Yada Smith and/or All Ther Occupants v. Beneficial Financial Inc., Successors and Assigns

CourtCourt of Appeals of Texas
DecidedNovember 6, 2015
Docket05-14-00497-CV
StatusPublished

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Yada Smith and/or All Ther Occupants v. Beneficial Financial Inc., Successors and Assigns, (Tex. Ct. App. 2015).

Opinion

AFFIRMED; Opinion Filed November 6, 2015.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-14-00497-CV

YADA SMITH, Appellant V. BENEFICIAL FINANCIAL I INC., ITS SUCCESSORS AND ASSIGNS, Appellee

On Appeal from the County Court at Law No. 5 Dallas County, Texas Trial Court Cause No. CC-14-00031-E

MEMORANDUM OPINION Before Justices Bridges, Francis, and Myers Opinion by Justice Myers This is an appeal from a judgment in a forcible detainer action awarding possession of a

property located at 906 Ponds Court, Cedar Hill, Texas 75104–7280 (“the property”) to appellee

Beneficial Financial 1 Inc., and its successors and assigns (“Beneficial”). In a single issue,

appellant Yada Smith argues the trial court erred because she had “a superior right to immediate

possession of her mortgage.” We affirm the trial court’s judgment.

BACKGROUND AND PROCEDURAL HISTORY

On or about August 27, 2007, Smith executed a Deed of Trust encumbering the property

and securing a loan of $129,564. The Deed of Trust provided that if the property was sold at

foreclosure, Smith or any person holding possession of the property through Smith “shall

immediately surrender possession of the Property to the purchaser at the sale.” It further provided that “[i]f possession is not surrendered, Borrower [Smith] or such person shall be a

tenant at sufferance and may be removed by writ of possession.”

As shown by a Substitute Trustee’s Deed executed on October 7, 2013, after Smith failed

to repay her residential mortgage according to its terms, Beneficial purchased the property at a

foreclosure sale held on October 1, 2013 for $105,300. On October 28, 2013, Beneficial sent

Smith and/or all other occupants of the property notice to vacate the premises via certified mail,

return receipt requested. When Smith failed to vacate the property, Beneficial filed this forcible

detainer action in the Justice Court of Dallas County, Precinct Number 4–2, on November 8,

2013. After a hearing, the JP Court entered judgment in favor of Beneficial on November 25,

2013. Smith appealed the judgment to the County Court at Law Number 5 of Dallas County,

which subsequently granted final summary judgment in favor of Beneficial on April 18, 2014.

Smith then brought this appeal.

DISCUSSION

In her issue, Smith contends the trial court erred by awarding possession of the property

to Beneficial for two reasons: (1) Beneficial did not establish its right to immediate possession

of the property because it did not have the legal right to either collect on the debt or enforce the

underlying security interest; and (2) the JP Court lacked subject matter jurisdiction to decide the

forcible detainer action. We begin with Smith’s contention regarding jurisdiction.

A forcible detainer occurs when a person, who is a tenant at sufferance, refuses to

surrender possession of real property after his right to possession has ceased. TEX. PROP. CODE

ANN. § 24.002(a)(2); Aspenwood Apartment Corp. v. Coinmach, Inc., 349 S.W.3d 621, 632

(Tex. App.––Houston [1st Dist.] 2011), aff’d in part, rev’d in part on other grounds, 417 S.W.3d

909 (Tex. 2013). A forcible detainer action is “a summary, speedy, and inexpensive” procedure

for determining the right to immediate possession of real property where no claim of unlawful

–2– entry exists. Williams v. Bank of N.Y. Mellon, 315 S.W.3d 925, 926–27 (Tex. App.––Dallas

2010, no pet.). To prevail in a forcible detainer action, a plaintiff is required to show sufficient

evidence of a superior right to possession. See Rice v. Pinney, 51 S.W.3d 705, 709 (Tex. App.––

Dallas 2001, no pet.). Under Texas Rule of Civil Procedure 746, the only issue in a forcible

detainer action is the right to possession. TEX. R. CIV. P. 746. The merits of title “shall not be

adjudicated.” TEX. R. CIV. P. 746. In forcible detainer actions, entitlement to possession of

premises is decided “without resorting to an action upon the title.” Rice, 51 S.W.3d at 710

(quoting Scott v. Hewitt, 127 Tex. 31, 35, 90 S.W.2d 816, 818–19 (Tex. 1936)).

