Hawk v. E.K. Arledge, Inc.

107 S.W.3d 79, 2003 Tex. App. LEXIS 3844, 2003 WL 1392835
CourtCourt of Appeals of Texas
DecidedMay 1, 2003
Docket11-02-00097-CV
StatusPublished
Cited by38 cases

This text of 107 S.W.3d 79 (Hawk v. E.K. Arledge, Inc.) 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
Hawk v. E.K. Arledge, Inc., 107 S.W.3d 79, 2003 Tex. App. LEXIS 3844, 2003 WL 1392835 (Tex. Ct. App. 2003).

Opinions

Opinion

JIM R. WRIGHT, Justice.

E.K. Arledge, Inc. (Arledge) sued Danny J. Hawk and Mitchell R. Henson, appellants, to quiet title to two tracts of land.1 Appellants claim title to the tracts by virtue of a substitute trustee’s deed which they received following a vendor’s lien foreclosure and sale. Arledge claims title to the same tracts by virtue of a sheriffs deed which it received following foreclosure and sale under ad valorem tax liens. The trial court entered a summary judgment in favor of Arledge, denied appellants’ motion for summary judgment, and awarded attorney’s fees to all appellees. The outcome of other claims in the lawsuit are not presented to us. The effect of the summary judgment entered by the court was to quiet title to the properties in Ar-ledge. We modify the judgment of the trial court to delete the award of attorney’s fees to appellees; and, as modified, we affirm.

From February 17, 1988, until June 3, 1997, the date of the sale following the tax lien foreclosure under which Arledge claims title, James B. Johnson was the owner of the fee title to the two tracts of land involved in this lawsuit. During all of that time, the property was subject.to deed of trust liens securing various notes. On February 1, 1990, the Resolution Trust Corporation (RTC) was appointed receiver for the owner of the notes and deeds of trust. RTC subsequently assigned the notes and liens to South Star Management Company, Inc. After various conveyances, the notes and liens eventually were assigned to National Heritage Life Insurance Company. On November 21, 1995, a receiver was appointed for National Heritage Life Insurance Company (NHL Receiver). In 1998, NHL Receiver transferred the notes and deeds of trust to appellants. In January and February 1999, the substitute trustee under those deeds of trust held non-judicial foreclosure sales of the properties, and conveyed the properties to appellants, the purchasers at the foreclosure sale.

Meanwhile, in 1990, various taxing authorities joined in a suit to collect delinquent ad valorem taxes on both tracts of land. In 1995, RTC filed a disclaimer in the tax suit. In 1996, National Heritage Life Insurance Company, In Liquidation, was named a party in the tax suit and filed its answer on October 11, 1996. The suit was not tried until 1997; and, after amending the lawsuit, the taxing authorities sought recovery of delinquent taxes for the years 1988-96. On January 22,1997, some two years prior to the deed of trust foreclosures under which appellants claim, the trial court foreclosed the tax hens and ordered the properties sold. The sheriff sold the properties for $78,889.53 more than the taxes and costs due; Johnson sought and was paid that excess. On June 3, 1997, the sheriff deeded both tracts by sheriffs deed to Arledge’s predecessor in title. Although there were some changes [82]*82in Arledge’s title after its predecessor had deeded the properties to it, any title arising by virtue of the sheriffs deed was held solely by Arledge at the time of the filing and of the trial of this case.

Appellants present five issues on appeal. Appellants’ first issue on appeal is that the trial court erred when it granted appellees’ motion for partial summary judgment. Appellants argue, in part, that the tax hen foreclosure sale did not vitiate the hens under which their title emanates.

We review a traditional motion for summary judgment in accordance with the following standards: (1) the movant for summary judgment has the burden of showing that there is no genuine issue of material fact and that it is entitled to judgment as a matter of law; (2) in deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the non-movant will be taken as true; and (8) every reasonable inference must be indulged in favor of the non-movant and any doubts resolved in its favor. TEX.R.CIV.P. 166a; American Tobacco Company, Inc. v. Grinnell, 951 S.W.2d 420 (Tex.1997); Nixon v. Mr. Property Management Company, Inc., 690 S.W.2d 546 (Tex.1985). No-evidence motions for summary judgment are reviewed in the same manner as other motions for summary judgment. Hight v. Dublin Veterinary Clinic, 22 S.W.Bd 614 (Tex.App.-Eastland 2000, pet’n den’d).

When there are competing motions for summary judgment and the trial court grants one motion and denies the other, the reviewing court should review the summary judgment evidence on both sides and determine all questions presented. Bradley v. State ex rel. White, 990 S.W.2d 245 (Tex.1999). The standard of review in cases in which the trial court has denied a motion for summary judgment is the same standard used to review cases in which the trial court has granted a motion for summary judgment. Eastland County Cooperative Dispatch v. Poyner, 64 S.W.3d 182, 187 (Tex.App.-Eastland 2001, pet’n den’d).

The trial court did not specify the grounds for its summary judgment. When a trial court does not specify the grounds relied on for the ruling, summary judgment will be affirmed on appeal if any of the theories advanced are meritorious. Cincinnati Life Insurance Company v. Cates, 927 S.W.2d 623 (Tex.1996); State Farm Fire & Casualty Company v. S.S. and G.W., 858 S.W.2d 374 (Tex.1993).

Appellants argue that the tax foreclosure was ineffective as against their interests because of the application of 12 U.S.C.A. § 1825(b)(2) (West 2001), a part of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), which provides as follows:

No property of the Corporation shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Corporation, nor shall any involuntary lien attach to the property of the Corporation. (Emphasis added)

Appellants argue that Section 1825(b)(2) requires that NHL Receiver’s consent should have been obtained before a foreclosure of the tax hens could take place. They argue that the consent which would have been required from RTC by Section 1825(b)(2) is a protection which is extended to “downstream assignees” of RTC. We disagree. Here, RTC was not the owner of the interest at the time of the foreclosure of the tax hens. Our concern in this case is with the time of the enforcement of the tax hens, not the time at which they attached.2 Because RTC was not the own[83]*83er of the deed of trust liens at the time of the foreclosure of the tax hens, RTC’s consent was not required. Matagorda County v. Russell Law, 19 F.3d 215 (5th Cir.1994); see also Holy Cross Church of God in Christ v. Wolf, 44 S.W.3d 562

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Bluebook (online)
107 S.W.3d 79, 2003 Tex. App. LEXIS 3844, 2003 WL 1392835, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawk-v-ek-arledge-inc-texapp-2003.