Lewis v. Citadel Servicing Corporation

CourtDistrict Court, S.D. Texas
DecidedNovember 16, 2023
Docket4:21-cv-01294
StatusUnknown

This text of Lewis v. Citadel Servicing Corporation (Lewis v. Citadel Servicing Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Citadel Servicing Corporation, (S.D. Tex. 2023).

Opinion

UNITED STATES DISTRICT COURT November 16, 2023 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION TREY LEWIS, § § Plaintiff. § § V. § CIVIL ACTION NO. 4:21-cv-01294 § CITADEL SERVICING § CORPORATION, § § Defendant. §

OPINION AND ORDER Pending before me is Defendant Citadel Servicing Corporation’s Motion for Summary Judgment. See Dkt. 31. Having considered the summary judgment briefing, the record, and the applicable law, I GRANT the motion for summary judgment. BACKGROUND On December 18, 2018, Citadel Servicing Corporation (“Citadel”) loaned $700,000 to Plaintiff Trey Lewis (“Lewis”). In turn, Lewis signed a Promissory Note, agreeing to repay Citadel through monthly payments made over a 360- month period. As part of this transaction, Lewis also executed a Deed of Trust to secure the Promissory Note. The Deed of Trust identifies the security provided as property located in Harris County with a “Legal Description Attached Hereto and Made a Part Hereof.” Dkt. 32-3 at 3. Attached to the Deed of Trust is a metes and bounds description, which describes the property, in part, as follows: BEING ALL OF TRACT I AND TRACT II AS RECORDED UNDER HARRIS COUNTY CLERKS FILE NUMBER X332854 AND BEING HEREIN DESCRIBED AS COMPRISING TRACT 1: THE WEST 98.52 FEET OF LOT 4 & THE EAST 30 FEET OF LOT 5 AND TRACT 2: 7373-SQUARE FQOT TRACT OUT OF THE WEST 95 FEET OF LOT 5, BOTH IN BLOCK 3, GREENWOOD ADDITION AS RECORDED IN VOLUME 37, PAGE 58 OF THE MAP RECORDS OF HARRIS COUNTY, TEXAS (BASIS OF BEARINGS RECITED HEREIN), SAID 7373-SQUARE FOOT TRACT 2 BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

