Michele Testa, as the Administrator of the Estate of Donald Testa v. Wilmington Trust, N.A. as Trustee for Morgan Stanley Bank of America, Merrill Lynch Trust 2014-C-19, Commercial Mortgage Pass Through Certificates, Series 2014-C-19

CourtCourt of Appeals of Texas
DecidedJune 10, 2025
Docket01-23-00438-CV
StatusPublished

This text of Michele Testa, as the Administrator of the Estate of Donald Testa v. Wilmington Trust, N.A. as Trustee for Morgan Stanley Bank of America, Merrill Lynch Trust 2014-C-19, Commercial Mortgage Pass Through Certificates, Series 2014-C-19 (Michele Testa, as the Administrator of the Estate of Donald Testa v. Wilmington Trust, N.A. as Trustee for Morgan Stanley Bank of America, Merrill Lynch Trust 2014-C-19, Commercial Mortgage Pass Through Certificates, Series 2014-C-19) 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.

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Michele Testa, as the Administrator of the Estate of Donald Testa v. Wilmington Trust, N.A. as Trustee for Morgan Stanley Bank of America, Merrill Lynch Trust 2014-C-19, Commercial Mortgage Pass Through Certificates, Series 2014-C-19, (Tex. Ct. App. 2025).

Opinion

Opinion issued June 10, 2025.

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-23-00438-CV ——————————— MICHELE TESTA, AS THE ADMINISTRATOR OF THE ESTATE OF DONALD TESTA, Appellant V. WILMINGTON TRUST, N.A., AS TRUSTEE FOR MORGAN STANLEY BANK OF AMERICA, MERRILL LYNCH TRUST 2014-C19, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2014-C19, Appellee

On Appeal from the 165th District Court Harris County, Texas Trial Court Case No. 2018-88854

OPINION

Appellant, Michelle Testa, as the administrator of the Estate of Donald Testa

(the “administrator”), challenges the trial court’s final summary judgment in the suit brought by appellee, Wilmington Trust, N.A., as Trustee for Morgan Stanley Bank

of America, Merrill Lynch Trust 2014 C19, Commercial Mortgage Pass Through

Certificates, Series 2014 C19 (the “trustee”), for Donald Testa’s breach of a guaranty

agreement.

In four issues, the administrator contends that the trial court erred in

concluding that 1) the trustee had standing, 2) it had jurisdiction over the California

court-appointed administrator, 3) the administrator had adequate notice of the

summary-judgment hearing, and 4) the trustee was entitled to summary judgment.

We conclude that the trial court had jurisdiction over the parties and affirm

the summary judgment.

Background

In September 2014, Testa, a California resident, executed a guaranty for the

benefit of Bank of America in which he agreed to be personally responsible for

repayment of a loan to Northbelt LLC for the purchase of an office building in

Houston, Texas if Northbelt defaulted on the loan.

In the summer of 2017, Northbelt defaulted on the loan and failed to cure its

defaults. Northbelt’s defaults triggered Testa’s obligations under the guaranty. The

trustee accelerated the loan and notified Northbelt and Testa that payment was due,

but neither paid the outstanding debt.

2 In December 2017, the trustee sued Northbelt and Testa to recover on the loan.

After Northbelt filed for bankruptcy several weeks later, the trustee continued to

prosecute its claims against Testa under the guaranty. In September 2020, the trustee

moved for summary judgment against Testa and set its motion for submission.

Testa did not respond to the summary-judgment motion. Later, a suggestion

of death was filed in the case, noting that Testa had died in January 2021.

In February 2022, the trustee applied for a writ of scire facias in which it

sought to substitute the administrator as defendant.1 The administrator’s counsel

accepted and waived service of the amended petition on September 30, 2022. On

October 13, 2022, the trust amended its notice of submission to set the

summary-judgment motion for hearing on November 18, 2022. But the trial court

did not reach the summary-judgment motion on that date; instead, it heard argument

on the administrator’s plea to the jurisdiction according to the parties’ agreement.2

Before ending the hearing, the trial court informed the parties that the

summary-judgment hearing would be reset for November 23, 2022, pending

confirmation of the date with the trial court’s clerk. On November 21, 2022, the

1 TEX. R. CIV. P. 152. 2 The record does not contain a notice of hearing for the administrator’s plea to the jurisdiction. She filed a brief in support of her plea on November 17, 2022, the day before the summary-judgment motion was set for hearing.

