Mark Alan Swanson v. Robert Danny Clack, II

CourtCourt of Appeals of Texas
DecidedFebruary 28, 2025
Docket01-23-00158-CV
StatusPublished

This text of Mark Alan Swanson v. Robert Danny Clack, II (Mark Alan Swanson v. Robert Danny Clack, II) 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
Mark Alan Swanson v. Robert Danny Clack, II, (Tex. Ct. App. 2025).

Opinion

Opinion issued February 28, 2025

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-23-00158-CV ——————————— MARK ALAN SWANSON, Appellant V. ROBERT DANNY CLACK, II, Appellee

On Appeal from the 127th District Court Harris County, Texas Trial Court Case No. 2018-29199

MEMORANDUM OPINION

This appeal arises from a suit to declare the validity of a nonjudicial

foreclosure and a counterclaim for conversion. Appellant Mark Alan Swanson

foreclosed on a deed of trust that secured the seller-financed note on residential

real property he sold to appellee Robert Danny Clack, II. Clack counterclaimed for conversion of personal property, claiming Swanson had unlawfully removed his

property from the house.

The trial court rendered partial summary judgment against Swanson holding

the foreclosure and corresponding Special Warranty Deed, which conveyed the

property to Swanson as the highest bidder, both were void. Clack’s remaining

conversion claim was tried to a jury. At the beginning of trial, Clack’s attorney

read to the jury multiple deemed admissions that were relevant to the conversion

claim. Clack’s testimony centered on the identity and value of the allegedly

converted property. The jury found that Swanson had converted Clack’s property

and that he had done so with malice. In a granulated question, the jury determined

that a total of $57,400 would fairly and reasonably compensate Clack for the loss

of 57 separately identified personal property items or groups of items. The jury

also awarded $200,000 in exemplary damages and trial and conditional appellate

attorney’s fees. The trial court later granted Swanson’s motion for judgment

notwithstanding the verdict in part, reduced the compensatory damages to $50,800,

reduced the exemplary damages proportionally to $178,045, and entered judgment

on the verdict for actual and exemplary damages, $96,750 in past attorney’s fees,

plus pre- and post-judgment interest, and conditional appellate attorney’s fees.

Both Swanson and Clack appealed. Swanson raises nine issues on appeal,

challenging the awards of actual and exemplary damages for conversion, and trial

2 and conditional appellate attorney’s fees.1 Clack raises three issues in his cross-

appeal, challenging the trial court’s partial grant of Swanson’s judgment

notwithstanding the verdict and reduction of actual and exemplary damages.2

We hold that the evidence was legally and factually sufficient to support the

jury’s verdict for conversion and conversion damages, and that the trial court erred

by partially granting judgment notwithstanding the verdict reducing the conversion

amounts found by the jury. We modify the judgment of the trial court to award

Clack the amount of $57,370 in compensatory damages, and we affirm as

modified. We further hold that the award of trial attorney’s fees in favor of Clack

was not supported by legally sufficient evidence because the evidence presented at

1 Swanson’s first three issues challenge the award of damages for conversion. In the first and third issues, he challenges the legal and factual sufficiency of the evidence to support the jury’s verdict that he converted the property listed in the jury charge and the compensatory damages found by the jury. In his second issue, he asserts that there was no jury finding on causation. In issues four through seven, Swanson challenges the award of attorney’s fees. In issues four and five, he asserts that Clack was not entitled to attorney’s fees for successfully defending Swanson’s declaratory judgment action and that the amount of attorney’s fees awarded was not supported by legally and factually sufficient evidence. In issues six and seven, Swanson asserts that Clack was not entitled to conditional appellate attorney’s fees and that the amount of conditional appellate attorney’s fees awarded was not supported by legally and factually sufficient evidence. In issue eight, Swanson alleges that the jury’s finding of malice and the exemplary damages award were not supported by legally and factually sufficient evidence. In issue nine, he asserts that the exemplary damages award was excessive. 2 In his first two cross-issues, Clack argues that the trial court erred by substituting its own judgment about the value of a car and a trailer and reducing the compensatory damages for those items from the amounts found by the jury. In his third cross-issue, Clack argues that the trial court erred by proportionally reducing the exemplary damages. 3 trial failed to segregate fees incurred for discrete legal services that were

recoverable from those that were unrecoverable. We therefore we reverse the

award of trial attorney’s fees and remand to the trial court for a new trial on

Clack’s trial attorney’s fees for defending against the declaratory judgment claim.

At oral argument, Clack conceded that he was not entitled to appellate

attorney’s fees because Swanson’s appeal did not challenge a cause of action for

which attorney’s fees are recoverable, so we render judgment that Clack take

nothing on contingent appellate attorney’s fees.

Finally, because we conclude that the award of exemplary damages was

unconstitutionally excessive, we suggest a remittitur in the amount of $63,305.

Background

I. Swanson sells a house to Clack.

Swanson has been in the real estate business for about 15 years. Although he

typically leased properties to tenants, owner-financed sales appealed to him

because they alleviated the burden of home repairs. Swanson testified that, over 15

years, he had been involved with eight evictions and three owner-financed sales.

Before this case, he had never instituted foreclosure proceedings.

Clack is a former U.S. Marine, who had worked for the Texas Department of

Criminal Justice as a corrections officer supervisor, a commercial driver, and an

apartment maintenance worker, before becoming licensed to do air conditioning

4 repair. By the time of trial, he had been working for himself doing air conditioning

repair and running a custom t-shirt business for several years.

Clack had performed air conditioning repair services for Swanson. In August

2017, Clack needed to find a new personal residence. Clack discussed purchasing a

house from Swanson, who agreed to owner financing after conducting a

background check (but not a credit check) on Clack.

On August 22, 2017, Swanson, doing business as “AMV Properties,” sold a

house to Clack for $174,800 at 8.25% interest for a term of 30 years. The monthly

note was $1,313.21. The Note was secured by a Deed of Trust, and both

documents described the property as Lot 373, Block 14 of Woodcreek, Section 2.

Clack moved in and began making monthly mortgage payments. When his work

declined in the aftermath of Hurricane Harvey, Clack fell behind on his payments.

Clack testified that he paid the January 2018 mortgage note on February 13, 2018,

but he did not pay the February mortgage at all.

II. Swanson forecloses and attempts to evict Clack.

On February 15, 2018, Swanson sent Clack a letter by certified mail

informing him that his mortgage payments for January and February 2018 were

past due in the amount of $2,626.42, and that a total of $5,438.78 in taxes were due

to Harris County, Aldine ISD, and the Woodcreek MUD. Swanson stated: “If these

amounts are not procured within twenty (20) days I intend to foreclose.” In

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