Victor Anthony Charles v. Invum Three LLC

Court of Appeals of Texas·Decided June 26, 2025·No. 01-24-00128-CV·Published

Opinion

Opinion issued June 26, 2025

In The

Court of Appeals

For The

First District of Texas

Three, and the foreclosure sale was invalid. We hold that the county court lacked subject-matter jurisdiction over the case. Accordingly, we vacate the county court’s judgment and writ of possession, and we dismiss the case for lack of jurisdiction.

Background

In 2004, Billy Ray Murray and Rose Mary Murray signed a deed of trust securing a loan on residential property in Houston. This property is the subject of this appeal. Under the deed, the Murrays’ mortgage lender had authority to sell the property at foreclosure under certain circumstances, such as if the Murrays defaulted on the debt payments. The deed included a tenancy-at-sufferance clause providing that if the property sold at foreclosure, the Murrays “or any person holding possession of the Property through Borrower [the Murrays]” were required to surrender possession of the property to the purchaser at the foreclosure sale. If they did not surrender possession, the Murrays “or such person shall be tenants at sufferance and may be removed by writ of possession.”

In December 2020, Charles allegedly obtained title to the subject property by adverse possession. The appellate record contains documents showing that a Harris County District Court signed a default judgment awarding deed and title to the property to Charles.

Subsequently, the Murrays defaulted on their loan, and Invum Three purchased the property at a foreclosure sale in May 2023. The property was

conveyed to Invum Three by substitute trustee’s deed. In August 2023, Invum Three sent the Murrays notices to vacate. The notices requested that the Murrays “and/or All Other Occupants” vacate the property immediately.

In October 2023, Invum Three filed a forcible detainer suit in justice court to evict the Murrays and “all other occupants” from the subject property. Invum Three alleged that it had purchased the property at foreclosure sale, and on the date of the sale, Invum Three became the landlord and the Murrays and all other occupants became tenants at sufferance pursuant to the tenancy-at-sufferance clause in the Murrays’ deed of trust. Invum Three also alleged that it had provided written notice to vacate the property, but the tenants refused to comply. The petition attached several documents, including the Murrays’ deed of trust, the substitute trustee’s deed conveying the property to Invum Three, and the notices to vacate. Invum Three requested that the justice court award it possession of the property.

Shortly after Invum Three filed suit, Charles intervened and filed a motion to dismiss the case combined with a plea to the jurisdiction. In the plea, Charles asserted that the justice court lacked jurisdiction over the case because a district court had awarded him title and deed to the property in December 2020. The motion attached an order signed by the 269th District Court of Harris County on December 4, 2020. In this order, the district court granted Charles’s motion for default judgment and “award[ed] title and deed to the Plaintiff, Victor Anthony Charles.”

The justice court entered judgment awarding possession of the property to Invum Three. Charles appealed the judgment to the county court for trial de novo.

In the county court, Charles filed an amended motion to dismiss the case combined with a plea to the jurisdiction that was nearly identical to his jurisdictional challenge in the justice court. In the plea, Charles argued that the justice court and the county court lacked jurisdiction over the case because a title dispute existed. Charles attached the December 2020 order awarding him title and deed to the property.

The county court signed a final judgment awarding possession of the property to Invum Three. The judgment set a supersedeas bond in the amount of $11,200. The record does not show that Charles filed a supersedeas bond. The county court subsequently signed an order denying Charles’s combined motion to dismiss and plea to the jurisdiction.

The district clerk issued a writ of possession, which was executed while this appeal was pending. Charles therefore no longer has possession of the property. This appeal followed.

Subject-Matter Jurisdiction In his first issue, Charles argues that the justice court and the county court lacked subject-matter jurisdiction over the forcible detainer suit because a title dispute exists. This issue is dispositive of this appeal. In its responsive brief, Invum

Three argues that the appeal is moot, and it disputes Charles’s jurisdictional arguments. A. Standard of Review Whether a trial court has subject-matter jurisdiction is a question of law that we review de novo. Isaac v. CitiMortgage, Inc., 563 S.W.3d 305, 310 (Tex. App.— Houston [1st Dist.] 2018, pet. denied). “If the trial court lacks subject matter jurisdiction, the appellate court can make no order other than reversing the judgment of the court below and dismissing the cause.” Trimble v. Fed. Nat’l Mortg. Ass’n, 516 S.W.3d 24, 28 (Tex. App.—Houston [1st Dist.] 2016, pet. denied) (quoting City of Garland v. Louton, 691 S.W.2d 603, 605 (Tex. 1985)). Whether this Court has appellate jurisdiction is also a question of law that we review de novo. Caress v. Fortier, 576 S.W.3d 778, 781 (Tex. App.—Houston [1st Dist.] 2019, pet. denied). B. Governing Law A forcible detainer is one type of suit for eviction from real property. TEX.

PROP. CODE § 24.004(a); Riley v. Deanda, 706 S.W.3d 578, 581 (Tex. App.— Houston [1st Dist.] 2024, no pet.). The sole issue to be decided in a forcible detainer suit is the entitlement to actual and immediate possession of real property. TEX. R. CIV. P. 510.3(e); Riley, 706 S.W.3d at 581. Issues of title may not be adjudicated in a forcible detainer suit. Riley, 706 S.W.3d at 581; see also Marshall v. Hous. Auth. of San Antonio, 198 S.W.3d 782, 787 (Tex. 2006) (“An action for forcible detainer

is intended to be a speedy, simple, and inexpensive means to obtain immediate possession of property.”).

Generally, a justice court has subject-matter jurisdiction to hear an eviction suit but lacks jurisdiction to adjudicate title. TEX. GOV’T CODE § 27.031(a)(2), (b)(4); TEX. PROP. CODE § 24.004; Riley, 706 S.W.3d at 582. A party may appeal a justice court’s eviction judgment to county court for trial de novo. TEX. R. CIV. P. 509.8(a), (e), 510.10(c); see Praise Deliverance Church v. Jelinis, LLC, 536 S.W.3d 849, 854 (Tex. App.—Houston [1st Dist.] 2017, pet. denied) (“[T]he perfection of an appeal from a justice court to a county court at law for trial de novo vacates and annuls the judgment of the justice court.”). The county court’s jurisdiction on appeal is no greater than the justice court’s jurisdiction. Riley, 706 S.W.3d at 582; Black v. Wash. Mut. Bank, 318 S.W.3d 414, 417 (Tex. App.—Houston [1st Dist.] 2010, pet. dism’d w.o.j.) (stating that county court cannot adjudicate title in forcible detainer appeal).

But the mere existence of a title dispute does not necessarily deprive justice courts and county courts of jurisdiction in forcible detainer actions. Riley, 706 S.W.3d at 582. Rather, these courts lack jurisdiction only if the right to immediate possession necessarily turns on resolution of the title dispute. Id.; see also Chinyere v. Wells Fargo Bank, 440 S.W.3d 80, 83 (Tex. App.—Houston [1st Dist.] 2012, no pet.) (stating that justice and county courts lack jurisdiction over eviction action

when title dispute is “so intertwined with the issue of possession so as to preclude adjudication of the right to possession without first determining title”). Thus, if the right to immediate possession can be decided on a basis independent of a title dispute, such as when a landlord-tenant relationship exists between the parties, the title dispute does not deprive the justice court or county court of jurisdiction over the eviction suit. Riley, 706 S.W.3d at 582; Isaac, 563 S.W.3d at 311.

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