Hue Nguyen & Southwestern National Bank v. Alonso Chapa

CourtCourt of Appeals of Texas
DecidedDecember 22, 2009
Docket14-08-00634-CV
StatusPublished

This text of Hue Nguyen & Southwestern National Bank v. Alonso Chapa (Hue Nguyen & Southwestern National Bank v. Alonso Chapa) 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
Hue Nguyen & Southwestern National Bank v. Alonso Chapa, (Tex. Ct. App. 2009).

Opinion

Affirmed in Part, Reversed and Remanded In Part, and Opinion filed December 22, 2009

In The

Fourteenth Court of Appeals

NO. 14-08-00634-CV

Hue Nguyen & Southwestern National Bank, Appellants

v.

Alonso Chapa, Appellee

On Appeal from the 269th District Court

Harris County, Texas

Trial Court Cause No. 2007-02088

O P I N I O N

This dispute involves competing claims to 3.101 acres of land along Highway 249 in Harris County.  In 2005, Victor Ruiz, owner of the 3.101 acres by virtue of a special warranty deed, sold the property to appellee, Alonso Chapa.  Chapa did not file the contract for sale or a deed with the county reflecting his interest in the property.  Thirteen months later, Ruiz sold the same 3.101 acres to appellant, Hue Nguyen.  Nguyen immediately filed a general warranty deed with the county reflecting his interest in the property.  After learning of the Ruiz-Nguyen sale, Chapa sought to establish his title by filing the underlying suit.  Challenging Chapa’s unrecorded interest, Nguyen claimed he was a bona fide purchaser.  Appellant, Southwestern National Bank (“Southwestern”), the bank who financed Nguyen’s loan on the 3.101 acres, intervened and asserted status as a bona fide mortgagee.  A jury found in favor of Chapa on his contract claims against Ruiz and found against Nguyen’s and Southwestern’s claims of bona fide purchaser and mortgagee, respectively.  Adopting the jury’s verdict, the trial court rendered judgment in favor of Chapa, declaring Chapa had superior title to the 3.101 acres.  Nguyen and Southwestern now appeal, challenging the denial of their motions for new trial and judgment notwithstanding the verdict.  In four related issues, Nguyen and Southwestern argue that because they did not have notice of Chapa’s unrecorded interest, Nguyen is a bona fide purchaser, Southwestern is a bona fide mortgagee, and Chapa’s unrecorded interest is void.  Finding as a matter of law that Nguyen is a bona fide purchaser and Southwestern is a bona fide mortgagee, we affirm in part and reverse and remand in part. 

I.  BACKGROUND

The property in dispute consists of five lots that are a part of a larger tract of land known as Block four.  The following illustration depicts the general nature of the lots from which the instant dispute arises.[1] 

                                                                                                          Lot 15

 

                                          Lots 6 and 7                                          Lot 14

                                                                                                          Lot 13

                                                                                                           Lot 12                                                                                                                             

                                                                                                                                          Lots 8 - 11

The record reflects that Doris Mae Ross originally owned Lots 6 through 15, and in 1990, she began selling the lots to various buyers.

A.  Ross-Chapa Deed

In 1990, Ross conveyed Lots 6, 7, 14, and 15 to Chapa by general warranty deed (“Ross-Chapa deed”).  The land conveyed in the Ross-Chapa deed was described as follows: 

Tract 1:  [R]eal estate situated in Harris County, Texas and more particularly described as being 1.1774 acre tract, the residue of lots Six (6) and Seven (7) Block Four (4) . . . .

.                         .                     .

Tract 2:  Real estate situated in Harris County, Texas and more particularly described as being Lots fourteen (14) and fifteen (15), Block Four (4) . . . .  Containing 2.1819 acres of land more or less[2] . . . .

The Ross-Chapa deed required Chapa to construct and maintain a line fence separating his lots—Lots 6, 7, 14, and 15—from Lots 8 through 13.  Specifically, the deed provided that Chapa “construct, repair[,] and maintain a line fence on the West of abutting Lots 8, 10, 11, 12, & 13, and on the South Side of Lot 14 to a height of 6 feet.”  The Ross-Chapa deed was filed with the county property records. 

Thereafter, Chapa improved Lots 6 and 7 to operate an automobile collision repair business.  Lots 14 and 15 were improved with concrete and used to park business-related vehicles.  Ruiz, who was also in the salvage and collision repair business, executed a five-year lease with Chapa on Lots 6, 7, 14, and 15.  During the leasehold, Ruiz operated a collision repair business.  After the five-year lease expired, Ruiz considered purchasing real estate and decided to rent the four lots on a month-to-month basis. 

B.  Ross-Ruiz Deed

On September 16, 2003, Ross executed a special warranty deed with a vendor’s lien purporting to convey Lots 6 through 12 to Ruiz (“Ross-Ruiz deed”).  The property conveyed in the Ross-Ruiz deed was described as “[a] tract of land containing 4.315 acres, more or less, out of Lots Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11) and Twelve (12), Block Four (4).”  Although the Ross-Ruiz deed purported to convey Lots 6 and 7, Ross no longer owned these lots:  Lots 6 and 7, amounting to 1.1774 acres, were then owned by Chapa by way of the Ross-Chapa deed.  Ruiz executed a promissory note in favor of Ross (“Ross-Ruiz promissory note”) and filed the deed with the county.

C.  Ruiz-Chapa Contracts

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Hue Nguyen & Southwestern National Bank v. Alonso Chapa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hue-nguyen-southwestern-national-bank-v-alonso-cha-texapp-2009.