LITTON LOAN SERVICING, LP v. Manning

366 S.W.3d 837, 2012 WL 1438267, 2012 Tex. App. LEXIS 3318
CourtCourt of Appeals of Texas
DecidedApril 26, 2012
Docket05-10-00675-CV
StatusPublished
Cited by10 cases

This text of 366 S.W.3d 837 (LITTON LOAN SERVICING, LP v. Manning) 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
LITTON LOAN SERVICING, LP v. Manning, 366 S.W.3d 837, 2012 WL 1438267, 2012 Tex. App. LEXIS 3318 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice MYERS.

Litton Loan Servicing, LP appeals the trial court’s judgment awarding Zachariah Manning and IntraRealty, Inc. d/b/a In-traRealty a real estate commission on residential property that did not sell. Appellant brings five issues asserting the trial court erred in disregarding a finding that appellant was not at fault for the failure to close on the property and that the evidence is legally and factually insufficient to support the judgment. We conclude the evidence is legally insufficient to show there was a contract to pay appellees a commission that complied with the Real Estate License Act. We reverse the trial court’s judgment and render judgment that appellees take nothing.

BACKGROUND

Appellees are licensed real estate brokers. In 2006, appellees accepted a listing from HomeEq, a mortgage servicer acting as agent for the property owner, to sell the home at issue in this case. Appellees received several offers on the property, which they passed on to HomeEq. Ho-meEq accepted an offer from Karen Viek-nair for $195,000. While that contract was pending, HomeEq transferred management of the property to Litton. Appellees did not have a standing commission agreement with Litton.

The real estate contract with Vicknair originally scheduled the closing for March 23, 2007. The closing was delayed when Litton had difficulty collecting the documents to establish good title. Manning helped clear up the title issue, and the closing was rescheduled for April 27. However, Litton was unable to close because it did not have the correct person to sign the deed. When Litton was unable to close by April 27, Vicknair terminated the contract and received the return of her earnest money. Appellees then sent appellant a letter demanding a commission of $11,500 because they had produced a ready, willing, and able buyer. Litton refused to pay the commission because the property had not sold. Appellees then brought this lawsuit for payment of the commission.

Appellees alleged causes of action for breach of contract and negligent misrepresentation. Appellant answered, raising the affirmative defense the contract was subject to the statute of frauds and was not in writing or signed by appellant.

The case proceeded to a jury trial. The trial court rendered judgment for appel-lees for the $11,700 real estate commission plus $30,000 for attorney’s fees. The court then made findings of fact and conclusions of law concluding that a series of e-mails *840 around March 7, 2007 constituted a legally binding contract for Litton to pay appel-lees a commission of $11,700 for producing a ready, willing, and able cash buyer for the property.

STATUTE OF FRAUDS

In its third issue, Litton contends the evidence is legally and factually insufficient to support a finding that a written agreement existed that complied with the statute of frauds provision of the Real Estate License Act (RELA). In reviewing the legal sufficiency of the evidence, we consider all the evidence before the jury, crediting evidence in support of the verdict if reasonable jurors could, and disregarding evidence contrary to the verdict unless reasonable jurors could not. City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex.2005); Morris v. Wells Fargo Bank, N.A., 334 S.W.3d 838, 842 (Tex.App.-Dallas 2011, no pet.). If there is more than a scintilla of evidence to support the finding, the evidence is legally sufficient. Formosa Plastics Corp. USA v. Presidio Eng’rs & Contractors, Inc., 960 S.W.2d 41, 48 (Tex.1998). When the evidence offered to prove a vital fact is so weak as to do no more than create a mere surmise or suspicion of its existence, the evidence is no more than a scintilla and, in legal effect, is no evidence. Kindred v. Con/Chem, Inc., 650 S.W.2d 61, 63 (Tex.1983). If the evidence furnishes a reasonable basis for differing conclusions by reasonable minds as to the existence of a vital fact, then there is legally sufficient evidence, more than a scintilla, to support the fact. Id.

The statute of frauds provision of RELA provides,

A person may not maintain an action in this state to recover a commission for the sale or purchase of real estate unless the promise or agreement on which the action is based, or a memorandum, is in writing and signed by the party against whom the action is brought or by a person authorized by that party to sign the document.

Tex. Ooc.Code Ann. § 1101.806(c) (West 2012). To comply with this section, an agreement or memorandum must: (1) be in writing and must be signed by the person to be charged with the commission; (2) promise that a definite commission will be paid, or must refer to a written commission schedule; (3) state the name of the broker to whom the commission is to be paid; and (4) either itself or by reference to some other existing writing, identify with reasonable certainty the land to be conveyed. Lathem v. Kruse, 290 S.W.3d 922, 925 (Tex.App.-Dallas 2009, no pet.). Strict compliance with RELA is required; the agreement to pay a real estate commission must be in writing or it is not enforceable. Id. The essential elements of the agreement may not be supplied by parol evidence. Boyert v. Tauber, 834 S.W.2d 60, 62 (Tex.1992).

In this case, appellees relied on five exhibits as forming the contract for payment of a real estate commission. Plaintiffs exhibit 1 was an e-mail dated March 7, 2007 from “stefanie.otto@litton.c-bass. com” and addressed to “<list@intrarealty. com>,” with the subject of “Accepted Offer.” The body of the e-mail identified a file number, the property address, and “Borrower Name.” It then stated,

Stefanie Otto has ACCEPTED the following offer information:
Buyer Name: Karen Vicknair
Sales Price: $195,000.00
Total Commission: $11,700.00
Buyers Closing Costs: $0.00
Contract Repairs: $0.00
Termite Completion: $0.00
Miscellaneous Costs: $0.00
Earnest Money: $1,850.00
Scheduled Close Date: 3/23/2007
*841 Please contact your Asset Manager if you have any questions.
Thank you!

Appellees argue this e-mail constitutes a signed writing under the Uniform Electronic Transactions Act that meets the requirements of RELA. See Tex. Bus. & Com.Code Ann. §§ 322.002(8), .007(c), (d) (West 2009); Tex. Occ.Code Ann.

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366 S.W.3d 837, 2012 WL 1438267, 2012 Tex. App. LEXIS 3318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/litton-loan-servicing-lp-v-manning-texapp-2012.