Millions of Credits, it’s all Rather Taxing

Williams brought this commercial mortgage lawsuit for breach of contract, among other claims, which has been sent back to the lower court for more discovery to enable an opinion to be rendered on the part quoted below.

“As alluded above, the requirement in a deed of trust that there be notice of intent to foreclose only has meaning if it can be enforced in the event of default. Texas courts “must . . . attempt to give effect to all contract provisions so that none will be rendered meaningless.”

If performance of the terms of a deed of trust governing the parties’ rights and obligations in the event of default can always be excused by pointing to the debtor’s default under the terms of the note, the notice terms have no meaning. Such a reading is inconsistent with the intent of the parties and with Texas law.

However, we express no opinion as to the ultimate outcome of this case. There are a number of issues either not briefed or not adequately briefed in this appeal.

They include whether loss of tax credits is an appropriate component of a damage claim for failure to give notice of foreclosure as required under a deed of trust, and whether the failure to give notice, as distinguished from the default on the loan, or a foreclosure that was not wrongful, caused the loss of tax credits. 

For the foregoing reasons, we AFFIRM the district court’s judgment as to Wells Fargo, we REVERSE the judgment of the district court as to the claim that Fannie Mae breached the deed of trust by failing to give notice, and we REMAND that claim against Fannie Mae for further proceedings in the district court. “

Williams et al v Wells Fargo et al

Before REAVLEY, OWEN, and SOUTHWICK