Justia Real Estate & Property Law Opinion Summaries

In this real estate dispute, the Supreme Court held that where the plain language of a special warranty deed limited the grantor's liability for failures of title to claims asserted by individuals "by, through and under" the grantor, the grantor could not be liable for breach of the covenant of seisin because the plaintiff asserted no such claim.The grantor of property, who purchased the property at a foreclosure sale, and the grantee entered into a residential sales contract, and the grantor conveyed the property by special warranty deed to the grantee. The grantee obtained title insurance from an insurer. When the validity of the foreclosure sale was challenged, the insurer assumed the grantee's defense and settled the suit. As the grantee's subrogee, the insurer sued the grantor for breach of the sales contract and breach of the implied covenant of seisin. The trial court found in favor of the insurer. The court of appeals reversed. The Supreme Court held (1) the special warranty deed barred the insurer's recovery because, regardless of whether it implied the covenant of seisin, the deed limited the grantor's liability for failures of title to claims asserted by individuals "by, through and under" the grantor; (2) because the failure of title did not arise from such a claim, the grantor was not liable for it; and (3) the merger doctrine barred the insurer's breach of contract claim. View "Chicago Title Insurance Co. v. Cochran Investments, Inc." on Justia Law

The Supreme Court held that open-enrollment charter schools and their charter-holders have governmental immunity from suit and liability to the same extent as public schools and that, in this case, the open-enrollment charter school district had immunity from suit.The Burnham Wood Charter School District, which operates open-enrollment charter schools in El Paso, repudiated a lease with Amex Properties, LLC to lease certain property. Amex sued the district for anticipatory breach of the lease. The district filed a plea to the jurisdiction contending that it was immune from suit to the same extent as public school districts and that no waiver of immunity existed for Amex's claim. The trial court denied the district's jurisdictional plea, and the court of appeals affirmed. The Supreme Court reversed and dismissed the suit for want of jurisdiction, holding (1) open-enrollment charter schools have governmental immunity to the same extent as public schools; (2) Tex. Local Gov't Code 271 waives governmental immunity for breach of contract claims brought under the chapter; and (3) the lease in this case was not properly executed under section 271.151, and therefore, Amex's breach of contract claim was not waived under section 271.152. View "El Paso Education Initiative, Inc. v. Amex Properties, LLC" on Justia Law

In this dispute over which faction of a splintered Episcopal diocese is the "Episcopal Diocese of Fort Worth" the Supreme Court affirmed the trial court's grant of summary judgment in favor of the withdrawing faction, holding that resolution this property dispute does not require consideration of an ecclesiastical question and that, under the diocese's governing documents, the withdrawing faction is the Episcopal Diocese of Fort Worth.After a disagreement about religious doctrine the Episcopal Diocese of Fort Worth and a majority of its congregations withdrew from The Episcopal Church. The church replaced the diocese's leaders. Subsequently, both the disaffiliating and replacement factions claimed ownership of property held in trust for the diocese and local congregations. The withdrawing faction argued that under the organizational documents, the unincorporated association's identity is determined by the majority. The church and its loyalists argued that the entity's identity is an ecclesiastic determination. The Supreme Court agreed with the withdrawing faction by applying neutral principles to the disputed facts, holding that the trial court property granted summary judgment in the withdrawing faction's favor. View "Episcopal Diocese of Fort Worth v. Episcopal Church" on Justia Law

The Supreme Court accepted a question certified to it by the United States Court of Appeals for the Fifth Circuit and answered that a lender is entitled to equitable subrogation where it failed to correct a curable constitutional defect in the loan documents under Tex. Const. art. XVI, 50.Sylvia Zepeda obtained a loan from CIT Group and later refinanced her debt with a loan from Embrace Home Loans, Inc., using her homestead as collateral. Zepeda subsequently notified Embrace that the loan documents did not comply with section 50 because Embrace had not signed a form acknowledging the homestead's fair market value. Embrace subsequently sold the loan to Freddie Mac. When Freddie Mac did not respond to Zepeda's notification of the constitutional defect, Zepeda sued to quiet title, arguing that Freddie Mac did not possess a valid lien on her property. The federal district court concluded that Freddie Mac was not entitled to equitable subrogation because it was negligent in failing to cure the constitutional defect in the loan documents. The Supreme Court disagreed, holding that, under Texas law, a lender who discharges a prior, valid lien on the borrower's homestead property is entitled to subrogation, even if the lender failed to correct a curable defect in the loan documents. View "Federal Home Loan Mortgage Corp. v. Zepeda" on Justia Law

In this case arising from an inflated appraisal of certain property and governed by New York law, the Supreme Court reversed in part the court of appeals' decision affirming the jtrial court's judgment awarding Claymore Holdings $211 million in equitable relief, holding that there was no valid basis in New York law for this large award of equitable monetary relief.The subject property was a real estate project. Claymore loaned the project $250 million and took the real estate as collateral. After the borrower defaulted and the collateral's value declined, Claymore sued Credit Suisse, which helped arrange the transaction, alleging that Credit Suisse fraudulently inflated the appraisal of the real estate, inducing Claymore to make the loan, and that the faulty appraisal amounted to a breach of contract. A jury found for Claymore on the fraudulent inducement claim and awarded $40 million. The court found Credit Suisse liable for breach of contract and other theories but concluded that Claymore's damages on all claims could not be calculated with reasonable certainty. The court then awarded Claymore $211 million in equitable relief. The Supreme Court remanded the case, holding that the jury's $40 million fraud verdict must stand but that the court's award of $211 million in equitable relief must not. View "Credit Suisse AG v. Claymore Holdings, LLC" on Justia Law

