Nannette Carley v. Saalwaechter, Inc.

CourtCourt of Appeals of Texas
DecidedJanuary 18, 2024
Docket09-21-00387-CV
StatusPublished

This text of Nannette Carley v. Saalwaechter, Inc. (Nannette Carley v. Saalwaechter, Inc.) 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
Nannette Carley v. Saalwaechter, Inc., (Tex. Ct. App. 2024).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

__________________

NO. 09-21-00387-CV __________________

NANNETTE CARLEY, Appellant

V.

SAALWAECHTER, INC., Appellee

__________________________________________________________________

On Appeal from the 457th District Court Montgomery County, Texas Trial Cause No. 20-12-14893-CV __________________________________________________________________

MEMORANDUM OPINION

Under the Texas Tax Code, an owner of real property may redeem

its ownership rights to property purchased at a tax-foreclosure sale by

paying an amount prescribed by a statutory formula if they pay the

statutorily prescribed amount within the time the statute prescribes,

which begins to run when the deed issued to the purchaser is recorded.1

1Tex. Tax Code Ann. § 34.21 (Supp.).

1 In this appeal, the issue is whether the trial court erred following a trial

to the bench in finding that the amount the owner tendered to redeem

her property from a tax foreclosure sale represented “an insufficient

payment” to satisfy what we refer to in the opinion as the statutory

formula. 2

We hold the trial court did not abuse its discretion in concluding the

property’s owner failed to tender an amount sufficient to substantially

comply with the statutory formula. For that reason, we will affirm the

trial court’s judgment.

Background

The property that is the subject of the dispute consists of a

residential lot that we will refer to as the Property, which is described in

the order authorizing the lot’s sale as Lot 19, Rustic Oaks, in the Bartley

Murray Survey, Abstract 343, Montgomery County, Texas. In March

2Id. § 34.21(a) (providing that an owner of real property sold at a

tax sale may redeem the property “by paying the purchaser the amount the purchaser bid for the property, the amount of the deed recording fee, and the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property s redeemed during the first year of the redemption period”). The term costs is defined to include the (“amount reasonably spent by the purchaser for maintaining, preserving, and safekeeping the property”). 2 2019, five taxing entities obtained a judgment and decree of sale against

the Property’s owner, Nannette Carley. That judgment and the resulting

decree of sale were based on the ad valorem taxes levied against the

Property by five taxing entities that Carley, as the owner of the property,

had been assessed but failed to pay. The judgment lien awarded to the

taxing entities against the Property totaled $44,204. The judgment

against the Property describes the tax units’ claims as “valid claims for

delinquent taxes, penalties, interest, and costs allowed by law[.]”3

When Carley failed to cure the lien, a Montgomery County

constable conducted a tax foreclosure sale based on a court order, which

authorized the sale. Saalwaecther Inc. (“SI”) was the highest bidder for

the property at the sale, bidding $75,000 for the Property. On January

27, 2020, and based on the terms of the auction, Chris Jones (in his

capacity as a Montgomery County Constable) signed a Constables Deed

conveying the Property to SI.

3The five taxing entities listed in the judgment are the Tomball Independent School District, Montgomery County, the Montgomery County Hospital District, Montgomery County ESD 10, and Lone Star College. The judgment creating the lien was signed by the 284th District Court of Montgomery County, Trial Court Cause Number 17-11-13325. For simplicity, the monetary figures discussed in the opinion have been rounded to whole numbers. 3 In February 2020 and over SI’s objections, Carley returned to the

Property and moved back into the home. When Carley refused SI’s

demand to vacate, SI filed a Motion for Restraining Order and Temporary

Injunction. Following a March 2021 hearing, the trial court signed an

order granting SI’s request for temporary injunctive relief. The trial court

gave Carley twenty-one days to vacate the Property and ordered SI to

post a $100 bond.

In May 2020, Carley, through her attorney, contacted employees or

agents of SI and advised that she desired to redeem the Property. Her

attorney asked SI to account for the funds “you have spent for the tax

sale and related expenses so that Ms. Carley may make [an] offer to

redeem the [P]roperty from you in accordance with the Texas Property

Code.” According to SI’s petition, SI responded to Carley’s request and

advised her that as of July 1, 2020, SI had spent $133,783 on the

Property.

In November 2020, Carley tendered $101,650 to the Montgomery

County Tax-Assessor Collector together with an “Affidavit of Facts” in

which she represented that she was tendering the “correct amount” to

redeem the Property. In the “Affidavit of Facts,” Carley also represented

4 that she and SI did not agree “on the amount owed.” Carley’s Affidavit of

Facts starts with her statement: “I Nannette Carley, do affirm the

statements below are true and correct.” Although the Affidavit of Facts

includes a signature by a notary, the notary’s certificate states: “This

instrument was acknowledged before me on November 3, 2020 by

Nannette Carley.” Finally, the information included in Carley’s Affidavit

of Facts doesn’t explain the factual basis for Carley’s claim that $101,650

is the “correct amount” to redeem the Property from the tax-foreclosure

sale.

Relying on Carley’s Affidavit of Facts and payment, Montgomery

County’s Tax Assessor-Collector gave Carley a “Redemption Receipt.”4

On November 4, 2020, the Redemption Receipt was filed in the real

property records of Montgomery County. That same day, Carley went to

the Property and demanded that SI’s agents or employees leave. When

4Under section 34.21(f-1) of the Tax Code, the “assessor-collector

who receives an affidavit and payment . . . shall accept that the assertions set out in the affidavit are true and correct. The assessor-collector receiving the payment shall give the owner a signed receipt witnessed by two persons. The receipt, when recorded, is notice to all persons that the property described has been redeemed.” Id. § 34.21(f-1). We assume this was the purpose of the “Redemption Receipt” that the Tax-Assessor Collector issued here. 5 SI’s agents refused, the police were called, and the officers told Carley

that a judge would be needed to resolve the parties’ dispute.

On December 4, 2020, SI sued Carley seeking a declaration that

Carley’s redemption was a nullity, did not vest title to the Property in

Carley, and it sought to recover its attorney’s fees and costs. In its

petition, SI also claimed that Carley’s “Affidavit of Facts” was defective

because it lacked a jurat, and falsely represented that $101,650 was the

“correct amount” when as of July 2020, Carley knew the amount she owed

to redeem the Property was $133,783.

Carley, appearing pro se, filed an answer and counterclaim.

Responding to SI’s claim that the amount she tendered to redeem the

property was insufficient, Carley alleged that SI was claiming it was

entitled to costs other than those required to secure the Property and

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