Id. at 29. The metes and bounds description clearly identifies the secured property as consisting of two separate tracts. Tract I is an improved property. Tract II is an unimproved lot. The complicating factor is that the Deed of Trust also identifies the secured property as 4730 Ivanhoe Street, Houston, Texas 77027. See id. at 3. Lewis maintains that he owned two distinct parcels: 4730 Ivanhoe Street (Tract I) and 4734 Ivanhoe Street (Tract II). He says that Citadel should have only placed a lien on 4730 Ivanhoe Street (Tract I), not 4734 Ivanhoe Street (Tract II). He requested that Citadel remove the lien on Tract II, but Citadel refused. In 2020, Lewis failed to make his monthly payments as required by the Promissory Note. As a result, on November 19, 2020, Citadel sent Lewis Notice of Intent to Foreclose, informing him that his loan was in default in the amount of $18,455.85. Citadel further explained to Lewis that if he failed to cure the default within 30 days, Citadel would accelerate the loan and, quite possibly, proceed with a foreclosure. Lewis did not cure the default. Citadel proceeded with a non-judicial foreclosure. Tracts I and II were foreclosed on December 6, 2022. A few months after the foreclosure, Lewis filed suit against Citadel in Texas state court. The Original Petition set forth the following causes of action: (1) Breach of Contract; (2) Forfeiture and Removal of Invalid Lien; (3) Statutory Fraud; (4) Quiet Title; (5) Trespass to Try Title; (6) Tortious Interference with a Contract; and (7) Declaratory Judgment. Citadel timely removed the lawsuit to federal court. Once in the federal forum, Lewis filed a supplemental pleading, adding a cause of action for wrongful foreclosure. Citadel has now moved for summary judgment, asking that all of Lewis’s claims be thrown out. LEGAL STANDARD Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” FED. R. CIV. P. 56(a). A fact issue is material only “if its resolution could affect the outcome of the action.” Wyatt v. Hunt Plywood Co., 297 F.3d 405, 409 (5th Cir. 2002). “A factual dispute is ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Beck v. Somerset Techs., Inc., 882 F.2d 993, 996 (5th Cir. 1989). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986). Once satisfied, the burden shifts to the nonmovant to show the existence of a genuine fact issue for trial. See id. at 324. To do so, the “nonmovant must identify specific evidence in the record and articulate how that evidence supports that party’s claim.” Brooks v. Houston Indep. Sch. Dist., 86 F. Supp. 3d 577, 584 (S.D. Tex. 2015). In ruling on a motion for summary judgment, I must construe “the evidence in the light most favorable to the nonmoving party and draw all reasonable inferences in that party’s favor.” Cadena v. El Paso Cnty., 946 F.3d 717, 723 (5th Cir. 2020). OBJECTIONS TO SUMMARY JUDGMENT EXHIBITS Citadel objects on a number of grounds to several exhibits offered by Lewis in response to its Motion for Summary Judgment. I deny these objections as moot because “this evidence does not affect the disposition of the summary judgment motion.” Lilly v. SSC Houston Sw. Operating Co., No. 4:20-cv-03478, 2022 WL 35809, at *3 n.2 (S.D. Tex. Jan. 4, 2022); see also Banks v. Bell Helicopter Textron, Inc., No. 4:10-cv-653, 2011 WL 13291576, at *4 (N.D. Tex. Nov. 4, 2011) (“[B]ecause [Defendant] is entitled to judgment as a matter of law even considering the objected-to evidence, the Court overrules [Defendant]’s objections as moot.”); Jones v. United Parcel Serv., Inc., No. 3:06-cv-1535, 2008 WL 2627675, at *6 (N.D. Tex. June 30, 2008) (denying objections to summary judgment evidence as moot because the evidence was “not central to the court’s conclusions, and sustaining the parties’ objections would not change the result”). Lewis also objects to several of the exhibits (Exhibits E, F, K, and L) filed in support of Citadel’s Motion for Summary Judgment. Lewis claims the objected-to documents are irrelevant, contain hearsay, and lack a proper foundation. Because these exhibits ultimately play no role in my decision to grant summary judgment in favor of Citadel, I will not spend considerable time addressing the merits of the objections. I will simply sustain the objections and move to analyzing the issues involved at this summary judgment stage. LEWIS’S CLAIMS FOR AFFIRMATIVE RELIEF I will examine each cause of action asserted by Lewis to determine if summary judgment is appropriate. A. BREACH OF CONTRACT As part of his breach of contract action, Lewis alleges that Citadel breached both the Promissory Note and the Deed of Trust. To prevail on a breach of contract claim under Texas law, Lewis must establish four elements: “(1) formation of a valid contract; (2) performance by the plaintiff; (3) breach by the defendant; and (4) the plaintiff sustained damages as a result of the breach.” S & S Emergency Training Sols., Inc. v. Elliott, 564 S.W.3d 843, 847 (Tex. 2018) (quotation omitted). Lewis’s breach of the Promissory Note claim fails because he cannot satisfy the second essential element—that he performed under the Promissory Note. It is uncontroverted that Lewis failed to perform under the Promissory Note.1 He did not make the monthly payments as required, leading to Citadel’s foreclosure action. Accordingly, any breach of contract claim premised on the Promissory Note fails. See Mays v. Wells Fargo Home Mortg., No. 3:12-cv-4597, 2013 WL 2984795, at *2 (N.D. Tex. June 17, 2013) (“[W]here the plaintiff has failed to perform a duty under the contract, such as the duty to pay his mortgage, he cannot maintain a breach of contract action.”).

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Lewis v. Citadel Servicing Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-citadel-servicing-corporation-txsd-2023.