05-13-01429-CV
Tex. App.Nov 6, 2014Background
- Elizabeth Blume contracted in Oct. 2010 to buy Richard Boyd’s house in a short sale; Wells Fargo, Boyd’s mortgagee, approved the short sale by letter dated Jan. 21, 2011.
- The purchase agreement between Boyd and Blume assigned tax proration rules and stated: if current-year taxes are not paid at or before closing, Buyer shall pay taxes for the current year.
- Boyd and Blume later signed an amendment stating “No 2011 taxes will be prorated at closing.”
- Closing occurred Feb. 25, 2011; Blume paid the 2011 property taxes ($14,364.96) after closing and sought reimbursement from Wells Fargo.
- Blume sued Wells Fargo for breach of contract, equitable subrogation/unjust enrichment, and money had and received; Wells Fargo moved for traditional and no-evidence summary judgment.
- The trial court granted summary judgment for Wells Fargo; Blume appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wells Fargo had a binding contract with Blume to pay 2011 taxes | Blume: Wells Fargo’s Jan. 21, 2011 short-sale approval binds Wells Fargo to pay 2011 taxes | Wells Fargo: the approval letter is an agreement only between Wells Fargo and Boyd and does not mention tax payment or bind Blume | Court: No contract between Wells Fargo and Blume; summary judgment for Wells Fargo affirmed |
| Whether Blume’s contract with Boyd required Wells Fargo to reimburse tax payment | Blume: implied Wells Fargo responsibility because it approved the short sale | Wells Fargo: Blume’s direct contract was with Boyd, and that contract made Buyer responsible for unpaid current-year taxes | Court: Blume had contractual obligation to Boyd to pay taxes if unpaid at closing; no basis to impose liability on Wells Fargo |
| Whether Wells Fargo was equitable owner on Jan. 1, 2011 and thus liable for property taxes | Blume: Wells Fargo was the mortgagee and could have foreclosed, making it equitable owner on Jan. 1 | Wells Fargo: mere lienholder status (or potential to foreclose) does not make it owner under tax code | Court: Lienholder status does not equal ownership for tax liability; Boyd held legal title on Jan. 1; Wells Fargo not liable |
| Whether unjust enrichment/equitable subrogation or money had and received claims survive | Blume: Wells Fargo was unjustly enriched by not paying taxes it should have paid | Wells Fargo: no contractual or equitable basis to require reimbursement; no ownership or enrichment tied to tax payment | Court: No genuine issue of material fact; summary judgment for Wells Fargo on these equitable claims affirmed |
Key Cases Cited
- LMB, Ltd. v. Moreno, 201 S.W.3d 686 (Tex. 2006) (no-evidence summary judgment standard described)
- Johnson v. Brewer & Pritchard, P.C., 73 S.W.3d 193 (Tex. 2002) (summary judgment/no-evidence principles)
- W. Invs., Inc. v. Urena, 162 S.W.3d 547 (Tex. 2005) (traditional summary judgment burden and appellate review)
- Nixon v. Mr. Property Mgmt. Co., 690 S.W.2d 546 (Tex. 1985) (reviewing summary judgment with doubts resolved for nonmovant)
- Searcy v. DDA, Inc., 201 S.W.3d 319 (Tex. App.—Dallas 2006) (elements for formation of a contract)
- Comerica Acceptance Corp. v. Dallas Central Appraisal Dist., 52 S.W.3d 495 (Tex. App.—Dallas 2001) (lienholder or potential foreclosing party is not owner for tax purposes)