in Re Fred T. Philips and Mercedes Philips

CourtCourt of Appeals of Texas
DecidedFebruary 7, 2022
Docket13-21-00312-CV
StatusPublished

This text of in Re Fred T. Philips and Mercedes Philips (in Re Fred T. Philips and Mercedes Philips) 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 Fred T. Philips and Mercedes Philips, (Tex. Ct. App. 2022).

Opinion

NUMBER 13-21-00312-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

IN RE FRED T. PHILIPS AND MERCEDES PHILIPS

On Petition for Writ of Mandamus.

MEMORANDUM OPINION

Before Justices Benavides, Longoria, and Tijerina Memorandum Opinion by Justice Longoria1

On October 1, 2021, relators Fred T. Philips and Mercedes Philips filed a petition

for writ of mandamus seeking to compel the trial court to vacate its order enforcing a Rule

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. 47.1 (“The court of appeals must hand down a written opinion that is as brief as practicable but that addresses every issue raised and necessary to final disposition of the appeal.”); id. R. 47.4 (explaining the differences between opinions and memorandum opinions). 11 agreement pertaining to the purchase of real property. 2 See TEX. R. CIV. P. 11. The

Philips assert that the trial court abused its discretion (1) by granting the motion to enforce

against them when they raised fact issues and revoked consent to the terms of the

agreement, and (2) because the order granting the motion to enforce contains “material

terms outside and beyond the Rule 11 agreement.” We conditionally grant the petition for

writ of mandamus.

I. BACKGROUND

On June 17, 2021, the real parties in interest Thomas D. Stikeleather and Lea Ann

Stikeleather filed an original petition for declaratory judgment and breach of contract

against the Philips. In their petition, the Stikeleathers alleged that they had entered into a

“One to Four Family Residential Contract (Resale)” (contract), with the Philips in which

the Stikeleathers agreed to buy the Philips’ property located on Greenbriar Drive in

Corpus Christi, Texas, (the property) for a purchase price of $690,000.00. The

Stikeleathers alleged that the May 12, 2021 contract provided for a June 10, 2021 closing

date.

Thereafter, on or about June 2, 2021, the Philips agreed to perform specified

repairs to the property according to “Attachment A—Repairs and Treatments.” The

agreement to perform repairs states that “roofers will start in approx. 2 weeks from

6/2/21,” and that “[a]ll work [is] to be done by licensed professionals and completed 7

2 This original proceeding arises from trial court cause number 2021DCV-2279-E in the 148th District Court of Nueces County, Texas, and the respondent is the Honorable Carlos Valdez. See id. R. 52.2.

2 days prior to closing.”

According to the Stikeleathers’ petition, on June 10, 2021, the Philips informed the

Stikeleathers that they would be unavailable for closing that day or the next day. On June

15, 2021, the Stikeleathers’ counsel contacted the Philips’s listing broker to facilitate a

new date for closing on the property. The listing broker informed the Stikeleathers’ real

estate agent that they would not sell the property until the roof was repaired. On June 15,

2021, the Stikeleathers informed the Philips they were ready to close and asked to

proceed with finalizing the sale. The Philips did not respond.

In their petition, the Stikeleathers stated that they had sold their residence in

reliance on the contract and were accruing damages in the form of paying for alternative

housing. They sought a declaratory judgment providing that the contract was valid and

enforceable, specific performance, damages caused by the delay, and attorney’s fees

and costs.

According to the record, the Stikeleathers subsequently filed a motion for

temporary restraining order seeking to prevent the Philips from selling the property to

anyone else. This motion was originally set for hearing on July 8, 2021, but was reset

twice by agreement.

On July 15, 2021, the Philips filed an original answer which consisted of a general

denial. That same day, the parties entered into a Rule 11 agreement. The Rule 11

agreement, which was drafted by counsel for the Philips, states in relevant part:

1. The hearing . . . on [the Stikeleathers’] Motion [for] Temporary Restraining Order, currently set for July 15, 2021, at 1:30 p.m., will be dropped and reset.

3 2. [The Philips] agree to refrain from re-listing, advertising, or attempting to market the home to another buyer.

3. [The Stikeleathers] shall be responsible for [facilitating] and scheduling the closing of the sale regarding the real property . . . for July 22, 2021.

4. Upon receipt of confirmation of the July 22, 2021 closing, [the Philips] agree to attend and close on the sale regarding the real property . . . .

5. Both parties agree to act in good faith and refrain from any behavior that would unreasonably delay the closing of the sale regarding the real property . . . for July 22, 2021.

6. If closing on the sale of the subject property is unavoidably delayed past July 22, 2021, through no fault of either party to this Rule 11 agreement, that unavoidable delay will not be considered a [breach] of this Rule 11 agreement.

7. The roof of the subject property is currently in the process of being repaired. If the completion of the repairs is unavoidably delayed past July 22, 2021, through no fault of either party to this Rule 11 agreement, that unavoidable delay will not be considered a breach of this Rule 11 agreement.

On July 22, 2021, the Philips filed counterclaims for breach of contract and a

request for declaratory judgment. They denied that they had informed anyone that they

would not be available for closing and instead alleged that the Stikeleathers failed to

appear at closing and failed to deliver the loan documents. They sought a declaratory

judgment that: “(a) [the Philips] are the non-defaulting party due to [the Stikeleathers’]

failure to appear and failure to deliver loan documents at closing as provided in the

Contract; (b) [the Philips] have the right to terminate the Contract and receive the earnest

money as liquidated damages, thereby releasing both parties from the Contract.”

4 On or about August 28, 2021, the Stikeleathers filed a motion to enforce the Rule

11 agreement. They asserted that the agreement met the requirements for enforcement,

and thus the trial court “had a ministerial duty to enforce the terms of the agreement by

ordering [the Philips] to deliver a signed General Warranty Deed to the property . . . in

exchange for the sale price as set out in the [contract].” The Rule 11 agreement was

attached as an exhibit to the motion. The motion contained argument and authority but

was not supported by evidence. Based on the record provided, the Philips did not file a

response to the Stikeleathers’ motion to enforce.

On September 24, 2021, the trial court held a non-evidentiary hearing on the

Stikeleathers’ motion to enforce. Counsel for the Stikeleathers presented their motion and

asked the trial court to enforce the agreement and require the Philips to proceed with

closing on the house. The Stikeleathers’ attorney asserted that they were not seeking a

final judgment and that matters pertaining to damages would remain pending after

enforcement.

In response, counsel for the Phillips represented they were available to close on

the house “[a]lmost any time.” As background, counsel asserted that “the problem came

about” because the Philips could not complete roof repairs to the property within the time

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