Janos Farkas v. Wells Fargo Bank, N.A. And Brice Vander Linden & Wernic, P.C. N/K/A Buckley Madole, P.C. ( 2015 )


Menu:
  •                                                                                     ACCEPTED
    03-14-00716-CV
    4961709
    THIRD COURT OF APPEALS
    AUSTIN, TEXAS
    4/20/2015 6:23:29 PM
    JEFFREY D. KYLE
    CLERK
    No. 03-14-00716-CV
    In the Court of Appeals                 FILED IN
    3rd COURT OF APPEALS
    for the                     AUSTIN, TEXAS
    Third Court of Appeals District Court of Texas
    4/20/2015 6:23:29 PM
    Sitting at Austin, Texas           JEFFREY D. KYLE
    Clerk
    Janos Farkas, Appellant
    vs.
    Wells Fargo Bank, N.A. and Brice, Vander Linden & Wernick, P.C. n/k/a
    Buckley Madole, P.C., Appellee
    On Appeal from the 201st District Court
    Travis County, Texas
    Appellee’s Brief,
    Brice, Vander Linden & Wernick, P.C. n/k/a Buckley Madole, P.C.
    Buckley Madole, P.C.
    Sammy Hooda SBN: 24064032
    Luke Madole SBN: 12801800
    14841 Dallas Parkway, Suite 425
    Dallas, Texas 75254
    Telephone: (972) 643-6600
    Facsimile: (972) 643-6699
    Email: sammy.hooda@buckleymadole.com
    Attorney for Appellee
    Brice, Vander Linden & Wernick, P.C., n/k/a
    Buckley Madole, P.C.
    ORAL ARGUMENT NOT REQUESTED
    No. 03-14-00716-CV
    In the Court of Appeals
    for the
    Third Court of Appeals District of Texas
    Sitting at Austin, Texas
    Janos Farkas, Appellant
    vs.
    Wells Fargo Bank, N.A. and Brice, Vander Linden & Wernick, P.C. n/k/a
    Buckley Madole, P.C., Appellee
    On Appeal from the 201st District Court
    Travis County, Texas
    Appellee’s Brief,
    Brice, Vander Linden & Wernick, P.C. n/k/a Buckley Madole, P.C.
    Buckley Madole, P.C.
    Sammy Hooda SBN: 24064032
    Luke Madole SBN: 12801800
    14841 Dallas Parkway, Suite 425
    Dallas, Texas 75254
    Telephone: (972) 643-6600
    Facsimile: (972) 643-6699
    Email: sammy.hooda@buckleymadole.com
    Attorney for Appellee
    Brice, Vander Linden & Wernick, P.C., n/k/a
    Buckley Madole, P.C.
    ORAL ARGUMENT NOT REQUESTED
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 1
    Table of Contents
    Table of Contents .......................................................................................................2
    Identity of the Parties and Counsel ............................................................................3
    Index of Authorities ...................................................................................................4
    Statement of the Case.................................................................................................6
    Statement Regarding Oral Argument ........................................................................7
    Issues Presented for Review ......................................................................................8
    1. Whether trial court erred in denying Frakas’ partial motion for summary
    judgment, and in granting Brice’s traditional and no-evidence motion for
    summary judgment on Farkas’ claims for violations of the Texas Debt Collection
    Act, Texas Finance Code and Chapter 12 of the Civil Practice and Remedies
    Code. .......................................................................................................................8
    Statement of Facts ......................................................................................................9
    Summary of the Argument.......................................................................................10
    Argument and Authorities........................................................................................11
    I. Standards of Review .......................................................................................11
    A. Traditional Motion for Summary Judgment ...............................................11
    B. No-Evidence Motion for Summary Judgment ............................................11
    II. The trial court did not err in granting Brice’s traditional and no-evidence
    motion for summary judgment on Farkas’ claims for violations of the Texas Debt
    Collection Act, Texas Finance Code and Chapter 12 of the Civil Practice and
    Remedies Code. ....................................................................................................12
    A. Brice is entitled to the affirmative defense of attorney immunity as to
    Farkas’ TDCA and TFC claims. ........................................................................13
    B. Farkas’ CPRC Chapter 12 violation claims fail as a matter of law. ...........16
    Conclusion and Prayer .............................................................................................19
    Certificate of Compliance ........................................................................................21
