v.
Wells Fargo Bank National Association as Trustee for Option One Mortgage Loan Trust 2006-3, Asset Backed Certificates, Series 2006-3
ACCEPTED 03-14-00202-CV 4572670 THIRD COURT OF APPEALS April 15, 2015 AUSTIN, TEXAS 3/19/2015 6:30:28 PM JEFFREY D. KYLE CLERK
NO. 03-14-00202-CV RECEIVED IN 3rd COURT OF APPEALS IN1HECOURTOF APPEALS AUSTIN, TEXAS 3/19/2015 6:30:28 PM 1HE THIRD DISTRICT OF TEXAS JEFFREY D. KYLE DALLAS TEXAS Clerk
NEMER MASSAAD, and all other OCCUPANTS Appellant v. WELLS FARGO BANK NATIONAL ASSOCIATION AS TRUSTEE FOR OPTION ONE MORTGAGE LOAN TRUST 2006-3, ASSET BACKED CERTIFICATES, SERIES 2006-3 Appellee. Appeal from the County Court at Law Number One Travis County, Texas Trial Court Case No. C-1-CV-14-000401 Hon. Joe Carroll, presiding Oral Argument Requested MOTION FOR REHEARING BRIEF FOR APPELLANT Identity of the Parties
[*1]Appellant/Defendant NEMER MASSAAD
Counsel for Appellant/Defendant
James Minerve State Bar No. 24008692 115 Saddle Blanket Trail Buda, Texas 78610 (21 0) 336-5867 (888) 230-6397 (Fax) (Appellate, Post-trial, and Appellate)
Appellee/Plaintiff WELLS FARGO BANK NATIONAL ASSOCIATION AS TRUSTEE FOR OPTION ONE MORTGAGE LOAN TRUST 2006-3,ASSET BACKED CERTIFICATES, SERIES 2006-3
Counsel for Appellee/Plaintiff
Mackie WolfZientz & Mann, P.C. Mark D. Cronenwett State Bar No. 00787303 Parkway Office Center, Ste 900 14160 North Dallas Parkway Dallas, Texas 75254 (214) 635-2650 (888) 230-6397 (Fax) (Appellate, Post-trial, and Appellate) Table of Contents
[*2]Identity of Parties and Counsel ........................................... 2 Table of Authorities .................................................. 4-5 Glossary of Terms ..................................................... 6 Statement of the Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Statement Regarding Oral Argument . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........ 8 Issues Presented . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Statement of Facts .................................................... 10 Summary of the Argument .............................................. 11 Argument ........................................................... 13 The Puentes and Crawford Holdings . . . . . . . . ......................... 13 Puentes v. Fannie Mae Case Summary ................................ 13 Federal Home Loan Mortgage Corp. v. Crawford Case Summary ......... 14 Legal Injury Rule ................................................ 18 Continuing Tor Rule ............................................... 22 Prayer ............................................................. 23 Certificate of Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 25 Certificate of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . ................... 26 Appendix ............................................................. 27 Table of Authorities
[*3]Cases
Puentes v. Fannie Mae. 350 S.W.3d 732. 734-35 (Tex. App. - El Paso 2011, Pet. Dism'd) ... 11, 13, 14, 18 Federal Home Loan Mortf!af!e Corv. v. Crawford, Cause No. 14-13-0010-CV. Pg. [1] (Tex. APP.- Houston f14th Dist.l Oct. [9]. 20141 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11. 14. 15 Rice v. Pinnev. 51 S.W.3d 705:2001 Tex. Ann. LEXIS 1831 ......................................................... 17 Kennedv v. Hif!hland Hills Avartments. 905 S.W.2d 325,326 (Tex.App.-Dallas 1995, no writ) ....................... 17 Johnson v. Fellowshin Bantist Church 627 S.W.2d 203,204 (Tex.App.-Corpus Christi 1981, no writ) .............................. 17 Fandev v. Lee. 880 S.W.2d 164. 168 (Tex.App.-El Paso 1994, writ denied) ................................... 17 Cuellar v. Martinez, 625 S.W.2d 3. 