Wells Fargo Bank, N.A. as Trustee v. Robinson, Ray
2012 Tex. App. LEXIS 10280
| Tex. App. | 2012Background
- Robinson signed a homestead-equity note secured by a deed of trust; Wells Fargo accelerated and sought foreclosure.
- Foreclosure was authorized by a court order dated May 6, 2008, but the sale occurred on a later date without a valid order.
- The substitute trustee’s deed was issued without a valid court order, making the foreclosure allegedly improper.
- Robinson claimed wrongful foreclosure and breach of the deed of trust and sought damages and declaratory relief, plus fees on appeal.
- The trial court awarded damages and attorneys’ fees, but the appellate court later reversed and rendered it all for Robinson to take nothing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the evidence supports damages for wrongful foreclosure and breach | Robinson asserts damages from the irregular foreclosure breached the deed of trust | Wells Fargo argues no causal link or material injury shown | Damages not supported by proof; reversed and rendered for defendant |
| Whether the foreclosure violated Texas Constitution and deed provisions | Robinson claims the sale violated 50(a)(6) by lacking a court order | Wells Fargo contends the order was violated by timing, but the remedy is set-aside of deed | Foreclosure improper; reversed and rendered for Wells Fargo |
| Whether the trial court properly awarded attorney’s fees | Robinson argues fees are available under declaratory judgment claims | Wells Fargo contends fee award improper where no declaratory relief granted | Declaratory-judgment-based fees improper; reversed and rendered for Wells Fargo |
| Whether Robinson is entitled to forfeiture of principal and interest | Robinson seeks full forfeiture of amounts paid | Wells Fargo challenges remedy scope under statutory and case law | No forfeiture; reversed and rendered for Wells Fargo |
Key Cases Cited
- University Savings Ass'n v. Soringovoalds Shopping, 644 S.W.2d 705 (TX: Tex. 1983) (set aside sale when irregular foreclosure doctrine discussed)
- Gainesville Oil & Gas Co., Inc. v. Farm Credit Bank of Tex., 847 S.W.2d 655 (Tex. App.—Texarkana 1993) (damages must show loss or injury from irregular foreclosure)
- John Hancock Mutual Life Ins. Co. v. Howard, 85 S.W.2d 986 (Tex. Civ. App.—Waco 1981) (damages measured by market value vs. debt when sale is improper)
- Vincent v. Bank of Am., N.A., 109 S.W.3d 856 (Tex. App.—Dallas 2003) (foreclosure extension requirements and remedies under 50(a)(6))
- MBM Financial Corp. v. Oppedahl, 292 S.W.3d 660 (Tex. 2009) (declaratory judgments and attorney’s fees considerations)
- Elan Industries, Inc. v. LCH, 359 S.W.3d 620 (Texas 2011) (fees under declaratory judgment act may be improper in certain contexts)