Ralph D. HUSTON and Christina Huston, Appellants, v. U.S. BANK NATIONAL ASSOCIATION, Appellee
359 S.W.3d 679
| Tex. App. | 2011Background
- U.S. Bank filed an expedited, non-judicial foreclosure application under Rule 736 for a home equity loan in Harris County.
- The Hustons answered with defenses and sought abatement/dismissal under Rule 736(10).
- The Hustons separately filed a counterclaim for declaratory relief challenging Bank’s foreclosure rights, labeling it a Level 3 discovery suit and requesting a jury trial and fees.
- Shortly after, the Hustons filed a separate declaratory judgment petition in the 80th District Court seeking the same relief.
- The district court dismissed the entire foreclosure proceeding, including the counterclaim, and labeled the order final and appealable.
- The court held that a counterclaim seeking affirmative relief cannot be asserted in a Rule 736 proceeding and affirmed dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court lacked authority to dismiss without a Bank request | Hustons | Bank | Affirmed; dismissal proper in Rule 736 proceeding |
| Whether Hustons were entitled to notice/hearing on dismissal | Hustons | Bank | Affirmed; not applicable in Rule 736 context |
| Whether counterclaim was compulsory | Hustons | Bank | Affirmed; counterclaim cannot proceed within Rule 736 proceeding |
Key Cases Cited
- BASF Fina Petrochemicals Ltd. P’ship v. H.B. Zachry Co., 168 S.W.3d 867 (Tex. App.—Houston [1st Dist.] 2004, pet. denied) (constructive interpretation of procedural rules; liberal, purposive construction)
- Tex. Bldg. Owners & Managers Ass’n, Inc. v. Pub. Util. Comm’n of Tex., 110 S.W.3d 524 (Tex. App.—Austin 2003, pet. denied) (interpretation of procedural rules; purpose of liberal construction)
- State v. Pub. Util. Comm’n, 883 S.W.2d 190 (Tex. 1994) (context for statutory-rule interpretation)