Marissa Fernandez and Peter Fernandez v. Sharon Peters

CourtCourt of Appeals of Texas
DecidedOctober 19, 2010
Docket03-09-00687-CV
StatusPublished

This text of Marissa Fernandez and Peter Fernandez v. Sharon Peters (Marissa Fernandez and Peter Fernandez v. Sharon Peters) 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
Marissa Fernandez and Peter Fernandez v. Sharon Peters, (Tex. Ct. App. 2010).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-09-00687-CV

Marissa Fernandez and Peter Fernandez, Appellants



v.



Sharon Peters, Appellee



FROM THE DISTRICT COURT OF HAYS COUNTY, 22ND JUDICIAL DISTRICT

NO. 09-0029-A, HONORABLE GARY L. STEEL, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N



Appellants Marissa Fernandez and Peter Fernandez appeal a post-answer default summary judgment entered against them in favor of appellee Sharon Peters. In two issues, the Fernandezes contend that the trial court erred in upholding the summary judgment and abused its discretion in denying their motion for new trial. Because we conclude that there was no error in the trial court's judgment, we affirm the judgment.



FACTUAL AND PROCEDURAL BACKGROUND



In 2003, Marissa Fernandez signed a real estate lien note for the purchase of a parcel of real property located in Hays County, Texas, from Mayo-Halbert, Ltd. Contemporaneously, she received a warranty deed and executed a deed of trust securing her indebtedness under the note. Subsequently, Peter Fernandez, her brother, placed items of his personal property on the real property. In 2008, Sharon Peters purchased the real property that had belonged to Marissa Fernandez at a foreclosure sale conducted by substitute trustee Rex G. Baker, III. After taking possession of the real property, Peters disposed of the personal property that was located on it.

In 2009, the Fernandezes filed suit against Sharon Peters, Mayo-Halbert, and Rex Baker complaining of the foreclosure sale and the disposal of the personal property. Specifically, they asserted a claim for wrongful foreclosure against Mayo-Halbert and sought a declaratory judgment that the note was not in default at the time of the foreclosure sale and that the foreclosure sale was null and void. They also asserted a claim against Sharon Peters for conversion of the personal property. In June 2009, the Fernandezes' attorney filed a motion to withdraw, which the trial court granted. The order granting the withdrawal recited last known addresses for Marissa Fernandez and Peter Fernandez as stated in withdrawing counsel's motion.



Motion for Summary Judgment



In August 2009, Sharon Peters filed a Rule 166a(c) motion for summary judgment, asserting that she was a bona fide purchaser of the real property at a properly conducted foreclosure sale and that the personal property had been abandoned on the real property. Peters set the motion for hearing in early September and served the motion and notice of hearing on the Fernandezes at their respective addresses as stated in the court's order granting withdrawal of their attorney. In support of the motion, Sharon Peters attached her own affidavit and the affidavit of Rex Baker. Peters's affidavit included the following testimony:



I purchased the property at issue at a foreclosure sale. The personal property that was there was of nominal value. There was no claim, notice of claim or any other indication that anybody had done anything other than abandoned it. I disposed of it for little to no compensation, because it was of nominal value.



In his affidavit, Rex Baker averred that in his capacity as substitute trustee, he had conducted the foreclosure sale in accordance with Texas law and that the sale was proper, valid, and enforceable. The Fernandezes did not file a response, summary judgment evidence, or objections to Peters's summary judgment evidence and failed to appear at the summary judgment hearing. The trial court granted judgment in favor of Sharon Peters and severed the Fernandezes' claim against her from the remainder of their claims.



Motion for New Trial



After the court granted Sharon Peters's motion for summary judgment, the Fernandezes obtained new counsel and filed a timely motion for new trial. In their motion, the Fernandezes contended that they had not received notice of the motion for summary judgment and that their failure to respond was unintentional and due to accident or mistake and not to conscious indifference. They further alleged that they had a meritorious defense based on Mayo-Halbert's improper handling of the foreclosure. They also contended that genuine issues of material fact existed to preclude summary judgment and raised objections, for the first time, to Sharon Peters's summary judgment evidence.

Attached to the motion for new trial were the affidavits of Marissa Fernandez and Peter Fernandez. In their affidavits, neither Marissa Fernandez nor Peter Fernandez disputed that Sharon Peters sent the motion for summary judgment by certified mail to their last known addresses as listed in the court's order allowing their attorney's withdrawal. They both, however, testified that they did not receive the mailings from Sharon Peters and thus received no notice of the motion for summary judgment.

In her affidavit, Marissa Fernandez also stated that she owned the real property in question, had received no notice that the note was in default and had been accelerated, was given no opportunity to cure the default, and had no notice of the foreclosure. Peter Fernandez further averred in his affidavit that in conversations with the son of the owner of Mayo-Halbert, he had been led to believe that, pending the construction of improvements on the real property, no payments on the note were due. He testified that he had numerous items of personal property located on the real property and listed the items and his opinion of their fair market value in an exhibit to his affidavit. He further stated that in November 2008, after approximately 75% of the items had been removed, he told Sharon Peters that he owned the personal property in issue and that she had no right to take it. Peter Fernandez also testified that in March 2009, he had moved from the address stated as his last known address in the court's order allowing his attorney to withdraw and had filed a forwarding address with the United States Postal Service.



Hearing on Motion for New Trial



At the hearing on the motion for new trial, the trial court considered the Fernandezes' affidavits, Sharon Peters's controverting evidence, and the testimony of Peter Fernandez. The trial court first addressed the Fernandezes' affidavit testimony that they did not receive notice of the summary judgment motion. Sharon Peters offered as controverting evidence the returned certified mailings to the Fernandezes, which had been sent to the last known addresses recited in the court's order allowing withdrawal of the Fernandezes' counsel. Peters's evidence showed that the envelope addressed to Marissa Fernandez was stamped with the dates of three attempted deliveries and marked "Unclaimed" and that the envelope addressed to Peter Fernandez was stamped "Not Deliverable As Addressed/Unable To Forward." Both mailings showed Sharon Peters's attorney's office as the return address.

Marissa Fernandez offered no additional evidence or testimony. Peter Fernandez offered testimony on his change of address and receipt of mail. He testified that he had begun moving from the address recited in the order in February 2009 and had completed the move by March 2009.

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Marissa Fernandez and Peter Fernandez v. Sharon Peters, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marissa-fernandez-and-peter-fernandez-v-sharon-pet-texapp-2010.