DocketNumber: NO. 14-16-00323-CV
Citation Numbers: 541 S.W.3d 331
Judges: Brown, Frost, Jewell
Filed Date: 12/5/2017
Status: Precedential
Modified Date: 10/18/2024
The appellant raises jurisdictional and constitutional challenges to the adverse judgment rendered against her by the county court at law in this forcible-detainer action. She asserts the justice court and the county court at law lacked jurisdiction over the action. Additionally, the appellant, who suffered foreclosure of her home and is challenging the validity of the foreclosure in other litigation, asserts various constitutional challenges to Texas's statutory scheme for forcible-detainer actions. She argues the statutory scheme violates her due process rights because the justice court can resolve the forcible-detainer action and she can lose the right to possession before resolution of her separate lawsuit challenging the validity of the foreclosure. We conclude that the lower courts had jurisdiction over the forcible-detainer action and that appellant has not met her burden to show a violation of due process.
I. FACTUAL AND PROCEDURAL BACKGROUND
Appellant/defendant Maria DeJesus Reynoso purchased property at 6610 Bellaire Gardens in Houston, Texas ("Property") in 2001, and signed a deed of trust creating a lien on the Property in connection with the transaction. Fourteen years *336later, the current holder of the deed-of-trust lien, Wells Fargo Bank, N.A. noticed a non-judicial foreclosure of the lien, and the substitute trustee conducted a foreclosure sale in November 2015. The substitute trustee signed a Substitute Trustee's Deed purporting to convey the Property to appellee/plaintiff Dibs US, Inc., the highest bidder at the foreclosure sale.
The substitute trustee conducted the foreclosure sale under a deed of trust ("Deed of Trust") that included a clause expressly stating that in the event of a foreclosure sale, (1) Reynoso's right to occupy the Property ceases upon the sale of the Property, and (2) Reynoso has no right to occupy the Property without the written consent of the Property's new owner (the "Clause").
Dibs sent Reynoso a notice to vacate in January 2016. When Reynoso did not vacate the Property, Dibs filed a forcible-detainer action in the justice court. The justice court signed a judgment granting Dibs possession of the Property. Reynoso appealed the justice-court judgment to the county court at law. In the county court at law, Reynoso filed a motion to dismiss the suit.
In her motion to dismiss, Reynoso asserted that (1) Reynoso had sued Wells Fargo in the district court asserting various claims including wrongful foreclosure; (2) the Clause violates Reynoso's due process rights under the Texas Constitution and the United States Constitution because the provision allows the purchaser of the Property at a foreclosure sale to bring a forcible-detainer action in the justice court even though a district court has jurisdiction over Reynoso's claim that Wells Fargo wrongfully foreclosed on the Property; and (3) the issue of possession is intertwined with the issue of title to the Property and therefore the district court has exclusive jurisdiction and the county court at law has no jurisdiction over this forcible-detainer action. The county court at law signed an order denying Reynoso's motion to dismiss. After a trial de novo, the county court at law signed a final judgment granting Dibs possession of the Property.
Reynoso now appeals the judgment, asserting, among other things, that (1) the lower courts lacked jurisdiction over the forcible-detainer action; (2) the Clause violates her due process rights; (3) the county court at law's enforcement of the Clause violated her right to due process of law; and (4) the statutory scheme granting the justice court jurisdiction over this forcible-detainer action violates due process of law.
II. ANALYSIS
Reynoso obtained an adverse ruling from the county court at law on her motion to dismiss, in which she raised various jurisdictional and constitutional issues, and we presume for the sake of argument that she preserved error thereby as to all of her non-jurisdictional appellate issues. Reynoso did not need to preserve error on her challenges to the justice court's subject-matter jurisdiction because parties may not waive challenges to subject-matter jurisdiction and may raise them for the first time on appeal. See Tex. Ass'n of Bus. v. Tex. Air Control Bd. ,
A. Alleged lack of jurisdiction in the justice court
Under her first, second, and fifth issues, Reynoso asserts that the justice court lacked jurisdiction over the forcible-detainer action because the possession issue is intertwined with the issue of title to the Property.
*337The justice court of the precinct where the Property is located has subject-matter jurisdiction to hear a forcible-detainer action relating to the Property. See
When the justice court cannot determine the right to possession without resolving a title dispute, neither the justice court nor any court hearing an appeal from the justice-court judgment has jurisdiction. See Maxwell ,
In her appellate brief, Reynoso asserts that she filed suit against Wells Fargo in the Harris County district court, asserting various claims, including a claim for wrongful foreclosure, and the suit was removed to federal district court. The Deed of Trust (which Reynoso signed) contains the Clause, under which Reynoso agrees:
If Lender acts to have the Property sold after a Breach of Duty as defined in Paragraph 28, I understand and agree that: (A) my right to occupy the Property ceases at the time the Property is sold; (B) I shall have no right to occupy the Property without written consent of the new owner of the Property ...
