Jennifer Hulen and James Hulen v. Joe Hamilton

CourtCourt of Appeals of Texas
DecidedFebruary 28, 2008
Docket02-06-00288-CV
StatusPublished

This text of Jennifer Hulen and James Hulen v. Joe Hamilton (Jennifer Hulen and James Hulen v. Joe Hamilton) 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
Jennifer Hulen and James Hulen v. Joe Hamilton, (Tex. Ct. App. 2008).

Opinion

                                      COURT OF APPEALS

                                       SECOND DISTRICT OF TEXAS

                                                   FORT WORTH

                                        NO.  2-06-288-CV

JENNIFER HULEN AND JAMES HULEN                                   APPELLANTS

                                                   V.

JOE HAMILTON                                                                     APPELLEE

                                              ------------

           FROM THE 352ND DISTRICT COURT OF TARRANT COUNTY

                                      MEMORANDUM OPINION[1]

I.                    Introduction


This suit involves the doctrine of equitable subrogation.  Appellee Joe Hamilton paid off the $80,000 purchase money lien on the home of his ill friend Donna Hulen, with whom he had a long-term close relationship.  Donna died on April 6, 2003, leaving a will that devised all of her property, including her home, to her two adult children, Appellants Jennifer and James Hulen.  Joe filed this suit, seeking a declaratory judgment that he was entitled to be equitably subrogated to the prior lien.  After a bench trial, the trial court granted Joe an equitable lien on the property.  Jennifer and James appeal.  We affirm.

II.                 Factual and Procedural Background

In 1996, Donna purchased the home that is the subject of this litigation for $87,000.  At the time of the purchase, Donna signed a promissory note made payable to the Colson Mortgage Company, as well as a deed of trust securing the loan.  Colson assigned the note and deed of trust to First Nationwide Mortgage Corporation.  Four years later, Donna became ill from diabetes and lost her job.  She applied for and received disability benefits but was unable to make the mortgage payments on the house.  Joe paid off the mortgage in 2001, writing a check to First Nationwide for $80,000.  Joe also paid property taxes assessed against the property in 2001 and 2002.    

Joe testified that, on the night of Donna=s death in 2003, James acknowledged to him, in Jennifer=s presence, that Ahe knew [Joe] had paid for the house@ and that, therefore, Athe house was [Joe=s].@  Jennifer sat in silence during this discussion and did not express any disagreement with James=s assertion.  Joe testified that, at that time, he proposed the options to Jennifer of either retaining the home and repaying him the $80,000 in interest-free installments or selling the home and reimbursing him out of the proceeds of the sale.  According to Joe, Jennifer agreed to his proposal but did not specify which of the two repayment options she would pursue.  Jennifer and James denied making any agreement with Joe.


Joe testified that shortly thereafter, Jennifer refused to have any further communication with Joe or repay him any of the money that he had paid on Donna=s behalf.  Instead, one month after Donna=s death, Jennifer moved into the house and began claiming it as her homestead.  Joe sued Jennifer and James, seeking a declaration that, as a result of having paid off Donna=s mortgage, he was equitably subrogated to First Nationwide=s deed of trust lien against the property to prevent unjust enrichment.  The parties tried the case to the bench, and the trial court ultimately rendered judgment in favor of Joe and awarded him $6,000 in attorney=s fees.   

The trial court  made findings of fact and conclusions of law.  In particular, the trial court found as a fact that AJoe Hamilton was not a mere stranger voluntarily paying off the mortgage to the Property.@  Among the trial court=s conclusions of law are the conclusions that Joe is entitled to equitable subrogation to the rights of First Nationwide to prevent unjust enrichment, that he is entitled to a declaration that he has an $80,000 lien on the property, that substantial equities favor the granting of equitable subrogation in favor of Joe, and that Joe is entitled to $6,000 in attorney=s fees under the Declaratory Judgments Act.  Jennifer and James appealed and filed separate briefs under the same appeal number.

III.               Standard of Review


Findings of fact entered in a case tried to the court have the same force and dignity as a jury=s answers to jury questions.  Anderson v. City of Seven Points, 806 S.W.2d 791, 794 (Tex. 1991).  The trial court=s findings of fact are reviewable for legal and factual sufficiency of the evidence to support them by the same standards that are applied in reviewing evidence supporting a jury=s findings.  Ortiz v. Jones, 917 S.W.2d 770, 772 (Tex. 1996); Catalina v. Blasdel, 881 S.W.2d 295, 297 (Tex. 1994).

A legal sufficiency challenge may only be sustained when: 

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