Jim Walter Homes, Inc. v. Valencia

679 S.W.2d 29, 1984 Tex. App. LEXIS 5745
CourtCourt of Appeals of Texas
DecidedJune 28, 1984
Docket13-83-033-CV
StatusPublished
Cited by26 cases

This text of 679 S.W.2d 29 (Jim Walter Homes, Inc. v. Valencia) 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 Walter Homes, Inc. v. Valencia, 679 S.W.2d 29, 1984 Tex. App. LEXIS 5745 (Tex. Ct. App. 1984).

Opinion

OPINION

NYE, Chief Justice.

This is an appeal by Jim Walter Homes, Inc., and Mid-State Homes, Inc., defendants-appellants, from a judgment in favor of Jose and Elodia Valencia, plaintiffs-ap-pellees. Appellants were found to have violated the Texas Consumer Credit Code, TEX.REV.CIV.STAT.ANN. art. 5069-1.01 et seq. [hereinafter “Credit Code”] and the Texas Deceptive Trade Practices-Consumer Protection Act, Tex.Bus. & Com.Code Ann. § 17.41 et seq. [hereinafter “DTPA”] in the *32 sale, construction, financing and foreclosure of a new home to plaintiffs. The alleged violation(s) under the DTPA were tried to a jury, while the alleged violations under the Credit Code and defendants’ counterclaim were tried before the Honorable Bert Tunks, sitting for the 148th District Court of Nueces County, Texas. Judgment was entered upon the DTPA violations in the amount of $49,728.00, and upon the Credit Code violations that defendants forfeit all amounts owing on the construction of the house in question.

The primary issues presented in this appeal are: (1) whether the trial court erred in awarding appellees recovery under the Credit Code; (2) whether the evidence is sufficient to support the jury’s finding that appellees did not fail to give “notice” to appellants to support their recovery under the DTPA; (3) whether the trial court erred by refusing to allow appellants’ counterclaim to be offset against appellees’ actual damages; and (4) whether the trial court erred in computing appellees’ total damages under section 17.50(b)(1) of the DTPA.

On June 2, 1981, appellees signed a contract wherein appellant (Jim Walter Homes) agreed to construct a new house on the appellees’ unencumbered property in San Patricio County, Texas. The cash price of the house was $23,445.00; the finance charge was $21,789.00, for a total combined price of $45,234.00. To secure the payment of the debt, appellant required that appellees execute a Mechanic’s Lien Contract with Power of Sale. The total amount was to be repaid in 180 monthly installments of $251.30 each. The Retail Installment Contract disclosed an annual percentage rate of 10% interest.

Under the terms of the contract, appel-lees, the Valencias, agreed to pay these monthly installments, the first installment to become due and payable on the fifth day of the month next following the thirtieth day after “release” of house to the Valencias, and one installment to become due and payable on the fifth day of each succeeding month until all the payments were made under the contract. The FINANCE CHARGES were to accrue thirty days prior to due date of the first scheduled installment. The record shows that appellant (Jim Walter Homes, Inc.) received a building permit from the City of Gregory, Texas, on July 7, 1981. Construction on the house in question began in early July, 1981. Mr. John Radosta, the main branch manager of Jim Walter Homes, Inc., in Corpus Christi, testified that his files indicated that the date the house was “built” (a term used by appellants interchangeably with the contract word, “release”) was August 28, 1981. According to appellant’s internal records, the house was counted as “built” or “released” to the Valencias on August 28, 1981, following what appellants denominated a “final inspection” by appellant’s own agents and/or employees. Once appellant (Mid-State Homes, the financial institution for Jim Walter Corporation) received notification from the local branch office of Jim Walter Homes, Inc., that the house was “built,” a finance account was set up by Mid-State Homes requiring that the first payment (including time-price differential) be due on October 5, 1981.

The Valencias did not make any payments. The record shows that, after the third monthly payment accrued on Mid-State’s books, appellant (Mid-State Homes) placed the Valencias’ account with attorney Albert Schlieman for collection. The Valencias received a letter from Schlieman on behalf of Mid-State Homes, demanding payment of $971.90 (3 x $251.30 plus past-due insurance premiums in the amount of $218.00) for amounts allegedly past-due from October 5, 1981 to December 5, 1981. This letter stated that, if the amount specified ($971.90), plus the January 5 payment ($251.30), was not received within ten days of this demand letter, Mid-State Homes would accelerate maturity of the entire Retail Installment Contract and declare the total balance immediately due and payable. The Valencias still did not pay Mid-State Homes, whereupon Mid-State Homes accelerated the note and attempted to foreclose on the Valencias’ property that was secured by Jim Walter Homes’ Mechanic’s Lien Contract. Notice of Trustee’s Sale *33 was posted for sale on February 2, 1982. At that point, the Valencias employed an attorney to enjoin the appellants from proceeding with the foreclosure and sale of the Valencias’ property. The Valencias’ suit against Jim Walter Homes and Mid-State Homes was actually two distinct causes of action, i.e., a Credit Code violation under chapter 6 and a DTPA violation under section 17.46.

Jim Walter Homes and Mid-State Homes contend on appeal that there was an erroneous application of the Credit Code and that the trial court erred in awarding the Valencias recovery under the Credit Code because no excess time-price differential was charged.

CREDIT CODE

It is clear that the contract made the subject of this cause was a Retail Installment Contract within the provisions of Chapter 6 of the Credit Code, TEX.REV. CIV.STAT.ANN. art. 5069-6.01, et seq. The Valencias contend, and we agree, that the appellants violated the Credit Code and that, as a result of that violation, the Code triggered the statutory penalty that requires forfeiture of all of the principal balance, interest or time-price differential, and all other charges. TEX.REV.CIV.STAT. ANN. art. 5069-8.02 (Vernon Pamphlet Supp.1984).

The trial court found that defendant’s demands for payment and their acceleration of the note under the facts of the case constituted a charging of time-price differential in excess of twice the amount authorized by (Subtitle 2) the Texas Consumer Credit Code.

In order for us to determine whether appellants’ actions constituted an unlawful charging of time-price differential in violation of the Credit Code, we look at all of the evidence in the record. Where, as here, no findings of fact or conclusions of law are requested or filed, it will be implied that the trial court made all the necessary findings that have support in the evidence and that will support its judgment. In the Interest of W.E.R., 669 S.W.2d 716 (Tex. 1984); Burnett v. Motyka, 610 S.W.2d 735 (Tex.1980).

The trial court found (based upon the jury’s answers to special issues submitted) that the Valencias’ house was not completed according to the contract of the parties, and, therefore, there was no obligation to begin payments on that contract. It follows that no time-price differential was due, and appellants’ demands for payment and their acceleration of maturity amounted to an unauthorized “charge” within the purview of the Credit Code.

Appellants contend here that the contract of the parties specifically provides that the contractual note payments were to become due on the 5th day of the month “next following the thirtieth day after

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Bluebook (online)
679 S.W.2d 29, 1984 Tex. App. LEXIS 5745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-walter-homes-inc-v-valencia-texapp-1984.