Michael A. Bentley v. Chandra L. Bentley

CourtCourt of Appeals of Texas
DecidedApril 3, 2024
Docket12-23-00116-CV
StatusPublished

This text of Michael A. Bentley v. Chandra L. Bentley (Michael A. Bentley v. Chandra L. Bentley) 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
Michael A. Bentley v. Chandra L. Bentley, (Tex. Ct. App. 2024).

Opinion

NO. 12-23-00116-CV

IN THE COURT OF APPEALS

TWELFTH COURT OF APPEALS DISTRICT

TYLER, TEXAS

MICHAEL A. BENTLEY, § APPEAL FROM THE 145TH APPELLANT § DISTRICT COURT V. § NACOGDOCHES COUNTY, TEXAS CHANDRA L. BENTLEY, APPELLEE MEMORANDUM OPINION

Appellant, Michael A. Bentley, 1 appeals from a final judgment awarding money damages to Appellee, Chandra L. Bentley. We reverse and render in part and affirm in part.

BACKGROUND

Michael and Chandra are siblings, both children of Linda (sometimes spelled “Lynda” in the record) Lou Bentley, who died in 2013. 2 Linda owned a log cabin in Nacogdoches County, as well as the sixteen acres of land on which the cabin was located. Linda’s will specified that Chandra was to inherit the cabin and five surrounding acres, while Michael would inherit the remainder of the land. However, at the time of her death, Linda owed significant debts,

1 Although Lisa M. Bentley was a plaintiff in the underlying action, she is not a party to the judgment at issue and therefore not a party to this appeal. 2 Because multiple parties and individuals relevant to this matter share a surname, we will refer to them hereafter by their first names for the sake of clarity. including approximately $13,600.00 in back taxes and a home equity loan with a balance of approximately $3,800.00. To avoid the sale or foreclosure of the real property, Michael, Chandra, and their two other siblings executed a Family Settlement Agreement (FSA) under which they agreed that Michael and his wife Lisa would assume the debts of Linda’s estate, and Michael would receive a conveyance of the estate’s real property. At the same time, Chandra executed a promissory note in favor of Michael and Lisa in the amount of $27,000.00, to be paid in sixty monthly installments of $560.48. The FSA states, in relevant part:

…MICHAEL A. BENTLEY will transfer by deed to CHANDRA L BENTLEY the log home and two (2) acres surrounding the log home upon the payment in full of the $27,000.00 promissory note and all property taxes—but if the promissory note and property taxes are not paid in full, MICHAEL A. BENTLEY will retain full, unrestricted ownership and title to the Property[.]

***

In the event CHANDRA L BENTLEY satisfies the requirements upon which any transfer is contingent and which are listed on the previous page of this Agreement, MICHAEL A. BENTLEY will execute the deeds or other appropriate transfer documents to effect the applicable transfer, if any.

Chandra’s promissory note specifies the “Place for Payment” as “First Bank and Trust East Texas,” located in Nacogdoches (although the space for an account number is blank) or “another place that [Michael and Lisa] may designate in writing.” The section entitled “Terms of Payment” does not specify any particular form or method for payment. At issue in this appeal are Chandra’s payments for July, August, and October 2018. Chandra testified that on or about July 3, 2018, she either mailed a personal check for that month’s payment or placed the check directly in Michael’s mailbox. In August, Chandra was visiting an aunt in Florida, so she gave a stamped envelope containing a personal check for that month’s payment to her aunt for mailing. At trial, the aunt testified to her memory of mailing that envelope for Chandra. Finally, in October, Chandra mailed a personal check for that month’s payment to Michael via certified mail. However, neither Michael nor Lisa ever visited the post office to pick up the envelope, so the post office returned the envelope to Chandra. In May 2019, Chandra informed Appellants by letter that she completed her payments under the promissory note and requested that they complete the paperwork to transfer the title of the log cabin and two surrounding acres to her. In September 2019, after receiving no response to this or a subsequent letter, Chandra filed suit against Michael and Lisa for breach of contract,

2 in which she alleged she “completely and fully performed all actions required of her under the Promissory Note and Family Settlement Agreement.” Michael and Lisa answered and countersued Chandra for breach of contract the following month. They denied that all conditions precedent had been fulfilled, specifying in part that Chandra “fail[ed] to make one or more payments under the terms of the promissory note.” Subsequently, on or about October 28, 2019, Michael and Lisa sent Chandra a letter notice of default. This notice stated that Chandra failed to make payments pursuant to the promissory note but did not specify how many payments or which month’s payments she failed to make, and did not state the amount Chandra would have to pay to cure the default. At trial, Michael testified that he never received the missing checks, and to date, he never received payment from Chandra for July, August, and October 2018. Lisa testified that she usually handled depositing the checks from Chandra but could not specify why she never deposited the July and August checks. She stated that it was possible neither she nor Michael ever saw the certified mail notices from the post office for the October check, and that they did not purposely nor maliciously fail to retrieve the certified mail. Chandra acknowledged that, based upon her bank statements in evidence, the checks for those three months never cleared her bank. Additionally, during her testimony, she identified and opened the sealed certified mail envelope containing the check she sent for the October 2018 payment, which she stated was returned to her no later than November 2018. Chandra stated that she never sent replacement checks for any of the three disputed payments. Question 1 of the jury charge asked whether “Michael Bentley’s failure to transfer title to the log home and 2 acres to Chandra Bentley [was] a material breach of the Family Settlement Agreement?” The jury answered “yes.” Question 2 asked whether “Chandra Bentley materially breach[ed] the terms of the Promissory Note and/or Family Settlement Agreement by failing to tender all required payments?” The jury answered “no.” The jury also found that Chandra did not materially breach the FSA in other ways not at issue in this appeal. The jury awarded Chandra $6,500 in damages, found that Chandra was “ready, willing, and able” to perform her obligations under the FSA, and awarded Chandra $50,000.00 in attorney’s fees. The trial court entered a judgment memorializing the jury’s findings and ordering Michael to render specific performance to Chandra. This appeal followed.

3 LEGAL SUFFICIENCY

In his first issue, Michael challenges the legal sufficiency of the evidence to support the jury’s finding that he breached the FSA by failing to transfer title. Specifically, Michael asserts that “payment in full” of the promissory note was a condition precedent under the FSA. Without fulfillment of this condition, he argues that he had no obligation to transfer the log home and surrounding two acres to Chandra and could not have breached by failing to do so. He further challenges the legal sufficiency of the evidence to support the jury’s finding that Chandra did not breach the FSA by failing to tender all payments. Standard of Review Legal sufficiency questions the existence of any evidence to support a particular finding, and essentially claims the evidence at trial can point to only one legal outcome—that is, the opposite of the outcome made by the fact finder. See, e.g., Ford Motor Co. v. Ridgway, 135 S.W.3d 598, 601 (Tex. 2004). In determining whether the evidence is legally sufficient to support the challenged finding, we review the evidence in the light most favorable to the finding. City of Keller v. Wilson, 168 S.W.3d 802, 807, 827 (Tex. 2005).

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Michael A. Bentley v. Chandra L. Bentley, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michael-a-bentley-v-chandra-l-bentley-texapp-2024.