    Certificate of Service ...............................................................................................21
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 2
    Identity of the Parties and Counsel
    (1)   Appellant                                Represented by:
    Janos Farkas                             William D. Davis
    (Plaintiff in the underlying action)     Bar No. 00796444
    bdavis@capital-ip.com
    DAVIS & ASSOCIATES
    P.O. Box 1093
    Dripping Springs, Texas 78620
    512-858-9910 (Telephone)
    512-858-2357 (Fax)
    (2)   Appellee                             Represented by:
    Wells Fargo Bank, N.A.               B. David Foster
    (Defendant in the underlying action) Bar No. 24031555
    dfoster@lockelord.com
    Susan A. Kidwell
    Bar No. 24032626
    skidwell@lockelord.com
    LOCKE LORD, LLP
    600 Congress Ave. Suite 2200
    Austin, Texas 78701
    512-305-4700 (Telephone)
    512-305-4800 (Fax)
    (3)   Appellee                               Represented by:
    Brice, Vander Linden, P.C.,            Sammy Hooda
    n/k/a Buckley Madole, P.C.             Bar No. 24064032
    (Defendant in the underlying action)   sammy.hooda@buckleymadole.com
    Luke Madole
    Bar No. 12801800
    luke.madole@buckleymadole.com;
    BUCKLEY MADOLE, P.C.
    14841 Dallas Parkway, Suite 425
    Dallas, Texas 75254
    972-643-6600 (Telephone)
    972-643-6699 (Fax)
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 3
    Index of Authorities
    Cases
    Butler v. Lilly, 
    533 S.W.2d 130
    , 131-34 (Tex. Civ. App.—Houston [1st Dist.]
    1976, writ dism’d).................................................................................................12
    Campbell v. Mortgage Electronic Registration Systems, Inc., et al., 
    2012 WL 1839357
    (Tex. App.—Austin 2012) .....................................................................13
    Dolcefino v. Randolph, 
    195 S.W.3d 906
    , 917 (Tex. App.—Houston [14th Dist.]
    2000, pet. denied)..................................................................................................11
    Helena Chem. Co. v. Wilkins, 47 S.W3d 48, 493 (Tex. 2001) ................................17
    Iqbal v. Bank of America, N.A., et al., 559 Fed. Appx. 363 (5th Cir. 2014) ...........13
    Kiggundu v. Mortg. Elec. Registration Sys., Inc., 
    2011 WL 2606359
    , at *7 (S.D.
    Tex. June 30, 2011)...............................................................................................16
    Kruegel v. Murphy, 
    126 S.W. 343
    (Tex. Civ. App.—Dallas 1910, writ ref’d) .......12
    Marsh v. JPMorgan Chase Bank, N.A., 
    888 F. Supp. 2d 805
    , 812-14 (W.D. Tex.
    2012) .....................................................................................................................
    15 Mart. v
    . Trevino, 
    578 S.W.2d 763
    , 771 (Tex. Civ. App.—Corpus Christi 1978,
    writ ref’d n.r.e.) .....................................................................................................12
    Nixon v. Mr. Prop. Mgmt. Co., 
    690 S.W.2d 546
    , 548 (Tex. 1985) .........................10
    Purported Lien or Claim Against Bond v. Barrett Daffin Frappier Turner & Engel,
    LLP, No. G-12-188, 
    2013 WL 1619691
    , at *11 (S.D. Tex. Mar. 22, 2013) ........18
    Randall’s Food Mkts., Inc. v. Johnson, 
    891 S.W.2d 640
    , 644 (Tex. 1995) ............10
    Rojas v. Wells Fargo Bank, N.A., et al., 
    2014 WL 2547770
    (5th Cir. June 6, 2014)
    ...............................................................................................................................13
    Taco Bell Corp. v. Cracken, 
    939 F. Supp. 528
    , 532 (N.D. Tex. 1996) ....................12
    Statutes
    TEX. CIV. PRAC. & REM. CODE § 12.002..................................................................19
    TEX. CIV. PRAC. & REM. CODE § 12.002(a) .............................................................17
    Rules
    TEX. R. CIV. P. 166a(c).............................................................................................11
    TEX. R. CIV. P. 166a(i) .............................................................................................11
    TEX. R. CIV. P. 736.1(d).................................................................................................................... 17
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 4
    Constitutional Provisions
    Tex. Const. Art. XVI § 50(r)....................................................................................18
    Legislative History
    House Comm. On Criminal Jurisprudence, Bill Analysis, Tex. H.B. 1185, 75th
    Leg., R.S. (1997) ...................................................................................................18
    Senate Jurisprudence Committee, Bill Analysis, Tex. H.B. 1185, 75th Leg., R.S.
