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Nicolas Fibela v. Karen M. Wood
657 S.W.3d 664
Tex. App.
2022
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Background

  • In Feb. 2015 Fibela and Wood signed a written residential resale contract for 300 Belva Way (sale price $130,000; closing April 10, 2015); Fibela alleged he performed and sought damages and specific performance.
  • Wood answered asserting statute-of-limitations and mutual mistake, and later moved for combined traditional and no-evidence summary judgment, attaching deed history and her affidavit claiming she did not hold record title when the contract was signed.
  • After Wood’s SJ, Fibela amended to add a statutory fraud claim (Tex. Bus. & Com. Code § 27.01), alleging Wood falsely represented she was record owner and could convey title.
  • The trial court granted Wood’s motion in full and ordered Fibela take nothing; Fibela appealed pro se.
  • The court of appeals affirmed the no-evidence summary judgment on the statutory fraud claim but reversed and remanded as to the breach-of-contract claim, finding (1) lack of title at signing does not automatically render the contract unenforceable and (2) Wood failed to conclusively prove unilateral mistake.

Issues

Issue Plaintiff's Argument (Fibela) Defendant's Argument (Wood) Held
No-evidence challenge to statutory fraud elements (false knowledge, intent, reliance, damages) Fibela: Wood knew she lacked title and knowingly misrepresented ownership; he relied and was damaged Wood: No evidence she knew she lacked title or knowingly misrepresented; no evidence of intent or damages Court: Affirmed SJ — Fibela failed to raise fact issues on Wood’s knowledge/intent and on damages; no-evidence SJ proper
Validity/enforceability of contract when seller lacked record title at formation Fibela: The written contract demonstrates mutual assent and an enforceable agreement; seller’s lack of title at signing doesn’t void the contract Wood: No meeting of the minds because she did not own the property at contract formation; contract unenforceable Court: Reversed SJ — presence of written, agreed terms establishes an express contract; lack of record title at signing alone does not negate enforceability
Unilateral mistake as affirmative defense to rescind contract Fibela: (opposes rescission; disputes elements) Wood: She mistakenly believed she could convey the property due to daughter’s default; mistake warrants rescission Court: Reversed SJ — Wood did not conclusively establish all elements of unilateral mistake; trial court erred granting SJ on that defense

Key Cases Cited

  • Valence Operating Co. v. Dorsett, 164 S.W.3d 656 (Tex. 2005) (de novo review of summary judgment)
  • Ford Motor Co. v. Ridgway, 135 S.W.3d 598 (Tex. 2004) (no-evidence summary judgment reviewed first when combined)
  • USAA Texas Lloyds Co. v. Menchaca, 545 S.W.3d 479 (Tex. 2018) (elements of breach of contract)
  • Int’l Bus. Machs. Corp. v. Lufkin Indus., 573 S.W.3d 224 (Tex. 2019) (false-promise fraud requires proof defendant had no intent to perform)
  • MTrust Corp. N.A. v. LJH Corp., 837 S.W.2d 250 (Tex. App.—Fort Worth 1992) (seller’s bad or imperfect title at contract formation does not automatically void a good-faith sale)
Read the full case

Case Details

Case Name: Nicolas Fibela v. Karen M. Wood
Court Name: Court of Appeals of Texas
Date Published: Sep 28, 2022
Citation: 657 S.W.3d 664
Docket Number: 08-20-00019-CV
Court Abbreviation: Tex. App.