Ruby Yarbrough and Wilburn E. Yarbrough v. Household Finance Corporation III, 455 S.W.3d 277

Household Finance purchased property at a nonjudicial foreclosure sale and obtained a substitute trustee’s deed; it sued in justice court for forcible detainer to evict Ruby and Wilburn Yarbrough.
Justice court awarded possession to Household Finance; the Yarbroughs appealed to the county court and asserted a plea to the jurisdiction and affirmative defense of forgery.
The Yarbroughs filed Ruby’s affidavit stating the deed of trust was not signed by them and was forged; they also filed a district-court petition alleging forgery and seeking title and damages.
County court denied the pleas and entered summary judgment awarding possession to Household Finance; the Yarbroughs appealed.
Central legal question: whether an affirmative defense of forgery (claiming the deed of trust is void ab initio) raises a genuine title dispute so intertwined with possession that justice and county courts lack jurisdiction in a forcible detainer action.

Issue	Plaintiff's Argument (Household Finance)	Defendant's Argument (Yarbroughs)	Held
Whether a forgery defense creates an intertwined title issue that divests justice/county court jurisdiction in a forcible detainer action	The deed of trust contains a tenancy-at-sufferance clause; that creates a landlord-tenant relationship after foreclosure, so forcible detainer resolves possession without deciding title	A forged deed of trust is void ab initio and passes no title; if the deed is forged, no tenancy arises and title must be resolved before possession can be decided	The forgery claim raises a genuine title dispute intertwined with possession; justice and county courts lacked jurisdiction—reversed and remanded with instructions to dismiss for lack of jurisdiction

Tex. Dep’t of Parks & Wildlife v. Miranda, 133 S.W.3d 217 (Tex. 2004) (standards for resolving jurisdictional fact disputes and considering evidence on plea to the jurisdiction)
Salaymeh v. Plaza Centro, LLC, 264 S.W.3d 431 (Tex. App.—Houston [14th Dist.] 2008) (a justice court lacks jurisdiction when a title dispute is a prerequisite to resolving possession)
Scott v. Hewitt, 90 S.W.2d 816 (Tex. 1936) (forcible detainer is a summary proceeding to determine right to immediate possession)
Dass, Inc. v. Smith, 206 S.W.3d 197 (Tex. App.—Dallas 2006) (forgery claim required resolution of title, depriving justice court of jurisdiction)
Commonwealth Land Title Ins. Co. v. Nelson, 889 S.W.2d 312 (Tex. App.—Houston [14th Dist.] 1994) (a forged deed is void ab initio and passes no title)
1st Coppell Bank v. Smith, 742 S.W.2d 454 (Tex. App.—Dallas 1987) (a forged deed or deed of trust is void and does not pass title)
Rice v. Pinney, 51 S.W.3d 705 (Tex. App.—Dallas 2001) (where parties agree a foreclosure establishes a tenancy-at-sufferance, possession may be adjudicated without resolving title)