Reeder v. Curry

294 S.W.3d 851, 2009 WL 2596097
CourtCourt of Appeals of Texas
DecidedOctober 8, 2009
Docket05-07-01062-CV
StatusPublished
Cited by12 cases

This text of 294 S.W.3d 851 (Reeder v. Curry) 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
Reeder v. Curry, 294 S.W.3d 851, 2009 WL 2596097 (Tex. Ct. App. 2009).

Opinion

OPINION

Opinion By

Justice FITZGERALD.

John Reeder appeals the summary judgment against him on his claims for breach of contract, tortious interference with contract, trespass, and declaratory judgment. He also appeals the trial court’s judgment against him for $638,132.93 for committing waste. Billie Brewer Curry, individually and as successor to W.C. Brewer, deceased, Trinity Industries, Inc., Trinity Materials, Inc., and American National Bank of Texas appeal the trial court’s refusal to enter judgment for them on their claim against Reeder for conversion. On appeal, Reeder brings twelve issues and cross-appellants bring five issues. We affirm the trial court’s judgment in part and reverse and remand the remainder of the cause to the trial court for further proceedings.

BACKGROUND

On December 8,1995, Reeder and Curry entered into a transaction to sell land belonging to Curry to Reeder. They signed two documents. One was an earnest money contract for the sale of the property for $650,000, with the closing scheduled for the later of July 15, 1996 or seven days after any objections to the title were cured. So that Reeder could take immediate possession of the property, the parties also signed a contract for deed in which Curry promised to deliver a deed for the property at the closing. The contract for deed provided that Reeder would be in default if he failed to make a payment of principal or interest “at the time the same shall fall due.” In the event of default under the contract for deed, the contract provided that Curry could take action to collect the unpaid amount, declare the entire unpaid debt due and owing and seek to collect it, or she could terminate the agreement and keep as liquidated damages the amounts Reeder had paid under the contract. If Curry decided to terminate the contract for deed due to Reeder’s default, Reeder would have to vacate the property immediately. The contract for deed would expire on the closing of the sale of the property. Both contracts stated the property would be paid for by Reeder making a down payment consisting of four payments totaling $100,000 at set times through July 15, 1996, a second lien note for $100,000 paid over five years, and “[t]he balance of the purchase price of $450,000 shall be financed by the seller at 8% per annum to be paid by Buyer by monthly payments of $4300.47 beginning August 15, 1996 and ending July 15, 2011.”

Reeder took immediate possession of the property and began strip-mining and selling the sand and gravel on the property. 2 Reeder made the down payment of $100,000 and paid the second lien note of *854 $100,000. Reeder also made all the monthly payments of $4300.47 until September 2004. Before November 2001, Reeder also made extra payments totaling about $8000. The closing contemplated by the contracts never occurred.

In November 2001, Curry borrowed $65,000 from American National Bank of Texas and assigned the contract for deed and the earnest money contract to the bank as collateral. Curry informed Reed-er about the assignment and instructed Reeder to make the payments to the bank instead of to Curry. Reeder made the payments to the bank thereafter. In 2002, Reeder sent the bank IRS form “1099-MISC” identifying the interest he paid as income to the bank. The bank wrote Reeder and told him the interest went to Curry and that the bank merely held the contracts as collateral. The bank instructed Reeder to report the funds as Curry’s income.

In 2004, the IRS issued levy notices against Curry to collect unpaid taxes. In July 2004, the IRS issued a notice of levy to Reeder requiring Reeder to pay to the IRS any amounts he owed to Curry. Reeder contacted the bank about the levy notice, which told him not to send money but to inform the IRS that he would next owe “$4330.47” [sic] on a sales contract to Curry on August 15, 2004 “subject to assignment of $1,386.77 per month” to the bank. Riter Hulsey, the chairman of the board of the bank, testified that he expected the IRS to send Reeder instructions about whether to send the payments to it or to the bank, but the IRS did not give Reeder any further instructions. Despite the notice of levy, Reeder made the payment to the bank for August 2004 but after the fifteenth of the month. In September, however, Reeder did not make the payment to the bank, nor did he send the money to the IRS pursuant to the notice of levy. Reeder testified that Curry called him on September 23, 2004 and asked if he had paid the bank for that month.

“I responded to her that I did not make a payment. Curry replied that she was glad I did not make the payment because if I had, it would have been confiscated by the IRS because the IRS seized her bank account at the Bank. During this conversation, she never requested that I make a payment for September 2004, and she said nothing about wanting to cancel our contract or forfeit my interest in the Property.”

Meanwhile, Trinity Industries and Trinity Materials owned property neighboring the Curry-Reeder tract. They wanted to remove the sand and gravel on their property, but they lacked access to a road. The Trinity companies sought to purchase Reeder’s interest in the property, but they could not reach an agreement. The companies then approached Curry and told her that if she could regain all rights in the property, they would be interested in purchasing it.

On October 15, 2004, after Reeder failed to make the September and October payments, Curry’s counsel sent Reeder notice that Curry was canceling the contract for deed because Reeder (1) failed “to timely pay the amount of $4330.47 [sic] due September 15, 2004 and October 15, 2004” and (2) allowed “the property to be destroyed, wasted and harmed due to mining operations.” On October 21, Reeder sent a check to the bank for $8600.94 for the September and October 2004 payments. The bank returned the check stating Curry did not wish to accept it “in that the agreement is in default and has been terminated.” On November 1, Reeder’s attorney sent a letter to the bank and to Curry demanding that the notice of cancellation of the contract for deed be withdrawn and that they accept Reeder’s earli *855 er check for $8600.94. On November 11, Reeder sent the bank a check for the November payment. On November 17, Curry sold the property to Trinity Materials for $245,000 cash. That same day, the bank returned Reeder’s check for the November payment, stating its loan to Curry had been paid and it had released its lien on the property. Reeder’s attorney then tendered the checks to Curry’s attorney, but he returned them, stating Curry no longer claimed or held any interest in the property.

Reeder filed this suit on November 30, 2004 seeking specific enforcement and damages for breach of the contract for deed and the earnest money contract, trespass, common-law and statutory fraud, imposition of an equitable trust, tortious interference with contract, declaratory judgment, and permanent injunctive relief. During the lawsuit, Reeder paid into the registry of the court the payments due under the contract. Trinity Materials filed a counterclaim against Reeder for waste and conversion from Reeder’s removal of sand and gravel from the property. Appellees obtained summary judgments on all of Reeder’s claims.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
294 S.W.3d 851, 2009 WL 2596097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeder-v-curry-texapp-2009.