Laura Bryan v. Debora Coelho Gordon and Windermere Real Estate/Lane County

384 S.W.3d 908, 2012 Tex. App. LEXIS 8923, 2012 WL 5333372
CourtCourt of Appeals of Texas
DecidedOctober 30, 2012
Docket14-12-00040-CV
StatusPublished
Cited by32 cases

This text of 384 S.W.3d 908 (Laura Bryan v. Debora Coelho Gordon and Windermere Real Estate/Lane County) 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
Laura Bryan v. Debora Coelho Gordon and Windermere Real Estate/Lane County, 384 S.W.3d 908, 2012 Tex. App. LEXIS 8923, 2012 WL 5333372 (Tex. Ct. App. 2012).

Opinion

OPINION

CHARLES W. SEYMORE, Justice.

Appellant, Laura Bryan, appeals the trial court’s grant of a special appearance filed by appellees, Debora Coelho Gordon and Windermere Real Estate/Lane County, in Bryan’s suit based on appellees’ alleged torts relative to their representation of Bryan in an Oregon real estate transaction. We affirm.

I. Background

In April 2006, Bryan resided in Oregon and purchased a home there. Bryan signed a note secured by a second mortgage on the property. Apparently, via assignment, Citi Mortgage, Inc. became holder of the note and later assigned it to Old Republic Insurance Company. In September 2007, Bryan left Oregon for personal reasons and returned to her home state of Texas, where she began residing with her mother in Katy. At some point, Bryan ceased mak *911 ing mortgage payments on the Oregon property.

Bryan alleges that Citi Mortgage and Titanium Solutions, a nationwide real estate brokerage firm, had a relationship whereby the entities shared information regarding financially distressed properties so that they could approach the owners to facilitate a “short sale.” Titanium would then refer the owner to a real estate agent to represent the owner in the short sale. In return, Titanium received a share of the agent’s commission.

In late 2007, Citi Mortgage mistakenly identified the Texas home owned by Bryan’s mother as a financially distressed property. A Titanium employee went to the Texas home and spoke with Bryan. Bryan informed the employee that the property involved in foreclosure proceedings was located in Oregon.

Based on a referral from Titanium, ap-pellee Gordon, a real estate agent with appellee Windermere, telephoned Bryan about representing her in a short sale of the property. However, the parties dispute whether Bryan or Gordon initiated the contact. According to Gordon, a Titanium representative relayed to her that Bryan wished to sell property in Oregon and requested contact from an Oregon real estate agent. In contrast, Bryan maintains she merely provided her contact information to the Titanium employee but never requested assistance selling the property or that anyone contact her regarding a sale. Bryan further maintains that, during this phone conversation, Gordon said she “was going to help [Bryan] sell [her] home” to avoid “foreclosure” and any delinquency would be “taken care of’ by a short sale. Bryan claims Gordon also made numerous statements leading Bryan to believe that Gordon was ensuring Bryan’s “best interests” and Bryan was unaware that a secondary lender was precluded under Oregon law from obtaining a judgment for a deficiency after a foreclosure.

In her deposition, Gordon acknowledged that she and Bryan had a “couple different phone conversations” before Bryan executed a listing agreement because Bryan was initially undecided on a course of action. Gordon averred, but Bryan disputes, that Gordon advised Bryan to consult legal counsel about the proposed listing contract, Bryan’s concerns regarding the fact the property was in foreclosure proceedings, and her status if short-sale proceeds were insufficient to satisfy the mortgages.

Bryan did ultimately sign an Oregon listing agreement with appellees. Gordon e-mailed the contract to Bryan who signed it while she was in Texas and returned it via e-mail. Gordon further acknowledged that she thereafter made more than fifty telephone calls and sent multiple e-mails to Bryan concerning the sale. In October 2008, the short sale was conducted.

According to Bryan, under Oregon law, when a residential property is foreclosed, a second mortgage holder may not recover from the borrower for a delinquency remaining after the foreclosure sale; conversely, after a short sale of residential property, the second mortgage holder obtains a new debt which is collectable against the borrower. Bryan contends that, therefore, a short sale was significantly more harmful to her than foreclosure because the short sale resulted in creation of a new debt relative to the second mortgage. Bryan complains that Gordon failed to advise Bryan a short sale was not in her best interests and instead solicited and encouraged the short sale so that appellees would obtain a commission.

Old Republic sued Bryan seeking to recover the balance of $29,628.96 due on the note secured by the second mortgage. In her live pleading, Bryan counterclaimed against Old Republic and asserted third- *912 party claims against appellees, Titanium, and Citi Mortgage. Bryan asserted claims against appellees for negligent misrepresentation, fraud, fraudulent inducement, breach of fiduciary duties, civil conspiracy, and RICO violations and sought consequential and punitive damages, plus attorney’s fees.

Appellees filed a special appearance to which Bryan responded. The evidence submitted by the parties with these filings included the following: affidavits of Gordon, another Windermere representative, and Bryan; Gordon’s deposition; and ap-pellees’ discovery responses. The trial court conducted a hearing during which it heard arguments but no additional evidence. On January 13, 2012, the trial court signed an order, sustaining the special appearance and dismissing the claims against appellees for want of jurisdiction. Bryan then filed this interlocutory appeal. See Tex. Civ. Prac. & Rem.Code Ann. § 51.014(a)(7) (West Supp.2012).

II. Analysis

In her sole issue, Bryan contends the trial court erred by sustaining appellees’ special appearance.

A. Applicable Law and Standard of Review

The plaintiff has the initial burden of pleading sufficient allegations to bring the nonresident defendant within the provisions of the Texas long-arm statute. BMC Software Belgium, N.V. v. Marchand, 88 S.W.3d 789, 793 (Tex.2002). A defendant challenging a Texas court’s personal jurisdiction over the defendant must negate all jurisdictional bases alleged. Id.

Texas courts may exercise jurisdiction over a nonresident if the Texas long-arm statute authorizes the exercise of personal jurisdiction and the exercise of jurisdiction is consistent with federal and state constitutional guarantees of due process. Mold Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007). The Texas long-arm statute authorizes Texas courts to exercise jurisdiction over a nonresident defendant who “does business” in Texas and lists certain activities that constitute “doing business,” including “commits a tort in whole in part” in Texas. Tex. Civ. Prac. & Rem.Code Ann. § 17.042 (West 2008). The Texas long-arm statute extends Texas courts’ personal jurisdiction “‘as far as the federal constitutional requirements of due process will permit.’” BMC Software, 83 S.W.3d at 795 (quoting U-Anchor Adver., Inc. v. Burt, 553 S.W.2d 760, 762 (Tex.1977)). Thus, we rely on precedent from the United States Supreme Court and other federal courts, as well as our own State’s decisions, in determining whether a nonresident defendant has met its burden to negate all bases of jurisdiction. Id.

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Bluebook (online)
384 S.W.3d 908, 2012 Tex. App. LEXIS 8923, 2012 WL 5333372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laura-bryan-v-debora-coelho-gordon-and-windermere-real-estatelane-county-texapp-2012.