United Savings Ass'n of Texas v. Villanueva

878 S.W.2d 619, 1994 WL 171119
CourtCourt of Appeals of Texas
DecidedMay 5, 1994
Docket13-92-477-CV
StatusPublished
Cited by14 cases

This text of 878 S.W.2d 619 (United Savings Ass'n of Texas v. Villanueva) 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
United Savings Ass'n of Texas v. Villanueva, 878 S.W.2d 619, 1994 WL 171119 (Tex. Ct. App. 1994).

Opinion

OPINION

GILBERTO HINOJOSA, Justice.

United Savings sought a declaratory judgment to quiet title to property in McAllen and sued Jose and Dinora Villanueva for possession of the property and for fair market rental payments. The case was tried to the court. The court denied United Savings’ request for declaratory relief thereby impliedly denying their other claims for relief. United Savings brings four points of error asserting 1) it possessed title to the property superior to any claim by the Villanuevas, 2) its right to possession of the property, and 3) its right to recover damages for lost rentals, and alternatively, 4) that the trial judge erred by failing to file findings of fact and conclusions of law. We reverse the trial court’s judgment and remand for a new trial.

While United Savings by its petition asked for declaratory and injunctive relief it also properly alleged the elements of a trespass to try title action. See Tex.R.Civ.P. 783-809. We construe the pleadings as a trespass to try title action and a suit for possession.

On September 18, 1980, Ron Rock Enterprises, Inc. signed a promissory note to United Savings for sixty thousand dollars as a loan for construction of a house. To secure the note, Rock gave United Savings a Deed of Trust on Lot 22-A, Willow Trace Subdivision, Hidalgo County, the property involved in this suit. The Deed of Trust was filed for record on September 19, 1980, in the Official Records of Hidalgo County. United Savings and Rock renewed and extended the note by four different extension agreements — the last one executed December 18, 1982, with a due date of March 18, 1983. All extensions were recorded in the deed records.

Rock constructed a house on the property. Rock and the Villanuevas executed an earnest money contract dated July 25, 1981, for seventy thousand dollars for purchase of the property. This was after Rock executed and recorded the United Savings’ Deed of Trust in the Hidalgo County deed records. Ron Rock served as escrow agent for the Villa-nuevas’ earnest money. Later, the Villa-nuevas orally modified the agreement and agreed to pay Rock forty thousand dollars and finance the remaining thirty thousand dollars.

The Villanuevas applied for a loan at United Savings around July 1981, but were denied. Mr. Villanueva testified that he and Ron Rock discussed financing the house while in the lobby of the McAllen branch United Savings “in front of the lady there,” a tall blonde lady Villanueva said was the manager of the United Savings branch.

Beverly Rose, the former manager of the McAllen United Savings branch, testified no one working at the branch at that time fit Mr. Villanueva’s description. Rose also testified that Rock was not an employee or agent of United Savings, and had no authority to bind United Savings to waive its lien on the property. Additionally, she testified that United Savings never made any promises to the Villanuevas to release the lien if they bought the house from Rock. The Villa-nuevas moved into the house that Rock built on Lot 22-A. Mr. Villanueva testified that they paid Rock a total of between sixty-five and sixty-six thousand dollars for the property. The Villanuevas never received a deed or title to the property from Rock, they never recorded a deed or a contract for deed to the property, they have not paid any money to United Savings for the purchase or rental of the home, they never borrowed any money from United Savings, and they have never paid any property taxes on the property. United Savings has paid the ad valorem property tax since 1983 until present.

Rock defaulted on payments to United Savings and it posted the property for foreclosure pursuant to the Deed of Trust. After a foreclosure sale of the property, it was conveyed to United Savings by a Substitute Trustee’s Deed on October 4, 1983, which was recorded October 21, 1983, in the Hidal-go county deed records.

*622 United Savings sent a letter to the Villa-nuevas on October 26, 1983, notifying them that it had foreclosed on the property and advised them that they had seventy-two hours to vacate the premises. The Villa-nuevas received the letter but did not vacate the premises or allow United Savings to take possession of the property. The record before us reflects no other action by United Savings to secure possession of the property until it filed a petition in district court for declaratory relief, possession, and past rents on September 30, 1987. The Villanuevas responded with a general denial. Mr. Villa-nueva continues to reside at the property.

The Villanuevas did not plead or prove any irregularity in the foreclosure proceedings or any other reason for voiding the foreclosure sale. After trial to the court, the court denied any declaratory relief and impliedly denied United Savings’ other claims for relief. The Villanuevas assert that the trial court, by invoking its equitable powers, ruled properly in their favor.

By point one, United Savings contends that it established, as a matter of law, superi- or title to the property than any claim to the property that the Villanuevas may have. Additionally, United Savings asserts that the trial court’s finding is so against the great weight and preponderance of the evidence presented as to be manifestly unjust.

The plaintiff in a trespass to try title action must recover, if at all, on the strength of its own title and may not rely on the weakness of the defendant’s title. Wells v. Kansas Univ. Endowment Assoc., 825 S.W.2d 483, 486 (Tex.App.—Houston [1st Dist.] 1992, writ denied). It is the plaintiffs burden to establish superior title in itself by a preponderance of the evidence. Id. This burden can be shown by 1) title emanating from the sovereignty of the soil, 2) a superior title in itself emanating from a common source, 3) title by adverse possession, or 4) title by prior possession coupled with proof that possession has not been abandoned. Id. (citing Land v. Turner, 377 S.W.2d 181, 188 (Tex.1964)).

When a plaintiff establishes a pri-ma facie case by proof of a common source, the defendant may rebut the plaintiffs case by showing a prior conveyance by the common source to another person. Id. Generally, the older title emanating from a common source is better title and superior to others. Id. Upon a showing that the holder of the later title acquired it as a bona fide purchaser for value and without notice of an earlier existing interest, the later title will have priority over the earlier title. Id.

United Savings introduced the Substitute Trustee’s Deed which conveyed the property to it by virtue of a deed of trust from Ron Rock before he executed the contract for sale with the Villanuevas. Thus, United Savings proved its title superior to the Villanuevas from a common source. See Watkins v. Certain-Teed Prods. Corp., 231 S.W.2d 981, 984 (Tex.Civ.App.—Amarillo 1950, no writ). The Villanuevas did not claim that they were bona fide purchasers for value and were without notice.

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878 S.W.2d 619, 1994 WL 171119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-savings-assn-of-texas-v-villanueva-texapp-1994.