    (1997) ....................................................................................................................18
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 5
    Statement of the Case
    Brice, Vander Linden & Wernick, P.C., n/k/a Buckley Madole, P.C. (“Brice”),
    is a law firm hired to assist banks with the foreclosure process. In this case, Brice
    was retained by Wells Fargo Bank, N.A. (“Wells Fargo”) to assist in the foreclosure
    of 6315 Farmdale Lane, Austin, Texas 78749 (“Property”). Appellant, Janos Farkas’
    (“Farkas”) had failed pay his residential mortgage as contractually agreed. In
    discharging its duties as Wells Fargo’s attorney, Brice sent Farkas notices advising
    of the default on his residential mortgage and, ultimately, Brice filed an expedited
    foreclosure proceeding under Rule 736 of the Texas Rules of Civil Procedure on
    behalf of Wells Fargo.
    The trial court rightly granted Brice’s traditional and no-evidence motion for
    summary judgment and rightly denied Farkas’ partial motion for summary
    judgment. Below, Farkas failed to raise a genuine issue of material fact or present
    more than a scintilla of evidence in support of his claims against Brice. Furthermore,
    Brice asserted the affirmative defense of attorney immunity. Texas law is clear –
    attorneys are immune from claims like those asserted by Farkas, and must remain
    immune in the interest of orderly administration of the civil justice system. Thus,
    Brice now submits its Appellee’s Brief in support of trials court’s judgment granting
    its motion for summary judgment against all of Farkas’ claims.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 6
    Statement Regarding Oral Argument
    Appellee, Brice, Vander Linden & Wernick, P.C., n/k/a Buckley Madole,
    P.C., does not request oral argument in this matter.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 7
    Issues Presented for Review
    1.    Whether trial court erred in denying Frakas’ partial motion for
    summary judgment, and in granting Brice’s traditional and no-evidence motion for
    summary judgment on Farkas’ claims for violations of the Texas Debt Collection
    Act, Texas Finance Code and Chapter 12 of the Civil Practice and Remedies Code.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 8
    Statement of Facts
    On January 11, 2007, Farkas executed a Wells Fargo Home Equity Account
    Agreement and Disclosure Statement (“Account Agreement”) and a Texas Deed of
    Trust (the “Deed of Trust”) securing a home equity line of credit of $103,441.00.
    [CR 47-61, 70-83] The Account Agreement and Deed of Trust will collectively be
    referred to as the “Loan.”
    Farkas subsequently defaulted on the Loan in September 2010, and Brice,
    acting as foreclosure counsel on behalf of Wells Fargo sent a Notice of Default and
    Intention to Accelerate to Farkas on April 21, 2011. [87-88] Farkas failed to cure the
    default, and Brice then sent Farkas a notice on June 23, 2011 that the debt was being
    accelerated. [CR 90-91] On September 15, 2011, Brice sent Farkas notice of its
    application for an order allowing foreclosure. [CR 92-149] The Rule 736 proceeding
    filed regarding the Property was subsequently abated and dismissed by operation of
    law when Farkas filed an independent lawsuit on December 5, 2011, which is the
    subject of this appeal. TEX. R. CIV. P. 736.11(c).