In this title dispute between the State and a private landowner over portions of the submerged bed of Lone Oak Bayou the Supreme Court reversed the trial court's summary judgment in favor of the landowner, holding that there were factual disputes to be resolved, precluding summary judgment.Lone Oak Bayou was a navigable body of water located near the Gulf of Mexico. The landowner's predecessor bought land from the State that included the Bayou's bed. Later, the Legislature passed a statute (the Small Bill) validating conveyances that included the beds of "watercourses or navigable streams." The Commissioner of the General Land Office argued that the Small Bill did not validate the landowner's title to the Bayou's bed because the tide enters the Bayou and the statute conveyed only submerged beds underlying non-tidally influenced streams. The trial court granted summary judgment for the Landowner. The court of appeals affirmed. The Supreme Court reversed, holding that there were factual disputes to be resolved regarding whether the Bayou is a navigable stream within the scope of the statutory conveyance. View "Bush v. Lone Oak Club, LLC" on Justia Law

The Supreme Court reversed in part the judgment of the court of appeals affirming the trial court's judgment concluding that several general easements that Petitioner, an electric company, acquired in 1949 from the predecessors-in-title to Respondents, landowners, were fixed at a thirty-foot width and rendering judgment for Respondents, holding that the plain language of the easements did not include a fixed width for the easements, nor were the easements required to do so.Petitioner argued in this case that the easements were general easements with no fixed width. Respondents, in turn, argued that the easements should have a fixed, thirty-foot width. The trial court rendered judgment for Respondents. The court of appeals affirmed, concluding that because the original easements did not specify a width, the trial court properly admitted extrinsic evidence of past use to determine how much of Respondents' land was reasonably necessary for Petitioner to utilize pursuant to the easements. The Supreme Court reversed, holding that Respondents' properties were burdened by general easements with no defined width and that the lack of a specified width in an easement does not mandate the admission of extrinsic evidence to prescribe a width. View "Southwestern Electric Power Co. v. Lynch" on Justia Law

The Supreme Court affirmed the judgment of the court of appeals concluding that Tex. R. Civ. P. 91a permits dismissal based on an affirmative defense and that the alleged destruction of evidence is an action "taken in connection with representing a client in litigation," thus entitling the defendant attorneys to attorney immunity.Plaintiff hired Defendants to represent her in a lawsuit. Plaintiff later sued Defendants for, inter alia, fraud, trespass to chattel, and conversion, alleging that Defendants intentionally destroyed key evidence in the case. Defendants moved to dismiss the case under Rule 91a, claiming that it was entitled to attorney immunity on all of Plaintiff's claims. The trial court granted the motion and dismissed the case. Plaintiff appealed, arguing that affirmative defenses such as attorney immunity cannot be the basis of a Rule 91a dismissal and that Defendants were not entitled to attorney immunity. The court of appeals affirmed. The Supreme Court affirmed, holding (1) Rule 91a permits motions to dismiss based on affirmative defenses "if the allegations, taken as true, together with inferences reasonably drawn from them, do not entitle the claimant to the relief sought"; and (2) because Defendants' allegedly wrongful conduct involved the provision of legal services that conduct was protected by attorney immunity. View "Bethel v. Quilling, Selander, Lownds, Winslett & Moser, P.C." on Justia Law

In this case involving a written assignment of an overriding royalty interest in minerals produced from land in Wheeler County the Supreme Court reversed the judgment of the court of appeals reversing the trial court's judgment declaring that the assignment conveyed an overriding royalty interest in all production under the lease, holding that the assignment unambiguously conveyed the assignor's overriding royalty interest in all production under the lease.The assignment in this case identified the single well that was producing at the time of the assignment, the land on which the well was located, and the lease under which the overriding royalty interest existed. At issue was whether the assignment conveyed the assignor's interest in all production under the identified lease or only in production from the identified well or from any well drilled on the identified land. The court of appeals held that the assignment conveyed only the 3.75 percent overriding royalty interest in production from the tract of land on which the well was located. The Supreme Court reversed, holding that the assignment unambiguously conveyed all of the interest that the assignor owned at the time of the conveyance. View "Piranha Partners v. Neuhoff" on Justia Law

The Supreme Court reversed the judgment of the court of appeals ruling that, where the trial court granted a motion to dismiss without specifying the ground for its decision, the court of appeals did not have authority to order supplemental briefing but was instead required to affirm because of Appellants' failure to brief all possible grounds for the trial court's decision, holding that the court of appeals had the authority to order supplemental briefing.In this dispute over church assets, Appellees filed a motion to dismiss and a plea to the jurisdiction based on both standing and the ecclesiastical abstention doctrine. The trial court granted the motion but did not specify the grounds for its decision. Appellants appealed, but the appellate brief only addressed the standing issue. The court of appeals affirmed, holding that it lacked the authority to order supplemental briefing on the ecclesiastical abstention issue and was bound to affirm the trial court because Appellants failed to challenge all possible bases for the decision. The Supreme Court reversed, holding that because Appellants effectively raised the ecclesiastical abstention issue in their appellate briefing, the court of appeals had the authority to order additional briefing under Tex. R. App. P. 38.9. View "St. John Missionary Baptist Church v. Flakes" on Justia Law