5 (Tex.Civ.Ann.-San Antonio 1981, no writ) .......................... 17 Johnson v. Hitzhland Hills Drive Avartments. 552 S.W.2d 493. 495 (Tex.Civ.Ann.-Dallas 1977). writ refd n.r.e. ner curiam. 568 S.W.2d 661 :(Tex.1978) ............................................. 17 Brown v. Henderson. 941 S.W.2d 190 (Ann. 13 Dist.. 1996) .................................. 16 Houtex Readv Mix Concrete & Materials v. Eaele Const. & Environment Services. LP 226 S.W.3d 514 (Ann. [1] Dist. 2006) ................................... 16 Amstadt v. US. Brass Corv.. 919 S.W.2d 644, 652 (Tex. 1996) ..................................... 16 Lovez v. Sulak. 76 S.W.3d 597, 605 (Tex. App.-Corpus Christi 2002, no pet.) ............... 18 Ward v. Malone. 115 S.W.3d 267. 270 (Tex. Ann.-Corpus Christi 2003, pet. Denied) .......... 18 Pusteiovskv v. Ravid American Corv.. 35 S.W.3d 643 Sunp. 2000) .......................................... 19 Childs v. Haussecker. 974 S.W.2d 31 (Sunn. 1998. rehearing overruled) ........................ 19 Mitchell Enerf!V Corv. v. Bartlett. 958 S.W.2d 430 (Ann. [2] Dist. 1997. rehearing overruled. review denied. rehearing ofnetition for review overruled ................................... 19, 22 Rogers v. Ricane Entemrises. Inc .. (Ann. [7] Dist. 1996) 930 S.W.2d 157 ................................ 19, 22 Morris v. Enron Oil & Gas Co ... 948 S.W.2d 858 (App. [4] Dist. 1997) ................................... 19 Sullivan v. Bickel & Brewer.. 943 S.W.2d 477 (Ann. [5] Dist. 1995. writ denied. rehearin2: of writ of error overruled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Arauette v. Hancock. 656 S.W.2d 627, 629 (Tex. App.- San Antonio 1983, writ refd n.r.e) ........ 22 Roczers 162 S.W.3d at 290) ................................................ 22 Murrav v. San Jacinto AQencv. Inc .. 800 S.W.2d 826, 828 (Tex. 1990) ..................................... .11 S. V. v. R. V., 933 S.W.2d 1, 4 (Tex.1996) ............................................................ 12 Doe v. Catholic Diocese ofEl Paso, 362 S.W.3d 707, 716 (Tex.App.-El Paso 2011, no pet.) ...................... 12 Robinson v. Weaver, 550 S.W.2d 18. 19 (Tex.l977) ........................................................... 12 Two Pesos. Inc. v. GulfIns. Co .. 901 S.W.2d 495.500 (Tex. Ann.-- Houston [14th Dist.] 1995, no writ) .............. 22 Krohn v_ Afarcus Cahle Assocs __ L.P__ 201 S.W.jd 876, 880 (Tex. App.-Waco 2006, pet. demed) .................... 22 Texas Rules of Annellate Procedure Texas Rule of Appellate Procedure 39.1 .................................... 8
[*4]Texas Rules of Civil Procedure Texas Rule of Civil Procedure 510 (738-754. Renealed bv Order of Anri115. 2013. Eff. Aug. 31, 2013) .................................................. 17 Texas Pronertv Code Texas Pronertv Code Section 24.002-008 .................................................................. 12 Texas Property Code Section 24.005(b) .................................. .17 Texas Civil Practice and Remedies Code Texas Civil Practice and Remedies Code 31.005 (2013) ..................... .16 Texas Civil Practice and Remedies Code Ann. S 16.003(a) and (b) (West Sunn. 1998) ................................................... 10 Texas Civil Practice and Remedies Code 16.03 ....................... 12, 21, 23 Glossary of Terms Citation in this Brief will be as noted below to the following volumes of the record on file in this appeal, said volumes being incorporated herein by reference:
[*5]Clerk' Record CR
Reporter's Record Volume 1 RRl
Reporter's Record Volume 2 RR2
Reporter's Record Volume 3 RR3
Statement of the Case
