Socorro Gonzalez v. Antonio Gonzalez

Court of Appeals of Texas·Decided June 16, 2022·No. 13-20-00532-CV·Published

Opinion

NUMBER 13-20-00532-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

SOCORRO GONZALEZ, Appellant,

v.

ANTONIO GONZALEZ, Appellee.

On appeal from the 332nd District Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Justices Longoria, Hinojosa, and Silva Memorandum Opinion by Justice Silva

Appellant Socorro Gonzalez sued her brother, appellee Antonio Gonzalez, seeking

to recover possession and title of an apartment complex, the subject property, purchased

by Socorro. Following a bench trial, the trial court found in favor in part for Socorro and in

part for Antonio. By three issues, Socorro argues the trial court: (1) “erred in entering a

judgment that was based upon legally and factually insufficient evidence”; (2) “erred in its evidentiary rulings, which probably caused the rendition of an improper judgment”; and

(3) abused its discretion in denying her motion for new trial. We affirm.

I. BACKGROUND

A. The 2011 Agreement

It is undisputed that Socorro obtained a warranty deed with a vendor’s lien in May

2008 on the subject property. Socorro enlisted Antonio to manage the subject property,

which consisted of six apartment units in Hidalgo County. In May 2011, Socorro and

Antonio executed a document entitled, “Real Estate Agreement” (2011 Agreement),

which included the following “Stipulations”:

1. Antonio is the equitable owner of the real estate described above, subject to (a) Lone Star National Bank note executed by [Socorro], (b) Rio Tax Loan for taxes, and (c) the sum of Forty Thousand Dollars ($40,000.00) owed to [Socorro] by Antonio;

2. [Socorro] agrees that she will execute a renewal and extension of the Lone Star National Bank note provided Antonio pays-off the Rio Tax loan note;

3. Parties agree that the property shall be listed with a broker for sale for an amount of at least $290,000.00 plus commission to broker(s);

4. [Socorro] and Antonio will equally split proceeds above $290,000.00 in the event that such sale takes place[;]

5. [Socorro] will convey the property to Antonio if Antonio is able to (a) pay- off [Socorro’s] claim of $40,000.00 and (b) Antonio is able to obtain his own financing on the Lone Star National Bank note;

6. During the pendency of a potential sale, Antonio shall pay [Socorro] interest monthly on the $40,000.00 owed her at the rate of 18% per annum, which equates to $600.00 per month.

7. Antonio shall continue to be entitled to rent revenues on the property provided that he makes payment on both the Lone Star National Bank note and Rio Tax note.

2 B. The Parties’ Pleadings

In January 2016, alleging Antonio had breached the 2011 Agreement, Socorro

sued Antonio for breach of contract, trespass to try title, trespass to real property,

declaratory judgment, conversion of property and rent, gross negligence, and quantum

meruit. Antonio timely filed a general denial. In an amended answer and counterclaim,

Antonio raised conversion and quantum meruit causes of action, alleging that he had

“expended no less than $275,000 over the last few years in labor, upkeep, improvements,

insurance, taxes, interest payments to his sister, loan payments[,] and in maintenance”

on the subject property.

C. Bench Trial

The trial court held a bench trial on March 21, 2019. According to Socorro, upon

her purchase of the property in 2008, she tasked Antonio with collecting rent from tenants

and managing the property’s “expenses.” Socorro testified that she agreed to divide any

monthly profits with him in exchange for his services but maintained that Antonio

controlled the property’s finances at all times, and she never personally recovered any

profit. Socorro discovered Antonio had placed a mechanic’s lien on the property when

she attempted to sell it in 2010. Socorro testified that she confronted Antonio regarding

the lien, and he responded with “physical aggressions” and “threats.”

Despite deteriorating relations between the parties, Socorro and Antonio executed

the 2011 Agreement. Socorro testified, “From 2008 to 2010, I had spoken to [Antonio]

due to the circumstances [sic] if he could pay me the investment that [sic] he could stay

with the property. And during that time he gave me $10,000.00. So then the [2011

3 Agreement] was made for $40,000.” Socorro maintained that after executing the

agreement, Antonio made only two payments of $600.00 toward the $40,000, and he

“assaulted” her on the same day he made the second payment in July 2011. Following

the alleged assault and his subsequent arrest, 1 they “had no communications,” and

Antonio remained in physical possession of the property up until November 2016 when

the trial court issued an order removing Antonio from the property. Socorro further testified

that upon Antonio’s removal, she learned he was four months in arrears on the mortgage

and taxes. However, on cross-examination, Socorro testified that Antonio made mortgage

payments and paid taxes and insurance on the property for the eight years he managed

it “until the day that the [trial court] returned [her] property and [she] took possession . . . in

November [2016].”

Antonio testified that his involvement in the property predated the 2008 deed

because although he was not listed as a grantee on the deed, he had been the one who

approached his sister about purchasing the property and negotiated the sale on her

behalf. According to Antonio, he thereafter managed the property from 2008 to 2016 and

complied with all applicable terms of the 2011 Agreement. Antonio testified that he made

two direct $600.00 payments to Socorro and then, per Socorro’s request, all other

payments were made in cash and given to Socorro through their mother. Antonio

maintained that he made the $600.00 monthly payments until his removal from the

property in 2016 because Socorro thereafter refused to accept any payment. Antonio

testified that not including the $326,472.52 paid in “improvements, repairs, taxes,

1 Antonio testified that his arrest in 2011 had been “for trespassing[,] not for assault.”

4 insurance, mortgages,” he paid Socorro “$39,700.00, plus $10,000.00 that she admitted

during [her] deposition” in accordance with the 2011 Agreement.

Following the parties’ respective testimony and closing arguments, the trial court

requested that they each submit written briefs.

D. Final Judgment

The record 2 indicates that the trial court held another hearing after the bench trial

and prior to its issuance of a signed final judgment, but the transcript for the hearing was

not provided on appeal. The trial court issued its final judgment on September 11, 2020:

BE IT REMEMBERED that on March 21, 2019, came to be heard the above- entitled and numbered cause at trial. [Socorro] appeared in person through counsel of record before the Court and announced ready for trial. [Antonio] appeared in person through counsel of record before the Court and announced ready for trial. Trial began and commenced until its conclusion on March 21, 2019. The Court having considered the pleadings, official records on file, the testimony of witnesses, the exhibits admitted into evidence, the full record of the case, the applicable rules and, is of the opinion and hereby renders judgment entered in favor of [Antonio] in part and [Socorro] in part.

The Court finds:

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