The defining characteristic of a tenancy at sufferance is the lack of the owner's consent to the tenant's continued possession of the premises. See Coinmach Corp. v. Aspenwood Apartment Corp. ,
Dibs was the highest bidder at the foreclosure sale, and the substitute trustee signed a Substitute Trustee's Deed purporting to convey the Property to Dibs. Under the Clause, Reynoso agreed that following such a sale, she would have no right to occupy the Property without Dibs's written consent. Reynoso does not assert that Dibs gave written consent for Reynoso to occupy the Property, nor does the record contain any evidence that Dibs did so. Under the facts reflected in this record, the issue of possession may be determined without determining title. See id. Thus, the justice court and the county court at law on appeal had subject matter jurisdiction over the forcible-detainer action, and this court has jurisdiction over the appeal. See id.
B. Alleged violation of substantive and procedural due process
Under her first, second, and fifth issues, Reynoso asserts that, if the justice court did have jurisdiction, this jurisdiction violated substantive and procedural due process under the United States Constitution and substantive and procedural due course of law under the Texas Constitution because jurisdiction is based on the Clause, and (1) the Clause is an "unbargained for" provision that was not disclosed to Reynoso and to which Reynoso did not agree; (2) the Clause deprives Reynoso of her right to litigate possession in the district court, along with her wrongful-foreclosure and other claims; and (3) allowing Dibs to litigate possession and obtain possession of the Property from Reynoso before Reynoso's challenges to the validity of the foreclosure sale are resolved violates due process. Under her fifth issue, Reynoso asserts that Texas Property Code section 24.002, governing forcible-detainer actions, does not provide for determination of issues relating to a homeowner's right to possession of the real property following foreclosure of a lien in the property in a meaningful manner or at a meaningful time. Therefore, according to Reynoso, this statute violates Reynoso's right to procedural due process under the Due Process Clause of the Fourteenth Amendment to the United States Constitution and Reynoso's right to procedural due course of law under the Texas Constitution. See U.S. Const. amend. XIV, § 1 ; Tex. Const. art. I, § 19.
Reynoso has not briefed any argument that any due-course-of-law analysis differs from the due process analysis as to the same complaint, so we presume without deciding that the due-course-of-law analysis under the Texas Constitution mirrors the due process analysis under the United States Constitution. See Chair King, Inc. v. GTE Mobilnet of Houston, Inc. ,
1. Substantive Due Process Principles
A violation of substantive due process occurs when the government deprives individuals of constitutionally protected rights by an arbitrary use of power.
*339Montrose Mgmt. Dist. v. 1620 Hawthorne, Ltd. ,
2. Procedural Due Process Principles
The Fourteenth Amendment's Due Process Clause provides that an individual may not be deprived of certain substantive rights-life, liberty, and property-without constitutionally adequate procedures. Bexar Cnty. Sheriff's Civil Serv. Com'n v. Davis ,
3. "Unbargained for" Provision
Reynoso asserts that the Clause violates due process and contract law because it is an "unbargained for" provision that allegedly was not disclosed to her.
i. Violations of the Due Process Clause require State action.
Due process protections guaranteed by the Fourteenth Amendment "do not extend to private conduct abridging individual rights." Nat'l Collegiate Athletic Ass'n v. Tarkanian ,
*340Reynoso's execution of the Deed of Trust and her agreement to its terms does not involve state action, so the Clause, in and of itself, does not violate the Due Process Clause. See Jackson ,
ii. We presume Reynoso agreed to the contract she signed.
The record does not contain any evidence as to Reynoso's awareness of the Clause when she signed the Deed of Trust. Even presuming that Reynoso did not read the Deed of Trust before placing her signature on it and that nobody pointed out the Clause to Reynoso or explained it to her, as Reynoso suggests on appeal, there is no question that Reynoso signed the Deed of Trust containing the Clause.
The law presumes that a party who signs a contract knows its contents. See Nat'l Prop. Holdings, L.P. v. Westergren ,
Reynoso has not argued that any conspicuousness requirement applies to tenancy-at-sufferance clauses. See *341Dresser Indus. v. Page Petroleum ,
We presume Reynoso knew and accepted the contents of the Deed of Trust she signed, including the Clause. See Westergren ,
4. Texas Property Code section 24.002
Under her fifth issue, Reynoso asserts that Property Code section 24.002 does not provide for determination of issues relating to a homeowner's right to possession of the real property following foreclosure of a lien on the property in a meaningful manner or at a meaningful time. Therefore, Reynoso asserts, this statute violates Reynoso's right to procedural due process under the Due Process Clause. And, Reynoso asserts that strict scrutiny applies to this analysis. Reynoso argues that the expedited procedure under section 24.002 removes homeowners who challenge the validity of the foreclosure sale from their homes quickly before they have time to obtain relief on their claims challenging the validity of the foreclosure sale.