    Farkas does not dispute that he is in default. Instead, Farkas challenges Wells
    Fargo’s ability to foreclose and alleges Brice violated the Texas Debt Collection Act
    (“TDCA”), Texas Finance Code (“TFC”) § 382.001 et seq., and Chapter 12 of the
    Civil Practice and Remedies Code (“CPRC”). [CR 9-12] The trial court did not err
    because Brice was entitled to summary judgment on all of Farkas’ claims.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 9
    Summary of the Argument
    The trial court did not err in granting Brice’s motion for summary judgment
    while denying Farkas’ motion for partial summary judgment. In its motion for
    traditional and no-evidence summary judgment Brice successfully disproved an
    element of Farkas’ causes of action and/or specifically (and successfully) challenged
    the evidentiary support for an element of Farkas’ claims. The summary judgment
    evidence conclusively established Brice’s affirmative defense of attorney immunity
    on all of Farkas’ claims demonstrating that all actions taken by Brice were during
    the course of its representation of Wells Fargo and solely in its capacity as legal
    counsel for Wells Fargo in furtherance of protecting Wells Fargo’s interest in the
    Property at issue herein.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 10
    Argument and Authorities
    Fakas’ brief as to Appellee Brice, focuses on Brice’s inability to assert
    attorney immunity as an affirmative defense against the claims alleged by Farkas.
    Thus, Brice’s brief is limited in response to it being entitled to the affirmative
    defense of attorney immunity on all of Farkas’ claims.
    I.    Standards of Review
    A.     Traditional Motion for Summary Judgment
    A party who moves for traditional summary judgment must establish that no
    genuine issue of material fact exists and that the movant is entitled to judgment as a
    matter of law. TEX. R. CIV. P. 166a(c); Nixon v. Mr. Prop. Mgmt. Co., 
    690 S.W.2d 546
    , 548 (Tex. 1985). If the movant seeks summary judgment on a claim for which
    movant does not bear the burden of proof, the movant may meet its burden by either
    conclusively negating at least one essential element of the respondent’s claim or by
    pleading and conclusively establishing each element of an affirmative defense to the
    claim. Randall’s Food Mkts., Inc. v. Johnson, 
    891 S.W.2d 640
    , 644 (Tex. 1995).
    B.     No-Evidence Motion for Summary Judgment
    A party may move for summary judgment “on the ground that there is no
    evidence of one or more essential elements of a claim or defense on which the
    adverse party would have the burden of proof at trial.” TEX. R. CIV. P. 166a(i). A no-
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 11
    evidence motion for summary judgment must specifically state the elements for
    which there is no evidence. 
    Id. “The court
    must grant the motion unless the
    respondent produces summary judgment evidence raising a genuine issue of material
    fact.” 
    Id. Any such
    evidence must be competent. Dolcefino v. Randolph, 
    195 S.W.3d 906
    , 917 (Tex. App.—Houston [14th Dist.] 2000, pet. denied).
    II.   The trial court did not err in granting Brice’s traditional and no-
    evidence motion for summary judgment on Farkas’ claims for violations of
    the Texas Debt Collection Act, Texas Finance Code and Chapter 12 of the
    Civil Practice and Remedies Code.
    Farkas’ asserted claims against Brice for violations of the Texas Debt
    Collection Act (“TDCA”), Texas Finance Code (“TFC”) § 382.001 et seq., and
    Chapter 12 of the Civil Practice and Remedies Code (“CPRC”), relying entirely on
    one or more of the following allegations: 1) various notices incorrectly name Wells
    Fargo Home Equity as either current mortgagee or mortgage servicer and there is no
    evidence in the property records of a transfer from Wells Fargo Bank, N.A. to Wells
    Fargo Home Equity; 2) the notice of default and acceleration reference the wrong
    loan number and therefore are ineffective; 3) various notices improperly refer to a
    potential non-judicial foreclosure of Farkas’ home equity loan; and 4) various
    notices misstate the amount of the debt. [CR 4-12]
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 12
    A.     Brice is entitled to the affirmative defense of attorney immunity as
    to Farkas’ TDCA and TFC claims.
    In general, attorneys are immune from suits by their client’s adversaries for
    conduct undertaken in their capacity as attorneys. See, e.g., Butler v. Lilly, 
    533 S.W.2d 130
    , 131-34 (Tex. Civ. App.—Houston [1st Dist.] 1976, writ dism’d) (an
    attorney enjoys “qualified immunity,” with respect to non-clients, for action taken
    in connection with representing a client in adversarial circumstances). Based on
    overriding public policy, Texas courts have consistently held that an opposing party
    “does not have a right of recover, under any cause of action, against another attorney
    arising from his discharge of his duties in representing a party.” See Taco Bell Corp.
    v. Cracken, 
    939 F. Supp. 528
    , 532 (N.D. Tex. 1996). Attorneys have an absolute right
    to “practice their profession, to advise their clients and interpose any defense or
    supposed defense, without making themselves liable for damages.” See Kruegel v.
