouknight further alleged that “Llanelly and Wilmot

2 In his first amended petition, Bouknight brought an additional claim against Llanelly under the Texas Uniform Fraudulent Transfer Act. But he dropped that claim in his second amended petition.

concealed their collusion for the very purpose of avoiding discovery that Wilmot is the actual owner of the property.”

But at trial, the only question submitted to the jury was: “Do you find that the Deed was ineffective to convey the Property to Llanelly?”

At the charge conference, Llanelly objected to the submission of Question No.

1 on various grounds, including that the relief Bouknight sought in his petition “is that Mr. Wilmot owns the property. And this question doesn’t get you there.” The trial court, seeming to agree, responded: “I would think you-all would be very happy about that and would be talking about that later.” Still, the trial court overruled Llanelly’s objections and submitted Question No. 1 to the jury.

The jury answered “yes” to Question No. 1. Bouknight moved for entry of judgment based on the jury’s verdict seeking a declaration that:

the General Warranty Deed (the “Deed”) signed February 8, 2013 which identifies “Chandler Custom Homes 5339 LP” as the grantor and “Llanelly Enterprises, Limited” as the grantee of the real property located at 5339 Tilbury Dr., Houston, TX 77056 (admitted as Defendant’s Exhibit 6) was ineffective to convey the subject property to Defendant Llanelly Enterprises, Ltd. and the Deed is therefore invalid and set aside and is of no force or effect whatsoever.

Llanelly objected to entry of judgment in Bouknight’s favor and moved for a JNOV on multiple grounds. First, Llanelly argued that there was no evidence to support the sole question submitted to the jury because there was no evidence that Chandler Custom Homes, the grantor, did not intend to convey the Property to

Llanelly. Llanelly also argued that Bouknight lacked standing to challenge the effectiveness of the deed.

Additionally, Llanelly argued that the trial court should render judgment against Bouknight on his claim for a declaratory judgment regarding ownership of the Property because, although he pleaded for a declaration that Wilmot owned the Property and Llanelly did not, Bouknight failed to submit a jury question on ownership of the Property and received no affirmative finding on ownership.

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Harry A. Bouknight, Jr. v. LLanelly Enterprises, (Tex. Ct. App. 2026).

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