WTFO, INC. v. Braithwaite

899 S.W.2d 709, 1995 Tex. App. LEXIS 1178, 1995 WL 139255
CourtCourt of Appeals of Texas
DecidedMarch 29, 1995
Docket05-94-00639-CV
StatusPublished
Cited by61 cases

This text of 899 S.W.2d 709 (WTFO, INC. v. Braithwaite) 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
WTFO, INC. v. Braithwaite, 899 S.W.2d 709, 1995 Tex. App. LEXIS 1178, 1995 WL 139255 (Tex. Ct. App. 1995).

Opinion

OPINION

LAGARDE, Justice.

Appellant WTFO, Inc. appeals a summary judgment granted in favor of appellee Garlan Braithwaite in its suit to collect the deficiencies remaining after nonjudicial foreclosure sales of two pieces of real property resulting from the default on two promissory notes. In two points of error, appellant contends that the trial court erred in transferring venue and in granting summary judgment. We overrule the points and affirm the trial court’s judgment.

FACTUAL AND PROCEDURAL BACKGROUND

In May 1987, appellee, along with Judy Poort and Robert Mayr, executed two promissory notes, each for approximately $96,500. The notes were payable to Forestwood National Bank (Forestwood), as holder, in Dallas County or “at such other place as holder may designate in writing.” Each note was secured by a deed of trust covering different real property. An Assignment of Rents and Leases was also executed.

On July 5, 1990, the FDIC, acting as conservator and receiver for Forestwood, sent two demand letters to appellee at a “Hurst Address” to formally notify him of the maturity and default on each note. One of the letters was returned, “Attempted, Not Known.” On July 24, 1990, the FDIC sent appellee another letter notifying him that it now had his current address at the “Brook-ridge Address.” Enclosed in that letter were the July 5 demand letters.

On January 3, 1991, the FDIC sent appel-lee a letter indicating that the real estate securing one of his loans had been sold at public auction on January 1,1991, for $63,600 and that appellee owed the deficiency on the loan. On July 17, 1991, the FDIC sent him another letter stating that the real estate securing both loans had been foreclosed upon and that he owed the remaining balances of $41,011.47 and $46,940.42. Both pieces of property were later sold by the FDIC to third parties.

On April 21, 1993, appellant notified appel-lee that it had been assigned the promissory notes 2 and that it sought the deficiencies. *714 Two days later, appellant filed suit in Harris County against appellee and Poort seeking the deficiencies.

Appellee filed an answer, a motion to transfer venue, and counterclaims against appellant. Appellee requested a venue hearing; the parties were notified that the hearing was set for August 2, 1993. Appellant requested thirty days to respond and forty-five days’ notice of the hearing as required by the Texas Rules of Civil Procedure. Tex. R.Civ.P. 87. The trial court rescheduled the hearing for August 26,1993. Appellant timely filed a response. On August 23, 1993, appellant received a call that the hearing had been moved to August 24, 1993. Appellant neither objected nor requested a continuance. After a hearing the next day, the trial court severed the action as to appellee and granted his motion to transfer venue to Dallas County.

In January 1994, appellee filed a motion for summary judgment based on three grounds: (1) the failure to provide written notice of the foreclosure sales pursuant to the Deeds of Trust and section 51.002 of the Texas Property Code; 3 (2) lack of evidence to establish the fair market value of the foreclosed property; and (3) appellee’s release from personal liability. On March J, 1994, appellant filed its response to appellee’s motion, incorporating by reference the affidavit of Jerald W. Rosen (Rosen affidavit) and numerous exhibits. The Rosen affidavit and the exhibits, however, were not filed until March 7, 1994.

On March 11, 1994, the trial court granted summary judgment. Later that day, appel-lee nonsuited his counterclaims against appellant, making the summary judgment final.

TRANSFER OF VENUE

In its first point of error, appellant contends that the Harris County trial court reversibly erred in sustaining appellee’s motion transferring venue to Dallas County. Appellant argues that (1) it did not receive forty-five days’ notice of the hearing, (2) venue was proper in Harris County under a permissive venue statute, and (3) a general appearance by one co-defendant makes venue proper as to all defendants. Appellant also argues that the trial court erred in granting a severance to appellee.

Appellant’s point of error is duplicitous because it attacks two distinct and separate rulings of the trial court, namely, venue and severance. Tex.R.App.P. 74(d); Clancy v. Zale Corp., 705 S.W.2d 820, 823 (Tex. App. — Dallas 1986, writ refd n.r.e.). This Court may disregard any point of error that is duplicitous; however, in the interest of justice, we will address each of appellant’s arguments.

Burden of Proof

When a motion to transfer venue is filed, the initial burden of proof that venue is maintainable in the county of suit is on the plaintiff. Tex.R.Cxv.P. 87(2)(a). If the defendant specifically denies the venue facts, the plaintiff must support his pleadings by prima facie proof of the venue facts. Tex. R.Civ.P. 87(3)(a). If the plaintiff meets that burden, the trial court must maintain the lawsuit in the county in which it was filed unless a mandatory provision applies. Tex. R.Civ.P. 87(3)(c). If the plaintiff fails in his burden, the defendant has the burden of showing that venue is maintainable in the county in which the transfer is sought under either a general, permissive, or mandatory venue rule. See Tex.Civ.PRAC. & Rem.Code Ann. §§ 15.001-.040 (Vernon 1986); Tex. R.Civ.P. 87(2)(a). If the defendant succeeds in that showing, the cause will be transferred to the appropriate county. Tex.R.Civ.P. 87(2)(a).

Standard of Review

As an appellate court, we are obligated to conduct an independent review of the entire record to determine whether venue is proper in the ultimate county of suit. See Tex.Civ.PRAc. & Rem.Code Ann. § 15.064(b) (Vernon 1986); Wilson v. Texas Parks & Wildlife Dept. 886 S.W.2d 259, 261 (Tex.1994); Ruiz v. Conoco, Inc., 868 S.W.2d

*715 752, 757-58 (Tex.1993). We view evidence adduced after the issue of venue was decided by the trial court to determine if this evidence “destroys the prima facie proof on which the trial court relied.” Ruiz, 868 S.W.2d at 757. If, within the entire record, there is probative evidence to support the trial court’s determination, we defer to the trial court’s ruling. Wilson, 886 S.W.2d at 262; Ruiz, 868 S.W.2d at 758. If there is no supporting evidence, the judgment must be reversed and the cause remanded to the trial court. Ruiz, 868 S.W.2d at 758. The purpose of reviewing the entire record is to strike a balance between preserving the plaintiffs right to select and maintain suit in a county of proper venue and protecting the defendant against “fraud or inaccuracy at the pleading stage.” Wilson, 886 S.W.2d at 262.

Notice of Hearing

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Bluebook (online)
899 S.W.2d 709, 1995 Tex. App. LEXIS 1178, 1995 WL 139255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wtfo-inc-v-braithwaite-texapp-1995.