This is a Forcible Detainer Case. October 18, 2011 the Appellee filed a Forcible Detainer Action. November 7, 2011, the JP Court issued a judgment in favor of Appellant, denying the possession to the Appellee. I Appellee re-filed its lawsuit under Cause No. 051840 and the JP Court dismissed it as a duplicate case on November 7, 20 11.2 November 7, 20 11, a party in interest, at the time, filed in District Court a Quiet Title Action, Cause No. D-I-GN-Il-003424.3 November 21,2011, the Appellee filed another FED Action in this Court, Cause No. 052212. December 29, 2011, this Court issued Judgment for the Appellant.[4] November 6, 2013, the Appellee filed another FED action (FED Action 4) in the JP Court, Cause No. J3CV13056327. The JP Court rendered judgment in favor of the Appellee. The Appellant appealed to the County Court at Law No. 1. The County
1 Exhibit C: FED Order 1, in favor ofDefendant, dated November 7, 2011, Cause No. 051975. 2 Exhibit D: FED Order 2, in favor ofDefendant, Duplicate Case Dismissal Order, dated November 7, 2011, Cause No. 051840. 3 Exhibit E: Quiet Title Action, filed in the 345 1h District of Travis County, dated November 7, 2011, Cause No. D- 1GN-11-003424. 4 Exhibit F: FED Order 3, in favor of Defendant, dated December 29, 2011.
Appellant's Motion for Rehearing Brief Page 6 of26
Court held a trial de novo and ruled in favor of the Appellee without issuing an opm10n.
Appellant's Motion for Rehearing Brief Page 7 of26 Statement Regarding Oral Argument Pursuant to Texas Rules of Appellate Procedure 39.1, Nemer Massaad requests oral argument and submits that it would materially aid the decisional process in this case. Appellant's Motion for Rehearing Brief Page 8 of26 Issues Presented Appellant respectfully submits the following motion for rehearing brief which outlines the legal framework in which the Court should consider the following: Nov 07 11 03:06p Donald Buchanan (512) 264-2762 p.4 Nov 07 11 03:06p Donald Buchanan (512) 264-2762 p.5 Nov 0711 03:06p Donald Buchanan (512) 264-2762 p.6
6. .A.ny allegation about acts of any corporate or other business Defendant(s) means that the corporation or other business did the acts alleged tltrough its officers. directors, employees, agents and/or representatives while they were acting within the actuaf or ostensible scope or their authority.
Nov 07 11 03:07p Donald Buchanan (512) 264-2762 p.7
'12. Venue !s proper under the mandatOP.:f venue rules§ 15.001 , "!5.0C2(J\), ("1 } of the Texas Civil Practice and Remedies Code. BACKGROUND MATERIAl FACTS 13. On Apri[ 22, 2011 Nemer Massaad conveyed all interest in the real property described as 2408 Wilma Rudolph rd, Austin, TX 78748 to John K. Rady. See E.x.'"libU 1. 14. JUDICiAL NOTICE 15. If Defendant is unable to prove it is a Holder in Due Course and is unable to establish lawful authority from the true Note Holder in Due Course, then it has no Standing or right of enforcement CAUSES OF ACTION 16. Defendant is not a real party in interest and had no legal standing to foreclose on the Property. 17. Furt'ler, standing "requires that a party seeking relief have a legally cognizable . interest in the subject matter and that he has a threatened or actual injury. 18. The Note has been securitized and is now part of a public offering placed in a Trust Therefore the Defendant can not claim ownership 11-.tithout committing securities fraud and is thereby bringing fraud before the court. 19. Defendant does not have the original Note and can not show legal Chain of Title or authority to foreclose on the property. A point at issue in this controversy involves the authenticity of a Promissory Note, Deed of Trust with Chain of Title and Defendant's standing to enforce foreclosure on property referenced above.