    Murphy, 
    126 S.W. 343
    (Tex. Civ. App.—Dallas 1910, writ ref’d). The courts have
    also held that attorney immunity applies whether the attorney is providing his serves
    within the context of litigation, or simply in a business transaction; the immunity
    extends to non-litigation conduct as well as litigation conduct. See Martin v. Trevino,
    
    578 S.W.2d 763
    , 771 (Tex. Civ. App.—Corpus Christi 1978, writ ref’d n.r.e.). Texas
    law is clear – attorneys are immune from claims like Plaintiff’s and must remain
    immune in the interest of orderly administration of the civil justice system.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 13
    Farkas argument that Brice is not entitled to attorney immunity is premised
    on the fact that Brice is not an “attorney-at-law” and no attorney has been named as
    a defendant. Farkas further claims that qualified immunity is only applicable for
    attorneys in litigation, and the Brice’s conduct complained of relates to actions
    outside of litigation. However, Texas law holds opposite of both of these theories
    and as such these theories fail as a matter of law. There are three leading cases on
    point that have developed the attorney immunity defense in the foreclosure context.
    See Rojas v. Wells Fargo Bank, N.A., et al., 
    2014 WL 2547770
    (5th Cir. June 6,
    2014); Iqbal v. Bank of America, N.A., et al., 559 Fed. Appx. 363 (5th Cir. 2014);
    Campbell v. Mortgage Electronic Registration Systems, Inc., et al., 
    2012 WL 1839357
    (Tex. App.—Austin 2012).
    All three of these cases arose from foreclosure proceedings being pursued by
    banks against homeowners that were in default under the terms of their mortgages.
    The banks retained legal counsel to assist them in pursuing their rights to foreclose
    and within that process a lawsuit was filed naming numerous parties, including the
    attorneys and/or the law firms representing the banks. In all three cases the courts
    reached the conclusion that the attorneys and law firms representing the banks during
    the foreclosure process were protected by attorney immunity from the plaintiffs’
    claims. See Iqbal, 559 Fed. Appx. at 365 (“they [plaintiffs] contend their claims
    against BDFTE [law firm] were viable because BDFTE [law firm] did not qualify
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 14
    for attorney immunity. We disagree. BDFTE [law firm] was retained to assist in the
    foreclosure, and the action complained of by the Iqbals [plaintiffs] are within the
    scope of their [law firm] representation. The Iqbals [plaintiffs] argue that attorney
    immunity applies only in the ligiation context, but that stance is not in line with
    Texas law”); Rojas, 
    2014 WL 2547770
    at *2 (“attorneys are generally immune from
    suits brought under Texas law against them by their adversaries if the action arises
    out of the duties involved in representing a client. We have previously held that
    BDFTE [law firm] has immunity for its acts as foreclosure counsel”)
    Similarly, Brice is entitled to attorney immunity against all of the claims
    asserted by Farkas, because all conduct complained of was performed by Brice
    during the course of their representation of Wells Fargo and solely in its capacity as
    legal counsel for Wells Fargo in furtherance of protecting Wells Fargo’s interest in
    the Property at issue. Iqbal, 559 Fed. Appx. at 365 (5th Cir. 2014) (citing, Campbell,
    No. 03-11-00429-CV, 
    2012 WL 1839357
    , at *5-6 (Tex. App.—Austin, May 18,
    2012) (affirming dismissal on grounds of attorney immunity in wrongful foreclosure
    case against attorneys retained by Wells Fargo to assist in foreclosure)). Brice was
    retained by Wells Fargo to assist in the foreclosure of the Property. The only
    communication Brice had with Farkas was in its capacity as “legal counsel for Wells
    Fargo in an adverse relationship with Plaintiff.” [CR 352-353] The actions Farkas
    complains of herein were within the scope of Brice’s representation of Wells Fargo
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 15
    in the foreclosure proceeding against the Property. Therefore, under Texas law Brice
    is immune from suits brought against it by its clients’ adversaries (i.e., Farkas) if the
    action arises out of the duties involved in representing a client. Rojas, 571 Fed.
