Betty C. Britton v. Kenneth K. Laughlin
02-20-00226-CV
| Tex. App. | Nov 10, 2021Background:
- In 2014 Britton sold land to Laughlin by contract for deed: purchaser to (1) make payments on Seller’s Bank of America mortgage (approx. $115,000) and (2) pay a $60,000 balloon note with 10% interest.
- Britton sued in Nov. 2018 alleging Laughlin defaulted on the $60,000 balloon; after a Feb. 2020 bench trial the court rendered a take-nothing judgment for Britton and awarded Laughlin damages and attorney’s fees; that appeal was pending in another court.
- In Apr. 2020 Britton filed a second suit asserting Laughlin defaulted on both the Bank of America payments and the $60,000 balloon; Laughlin asserted res judicata and moved for summary judgment, attaching the contract, pleadings, and the Feb. 2020 judgment.
- The trial court granted summary judgment for Laughlin. On appeal, Laughlin paid the Bank of America debt in full; he argued that payment mooted the Bank-of-America-claim portion of the appeal.
- This court held res judicata barred the repeated balloon-payment claim, found the Bank-of-America-payment claim moot after Laughlin’s payment, vacated the portion of the judgment related to the now-moot claim, and remanded the attorney-fee award for redetermination.
- Trial court had awarded Laughlin roughly $12,921.50 in fees plus conditional additional awards (total potential fees up to about $84,721.50); the court reversed that fee award and remanded for reconsideration in light of the mooted claim.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether res judicata bars the second suit's claim regarding the $60,000 balloon payment | Britton contends the trial court erred in granting SJ on res judicata for the balloon claim | Laughlin: prior final judgment resolved balloon claim between same parties — res judicata applies | Court: Res judicata applies; summary judgment proper as to the balloon-payment claim |
| Whether the Bank of America–payment claim remains justiciable | Britton asserts this is a separate claim not precluded by res judicata | Laughlin argues the claim is moot after he paid the Bank of America debt in full during appeal | Court: Bank-of-America claim is moot due to payment; court overruled the issue as moot |
| Whether the trial-court attorney-fee award should stand | Britton argues she should not owe full awarded fees because defendant paid the debt during appeal, mooting part of the case | Laughlin contends Britton did not preserve a direct challenge to fees and that payment does not invalidate the judgment on res judicata | Court: Fee award reversed and remanded for recalculation; trial court must redetermine reasonable fees in light of the mooted claim |
Key Cases Cited
- Travelers Ins. v. Joachim, 315 S.W.3d 860 (Tex. 2010) (standard: summary-judgment review de novo)
- Eagle Oil & Gas Co. v. TRO-X, L.P., 619 S.W.3d 699 (Tex. 2021) (elements a defendant must prove for res judicata on summary judgment)
- Chau v. Riddle, 254 S.W.3d 453 (Tex. 2008) (res judicata principles)
- Glassdoor, Inc. v. Andra Grp., LP, 575 S.W.3d 523 (Tex. 2019) (mootness and justiciability principles)
- Scurlock Oil Co. v. Smithwick, 724 S.W.2d 1 (Tex. 1986) (trial-court judgment is final for res judicata even while on appeal)
- Tex. Beef Cattle Co. v. Green, 921 S.W.2d 203 (Tex. 1996) (rationale for Scurlock rule and preclusion of relitigation)
- Gonzalez v. Guilbot, 315 S.W.3d 533 (Tex. 2010) (finality of judgment for res judicata and collateral estoppel)
- Kachina Pipeline Co. v. Lillis, 471 S.W.3d 445 (Tex. 2015) (liberal construction of appellate issues and remand to determine appropriate fees)
- Carowest Land, Ltd. v. City of New Braunfels, 615 S.W.3d 156 (Tex. 2020) (remand in the interest of justice where appellate action effectively deprived appellant of relief)