HouReal Corporation v. Rescue Concepts Inc.

Court of Appeals of Texas·Decided June 3, 2025·No. 01-23-00211-CV·Published

Opinion

Opinion issued June 3, 2025

In The

Court of Appeals

For The

First District of Texas

Rescue Concepts Inc. (“RCI”) under the TCPA and in awarding attorney’s fees and costs to RCI.

Because we hold that the TCPA does not apply to HouReal’s breach of contract claims, we reverse and remand.

Background

This appeal is the latest episode in a long-running dispute over a failed sale of real property in Liberty County. In 2014, HouReal entered into an earnest money contract to buy a 300-acre tract of land (“the Property”) from RCI (“2014 Contract”). When RCI failed to comply with its contractual obligations, including failing to provide a property survey to HouReal, HouReal sued RCI for breach of the 2014 Contract.

HouReal alleged that the 2014 Contract authorized it to obtain specific performance in the event of RCI’s material breach. To preserve its right to specific performance, HouReal recorded a notice of lis pendens1 in the Liberty County property records.

1 “A notice of lis pendens broadcasts ‘to the world’ the existence of ongoing litigation regarding ownership of the property.” Sommers for Alabama & Dunlavy, Ltd. v.

Sandcastle Homes, Inc., 521 S.W.3d 749, 753 (Tex. 2017); TEX. PROP. CODE § 12.007.

RCI then moved to expunge the lis pendens—which the trial court initially denied. But after this Court conditionally granted mandamus relief,2 the trial court reconsidered and signed an order expunging HouReal’s notice of lis pendens. According to HouReal, RCI recorded its notice of the expunction order in Liberty County on July 13, 2016.3 HouReal’s initial suit against RCI was set for trial in January 2020.

Unbeknownst to HouReal, RCI sold the Property to NPH Dayton, LLC (“NPH Dayton”) on August 30, 2019. HouReal alleges that it did not discover that RCI sold the Property until December 2019—shortly before the trial setting.

HouReal asked the trial court to allow it to conduct discovery from RCI and Michael Plank, general manager of NPH Dayton and principal for various related National Property Holdings (“NPH”) entities, but that request was denied. According to HouReal, it was thus unable to join NPH Dayton or any related entities in that initial lawsuit. And, because RCI no longer owned the Property at the time

2 See In re Rescue Concepts, Inc., 498 S.W.3d 190, 194 (Tex. App.—Houston [1st Dist.] 2016, orig. proceeding) (conditionally granting mandamus relief because HouReal did not submit any evidence in response to RCI’s motion to expunge in trial court and therefore failed to establish by preponderance of evidence probable validity of its real property claim).

3 HouReal contends that under the version of Texas Property Code section 12.0071 in effect at that time, the expunction did not “eradicate notice arising independently of the recorded instrument expunged.” See Sommers, 521 S.W.3d at 756.

of that trial, HouReal was allegedly unable to obtain specific performance as a remedy.

The jury in that initial suit found that RCI materially breached the 2014 Contract and awarded HouReal $425,000 in damages. The trial court, however, set aside the jury’s damage award, and both parties appealed to this Court.4 While that appeal was pending,5 HouReal filed a verified petition for pre-suit depositions under Texas Rule of Civil Procedure 2026 against Plank (as principal for various NPH Entities)7 and against Ryan Lovell (a corporate representative of NPH Dayton).

4 See Rescue Concepts Inc. v. HouReal Corp., 696 S.W.3d 127 (Tex. App.—Houston [1st Dist.] 2022, pet. denied).

5 That appeal has since been resolved. See id. at 141–42 (holding that although RCI was in default when it failed to provide satisfactory property survey by required date, evidence conclusively established that HouReal treated contract as continuing after RCI’s material breach, HouReal’s performance of its own contractual obligations was not excused, and HouReal failed to comply with contractual provisions requiring it to deposit additional earnest money).

6 See TEX. R. CIV. P. 202 (allowing for depositions before suit or to investigate claims).

7 Michael Plank was identified as the manager for National Property Holdings, NPH Dayton, LLC, Rail Logix, and Rail Logix Dayton, LLC (the “NPH Entities”). The NPH Entities, along with Plank individually, were included as defendants in the underlying action. After the trial court granted RCI’s TCPA motion to dismiss, HouReal filed a third amended petition in which it nonsuited its claims against Plank, NPH, NPH Dayton, LLC, and Rail Logix, LLC. HouReal’s claims remain pending against Rail Logix Dayton, LLC in the original cause number, and none of the NPH Entities are parties to this appeal.

According to HouReal, the documents produced in the Rule 202 proceeding revealed that NPH had contacted RCI about purchasing the Property in May 2017. RCI then sent an email to NPH that informed the NPH Entities of litigation between HouReal and RCI in the initial suit. NPH recognized in those emails that the initial suit was an “unacceptable risk,” and informed RCI that the only way NPH would move forward with the sale would be with a “strong indemnity from [RCI] for all costs relative to purchasing the property, as well as the sale price, should the litigation survive closing.”

According to HouReal, RCI declined to provide the indemnity requested by NPH, and therefore NPH did not purchase the Property in 2017. But NPH renewed its interest in purchasing the Property in 2018. In connection with those renewed discussions, HouReal maintains that RCI incorrectly informed NPH that RCI had waited until 2019 to record its notice of the 2016 order expunging HouReal’s notice of lis pendens in the Liberty County property records. That incorrect assertion, according to HouReal, if true, “might have provided NPH with a defense against HouReal’s pre-existing claim for specific performance.”8

8 When the Legislature amended Texas Property Code section 12.0071, effective September 1, 2017, it included additional language that provides: “an interest in the real property may be transferred or encumbered free of all matters asserted or disclosed in the notice and all claims or other matters asserted or disclosed in the action in connection with which the notice was filed.” TEX. PROP. CODE § 12.0071(f)(2).

As a result, NPH Dayton allegedly obtained title to the Property with “independent knowledge of the claims and rights of HouReal that NPH had obtained no later than May 2017.” Thus, according to HouReal, NPH Dayton was not a “bona fide purchaser of the Property and did not take the property free and clear of HouReal’s prior contractual rights, including its contractual right to specific performance of the [2014 Contract].”

Based on all of this, HouReal brought the current lawsuit against the NPH Entities, Plank, and RCI in November 2021. HouReal pleaded causes of action against Plank and the NPH Entities to quiet title, impose a constructive trust, and set aside the conveyances. HouReal also pleaded that RCI committed two breaches of the 2014 Contract. Specifically, that RCI failed to provide a property survey and conveyed the Property to NPH on August 30, 2019, instead of performing under the 2014 Contract with HouReal. For these alleged breaches of contract, HouReal sought specific performance in accordance with the 2014 Contract.

RCI moved to dismiss HouReal’s claims against it under the TCPA.

According to RCI, the TCPA requires dismissal of HouReal’s claims because they are “based on or in response to” RCI’s exercise of its right to petition. The trial court agreed. Following a hearing, it signed an order granting RCI’s TCPA motion to dismiss. It also awarded RCI $76,543.93 in trial attorney’s fees, $50,000 in conditional appellate attorney’s fees, post-judgment interest, and costs.

The trial court subsequently signed a final judgment that incorporates all of its rulings with respect to HouReal and RCI.9 And it severed the claims between them into a separate cause number, 2021-77903A.

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HouReal Corporation v. Rescue Concepts Inc., (Tex. Ct. App. 2025).

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