    Appx. at 278 (5th Cir. 2014) (“We have previously held that BDFTE [a law firm
    defendant] has immunity for its acts as foreclosure counsel”). Thus, Farkas’ claims
    against Brice for violations of the TDCA and TFC § 382.001 et seq., fail as a matter
    of law.
    B.     Farkas’ CPRC Chapter 12 violation claims fail as a matter of law.
    Frakas’ claims that the notices and correspondences sent by Brice on behalf
    of Wells Fargo violates CPRC Chapter 12 also fails as a matter of law because the
    notices and correspondence: 1) do not create a lien or claim against real property;
    and 2) were never recorded. [CR 10-12]
    First, section 12.002 of the Texas Civil Practice and Remedies Code only
    applies to documents which create a fraudulent lien or claim, not to documents
    pertaining to when, where, how, or by whom a valid lien may be enforced. See Marsh
    v. JPMorgan Chase Bank, N.A., 
    888 F. Supp. 2d 805
    , 812-14 (W.D. Tex. 2012).
    Under Chapter 12, a person “may not make, present, or use a document” with
    knowledge that it is a “fraudulent lien or claim against real or personal property or
    [against] an interest in real or personal property,” and with intent that it “be given
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 16
    the same legal effect as . . . a valid lien or claim.” TEX. CIV. PRAC. & REM. CODE §
    12.002(a). A necessary element of Farkas’ section 12.002 claim, therefore, is that
    the document alleged to be fraudulent is (or purports to be) a “lien or claim.”
    Though, Farkas’ brief does not expressly state the actions taken by Brice in
    violation of CPRC 12, Farkas does insinuate (and has argued in the summary
    judgment evidence included in the record) that Brice’s filing of the Rule 736
    application seeking an order to allow foreclosure violated CPRC 12. Brice, on behalf
    of Wells Fargo, sent Plaintiff notices and correspondence related to the default on
    the Loan. Thereafter, Brice, on behalf of Wells Fargo, filed a Rule 736 application
    and included the statutory notices that were sent to the Farkas as required by the
    rules. See TEX. R. CIV. P. 736.1(d). Thus, the notices and correspondence sent herein
    are, at best, documents relating to the enforcement of a valid lien and do not
    themselves create a lien or claim against real property. See Kiggundu v. Mortg. Elec.
    Registration Sys., Inc., 
    2011 WL 2606359
    , at *7 (S.D. Tex. June 30, 2011)
    (documents used to foreclose on real property are not actionable under section
    12.002 if the underlying note and deed of trust are valid).
    Farkas would have this Court believe that filing a proceeding required under
    the Texas Constitution and provided for by the Texas Rules of Civil Procedure is a
    violation of CPRC 12. If this is the rule then every Rule 736 application that is filed
    can be abated by filing an independent lawsuit alleging CPRC 12 violations. Surely,
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 17
    this was not the intent of the Texas Legislator and the Texas Supreme Court, and
    surely that is not the plain meaning of CPRC 12. Under Texas rules of statutory
    construction, the Court “must construe statutes as written and, if possible, ascertain
    legislative intent from the statute’s language. Helena Chem. Co. v. Wilkins, 47
    S.W3d 48, 493 (Tex. 2001).
    The legislative history provides that the purpose of this section was to “create
    a private cause of action against a person who files fraudulent judgment liens or
    fraudulent documents purporting to create a lien or claim against real or personal
    property in favor of a person aggrieved by the filing.” House Comm. On Criminal
    Jurisprudence, Bill Analysis, Tex. H.B. 1185, 75th Leg., R.S. (1997) (emphasis
    added); see also Senate Jurisprudence Committee, Bill Analysis, Tex. H.B. 1185,
    75th Leg., R.S. (1997).
