Antonio Ruiz, Martha Ruiz, and All Occupants of 11207 Bayou Place Lane, Houston, Texas, 77099 v. Invum Three, LLC
14-19-00516-CV
| Tex. App. | Jul 13, 2021Background
- Invum Three, LLC purchased 11207 Bayou Place at a foreclosure sale on February 5, 2019, and mailed a notice to vacate on March 21, 2019.
- Invum filed a forcible-detainer (eviction) action in justice court on March 28, 2019; the justice court awarded possession to Invum.
- Appellants (Antonio and Martha Ruiz and other occupants) appealed to the county court and filed a plea to the jurisdiction claiming wrongful/nonjudicial foreclosure and lack of notice.
- At the county-court de novo trial Invum introduced a substitute trustee’s deed, the deed of trust, and the notice to vacate; appellants did not object to those exhibits.
- The deed of trust contains a tenant-at-sufferance clause converting holdover occupants into tenants at sufferance after foreclosure.
- The county court entered judgment for possession in favor of Invum; on appeal the Fourteenth Court of Appeals affirmed, rejecting appellants’ jurisdictional and title-based challenges.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court had jurisdiction to decide the forcible-detainer action | Invum: justice and county courts have jurisdiction to decide immediate possession; Invum provided sufficient proof of superior right to possession | Appellants: jurisdiction lacking because resolution requires adjudication of wrongful/nonjudicial foreclosure and title issues reserved for district courts | Held: Court affirmed jurisdiction; forcible-detainer action decides possession, not title, unless title resolution is necessary to decide possession (not the case here). |
| Whether Invum proved a landlord-tenant relationship (tenant at sufferance) | Invum: deed of trust contains a tenant-at-sufferance clause that makes foreclosed borrowers tenants at sufferance | Appellants: deed lacks a tenancy-at-sufferance clause and thus Invum failed to establish landlord-tenant status | Held: Court held the deed contains a tenant-at-sufferance clause; appellants were tenants at sufferance. |
| Whether alleged defects in the foreclosure (e.g., no notice) deprive justice/county courts of jurisdiction | Invum: defects in foreclosure are irrelevant to possession where a tenant-at-sufferance clause exists and proper notice to vacate was given | Appellants: foreclosure was flawed (lack of §51.002 notice, accounting), so title dispute is intertwined with possession and deprives lower courts of jurisdiction | Held: Court rejected this; the tenant-at-sufferance clause separates possession from title, so alleged foreclosure defects do not deprive the justice/county courts of jurisdiction over possession. |
Key Cases Cited
- Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 400 (Tex. 1993) (subject-matter jurisdiction is essential and reviewed de novo)
- Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (standard for reviewing jurisdictional questions)
- Tellez v. Rodriguez, 612 S.W.3d 707 (Tex. App.—Houston [14th Dist.] 2020, no pet.) (forcible-detainer limits and appeal to county court de novo)
- Shields Ltd. P’ship v. Bradberry, 526 S.W.3d 471 (Tex. 2017) (elements needed to prevail in forcible-detainer action)
- Yarbrough v. Household Fin. Corp. III, 455 S.W.3d 277 (Tex. App.—Houston [14th Dist.] 2015, no pet.) (tenant-at-sufferance clause separates possession from title challenges)
- Pinnacle Premier Props., Inc. v. Breton, 447 S.W.3d 558 (Tex. App.—Houston [14th Dist.] 2014, no pet.) (foreclosure purchaser’s possession claim not defeated by defects in foreclosure where tenant-at-sufferance clause exists)
- Salaymeh v. Plaza Centro, LLC, 264 S.W.3d 431 (Tex. App.—Houston [14th Dist.] 2008, no pet.) (justice court not deprived of jurisdiction merely because title dispute exists)
- Doggett v. Nitschke, 498 S.W.2d 339 (Tex. 1973) (justice court lacks authority to adjudicate title)
- USAA Tex. Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018) (error in judgment regarding parties/relief must be raised to avoid forfeiture)
