Kerry Ann Wise v. Connie Lou Conklin

Court of Appeals of Texas·Decided April 20, 2015·No. 01-13-00840-CV·Published

Opinion

Opinion issued April 16, 2015

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-13-00840-CV ——————————— KERRY ANN WISE, Appellant V. CONNIE LOU CONKLIN, Appellee

On Appeal from the 157th District Court Harris County, Texas Trial Court Case No. 2011-32399

MEMORANDUM OPINION

Appellant, Kerry Ann Wise, challenges the trial court’s judgment, entered

after a trial to the court, in favor of appellee, Connie Lou Conklin, in Wise’s suit

seeking to remove an alleged cloud from a title to real estate and to recover damages for slander of title and tortious interference with a contract. In three

issues, Wise contends that the evidence is legally and factually insufficient to

support the trial court’s judgment and the trial court erred in denying her request

for attorney’s fees.

We affirm.

Background

In her third amended petition, Wise alleged that on or about July 6, 2010,

she purchased from Warren Clay Fry a piece of property located at 20210

Pittsford, Katy, Harris County, Texas 77450 (the “Pittsford Property”). In

connection with the transaction, Wise performed a title search, which showed that

the property was unencumbered. Following her purchase, Wise renovated the

Pittsford Property and received an offer to buy the property. As Wise and her

buyers prepared to close the transaction, the title company discovered that Fry’s

ex-wife, Conklin, had filed an Abstract of Judgment against Fry approximately one

month after Wise had purchased the Pittsford Property. According to Wise, the

abstract affected her ability to transfer the property to her buyers because it

clouded her title. Wise attempted to resolve the title issue with Conklin and her

attorney, Patrick O’Fiel. However, Conklin refused to “release the property.”

Because of the “cloud on the title,” Wise suffered damages, including loss of a

sale, lost business opportunities, lost profits, and expenses in maintaining the

2 property. Wise sought removal of the alleged cloud from the title, damages for

slander of title and tortious interference with a contract, and attorney’s fees.

At trial, Wise testified that she entered into a contract to purchase the

Pittsford Property from Fry for $86,000.00. The title company checked the

property’s title and determined “there were no encumbrances, no liens, and the

property was free and clear.” Fry executed and recorded the deed, which

transferred the property to Wise on July 23, 2010. Following her purchase, Wise

renovated the Pittsford Property with the help of her construction superintendent,

Michael Dunn. In connection with the renovations, she incurred expenses of

$62,104.59, plus $20,500.00 for Dunn’s services and expenses. Subsequently, she

entered into a contract to sell the property to John Lawrence and Aline Morales

Packard for the purchase price of $206,500.00. She stood to make a profit of

$37,895.41 on the sale.

Wise, however, could not close the sale with Lawrence and Packard because

“the title was . . . cloudy” due to the Abstract of Judgment recorded on August 19,

2010 by Conklin. The abstract stated that Conklin had received a judgment against

Fry for $375,609.50 on November 12, 2009. 1

1 See TEX. PROP. CODE ANN. § 52.003(a) (Vernon Supp. 2014) (abstract of judgment must contain names of plaintiff and defendant; defendant’s birthdate; last three numbers of defendant’s driver’s license; last three numbers of defendant’s social security number; number of suit in which judgment was

3 Upon learning of the abstract, Wise and Dunn attempted to contact Conklin

and O’Fiel to explain their problem with selling the Pittsford Property. Conklin

told Wise that “she would do nothing to help.” And O’Fiel told Wise that “he

could do nothing” and “his client [Conklin] refused to release the lien.”

On October 26, 2010, Wise wrote a letter to Conklin and O’Fiel explaining

that she could not sell the Pittsford Property to Lawrence and Packard because of

the “clouded title” and requesting that they “please lift th[e] cloud.” She received

no response. On November 29, 2010, Wise’s attorney sent, by certified mail to

O’Fiel, a letter in which she explained that the abstract “resulted in

clouding . . . Wise’s title to th[e] property” and caused Wise to lose her sale of the

property “because the title company refused to issue title insurance.” Wise’s

attorney requested that Conklin sign a “Partial Release of Abstract of Judgment

for . . . Wise’s property.” O’Fiel did not respond. Wise stated that she did not

know why Conklin would not release the abstract and could not “get into [her]

mind to know that” but opined that Conklin felt “[r]etaliation against the house”

and “anger.”

In his deposition, O’Fiel testified that, as a result of divorce proceedings

between Conklin and Fry, Conklin secured a judgment of approximately

$375,000.00 against Fry. Six or seven months after the entry of that judgment,

rendered; defendant’s address; date on which judgment was rendered; amount of judgment; and rate of interest specified in judgment).

4 O’Fiel filed the Abstract of Judgment. He subsequently received a telephone call

from “somebody” asking about the abstract and for a release of it. O’Fiel looked

into the matter, but did not release the abstract. O’Fiel admitted to receiving

Wise’s personal letter and her attorney’s letter, with a proposed Partial Release of

the Abstract of Judgment, and stated that he had been notified by

“[s]omebody . . . claim[ing] that a title company would not issue [a] policy.”

Finally, Lennon Wright, Wise’s trial attorney, testified that his rate is

$350.00 per hour and Wise had incurred $1,750.00 in reasonable and necessary

attorney’s fees related to the removal of cloud from title.

The trial court rendered a take-nothing judgment against Wise on her claims

for slander of title and tortious interference with a contract. And it issued findings

of fact and conclusions of law. The trial court did not award Wise attorney’s fees

related to her action to remove a cloud from the title, upon which the court had

previously granted Wise summary judgment.

Sufficiency of Evidence

In her first issue, Wise argues that the evidence is legally and factually

insufficient to support the trial court’s finding and conclusion of law that Conklin

did not commit slander of title because “[t]he refusal to release a lien created by an

abstracted judgment on a homestead which results in a loss of a sale can constitute

a slander of title.” In her third issue, Wise argues that the evidence is legally and

5 factually insufficient to support the trial court’s conclusion of law that Conklin did

not tortiously interfere with her contract to sell the Pittsford Property to Lawrence

and Packard because she “entered into a valid earnest money contract for the sale

of the property,” Conklin “had actual knowledge of . . . the contract that

existed between [Wise] and the purchasers [and] . . . a clear cut indication about

what would happen if she continued to refuse to release the lien,” Conklin’s

“refusal to release the Abstract of Judgment was the proximate cause of [Wise’s]

damages,” and Wise “sustained damage” by losing the sale of the property.

In an appeal from a judgment rendered after a trial to the court, the trial

court’s findings of fact have the same weight as a jury’s verdict, and we review the

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