    The filing of the Rule 736 application is contrary to the plain meaning and the
    legislative intent of CPRC 12. The Rule 736 application is filed pursuant to the rules
    promulgated by the Texas Supreme Court, which power is derived from the Texas
    Constitution. See Tex. Const. Art. XVI § 50(r). Its purpose is to enforce, not create,
    the lien. It is unimaginable that the Texas Legislators and the Texas Supreme Court
    were oblivious to the fact that creating Rule 736 will allow every application to be
    in violation of CPRC 12. The 736 application filed herein was filed to obtain a court
    order required to proceed with a non-judicial foreclosure sale against Plaintiff’s real
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 18
    property. See 
    Marsh, 888 F. Supp. 2d at 813
    (W.D. Tex. 2012) (“the Court concludes
    in order to state a fraudulent lien claim under Section 12.002, a party must allege the
    challenged instrument purported to create a lien or claim against property”). Thus, it
    is absurd to purpose that by following the rules, Brice subjected itself to liability for
    violation of CPRC 12.
    Lastly, Farkas’ fraudulent lien claim fails because Brice did not file nor record
    either of the documents at issue; rather, they were simply mailed to Farkas. [CR 4-
    8, 10-12] This is fatal to a section 12.002 claim because Chapter 12 (which governs
    "Liability Related to a Fraudulent Court Record or a Fraudulent Lien or Claim Filed
    Against Real or Personal Property") only applies to documents that are filed or
    recorded in the public property records. See generally TEX. CIV. PRAC. & REM. CODE
    § 12.002; see also Purported Lien or Claim Against Bond v. Barrett Daffin Frappier
    Turner & Engel, LLP, No. G-12-188, 
    2013 WL 1619691
    , at *11 (S.D. Tex. Mar. 22,
    2013) ("Section 12.002 prohibits a person from filing fraudulent documents under
    certain circumstances. . . .") (emphasis added).
    Conclusion and Prayer
    As shown above the trial court did not err in granting Brice’s traditional and
    no-evidence motion for summary judgment. Farkas has not shown that he has
    evidence to support all of the elements on any of his cause of action, Farkas did not
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 19
    produce summary judgment evidence that raised a genuine issue of material fact,
    and Brice is entitled to the affirmative defense of attorney immunity as a matter of
    law on all of Farkas’ claims.
    Appellee, Brice, Vander Linden & Wernick, P.C., n/k/a Buckley Madole,
    P.C., prays that this Honorable Court affirm the judgment of the trial trail court
    rendered in its favor on all of Farkas’ claims, that all costs of the appeal be taxed
    against Farkas, and for such other relief, general and special, legal and equitable, to
    which it may be justly entitled.
    Respectfully submitted,
    /s/ Sammy Hooda
    Sammy Hooda SBN: 24064032
    Luke Madole SBN: 12801800
    Buckley Madole, P.C.
    14841 Dallas Parkway, Suite 425
    Dallas, Texas 752542
    Telephone: (972) 643-6600
    Facsimile: (972) 643-6699
    Email:sammy.hooda@buckleymadole.com
    Attorney for Appellee
    Brice, Vander Linden & Wernick, P.C., f/k/a
    Buckley Madole, P.C.
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 20
    Certificate of Compliance
    I certify that the foregoing Brief of Appellee Brice, Vander Linden &
    Wernick, P.C. n/k/a Buckley Madole, P.C. contains 2,682 words (excluding the
    sections expected under Texas Rule of Appellate Procedure 9.4(i)(1)).
    Certificate of Service
    I certify that a true and correct copy of the foregoing has been served on the
    following counsel of record, in accordance with Texas Rule of Appellate
    Procedure 9.5, on this 17th day of April, 2015.
    VIA Electronic Service
    Bill Davis
    Davis & Associates
    P.O. Box 1093
    Dripping Springs, Texas 78620
    bdavis@capital-ip.com
    ATTORNEY FOR APPELLANT
    JANOS FARKAS
    VIA Electronic Service
    Dave Foster
    Locke Lord, LLP
    600 Congress Avenue, Suite 2200
    Austin, Texas 78701
    dfoster@lockelord.com
    ATTORNEY FOR APPELLEE
    WELLS FARGO BANK, N.A.
    /s/ Sammy Hooda
    Sammy Hooda
    BRICE, VANDER LINDEN & WERNICK, P.C, APPELLEE’S BRIEF
    Case Number: 03-14-00716-CV
    Page: 21