Linda Henderson v. Altura Realty LLC

Court of Appeals of Texas·Decided June 7, 2023·No. 05-21-00860-CV·Published

Opinion

Affirmed and Opinion Filed June 7, 2023

In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-21-00860-CV

LINDA HENDERSON, Appellant V.

ALTURA REALTY LLC, Appellee

On Appeal from the County Court at Law No. 5 Dallas County, Texas

Trial Court Cause No. CC-21-03582-E

MEMORANDUM OPINION

Before Justices Carlyle, Garcia, and Miskel Opinion by Justice Miskel Linda Henderson, pro se,1 appeals the county court’s default judgment in

favor of Altura Realty LLC in a forcible-detainer action for possession of a property located on Kensington Drive in DeSoto, Texas. Henderson raises two issues2 on appeal arguing the county court erred because: (1) the justice court did not have

1 A pro se litigant is held to the same standards as a licensed attorney. Henderson v. Freedom Mortg. Corp., No. 05-19-01258-CV, 2021 WL 1186149-CV, at *1 (Tex. App.—Dallas Mar. 30, 2021, no pet.) (mem. op.). To do otherwise would give a pro se litigant an unfair advantage over a litigant who is represented by counsel. Id.

2 In the “Issues Presented” section of her brief, Henderson lists three separate issues. However, in the “Arguments” section, she combines the second and third issues into a single issue and argument.

subject-matter jurisdiction over the forcible-detainer action and therefore, the county court also lacked jurisdiction; and (2) the evidence is legally insufficient to establish Altura Realty’s status as a holder of the note. We conclude there is subject-matter jurisdiction and the evidence is legally sufficient. The county court’s default judgment is affirmed.

I. FACTUAL AND PROCEDURAL BACKGROUND Altura Realty acquired the property from Freedom Mortgage Corporation

through a foreclosure sale. Through its legal counsel, Altura Realty sent Henderson written notice to vacate and demand for possession of the property.

After Henderson refused to vacate, Altura Realty filed a verified original petition for forcible detainer in the justice court (trial court cause no. JE-2101112G). After a default bench trial, the justice of the peace signed a judgment in favor of Altura Realty for possession of the property and noted that Henderson had failed to answer or deny the suit. Henderson appealed the justice court’s judgment to the county court (trial court cause no. CC-21-03582-E) for a trial de novo.3 Altura Realty filed the following documents as evidence: (1) Dallas Central Appraisal District documents related to the property; (2) a special or limited warranty deed whereby Freedom Mortgage conveyed the property to Altura Realty; (3) a notice to vacate sent from Altura Realty’s legal counsel by certified mail to

3 See TEX. R. CIV. P. 510.10(c).

Henderson; (4) a COVID notice of possible eviction; and (5) a report related to attorney’s fees. Henderson failed to appear at a dispositive setting and the county court judge signed a default judgment awarding Altura Realty possession of the property and attorney’s fees.4 Henderson filed a motion to set aside the default judgment arguing she did not file an answer because she was not properly served with citation, she did not receive notice of the trial, and she has a meritorious defense because Altura Realty did not have a contractual agreement with her. The county court held a hearing on Henderson’s motion, and according to Henderson, denied it.5 A writ of possession issued.

II. SUBJECT-MATTER JURISDICTION In issue one, Henderson argues the justice court did not have subject-matter

jurisdiction over the forcible-detainer action and therefore, the county court also lacked jurisdiction. She contends that Altura Realty did not acquire the property through a legal sale and therefore, the issue of the title to the real property is intertwined with the issue of possession.

4 The record does not contain a reporter’s record of the trial in the county court.

5 The record does not contain a reporter’s record of the hearing on Henderson’s motion to set aside the default judgment or an order denying the motion. However, in her notice of appeal, Henderson states that a hearing occurred, and during that hearing, the county court denied her motion.

A. Standard of Review

Subject-matter jurisdiction is essential to the authority of a court to decide a

case and is never presumed. Tex. Ass'n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440, 443–44 (Tex. 1993). Subject-matter jurisdiction is essential to a court’s power to decide a case and presents a question of law that courts must review de novo. See City of Houston v. Rhule, 417 S.W.3d 440, 442 (Tex. 2013).

When determining whether subject-matter jurisdiction exists in a forcible-

detainer action, an appellate court focuses first on the plaintiff’s petition to determine whether the facts pleaded affirmatively demonstrate that jurisdiction exists. See Sosa v. Garcia, No. 01-13-01033-CV, 2015 WL 545529, at *1 (Tex. App.—Houston [1st Dist.] Feb. 10, 2015, no pet.) (mem. op.) (citing State v. Holland, 221 S.W.3d 639, 642 (Tex. 2007) and Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217, 226 (Tex. 2004)). An appellate court must examine the pleadings, taking as true the facts pleaded, and determine whether those facts support jurisdiction in the trial court. See Sosa, 2015 WL 545529, at *1. The appellate court will construe the pleadings in favor of the pleader. See id. To defeat the trial court’s subject-matter jurisdiction in a forcible-detainer action, the defendant must provide specific evidence of a genuine title dispute that is intertwined with the issue of immediate possession. In re Catapult Realty Capital, L.L.C., No. 05-19-01056-CV, 2020 WL 831611, at *8 (Tex. App.—Dallas Feb. 20 2020, orig. proceeding and no pet.) (mem. op.) (combined orig. proceeding and appeal).

A. Applicable Law

District courts generally have exclusive jurisdiction to determine title to real

property. In re Catapult Realty, 2020 WL 831611, at *7 (citing TEX. GOV’T CODE ANN. § 26.043). However, jurisdiction over a forcible-detainer action is given to a justice court in the precinct where the property is located. See GOV’T § 27.031(a)(2); TEX. PROP. CODE ANN. § 24.004(a); TEX. R. CIV. P. 510.3(b); In re Catapult Realty, 2020 WL 831611, at *7; see also TEX. CIV. PRAC. & REM. CODE ANN. § 15.084 (forcible entry and detainer suits). The justice court’s judgment in an eviction case may be appealed for a trial de novo in the county court. See TEX. R. CIV. P. 510.10(c); In re Catapult Realty, 2020 WL 831611, at *7. Notwithstanding the grant of general jurisdiction to a county court, in an appeal of a forcible-detainer judgment, the county court’s jurisdiction extends only as far as the justice court’s jurisdiction. In re Catapult Realty, 2020 WL 831611, at *7.

However, rule 510.3(e) specifies that the only issue the justice or county courts may adjudicate is the right to possession, not title, and any counterclaims and joinder of suits against third parties must be brought in a separate suit in a court of proper jurisdiction. See TEX. R. CIV. P. 510.3(e); Coinmach Corp. v. Aspenwood Apartment Corp., 417 S.W.3d 909, 919 (Tex. 2013); In re Catapult Realty, 2020 WL 831611, at *7. As a result, in most cases, when there are issues of title and right to immediate possession, the issues may be litigated in separate proceedings in different courts with appropriate jurisdiction. In re Catapult Realty, 2020 WL

831611, at *6. Because a forcible-detainer action is not exclusive, but cumulative, of any other remedy that a party may have, the displaced party is entitled to bring a separate suit in the district court to determine the question of title. Id. at *7. As a result, justice and county courts may adjudicate possession when issues related to the title of real property are tangentially or collaterally related to possession. Id.

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