Yvette C. Branch v. Matthew Bergin and Katherine Bergin

CourtCourt of Appeals of Texas
DecidedNovember 7, 2024
Docket05-22-01259-CV
StatusPublished

This text of Yvette C. Branch v. Matthew Bergin and Katherine Bergin (Yvette C. Branch v. Matthew Bergin and Katherine Bergin) 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
Yvette C. Branch v. Matthew Bergin and Katherine Bergin, (Tex. Ct. App. 2024).

Opinion

Affirmed in part, Reversed in part, Rendered in part, and Remanded and Opinion Filed November 7, 2024

In The Court of Appeals Fifth District of Texas at Dallas No. 05-22-01259-CV

YVETTE BRANCH, Appellant V. MATTHEW BERGIN AND KATHERINE BERGIN, Appellees

On Appeal from the 191st Judicial District Court Dallas County, Texas Trial Court Cause No. DC-17-07239

MEMORANDUM OPINION Before Justices Goldstein, Garcia, and Miskel Opinion by Justice Miskel This case arises from an approximately seven-year dispute over the sale of

real property. Yvette Branch appeals the trial court’s final judgment in favor of

Matthew Bergin and Katherine Bergin on their claim for breach of a Mediated

Settlement Agreement (MSA) and order of a take-nothing judgment on Branch’s

competing breach-of-MSA counterclaim relating to the sale of real property.

Branch raises the following four issues on appeal, which she argues in the

alternative: (1) the trial court erred when it rendered judgment against Branch on the

Bergins’ breach-of-MSA claim because the MSA terminated by its own terms; (2) if this Court upholds the finding that Branch breached the MSA, then the trial court

erred when it decided against Branch on her affirmative defense of failure of

consideration; (3) if this Court also upholds the rejection of Branch’s affirmative

defense, then the trial court erred when it granted the Bergins’ request for specific

performance; and (4) if this Court concludes that the trial court erred when it failed

to award Branch a take-nothing judgment on the Bergins’ breach-of-contract claims,

then the trial court also erred when it failed to award Branch attorney’s fees.

We conclude the evidence is legally insufficient to support the trial court’s

judgment in favor of the Bergins on their breach-of-MSA claim on which the specific

performance decree is based. We reverse the final judgment in part as to the Bergins’

breach-of-MSA claim and the award of specific performance and render judgment

that the Bergins take nothing as to their breach-of-MSA claim. We also reverse the

portion of the trial court’s final judgment as to the award of attorney’s fees. In all

other respects, we affirm the trial court’s final judgment. We remand the case to the

trial court to render a new judgment in favor of the Bergins for $14,339.29 plus pre-

and post-judgment interest and to determine an appropriate award of attorney’s

fees—trial and appellate—based on the part of the judgment that we affirm.

I. Factual and Procedural Background The evidence introduced at trial supported the following facts. Branch placed

her house for sale because she had accepted a new position and was relocating to

–2– Georgia. The Bergins made an offer on the house, and the parties eventually agreed

to a purchase price of $248,000.

In May 12, 2017, the parties signed a residential sale contract (initial contract)

for the sale of the property and Branch moved out of the house. The initial contract

provided in part:

7. PROPERTY CONDITION: A. PROPERTY CONDITION: . . . . Seller at Seller’s expense shall immediately cause existing utilities to be turned on and shall keep the utilities on during the time this contract is in effect.

.... D. ACCEPTANCE OF PROPERTY CONDITION: “As Is” means the present condition of the Property with any and all defects and without warranty except for the warranties of title and the warranties in this contract. Buyer’s agreement to accept the Property As Is under Paragraph 7D(1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any. ....

(1) Buyer accepts the Property As Is.

.... E. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Buyer. If the cost of lender required repairs and treatments exceeds 5%

–3– of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to Buyer.

The initial contract also provided that “a Buyer [or] Seller . . . who prevails in any

legal proceeding related to this contract is entitled to recover reasonable attorney’s

fees and all costs of such proceeding.” The parties also signed a third-party-

financing addendum to the initial contract that provided in part that time was of the

essence. The closing was scheduled for June 29, 2017, but the parties later executed

an amendment to the initial contract changing the closing date to June 15, 2017.

In May 2017, the house was inspected and no bacterial growth or water

damage was found. However, prior to the scheduled closing, Branch’s current boss

shared some concerns about the viability of the Georgia company she was going to

work for. As a result, on May 25, 2017, Branch decided not to relocate or sell her

property.

On June 15, 2017, the closing did not occur. But on that same date, the

Bergins had the utilities for the property put in their name. When the closing did not

occur, Katherine Bergin requested that the utilities be transferred back to Branch that

same day but nevertheless received and paid some of the utility bills for the property

through approximately September 2017. She contended that the water company

stated the Bergins’ name would remain on the account until someone else put it in

their name and that Branch did not take that required action.

On June 16, 2017, the Bergins sued Branch alleging claims for breach of the

initial contract, fraud involving a real-estate contract, common-law fraud and –4– misrepresentation, and they sought a temporary injunction, specific performance,

damages, exemplary damages, and attorney’s fees. Branch answered the lawsuit

generally denying the allegations and asserted a counterclaim for attorney’s fees

under the initial contract.

During the pendency of the suit and before the scheduled hearing on the

Bergins’ request for a temporary injunction, the parties executed a Rule 11

Agreement on September 11, 2017. The parties’ agreement is summarized as

follows:

 The title company will retain the earnest money in escrow without liability.

 Branch will refrain from doing the following until the trial court signs a subsequent order: (1) moving back into, leasing, assigning, transferring, encumbering, renting, altering, allowing third parties to occupy the property; (2) failing to keep the utilities turned on; (3) failing to keep the mortgage and insurance payments current; (4) failing to maintain the lawn and landscaping; (5) instituting any liens; and (6) continuing to show or list the property for sale. In accordance with the terms of the initial contract, the parties agreed to

mediate their dispute. On December 27, 2017, the parties executed the MSA1 that

settled and released their claims and counterclaims. The following is a summary of

the parties’ MSA:

1 The MSA was a handwritten settlement agreement titled “Mediated Rule 11 Agreement” that states it was “made and entered into at mediation on December 27, 2017 by and between the party signatories.” It was signed by the Bergins and Branch as well as their counsel who signed as to form.

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Yvette C. Branch v. Matthew Bergin and Katherine Bergin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yvette-c-branch-v-matthew-bergin-and-katherine-bergin-texapp-2024.