Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust v. James Irwin

CourtCourt of Appeals of Texas
DecidedJune 5, 2019
Docket03-17-00776-CV
StatusPublished

This text of Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust v. James Irwin (Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust v. James Irwin) 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
Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust v. James Irwin, (Tex. Ct. App. 2019).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-17-00776-CV

Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust, Appellant

v.

James Irwin, Appellee

FROM THE 261ST DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-16-001369, THE HONORABLE KARIN CRUMP, JUDGE PRESIDING

MEMORANDUM OPINION

Janice Su Allen, individually and as trustee of the Eagle Pass Living Trust,

appeals a trial court judgment granting James Irwin’s request for specific performance of a real

estate contract pursuant to which James Anglim agreed to convey to him property located in

Travis County. We will affirm.

FACTUAL AND PROCEDURAL BACKGROUND

On December 23, 2015, Irwin and Anglim executed a Texas Association of

Realtors form Commercial Contract-Improved Property (the Irwin Contract) pursuant to which

Anglim agreed to sell and convey to Irwin property located at 3717 North Ranch Road 620 in

Travis County (the Property). The contract contained the following provision:

Feasibility Period: Buyer may terminate this contract for any reason within 90 days after the effective date (feasibility period) by providing Seller written notice of termination. The Irwin contract was first escrowed at First American Title Company, and Irwin placed $1,000

as earnest money in escrow with that title company. Later, Irwin changed title companies and

escrowed the Irwin Contract at Independence Title Company, placing $1,000 as earnest money

in escrow with that title company. Additionally, Irwin paid $1,000 directly to Anglim.

In January 2016, during the Irwin Contract’s feasibility period, Anglim and Allen,

as representative of the Eagle Pass Living Trust, entered into a contract to sell the Property to

Allen, acting for the Trust (the Allen I Contract). The Allen I Contract was escrowed at Gracy

Title Company. When Allen executed the Allen I Contract, she knew of the Irwin Contract.1

On January 25, 2016, Anglim signed a Commercial Contract Termination Notice,

which a realtor acquaintance of Allen’s had prepared, in which Anglim purported to terminate

the Irwin Contract. Allen delivered the Termination Notice to Independence Title Company that

day. A representative of Independence Title Company then called Irwin to tell him that Allen had

brought in the Termination Notice and further reported that Allen was upset when she was told

that the Termination Notice was not effective because Irwin had not signed it. On January 26,

Irwin discovered that the Allen I Contract had been escrowed at Gracy Title Company. Irwin

informed Gracy Title Company of the previously executed Irwin Contract. Irwin’s attorney also

1 Although Allen initially disputed having this knowledge, testimony at trial showed that Allen had learned of the Irwin Contract through discussions with Anglim when she expressed interest in buying the Property from him. There was evidence that Anglim facilitated a meeting between Irwin and Allen in early January at which time Irwin told Allen he had a contract on the Property and that if she wanted to purchase it she would have to buy it from him. Irwin testified that he called Allen the next day to reiterate to her that he had a contract on the Property, that the option period had passed, and that if she had any interest in buying the Property she should talk to him. The trial court expressly found that Allen had actual awareness of Irwin’s contractual right to buy the Property when she executed both the Allen I Contract and, subsequently, the Allen II Contract. 2 sent Gracy Title Company a letter informing it of the Irwin Contract. The next day, Gracy Title

Company informed Allen that Irwin had a prior contract to purchase the Property from Anglim.

On February 3, 2016, Anglim and Allen, as representative of the Trust, executed

a second contract whereby Anglim agreed to sell the Property to Allen, as representative of

the Trust (the Allen II Contract). The Allen II Contract was escrowed at Austin Title Company.

On February 29, the transaction closed, and Anglim executed a Warranty Deed conveying the

Property to the Trust. The Warranty Deed was recorded in the Travis County Public Deed

Records on March 3.

In mid-March 2016, Irwin demanded that Anglim and Allen, for the Trust,

specifically perform the Irwin Contract and convey the Property to him pursuant to its terms.2

Irwin also filed a lis pendens in the Travis County Public Deed Records. Allen did not respond

to this demand. Irwin again demanded, in January 2017, that Allen, for the Trust, specifically

perform the Irwin Contract and convey the Property to him pursuant to its terms. Again, Allen

did not respond to this demand.

Irwin then sued Anglim and Allen, individually and as trustee of the Trust, in

Travis County district court asserting causes of action for breach of contract and tortious

interference with contract. Irwin also sought declarations that the Irwin Contract was a valid and

enforceable contract and that Anglim and Allen were legally obligated to convey the Property

to Irwin pursuant to that contract. Irwin sought an order compelling specific performance of the

Irwin Contract.3 Irwin also sought to recover attorneys’ fees and costs from Anglim and Allen.

2 This demand was made within the feasibility period of the Irwin Contract. 3 In the alternative, Irwin sought damages for breach of the Irwin Contract. 3 Irwin filed a motion for partial summary judgment on his breach of contract claim

seeking specific performance of the Irwin Contract by Anglim and Allen. Irwin contended that,

as a matter of law, he was entitled to specific performance of the Irwin Contract because he was

willing and able to perform and had complied with his contractual obligations, and any failure to

tender performance on his part was excused by Anglim’s repudiation of the Irwin Contract.

Irwin argued that because Allen purchased the Property with full knowledge of his rights under

the Irwin Contract, he could enforce specific performance against her, and Allen was therefore

legally obligated to convey the Property to him. Allen filed a response to the motion for summary

judgment in which she asserted that Irwin could not assert a breach of contract claim against her

seeking specific performance because Allen was not a party to any contract with Irwin. Allen also

filed special exceptions and a motion to dismiss on the same ground. The trial court overruled

Allen’s special exceptions and denied her motion to dismiss. The trial court granted Irwin’s

motion for partial summary judgment on his claims against Anglim4 but denied it as to his claims

against Allen.

Allen amended her petition to assert affirmative defenses of failure to mitigate,

waiver and estoppel, and privilege or justification. She also asserted counterclaims of trespass to

try title and suit to quiet title. Irwin and Allen then both filed additional motions for summary

judgment. The trial court denied Irwin’s and Allen’s motions for summary judgment on the

breach of contract claim because, although the court found that Irwin had stated a cause of

action against Allen for breach of contract, it found that there was a disputed fact issue as to

4 The trial court found that Anglim breached the Irwin Contract. 4 Allen’s knowledge of the Irwin Contract.5 The trial court found that the affirmative defense of

justification and privilege did not apply to Irwin’s claim of breach of contract and granted

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Janice Su Allen, Individually and as Trustee of the Eagle Pass Living Trust v. James Irwin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janice-su-allen-individually-and-as-trustee-of-the-eagle-pass-living-trust-texapp-2019.