Fontaine v. Deutsche Bank National Trust Co.
372 S.W.3d 257
Tex. App.2012Background
- In 2006, Mary Clayton purchased the residence and signed a deed of trust; in 2008 the residence was transferred to Roy’s & Son’s L.L.C. with Roy Mitchell signing for the company.
- On August 1, 2009, Mitchell leased the residence to Jarvis Fontaine for three years.
- On November 3, 2009, a substitute trustee foreclosed and sold the property to Deutsche Bank National Trust Company, as Trustee for Sound View Home Loan Trust 2006-3.
- On May 13, 2010, Deutsche Bank sent notices to vacate to Clayton, Fontaine, and other occupants; notices required vacating within three days or within ninety days if the occupant was a bona-fide tenant.
- On October 11, 2010, Deutsche Bank filed forcible detainer; the justice court and then the county court at law awarded possession to Deutsche Bank.
- The court addresses whether Fontaine, as lessee with a lease pre-foreclosure, qualifies for Protecting Tenants at Foreclosure Act protections and whether foreclosure defects can affect the outcome in a forcible detainer action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| PTFA protections apply to Fontaine’s lease | Fontaine had a bona fide lease pre-foreclosure entitling protections. | Lease terminated by foreclosure; PTFA does not protect Fontaine beyond 90-day notice. | Remand to determine bona fide status and defenses under PTFA |
| Foreclosure defects affect forcible detainer title | Errors in foreclosure could invalidate the title and defeat possession rights. | Foreclosure defects are not adjudicated in forcible detainer actions. | Overruled; defects not reviewable in forcible detainer |
Key Cases Cited
- Rice v. Fin-ney, 51 S.W.3d 705 (Tex.App.-Dallas 2001) (forcible detainer aims to determine right to possession, not title)
- Scott v. Hewitt, 90 S.W.2d 816 (Tex. 1936) (forcible detainer is a speedy, simple remedy)
- Shutter v. Wells Fargo Bank, N.A., 318 S.W.3d 467 (Tex. App.-Dallas 2010) (foreclosure defects not adjudicated in forcible detainer)
- Williams v. Bank of N.Y. Mellon, 315 S.W.3d 925 (Tex. App.-Dallas 2010) (PTFA considerations in foreclosure-tenancy)
- Aspenwood Apartment Corp. v. Coinmach, Inc., 349 S.W.3d 621 (Tex. App.-Houston [1st Dist.] 2011) (lease termination after foreclosure under Texas law)