Nov 0711 03:07p Donald Buchanan (512)264-2762 p.8
20. Plaintiff heieby Moves this Court to enter an Order compelling all parties who can lay iawfuf claim on the Deed of Tr..Jst io do so by presentment of valid enforceable proof of claim. 21. There is no evidence of an assignment of the Deed of Trust from the real party in interest. Defendant has not produced an assignment, nor are any assignmenfs recorded in the public records as required by law. 22. Plaintiff hereby Moves this Court to enter an Order compelling all parties who can :ay lawful claim on "the Note to do so by presentment of valid enforceable proof of claim. 23. Defendant brings multiple accounts of fraud before the court by claiming to be the Note Holder, claiming to have fulfilled the requirements of non judicial foreclosure 24. Breach of contract. Defendant has not followed the terms of the Note and Deed of Trust The terms of the Deed of Trust have been violated by the Defendant making the Deed of Trust unenforceable. 25. The Note and Deed of Trust have been Bifurcated nullifying the Deed of Trust resulting in no right to foreclose. 26. By claiming to have a personal knowledge of the facts and to have reviewed the documents and signing an oath as to their authenticity the counsel for the Defendant has brought fraud before the court an done so in an effort to deceive the court into granting undue enrichment for himself and his client 27. Unconscionability. Defendant has fraudulently committed multiple violations of local, state and federal laws in an effort to receive unjust enrichment 28. Defendant violates the laws governing the Note and the Deed of Trust as a matter of practice in an effort to cut costs and many of these laws. 29. Defendants have committed Fraud and extortion to abuse the Non judicial process to suit their needs and requirements. 30. Defendant has failed to meet the precedent conditions to Non Judicial Foreclosure.
[*6]··- - -·- -- - . -- · -·-·-·- - · - - - -- - -- - - - - - -
Nov 07 11 03:08p Donald Buchanan (512) 264-2762 p.9
31. Defendant has put the Plaintiffs property at risk by doing busin:=ss out side !he iimits of defendants authority as a licensed bank and under defendant's corporate charter_ 32. Defendant misled the Plaintiff as to the purpose of creating the Note and what would happen to the Note after the Note was endorsed. Tnese misrepresentations were intentional and designed to conceal the undue enrichment of the Lender. 33. The Defendant breached its fiduciary responsibility to the Plaintiff by not disclosing all of the facts concerning the Noie and Deed of Trust and acting in a manner that puts the Plaintiff's property at risk. 34. The Defendant by wrongfully foreclosing on the Plaintiff's Property 11as caused irreparable damage to the Plaintiff. depriving the Plaintiff of the right to private property, the enjoyment of the fruits of their labors, and deliberately creating conditions whereby the Plaintiffs resources are extinguished in an effort to limit Plaintiff's ability to defend their rights. 35. Defendants actions have been deliberately designed to inflate the cost of reinstating the loan and creating circumstances whereby the Plaintiff could not qualify for loan Modification allowing the Defendant to give the appearance of offering help while working to do the opposite. 36. Defendant ts not in· compliance with the FASB (Financial Accounting Standards Board) partofthe GMP FAS 5. 95,125,133,140. PRAYER FOR REUEF 37. WHEREFORE, if Defendant fails to produce a lawful proof of claim and proof of standing as the Holder in Due Course, and Chain of Title Plaintiff respectfully moves this Court to enter a Quite Title judgment ordering the following remedies. 38. Release Plaintiff from a!! claims in relation to Defendant's foredosure. 39. Award Quiet Title to the Property that is the subject of this suit. 40. Mali< the Note as "Settled in Fulr for the Defendant's record, as well as all public --------------·-----
[*7]Nov 07 11 03:08p Donald Buchanan (512) 264-2762 p. 10
41. records including but not limited to; al! credit bureaus and county records. 42. Declare the Recorded Deed of Trust. Loani Mortgage of record. null and void. 43. Return all monies collected on thls transaction to date with the same interest as the original Promissory Note calculated from the date of the loan paid in oile lump sum. 44. Punitive damages for every intentional and knowing violation; 45. Declare the promissory note to be tully discharged. 46. Damages not to exceed the jurisdictional limits of this Court. 47. Recording fees, Court Cost, Servicing Fee's, eY.penses and any such other and further relief to which the plaintiff may Justly be entitled. 48. Any other equitable relief, which the court deems, appropriates in ihis case. 49. Any and all other remedies appropriate and necessary deemed by this Honorable Court. Respectfully submitted this the 7th day of November 2011. 13276 Research Blvd # 204 Austin, TX 78750 T: 512-258-0909 - - - - - - - - - - - -- - - - --· -- .. . __ .
