Jim Kirkland v. v & S Total Trade, LLC

CourtCourt of Appeals of Texas
DecidedJune 12, 2024
Docket04-22-00409-CV
StatusPublished

This text of Jim Kirkland v. v & S Total Trade, LLC (Jim Kirkland v. v & S Total Trade, LLC) 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
Jim Kirkland v. v & S Total Trade, LLC, (Tex. Ct. App. 2024).

Opinion

Fourth Court of Appeals San Antonio, Texas MEMORANDUM OPINION

Nos. 04-22-00409-CV, 04-22-00410-CV

Jim KIRKLAND and Joe Kirkland, Appellants

v.

V & S TOTAL TRADE, LLC, Appellee

From the County Court at Law No. 3, Bexar County, Texas Trial Court Nos. 2022CV01025, 2022CV01033 Honorable Kevin Henderson, Judge Presiding

Opinion by: Irene Rios, Justice

Sitting: Patricia O. Alvarez, Justice Luz Elena D. Chapa, Justice Irene Rios, Justice

Delivered and Filed: June 12, 2024

VACATED IN PART; REVERSED AND RENDERED IN PART

In these consolidated forcible detainer appeals, appellants Jim Kirkland and Joe Kirkland

appeal the trial court’s judgment awarding possession of real property and attorney’s fees to

appellee V & S Total Trade, LLC (“Total Trade”). 1 In their first two issues, the Kirklands argue

the county court did not have jurisdiction to hear the forcible detainer because the issue of

possession was inextricably intertwined with a challenge to title of the property. In their third

1 The trial court cause number pertaining to the forcible detainer against Jim is 2022CV01025. The trial court cause number pertaining to the forcible detainer against Joe is 2022CV01033. 04-22-00409-CV, 04-22-00410-CV

issue, the Kirklands argue that, even if the trial court had jurisdiction to hear the forcible detainer,

there is insufficient evidence supporting the trial court’s judgment, including an award of

attorney’s fees. Total Trade argues these appeals are moot. We vacate the trial court’s judgment

in part and reverse and render in part.

BACKGROUND

In September 2010, Joe Kirkland entered into an executory contract with Raul Daniel

Portillo and Diego Portillo 2 to purchase real property located at 1619 Buena Vista, San Antonio,

Texas 78207 (“the property”). The property is a multi-family residential property. 3 Joe and his

father, Jim Kirkland, each lived in one of the apartments on the property.

The executory contract, which also included the sale of two other properties that are not

subject to this appeal, states Joe “agrees to take over mortgage payments on all three properties”

and “agrees to pay said mortgage loan payments on time every month until loans are paid in full.”

The executory contract was never recorded in the Bexar County real property records. Joe partially

performed his obligations under the contract; however, he discovered there were defects in the

property that were not disclosed when he executed the contract for deed. Therefore, in

March 2011, the parties signed an addendum that amended the original executory contract to

reduce the purchase price of the properties to offset the cost of the repairs. The addendum also

states:

[Joe] Kirkland who has [taken] over payments, properties and all responsibilities of said rental properties understands all payments should be made by the due date, before late fee[]s ideally and definitely before 30 days ha[ve] expired to help Mr. Portillo stay in good credit standing. It[] is also understood that all mortgages and utilities were 90 to 120 days behind and at risk of foreclosure when [Joe] Kirkland purchased the properties. [Joe] Kirkland intends to switch the loans into his name in the near future and payoff the Portillo family as soon as

2 According to the executory contract, Diego Portillo signed the contract with power of attorney for Raul Julio Portillo. 3 According to the Kirklands’ bench brief, the property also contains two commercial units; however, this forcible detainer pertains to possession of two of the residential units.

-2- 04-22-00409-CV, 04-22-00410-CV

possible. [Joe] Kirkland will do everything in his power to make said payments on time and will reimburse Mr. Portillo $20 per each occurrence should mortgages get behind 30 days, [Joe] Kirkland will reimburse $30 for each 60[-]day late occurrence and $50 per occurrence should he get 90 days behind.

The addendum went on to allow the Portillo family to make mortgage payments should Joe

fail to make the payments. It provides for a $500 penalty if Joe did not reimburse the Portillo

family within sixty days, a $1,000 penalty if Joe did not reimburse the Portillo family within ninety

days, and the executory contract would be voided if Joe failed to reimburse the Portillo family

within 120 days. The addendum was recorded in the real property records in June 2018, but the

original executory contract remained unrecorded.

At some point, the mortgage holder initiated a non-judicial foreclosure of the property. On

December 7, 2021, Total Trade purchased the property at the foreclosure auction for $115,000.

Total Trade then sought to evict Joe and Jim, who were still residing in two of the apartments on

the property. After Joe and Jim refused to vacate the property, Total Trade initiated the underlying

forcible detainer actions. The justice court granted the forcible detainers awarding possession to

Total Trade. Joe and Jim timely appealed the judgments to the county court at law.

On May 27, 2022, a de novo bench trial on the merits was scheduled on the two forcible

detainer appeals from the justice court. However, the parties disagreed on whether the trial court

had subject matter jurisdiction to hear the forcible detainer.

The Kirklands asserted they fulfilled their obligations under the executory contract as

evidenced by a deed signed by Diego Portillo and Raul Daniel Portillo’s heirs 4 in August 2014

purportedly conveying the property’s title to Joe. According to the Kirklands, the conflicting deeds

created a title issue that must be resolved before the trial court could determine possession.

4 According to the Kirklands, Raul Daniel Portillo died sometime before August 2014 and an administration of his estate was never opened.

-3- 04-22-00409-CV, 04-22-00410-CV

Notably, the warranty deed, which was attached to the Kirkland’s bench brief, was not signed by

all the grantor heirs, and the Kirklands conceded at trial that it was never recorded in the real

property records.

The Kirklands informed the trial court that Joe was currently pursuing a wrongful

foreclosure claim and a trespass to try title claim in a Bexar County District Court. They conceded

that the wrongful foreclosure action may proceed independently of the forcible detainer. However,

they contended the right to possession could not be determined independently of the trespass to try

title claim, essentially arguing the question of which party was entitled to superior possession of

the property is inextricably intertwined with the title dispute. Therefore, they argued the court of

proper jurisdiction for the dispute was in district court and the trial court—a county court at law—

did not have jurisdiction to adjudicate possession under the facts of this case. 5

Total Trade asserted the deed of trust provides that any occupants of the property following

a non-judicial foreclosure sale would be considered tenants at sufferance and may be removed by

writ of possession. Total Trade argued the trial court had jurisdiction because the tenancy at

sufferance clause allows the trial court to determine that Total Trade has a superior right of

possession of the property without having to adjudicate the title dispute.

After the parties made their jurisdictional arguments, the trial court invited the parties to

submit briefs on the jurisdictional issue and took the cases under advisement. No testimony or

documentary evidence was admitted at the trial.

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Jim Kirkland v. v & S Total Trade, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-kirkland-v-v-s-total-trade-llc-texapp-2024.