There is an interesting new decision out of the Texas Court of Appeals for the 1st District today. The case is Wells Fargo Bank, N.A. v. Ballestas:
Wells Fargo Bank, N.A. v. Ballestas, Case No. 01-10-00020-CV, Texas Court of Appeals for the First District (Houston), Decided May 12, 2011.
Usually, a deed of trust is foreclosed non-judicially in Texas. So very few judicial foreclosures see the inside of a Texas courtroomVery often in foreclosure dismissals elsewhere due to lack of standing, the dismissal is without prejudice to refiling.
In the Ballestas case, seemingly after some curious preliminary legal posturing, Ballestas brought a quiet title suit and then Wells Fargo brought counterclaims. In the first suit, Wells Fargo was found to have failed to prove its ownership and Wells' claims were dismissed.
After the first dismissal, Wells Fargo refiled. It should probably be noted that Wells was still maintaining that it was the owner and holder of the alleged mortgage indebtedness.
The court found that the issue of Wells Fargo's ownership of the subject note had been fully litigated within the first proceeding, precluding relitigation.
This might be a helpful case to some Texas mortgage foreclosure litigants!