[*8]Nov 07 11 03:09p Donald Buchanan (512) 264-2762 p.11
CERTiFICATE OF SERVICE Plaintiff's request that the clerk of the court prepare dtatior. and that same be served b~· 1he clerk as authorized by the Texas rules by certmed mail , retum receipt requested • to the parties and addressed as follows: JOHN RADY may be served at 13276 Research Blvd #204 Austin, TX 78750 AMERICI\NI-:fOME·MORTGAQE SERVICING, INC. 35b_N:'St·PAUL,._.ST. $TE;.2900 DAllA$. TEXAS75201 SAND CANYON CORPORATION ~i~~:?Stiiit (;T CORPORATION SYSTEM 350N. ST. PAUL St STE. 2900 DALLAS, TEXAS 75201 ELI?f;Br;TH f?QULTON c/o-SAND CANYON CORPORATION registered agentCT CORPORATION SYSTEM 350N. ST. PAUL ST. STE. 2900 DALLAS, TEXAS 75201 Nov 07 11 03:09p Donald Buchanan (512) 264-2762 p.12
[*9]VERIFICATION STATE OF TEXAS COUNTY OF TRAVIS IT JOHN RADY, hereby declare that the above statement is true to the best of my knowledge and belief, and that I understand it is made for use as evidence in court and is subject to penalty for peJjury. --;::/ 0 ,.. ';:f()HN RADy----~-=-"""'"''"".,...~- ./ 13276 Research #204 Austin, TX 78750 T: 512-258-0909 SUBSCRIBED AND SWORN TO BEFORE ME on this the _ _ day of _ _ _ __ _ _ _ _ _ 20.11. Notary Public rn and for The State of Texas.
[*10]··--·- --· -------------
NOTICE SENT: @INTERLOCUTORY r:~:~E DC BK12320 PG628
DISP PARTIES: ~ Filed in The District Court DISP CODE:~ Cl@{Q [ r of Travis County, Texas REDACT PGS: _ _ _---..,,...-,...-- ER NOV f 3 2012 JUDGE ().;..{ CLERK tttfil\0 NO. D-1-GN-11-003424 At . II: 45 tt.M.
JOHNRADY, § IN THE DI~T~I~f1~5·tm'fl6fJerk § Plaintiff, § § vs. § § ELIZABETH BOULTON, SAND § CANYON CORPORATION, WELLS § FARGO BANK, N.A., AS TRUSTEE FOR § OPTION ONE MORTGAGE LOAN § TRUST 2006-3, ASSET BACKED § ;.~·.,~ ·-.:,:'
CERTIFICATES, SERIES 2006-3, AND § ~!~ 1-::..J. r~ AMERICAN HOME MORTGAGE § SERVICING, INC., § <(-Y § i!j:t 345th JUDICIAL DISTRICT Defendants. § Jb· ~·~
ORDE~*~ ~ On the 13th day of November 2012, ~ Court heard Elizabeth Boulton's Special (j Appearance and Defendants Elizabeth Boult!?~ Sand Canyon Corporation, Wells Fargo Bank, ~,-
N.A., as Trustee for Option One Mortg~~an Trust 2006-3, Asset-Backed Certificates, Series Q' 2006-3, and Homeward Residential, I"\~ Inc. f/k/a American Home Mortgage Servicing's Traditional IF::-., and No-Evidence Motion for SJ!rii'rhary Judgment. The Court, having considered the Special , ... ·-.."" Appearance and Motion, ~m;;\esponses thereto, the competent summary judgment evidence ~.~._~
f~"" before the Court, the arguments of counsel, the pleadings on file and all other materials properly ~ '""" "l before the Court. m~~~>;~as follows: ~ {:;~-?'
The Co,;~' ORDERS that Elizabeth Boulton's Special Appearance is GRANTED and that ~,~... - f,;' Elizabeth .~,?'tilton is not subject to personal jurisdiction in the State of Texas for the allegations, clai~!>~nd causes o~ actions brought by Plaintiff in the above styled and captioned cause.
Therefore, it is ORDERED, ADJUDGED and DECREED that Plaintiffs claims against
Elizabeth Boulton are DISMISSED for lack of personal jurisdiction.
