Pamela Adams and Susan Leahy Shaner v. Southwest Studio Corporation, Carl Graves and Lona Diane Graves

CourtTexas Court of Appeals, 8th District (El Paso)
DecidedMarch 5, 2026
Docket08-24-00009-CV
StatusPublished

This text of Pamela Adams and Susan Leahy Shaner v. Southwest Studio Corporation, Carl Graves and Lona Diane Graves (Pamela Adams and Susan Leahy Shaner v. Southwest Studio Corporation, Carl Graves and Lona Diane Graves) is published on Counsel Stack Legal Research, covering Texas Court of Appeals, 8th District (El Paso) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pamela Adams and Susan Leahy Shaner v. Southwest Studio Corporation, Carl Graves and Lona Diane Graves, (Tex. Ct. App. 2026).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS ————————————

No. 08-24-00009-CV ————————————

Pamela Adams and Susan Leahy Shaner, Appellants

v.

Southwest Studio Corporation, Carl Graves, and Lona Diane Graves, Appellees

On Appeal from the 384th Judicial District Court El Paso County, Texas Trial Court No. 2014DCV0484

M E MO RA N D UM O PI NI O N This suit arose from a failed 2008 contract to buy an undeveloped lot in Horizon City (the

property). Appellants Pamela Adams and Susan Leahy Shaner, the would-be sellers, asserted

various claims against Appellees Southwest Studio Corporation, Carl Graves, and Lona Diane

Graves, the would-be buyers, who asserted counterclaims in response. The case was tried to a jury,

which returned a verdict for Appellees. The trial court entered a judgment awarding Appellees

$140,424.74. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND A. Factual background In 2007, Carl Graves wrote a letter to Joseph Shaner expressing an interest in buying the property, an unimproved lot owned by Shaner and his wife, Marguerite. Though it turned out the

Shaners were already deceased, Pamela Adams, their daughter, responded to the letter. After

Adams visited the property with Carl and Diane Graves, the parties entered into a one-page

contract under which Adams agreed to sell the property to the Graveses for $12,000. In the

contract, Adams warranted that she had good title in the property and the capacity to sell it. She

received $100 in earnest money. The parties disagree about whether Carl Graves informed Adams

that he intended to install utilities on the property, find a buyer, and then close on both sales

together. Appellees say he did; Appellants say he did not.

After the contract was signed, Carl Graves began improving the property, including

clearing the lot and installing a septic system. At some point, Adams disclosed that she owned only

a half interest in the property, and the other half belonged to her brother. The contract did not close,

and Adams and Susan Shaner 1 eventually sold the property to someone else for $21,000, without

compensating the Graveses for the improvements.

B. Procedural background (1) The 2010 suit In 2010, the Graveses filed suit against Adams in justice court, asserting a claim for breach

of contract, i.e., failure to sell land when promised and failure to return money and expenses. After

a bench trial in October 2011, the Graveses were awarded $100 in damages.

(2) The 2014 suit

Based on Southwest Studio Corporation’s 2 filing of a materialman’s lien in connection with

installation of the septic system and other improvements, Adams and Shaner filed this suit in

district court in 2014 against the Graveses and Southwest Studio. Adams and Shaner subsequently

filed notices of lis pendens on five properties in Horizon City, referencing this suit.

1 Shaner is Adams’s sister-in-law, who inherited the other half interest in the property from Adams’s brother. 2 Southwest Studio Corporation was an entity through which Carl and Diane Graves acquired and developed small tracts of land.

2 (a) The pleadings Adams and Shaner asserted claims for unenforceable agreement—no meeting of the minds,

unenforceable agreement—public policy, unenforceable agreement—unconscionability,

unenforceable agreement—lack of mutual assent, conversion, fraud by misrepresentation and/or

inducement, fraud by nondisclosure, appropriation by theft, deceptive trade practices, fraud in a

real estate transaction, negligence and/or gross negligence, and fraudulent lien.

In their original answer, filed in 2014, Appellees asserted a general denial and a

counterclaim and motion for sanctions seeking fees, costs, and expenses.

In their second amended answer, filed in 2016, Appellees asserted a general denial, various

affirmative defenses, and counterclaims for theft, fraud in a real estate transaction, fraud in the

inducement, breach of contract, fraud, fraudulent misrepresentation, unjust enrichment, and

quantum merit. In the statement of facts for these counterclaims, Appellees alleged that Adams

had signed a contract to sell the property, had been informed it would be resold to a third party at

closing, and did not object when informed that a septic system would be installed in the meantime.

Appellees further alleged that after the septic system was installed, Adams ignored all requests that

she take steps to clear title and close and instead sold the property to someone else. Later in 2016,

Appellees nonsuited with prejudice all counterclaims asserted in their second amended answer.

In their sixth amended (live) answer, filed in 2019, Appellees asserted a general denial,

verified denials, various affirmative defenses, and counterclaims for fraudulent lien and fraud. In

the statement of facts for these counterclaims, Appellees alleged that Appellants filed notices of lis

pendens on five properties not involved in the litigation. Appellees alleged that these notices were

invalid and fraudulent for several reasons, including that they were “filed in bad faith in an illegal

attempt to secure a possible award of money damages.”

In their second amended (live) petition, filed in 2020, Appellants re-asserted the claims set

forth in their original petition, asserted various affirmative defenses and special exceptions to the

3 counterclaims in Appellees’ sixth amended answer, and noted they were also filing a “Notice of

Withdrawal of Nonsuit” purporting to withdraw a 2019 nonsuit of all of Shaner’s claims with

prejudice.

(b) The trial In 2023, the case was tried to a jury. The charge included liability questions on six of

Adams’s claims 3 (conversion, fraud by misrepresentation and/or inducement, fraud by

nondisclosure, fraud in a real estate transaction, negligence and/or gross negligence, and fraudulent

lien), and three of Appellees’ counterclaims (two of their five fraudulent lien counterclaims and

their fraud counterclaim). The charge also included attorney’s fees questions for each side.

The jury found Appellees not liable under any of the theories submitted against them and

Adams liable under all theories submitted against her. The trial court entered a judgment in

accordance with the verdict, awarding Appellees $140,424.74, including $10,000 in statutory

damages for each of the two fraudulent lien counterclaims, $20,000 in damages for fraud, $93,100

in attorney’s fees, and $7,324.74 in prejudgment interest. Appellants filed motions to disregard

jury findings, for judgment notwithstanding the verdict, to modify the judgment, and for new trial,

all of which were overruled by operation of law. This appeal followed.

II. ISSUES ON APPEAL In stating their issues on appeal, Appellants list seven “legal errors” by the trial court: 1. Legal Error No. 1: Whether the Trial Court should have disregarded the jury’s findings, and signed a judgment notwithstanding the verdict. 2. Legal Error No. 2: Whether the Trial Court should have disregarded the jury’s findings, and entered a judgment for Appellants. 3. Legal Error No. 3: Whether the Trial Court should have modified, corrected and/or reformed the Final Judgment.

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Pamela Adams and Susan Leahy Shaner v. Southwest Studio Corporation, Carl Graves and Lona Diane Graves, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pamela-adams-and-susan-leahy-shaner-v-southwest-studio-corporation-carl-txctapp8-2026.