In Re Connie Cobb as a Substitute Trustee v. the State of Texas

CourtCourt of Appeals of Texas
DecidedDecember 2, 2024
Docket13-24-00414-CV
StatusPublished

This text of In Re Connie Cobb as a Substitute Trustee v. the State of Texas (In Re Connie Cobb as a Substitute Trustee v. the State of Texas) 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
In Re Connie Cobb as a Substitute Trustee v. the State of Texas, (Tex. Ct. App. 2024).

Opinion

NUMBER 13-24-00414-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

IN RE CONNIE COBB AS A SUBSTITUTE TRUSTEE

ON PETITION FOR WRIT OF MANDAMUS

OPINION

Before Chief Justice Contreras and Justices Tijerina and Peña Opinion by Justice Peña1

Relator Connie Cobb as a Substitute Trustee (Cobb) filed a petition for writ of

mandamus asserting that the trial court 2 abused its discretion by denying her motion to

1 See TEX. R. APP. P. 52.8(d) (“When denying relief, the court may hand down an opinion but is not

required to do so. When granting relief, the court must hand down an opinion as in any other case.”); id. R. 47.4 (distinguishing opinions and memorandum opinions). 2 This original proceeding arises from trial court cause number CL-23-1021-J in the County Court

at Law No. 10 of Hidalgo County, Texas, and the respondent is the Honorable Armando J. Marroquin. See id. R. 52.2. dismiss and motion for summary judgment in an action for wrongful foreclosure. See TEX.

PROP. CODE ANN. § 51.007 (providing a procedure that allows a trustee under a deed of

trust to seek dismissal from a lawsuit). We conditionally grant the petition for writ of

mandamus in part and deny in part.

I. BACKGROUND

On March 3, 2023, Jose Maria Longoria filed an original petition and request for

temporary restraining order against Cobb. Longoria alleged that he executed a

promissory note in the principal amount of $79,950.00 and, as collateral, granted a

security interest in his residence on Esteban Court in Mission, Texas. Longoria alleged

that the property was set for foreclosure and requested that he be allowed to complete

payments on his note. He alleged that he never received a demand for late payments or

notice of an intent to accelerate the payments. Longoria also asserted generally that the

appointment of a substitute trustee, filed in conjunction with the foreclosure proceedings,

was improper because it designated more than a dozen substitute trustees, including

Cobb; whereas “the statute,” unidentified in the petition, required that a single substitute

trustee be appointed. He further asserted that he believed that “the entity that [was] trying

to foreclose” lacked standing or authority to do so. Longoria sought actual damages and

a temporary restraining order preventing foreclosure.

On March 6, 2023, the trial court issued a temporary restraining order preventing

Cobb “as substitute trustee, and [her] assigns, agents, and representatives, to include but

not limited to W.D. Lerew and Julie Martin,” from, inter alia, taking any steps to foreclose

on the subject property. However, on March 7, 2023, Jerry Perez, a different substitute

2 trustee who was not named in the temporary restraining order, conducted the foreclosure

proceedings, and the property reverted to the beneficiary and holder of the note on the

property and the deed of trust, U.S. Bank Trust National Association, as trustee of the

Chalet Series IV Trust (U.S. Bank). 3

After the case was removed to federal court and subsequently remanded to state

court, on July 26, 2023, Cobb filed an answer and verified denial stating in relevant part:

1. Subject to and without waiving the foregoing General Denial, or in the alternative, but only to the extent necessary to protect his rights, [Cobb] specifically denies she is a necessary or proper party to this suit.

2. [Cobb] avers that there is a defect in parties as she is not a proper party to this lawsuit.

3. [Cobb] further avers that the present holder of the Deed of Trust lien on the property described in [Longoria’s] pleadings is the proper party from which [Longoria] is required to seek relief.

4. Pursuant to [Texas Property Code] § 51.007, [Cobb] avers that she is not a necessary or proper party to this suit and has been named as party solely in the capacity as a substitute trustee under a deed of trust. [Cobb] hereby requests dismissal from this suit.

On August 15, 2023, Cobb filed a combined motion for traditional and no-evidence

summary judgment alleging in relevant part that she was not a proper party to suit on

grounds that she had no role in the foreclosure proceedings or sale. See TEX. R. CIV. P.

3 We note that in a separate case, U.S. Bank National Association, as trustee for Chalet Series IV

filed suit against Longoria for a writ of possession regarding the subject property in this case. The trial court granted summary judgment in favor of the plaintiff, and Longoria appealed. This Court recently affirmed that judgment. See Longoria v. U.S. Bank Nat’l Ass’n, as Trustee for Chalet Series IV Trust, No. 13-23- 00537-CV, 2024 WL 4454725, at *1 (Tex. App.—Corpus Christ–Edinburg Oct. 10, 2024, no pet. h.) (mem. op.).

3 166a(b), (i). She supported her motion for summary judgment with, among other items,

her affidavit. By affidavit, Cobb testified that:

2. I have been improperly named as the Defendant in this case.

3. I am not now, nor I have I ever acted as a servicer on the underlying loan for [Longoria’s] loan for the subject property.

4. I have never held a lien or any interest in and to the subject property whatsoever.

5. I have never acted in any capacity for any servicer or for the lienholder U.S. Bank with respect to the servicing of the loan or the sending any of the required notices associated with [Longoria’s] loan on the subject property.

6. [Longoria] should have sued the Secured Party, U.S. Bank, which is the present owner and holder of the Note and Security Instrument.

[7]. [Longoria] has [pleaded] no cause of action against me on which he can recover.

[8]. [Longoria’s] suit against me is a sham and I am entitled to judgment as a matter of law as articulated in my answer and pursuant to Texas Property Code § 51.007.

On December 1, 2023, Longoria filed a response to the motion, arguing that the

notice of foreclosure identified fourteen possible trustees, including Cobb, and that Cobb

or the other trustees violated the court’s temporary restraining order by proceeding with

foreclosure. Longoria supported his response to Cobb’s motion for summary judgment

with two exhibits: (1) a copy of the temporary restraining order, and (2) a copy of the

sheriff’s return showing that Cobb was served with the order by certified mail.

On January 18, 2024, the trial court signed an order denying Cobb’s motion for

traditional and no-evidence summary judgment.

4 On January 26, 2024, Cobb filed a motion to dismiss the case pursuant to Texas

Property Code § 51.007. See TEX. PROP. CODE ANN. § 51.007. She alleged that

Longoria’s suit against her was based “solely” on her capacity as a substitute trustee, but

his original petition failed to include any facts indicating that she was a proper party or

had “any connection with the holding of a lien on the subject property or any involvement

as a servicer on the underlying loan.” Cobb asserted that she had filed a verified denial

alleging that she was an improper party pursuant to the property code, and that Longoria

had failed to file a response; thus, the property code mandated dismissal of the case

against her. See generally id. On March 26, 2024, the trial court signed an order denying

Cobb’s motion to dismiss under § 51.007.

On August 20, 2024, Cobb filed this original proceeding. By three issues, Cobb

asserts that: (1) the trial court erred by denying her motions to dismiss and for summary

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