AUS: I 003945/00 120:478349v I DC OK 12320 PG629 The Court is of the opinion that Defendants Sand Canyon Corporation, Wells Fargo Bank, N.A., as Trustee for Option One Mortgage Loan Trust 2006-3, Asset-Backed Certificates, Series 2006-3, and Homeward Residential, Inc. f/k/a American Home Mortgage St;::vicing's '~ •',('' ,.··-\.-+ ... Traditional and No-Evidence Motion for Summary Judgment has merit ar:c: .should be .i~~ /~ {l;·4 GRANTED. ,._:~~ "' ~·"' Therefore, it is ORDERED, ADJUDGED and DECREED that DeJj?iidants Sand Canyon ,..,;·- ...._,..., .~- Corporation, Wells Fargo Bank, N.A., as Trustee for Option One Mo~~')ge Loan Trust 2006-3, & Asset-Backed Certificates, Series 2006-3, and Homeward Resid~l, Inc. f/k/a American Home Mortgage Servicing's Traditional and No-Evidence Motior!<tv Summary Judgment be and is til ~ hereby GRANTED, and all claims against Defendants~li'ld Canyon Corporation, Wells Fargo ., J3an¥., N.A., as Trustee for Option. One Mortgage ~Trust 2006-3, Asset-Backed Certificates, ~ Series 2006-3, and Homeward Residential, lnc(.ftk/a American Home Mortgage Servicing are ~ .(; DISMISSED WITH PREJUDICE. This ~r shall constitute a final and appealable judgment .~ that Plaintiff take nothing by his claim<)\11 relief not granted herein is denied. ,. ,. SIGNED on this U dayG'l~ovember, 2012. ··0 ·~ ·~ ~ -~...ttJ> ' AUS: !003945/00 120:478349v I
DC BK12J20 PG6JO
AGREED AS TO FORM: Jo~ ·-<:' 'r B. David L. Foster ;•; t Lauren M. Fincher . .;~'' ~~~~~ ~ Attorneys for Defendants ;-.. .~J . Elizabeth Boulton, Sand Canyon Corporation, Wells Fargo Bank, .~}~A., as Trustee for Option One Mortgage Loan Trust 2006-3, Asset-Backed Certificates.A>~·ies 2006-3, and Homeward Residential, Inc. f/k/a American Home Mortgage Servicing ::._..e;- ·~v 1§ 1"4, "'~-=' ~"¥ & (J-0 ~ .(J (' ,,""'+{!j ··~ ,. . . . . -~.J- r ;:~~~~>•' AUS: I 003945/00120:478349v I
Cause No. 052212 -·-·-·-·- - -- -- WELLS FARGO BANK, -N.A. AS TRUSTEE }{ JUSTICE COURT FOR OPTION ONE HORTGAGE LOAN }{ TRUST 2006-3, ASSET-BACKED }{ CERTIFICATES, SERIES 2006-3 }{ }{ PRECINCT THREE v. }{ }{ MASS~~D, NEMER AND ALL OCCUPANTS }{ TRAVIS COUNTY, TEXAS
> > > JUDGMENT < < <
On DECEMBER 29, 2011, came to be heard the above entitled and numbered cause . The Plaintiff appeared and announced ready for trial. The Defendant, duly notified did/did no~ appear and announce ready for trial. No Jury was demanded and all issues were submitted to the Court. After hearing and considering pleadings 1 evidence and argument, the Court is of the opinion and finds that the F-laintiff/Defendant is entitled to judgment.
IT IS THEREFORE ORDERED, that the Plaintiff, WELLS FARGO BANK, N.A. AS TRUSTEE FOR OPTION ONE MORTGAGE LOAN TRUST 2006-3, ASSET-BACKED CERTIFICATES, SERIES 2006-3 shall not recover from the Defendant, MASSAAD, NEMER AND ALL OCCUPANTS AND SAID DEFENDANT SHALL CONTINUE TO USE AND ENJOY
POSSESSION of the premises at 2408 WILMA RUDOLPH RD, AUSTIN, TX 78748
Signed DECEMBER 29 1 2011.