Texas Real Estate Commission v. Bayless
366 S.W.3d 808
Tex. App.2012Background
- Bayless pursued recovery from Bunton and TREC after Bunton's license was revoked for misrepresentation/dishonesty in selling property (May 2006 finding; August 2002 contract; August 29, 2002 misrepresentations).
- Bayless paid $30,000 down and made payments; undisclosed mortgage existed and Bayless later learned of foreclosure and mortgage obligations.
- Property foreclosed in February 2004; Bayless claims damages of $37,524.66 due to Bunton's fraud and misrepresentation, plus attorney's fees.
- Trial court granted Bayless summary judgment for damages, exemplary damages of $5,000, and attorney's fees ($10,000) in 2010.
- Bayless obtained a final judgment; an execution writ was returned nulla bona and a judgment lien was perfected; she then filed a verified claim in the Real Estate Recovery Trust Account in September 2010.
- TREC challenged the claim as time-barred under Tex. Occ. Code § 1101.605(a); trial court overruled the challenge and ordered payment from the trust account, which TREC appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 1101.605(a) applies to underlying action or to trust-account claim | Bayless contends 1101.605(a) applies to the trust-account claim for unpaid judgment | TREC argues 1101.605(a) applies to the underlying action against Bunton | 1101.605(a) applies to underlying action (claimant vs license holder), not to trust-account claim |
Key Cases Cited
- TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432 (Tex. 2011) (contextual statutory interpretation of word usage in subchapter M)
- Williams v. Khalaf, 802 S.W.2d 651 (Tex. 1990) (limitations for collection from real estate recovery fund referenced in footnote)
- Nagel, 767 S.W.2d 691 (Tex. 1989) (recognition that TREC relief is typically post-judgment)
- City of Rockwall v. Hughes, 246 S.W.3d 621 (Tex. 2008) (interpretation of plain language and statutory terms)