Karen McCright v. Josh Rodriguez and Emmett Sterling Huff

CourtCourt of Appeals of Texas
DecidedJune 26, 2008
Docket01-07-00480-CV
StatusPublished

This text of Karen McCright v. Josh Rodriguez and Emmett Sterling Huff (Karen McCright v. Josh Rodriguez and Emmett Sterling Huff) 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
Karen McCright v. Josh Rodriguez and Emmett Sterling Huff, (Tex. Ct. App. 2008).

Opinion

Opinion issued June 26, 2008



In The

Court of Appeals

For The

First District of Texas



NO. 01-07-00480-CV

__________



KAREN MCCRIGHT, Appellant



V.



JOSH RODRIGUEZ, JOHNNIE LUE FISK, INDIVIDUALLY AND AS EXECUTRIX OF THE ESTATE OF ROBERT ALLEN WHORTON, AND EMMETT HUFF, Appellees



On Appeal from the 125th District Court

Harris County, Texas

Trial Court Cause No. 2006-56006



MEMORANDUM OPINION

Appellant, Karen McCright, challenges the trial court's final judgment, rendered after a bench trial, in favor of appellees, Josh Rodriguez, Johnnie Lue Fisk, individually and as executrix of the estate of Robert Allen Whorton, and Emmett Huff, in McCright's suit to "stop interference" with a piece of property over which she claimed ownership and possession rights, "to set aside [a] deed" in lieu of foreclosure that she signed regarding that property, and for civil conspiracy. In three issues, McCright contends that the "statute of limitations expired on the acceleration of the note" securing her rights to the property, the deed in lieu of foreclosure that she signed was invalid, and the evidence is legally insufficient to support certain findings of fact and conclusions of law.

We affirm.

Factual and Procedural Background

In 1995, Karen McCright began renting a piece of property (the "property") in Houston, Texas from Robert Allen Whorton, and thereafter began operating a treatment center on that property. In April 1998, McCright purchased the property from Whorton, signing both a promissory note in the amount of $200,000 payable to Whorton and a deed of trust identifying Whorton as the beneficiary. Whorton died in 1999, and William Fisk became the executor of Whorton's estate and the trustee of a number of trusts which held the property of the estate, including the note signed by McCright. In December 1999, McCright defaulted on payments under the note. On October 5, 2001, Emmett Huff, as the attorney and representative of William Fisk, sent McCright a letter demanding that McCright "bring the note current immediately." In the conclusion of the letter, Huff stated that he was presenting McCright with an "opportunity for amicable resolution." (1)

In 2005, William Fisk died, and his wife, Johnnie Lue Fisk, became successor trustee of the trusts holding the property of the Whorton estate. On December 12, 2005, Johnnie Lue Fisk and Huff, among others, met with McCright, and McCright signed a deed in lieu of foreclosure for the property. The deed in lieu of foreclosure identified McCright as the grantor and Whorton's estate as the grantee, and Johnnie Lue Fisk signed the deed in lieu of foreclosure in her capacity as trustee of Whorton's estate. The property was subsequently put up for sale, and, on August 18, 2006, Johnnie Lue Fisk, who had by that date become the executrix of Whorton's estate, signed a warranty deed selling the property to Rodriguez.

Despite the sale of the property to Rodriguez, McCright contended that she was still the owner of the property. McCright asserted that the note had been accelerated by the October 2001 letter and that the note could no longer be enforced because the statute of limitations on accelerating the note had expired. McCright also asserted that the deed in lieu of foreclosure was not accepted by Whorton's estate. McCright filed suit, and, as reflected by the trial court's judgment, Rodriguez and Johnnie Lue Fisk filed counterclaims. (2)

After conducting a bench trial, the trial court entered its judgment, ordering that McCright take nothing, Rodriguez recover possession of the property and damages in the amount of $17,346 plus postjudgment interest and court costs, and Johnnie Lue Fisk recover damages in the amount of $8,117.09 for delinquent real estate taxes, $25,000 for her attorney's fees incurred in pursuing breach of contract claims on behalf of Whorton's estate, and postjudgment interest and court costs. The trial court subsequently entered findings of fact and conclusions of law.

Limitations

In her first issue, McCright contends that the "statute of limitations expired on the acceleration of the note on the deed in trust and[, thus,] the property belonged to her." Relying on the October 2001 letter and citing section 16.035 of the Texas Civil Practice and Remedies Code, McCright asserts that "more than four years had passed since any attempt was made to collect on the note." See Tex. Civ. Prac. & Rem. Code Ann. § 16.035 (Vernon 2002).

Although McCright does not refer us to any specific subsection of section 16.035 or explain how any specific subsection applies in the instant case, section 16.035 provides, in relevant part,

(a) A person must bring suit for the recovery of real property under a real property lien or the foreclosure of a real property lien not later than four years after the day the cause of action accrues.



(b) A sale of real property under a power of sale in a mortgage or deed of trust that creates a real property lien must be made not later than four years after the day the cause of action accrues.



. . . .



(d) On the expiration of the four-year limitations period, the real property lien and a power of sale to enforce the real property lien become void.



(e) If a series of notes or obligations or a note or obligation payable in installments is secured by a real property lien, the four-year limitations period does not begin to run until the maturity date of the last note, obligation, or installment.





Id.

In support of her limitations argument, McCright also cites Holy Cross Church of God in Christ v. Wolf, 44 S.W.3d 562, 566 (Tex. 2001). In Wolf, the Texas Supreme Court explained that a default on a note or deed that secures real property and that contains an optional acceleration clause "does not ipso facto start limitations running on the note," "the action accrues only when the holder actually exercises its option to accelerate," effective acceleration requires both a notice of intent to accelerate and a notice of acceleration, and "[b]oth notices must be clear and unequivocal." Id.

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