Texas Property Code section 24.002, entitled "Forcible Detainer," provides:
(a) A person who refuses to surrender possession of real property on demand commits a forcible detainer if the person:
(1) is a tenant or a subtenant wilfully and without force holding over after the termination of the tenant's right of possession;
(2) is a tenant at will or by sufferance, including an occupant at the time of foreclosure of a lien superior to the tenant's lease; or
(3) is a tenant of a person who acquired possession by forcible entry.
(b) The demand for possession must be made in writing by a person entitled to possession of the property and must comply with the requirements for notice to vacate under Section 24.005.
Reynoso had vested property rights in her home. See Carlson ,
*342Mayhew ,
We already have explained that by signing the Deed of Trust containing the Clause, Reynoso accepted its terms. By that act, Reynoso agreed that she would be a tenant at sufferance of the purchaser of the Property at the foreclosure sale. Under Property Code section 24.002, this status allowed the justice court and the county court at law to decide who had the superior right to possession of the Property in a forcible-detainer action. See
Reynoso had the opportunity to fully litigate the issue of possession in the justice court and in the county court at law. Reynoso does not assert that either of those courts came to the wrong conclusion about the superior right of possession. Reynoso has not carried her burden to show that Property Code section 24.002 violates the procedural due process protection of the Due Process Clause. See Coleman,
5. Alleged Right to Litigate Possession Issue in State District Court or to Litigate Possession at Same Time as Title
Reynoso next asserts that the Clause violates her right to litigate possession in the district court, along with her wrongful-foreclosure and other claims. Reynoso suggests that justice courts should not have jurisdiction over forcible-detainer cases when the occupant has asserted a wrongful-foreclosure claim (or other claims) against the lender in district court and those claims are pending. She argues that Texas's statutory scheme allows successful bidders at foreclosure sales, like Dibs, to speedily litigate the right to possession and to eject the homeowner from the property following the foreclosure sale before the homeowner is able to fully litigate challenges to the validity of the foreclosure sale. Reynoso also suggests there should be a procedure to stay the eviction until the foreclosure challenge is resolved.
*343Reynoso argues that courts should apply strict scrutiny because property ownership is a fundamental right. In support of this argument, Reynoso cites Lindsey v. Normet , a case in which the Supreme Court of the United States held that a rational-basis test applied to a constitutional challenge to an Oregon forcible-detainer statute. See
Balancing the interests of creditors, debtors, and successful bidders at foreclosure sales, the Texas Legislature had a rational basis for structuring a statutory scheme that would allow speedy litigation of the issue of possession of the property in a forcible-detainer action in the justice court, while providing that title, including issues as to the validity of the foreclosure sale, be litigated in district court. See Mitchell ,
Reynoso argues that she has a right to litigate possession in district court at the same time she litigates her challenges to the validity of the foreclosure sale, including her wrongful-foreclosure claims. Enforcement of the Clause as a basis for justice-court jurisdiction over a forcible-detainer action does not violate substantive due process based on Reynoso's right to litigate possession issues in the state district court, along with her challenges to the foreclosure sale, because Reynoso has no right under the Due Process Clause to litigate these issues together or in the state district court. See Mitchell ,
C. Claims waived due to inadequate briefing
At times in her appellate briefing, Reynoso mentions in passing three arguments: (1) the Clause goes against public policy, (2) Texas eviction laws violate equal protection of the law because they protect the mortgagee but do not protect the mortgagor; and (3) Texas eviction laws are not narrowly tailored to achieve the state's controlling interest and there is a better way to provide equal protection for homeowners' property rights after a foreclosure sale. Adequate appellate briefing entails more than mentioning arguments in passing. An appellant's brief must contain a clear and concise argument for the contentions made, with appropriate citations to authorities and to the record. Tex. R. App. P. 38.1(h) ; San Saba Energy, L.P. v. Crawford ,
III. CONCLUSION
The justice court had jurisdiction over the forcible-detainer action because the justice court could determine the right to possession without resolving issues of title. Reynoso has not met her burden to prove the alleged due process violations that she has briefed, and she has waived any complaints as to the others by failing to adequately brief them. Having concluded that none of the appellate issues Reynoso has raised affords her any basis for appellate relief, we overrule Reynoso's issues and affirm the county court at law's judgment.
Indeed, according to Reynoso, after she sought to litigate her claims against Wells Fargo and her challenges to the validity of the foreclosure sale in state district court, these claims were removed to federal district court, and therefore, even these claims may not be determined in state district court, as Reynoso would prefer.
We concluded in the previous section that this statutory scheme does not violate Reynoso's right to procedural due process.
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