William D. Sheetz v. Yolanda Slaughter

503 S.W.3d 495, 2016 Tex. App. LEXIS 9732, 2016 WL 4582178
Court of Appeals of Texas·Decided August 31, 2016·No. 05-14-00982-CV·Published·Cited by 39 cases

Opinions

OPINION

Opinion by

Justice Bridges

William Dean Sheetz appeals the trial court’s judgment in favor of Yolanda Slaughter on her. claims under the Texas Deceptive Trade Practices Act1 (DTPA). In five issues, Sheetz argues the trial court erred in making findings of fact and .conclusions of law and entering judgment on a theory of agency that was not pled in Slaughter’s pleadings nor tried by consent; the evidence was legally and factually insufficient to show that Sheetz permitted Harry Davis to practice law without a license; and the evidence was legally, and factually insufficient to show Sheetz violated the DTPA by his own actions. We reverse the trial court’s judgment and render judgment that Slaughter take nothing on her claims.

[498] In February 2006, Slaughter purchased a home and borrowed $231,726. Her mortgage payment was $1427.24 per month. Slaughter “was a month behind from the beginning” of the mortgage because the mortgage was sold to Wells Fargo, and an agreement concerning the due date of her first payment “didn’t transfer.” In November 2006, Slaughter had received a demand letter saying she was behind on her mortgage in the amount of $7100.

In January 2007, Slaughter met with Harry Davis, who had sent Slaughter a letter in which he claimed he could help with her home foreclosure. Davis said “his job was to call the bank and see if they could remodify the loan.” Slaughter paid Davis an initial fee of $950 and signed an employment agreement with Davis. The agreement did not state that Slaughter would be able to keep her home. Slaughter’s home was posted for foreclosure the next month, and Davis said Slaughter needed a lawyer “to keep the mortgage company out so that they can then go forward with trying to remodify the loan.” On January 22, 2007, Davis sent Slaughter a letter stating his company had “successively [sic] completed [Slaughter’s] réquest for Mortgage Assistance with [her] current mortgage servicer Wells Fargo Home Loans.” The letter stated Slaughter would receive supporting documentation within a few days, and the documents would “outline a payment arrangement for three months at your regular mortgage payment of $1,427.00.” The letter advised Slaughter it was “very important that [she] make all mortgage payments on time to avoid foreclosure to be re-instituted [sic] due to late payment.” Slaughter did not make any further payments.

Davis called Slaughter on February 3 and set up a meeting at his office with a licensed attorney, Sheetz, and Slaughter. At the meeting, Slaughter gave Sheetz $1500. Sheetz said' he was going to file an application for a temporary restraining order and work closely with Davis and the mortgage company “to remodify the loan so that [Slaughter] wouldn’t lose [her] house.” Neither Sheetz nor Davis said they would succeed in having Slaughter’s loan modified. Likewise, there is no evidence that Davis was aware of any valid legal theory that would permit Slaughter to remain in her home without paying her mortgage. Slaughter agreed to pay Sheetz $450 per month. During the entire representation, Slaughter had only two conversations with Sheetz: the first at the February 3 meeting and the second on January 5, 2008 after Slaughter received the foreclosure letter telling her she had fifteen days to move out. Slaughter believed she signed an employment agreement with Sheetz, but she did not have a copy of it.

In March 2007, Slaughter went back to school and received a stipend of $5500 per semester “for residency” because she was not living on campus. At that time, Slaughter was working as a bartender every other weekend for a company that leased out bartenders and security officers. Slaughter had also received $7500 from the Internal Revenue Service. In total, Slaughter had $13,000 in cash in March 2007. Neither Sheetz nor Davis asked Slaughter if she had the money to reinstate her loan.

On June 13, 2007, Davis sent Slaughter a letter informing her that Wells Fargo “did not comply with our Qualified Written Request to find a resolution to [her] mortgage loan situation.” The letter stated Slaughter “accepted our attorney to represent [her] in conjunction with the attorney fees being structured on a suitable payment plan on February, 2007.” The letter warned Davis had “no choice but to inform our attorney to get the necessary documentation to dismiss” Slaughter’s case because of her “non-compliance with our firm [499] and the attorney’s office to whom we have advanced money on [her] behalf.”

On August 6, 2007, Sheetz sent Slaughter a letter informing her that Wells Fargo’s motion for summary judgment had been granted on .July 9, 2007. The letter explained this meant that Slaughter could no longer contest the issue nor file a new lawsuit alleging the same facts and legal theories. A copy of the court’s order was enclosed with the letter. The letter explained that August 8, 2007 was the deadline for filing a motion for new trial or notice of appeal and, if either of .these events did not occur thirty days from the order dated July 9, 2007, Slaughter would not be able to appeal the case. The letter concluded as follows:

At this time my representation in your legal matter ends. I have not been retained to represent you on any appeal that you may file nor any motion for new trial. Should you wish to discuss your case further with me please do not hesitate to contact me or your housing counselor. Thank you for the opportunity to represent you in this matter. I wish you the very best, especially under these difficult circumstances.

On August 8, 2007, Slaughter filed a pro se motion for new trial.

On multiple occasions, Davis told Slaughter that he was not a licensed attorney. In November 2007, Davis told Slaughter she “needed to pay more money,” but Slaughter refused because Davis and Sheetz had not done the things they promised. In Slaughter’s opinion, Sheetz “basically turn[ed] [her] case over to be run by Harry Davis.”

At the time of the foreclosure in January 2008, Slaughter still had approximately $13,000 in cash, but she did not mention this to Sheetz or Davis. It “never occurred” to Slaughter to tell Sheetz or Davis that she had “money coming in,” but “it would occur to [her] that in their position they would ask” her if she had money.

In December 2008, Slaughter filed her original petition alleging Shéetz, Davis, and First Home Counseling made express warranties' to her, engaged' in an unconscionable course of action, and engaged in the unauthorized practice of law in violation of the DTPA. The petition further alleged Davis and First Home violated the Téxas Debt Collection Act, and Sheetz committed legal malpractice. The petition alleged Slaughter hired First Home and Davis in January 2007 to assist her in stopping the foreclosure on her home and that Davis and First Home in turn hired attorney Sheetz on'behalf of Slaughter to represent her in the matter. Slaughter’s petition alleged Sheetz filed a petition seeking an injunction to stop the foreclosure action, which was granted. The petition also detailed the course of the earlier proceeding.

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William D. Sheetz v. Yolanda Slaughter, 503 S.W.3d 495, 2016 Tex. App. LEXIS 9732, 2016 WL 4582178 (Tex. Ct. App. 2016).

503 S.W.3d 495 (William D. Sheetz v. Yolanda Slaughter) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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