3 trustee sent a written notice to the administrator confirming that the hearing would

take place as announced by the trial court.

On November 23, 2022, the administrator filed an objection to the

summary-judgment hearing, asserting that the trial court was required to rule on her

plea to the jurisdiction before hearing the summary-judgment motion.

The record contains no ruling on the administrator’s objection, but the trial

court’s final judgment, signed March 8, 2023, states that the trial court heard

argument on the summary-judgment motion on November 23, 2022. The trial court

also overruled the administrator’s plea to the jurisdiction and granted summary

judgment in favor of the trustee. The trial ordered that the trustee recover from the

administrator $12,716,119.87 on the guaranty plus prejudgment interest, $45,814.50

in attorney’s fees, conditional appellate attorney’s fees, post-judgment interest, and

court costs.

Subject Matter Jurisdiction

In her first issue, the administrator asserts that the trustee lost standing to

maintain this lawsuit in 2020, when it assigned the guaranty to a nonparty. Because

standing is determined when the suit is filed, we construe this issue as a complaint

that the case has become moot. See Heckman v. Williamson Cnty., 369 S.W.3d 137,

162 (Tex. 2012); see also Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d

440, 446 n.9 (Tex. 1993) (“Standing is determined at the time suit is filed in the trial

4 court, and subsequent events do not deprive the court of subject matter

jurisdiction.”). “A case becomes moot if, since the time of filing, there has ceased to

exist a justiciable controversy between the parties—that is, if the issues presented

are no longer ‘live,’ or if the parties lack a legally cognizable interest in the

outcome.” Heckman, 369 S.W.3d at 162. When a case becomes moot, the parties

lose standing to maintain their claims and the court must vacate any order or

judgment previously issued and dismiss the case for want of jurisdiction. Id.;

Williams v. Lara, 52 S.W.3d 171, 184 (Tex. 2001).

Here, the administrator asks this Court to take judicial notice of the guaranty’s

assignment based on uncertified copies of Harris County clerk records, which are

included in the appendix to her appellant’s brief, of an “Assignment of Deed of

Trust, Assignment of Leases and Rents and Security Agreement” by the trustee to

RSS MSBAM2014-C19 – TX NB, LLC, executed October 28, 2020, and a substitute

trustee’s deed. These documents show a transaction that occurred more than two

years before the trial court signed the final judgment, yet they were never presented

to the trial court and are not part of the record.

Generally, documents outside the appellate record are not properly before the

Court. See TEX. R. APP. P. 34.1. Appellate courts may take judicial notice of certain

documents but are reluctant to do so if the trial court did not have the opportunity to

examine and consider it. Tran v. Fiorenza, 934 S.W.2d 740, 742–43 (Tex. App.—

5 Houston [1st Dist.] 1996, no writ); accord Hendee v. Dewhurst, 228 S.W.3d 354,

377 (Tex. App.—Austin 2007, pet. denied).

In any case, an assignment like the one tendered here is no more than an

“extraconstitutional restriction[]” on a plaintiff’s right to continue prosecuting a

particular lawsuit.” McLane Champions, LLC v. Houston Baseball Partners LLC,

671 S.W.3d 907, 913 (Tex. 2023). When such restrictions exist, “some other legal

principle may prevent [the plaintiff] from prevailing on the merits,” but they do not

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Michele Testa, as the Administrator of the Estate of Donald Testa v. Wilmington Trust, N.A. as Trustee for Morgan Stanley Bank of America, Merrill Lynch Trust 2014-C-19, Commercial Mortgage Pass Through Certificates, Series 2014-C-19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michele-testa-as-the-administrator-of-the-estate-of-donald-testa-v-texapp-2025.