The jurisdiction of forcible detainer actions is expressly given to the justice court of the

precinct where the property is located and, on appeal, to county courts for a trial de novo. See

TEX. PROP. CODE ANN. § 24.004; TEX. R. CIV. P. 506; Rice, 51 S.W.3d at 708; Perry v. Fed.

Nat’l Mortgage Ass’n, No. 05–14–00022–CV, 2015 WL 3961941, at *3 (Tex. App.––Dallas

June 30, 2015, no pet.) (mem. op.). However, forcible detainer actions are not exclusive. Scott

v. Hewitt, 90 S.W.2d 816, 818–19 (Tex. 1936). Forcible detainer actions are cumulative of any

other remedy a party may have in the courts of this state, and the displaced party is entitled to

bring a separate suit in the district court to determine questions of title. Salaymeh v. Plaza

Centro, LLC, 264 S.W.3d 431, 436 (Tex. App.––Houston [14th Dist.] 2008, no pet.). A justice

court is not deprived of jurisdiction merely by the existence of a title dispute; it is deprived of

jurisdiction only if resolution of a title dispute is a prerequisite to determination of the right to

immediate possession. Rice, 51 S.W.3d at 709. “For the district court to enjoin the exercise of

the justice court’s exclusive jurisdiction in a forcible entry and detainer case, there must be a

showing that the justice court is without jurisdiction to proceed in the cause or the defendant has

no adequate remedy at law.” McGlothin v. Kliebert, 672 S.W.2d 231, 232 (Tex. 1984).

Smith did not make this required showing. As noted earlier, the Deed of Trust contains a

–3– tenant-at-sufferance clause that created a landlord-tenant relationship when the property was

foreclosed. Yarbrough v. Household Finance Corp., 455 S.W.3d 277, 280 (Tex. App.––Houston

[14th Dist.] 2015, no pet.); Pinnacle Premier Properties, Inc. v. Breton, 447 S.W.3d 558, 564–65

(Tex. App.––Houston [14th Dist.] 2014, no pet.) (opinion on rehearing). Tenant-at-sufferance

clauses separate the issue of possession from the issue of title. Pinnacle, 447 S.W.3d at 564. A

foreclosure sale transforms the borrower into a tenant at sufferance who must immediately

relinquish possession to the foreclosure sale purchaser. Id. Under such circumstances, a party’s

complaints about defects in the foreclosure process generally do not require the justice court to

resolve a title dispute before determining the right to immediate possession, and the justice court

has jurisdiction. Yarbrough, 455 S.W.3d at 280; Pinnacle, 447 S.W.3d at 564.

This case is no different. Smith does not challenge the validity of the tenant-at-

sufferance clause, but rather argues the foreclosure was improper because a signatory of the

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Related

Rice v. Pinney
51 S.W.3d 705 (Court of Appeals of Texas, 2001)
Salaymeh v. Plaza Centro, LLC
264 S.W.3d 431 (Court of Appeals of Texas, 2008)
U.S. Bank National Ass'n v. Freeney
266 S.W.3d 623 (Court of Appeals of Texas, 2008)
McGlothlin v. Kliebert
672 S.W.2d 231 (Texas Supreme Court, 1984)
Cincinnati Life Insurance Co. v. Cates
927 S.W.2d 623 (Texas Supreme Court, 1996)
Carr v. Brasher
776 S.W.2d 567 (Texas Supreme Court, 1989)
Nixon v. Mr. Property Management Co.
690 S.W.2d 546 (Texas Supreme Court, 1985)
Provident Life & Accident Insurance Co. v. Knott
128 S.W.3d 211 (Texas Supreme Court, 2003)
Rubsamen v. Wackman
322 S.W.3d 745 (Court of Appeals of Texas, 2010)
Citizens National Bank v. Allen Rae Investments Inc.
142 S.W.3d 459 (Court of Appeals of Texas, 2004)
Williams v. BANK OF NEW YORK MELLON
315 S.W.3d 925 (Court of Appeals of Texas, 2010)
Aspenwood Apartment Corp. v. Coinmach, Inc.
349 S.W.3d 621 (Court of Appeals of Texas, 2011)
Keyes Helium Company v. Regency Gas Services, L.P.
393 S.W.3d 858 (Court of Appeals of Texas, 2012)
Scott Et Ux. v. Hewitt
90 S.W.2d 816 (Texas Supreme Court, 1936)

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