Texas Title Queen Rachel Luna’s Accused of Title Deed Fraud in Harris County Court Filing

TO THE HONORABLE COURT:

Intervenor, LOLLIPOP, INC. (“Lollipop”) files this Petition in Intervention and Third- Party Petition and in support of the same respectfully pleads the following:

I. PARTIES

1.            Intervenor, Lollipop, is a Texas corporation.

2.            Plaintiff Karen Merrell (“Merrell”), as independent administratrix of the Estate of Woodrow Johnson, Deceased (the “Estate”), is the original Plaintiff in this action and may be served at 2409 Sam Wilson St., Houston, Texas 77020, pursuant to Rules 21 and 21a, Texas Rules of Civil Procedure. Citation is not required.

3.            Defendant Rachel Luna (“Luna”) is an individual who is a resident of Texas and may be served with process at 16022 Kube Court, Jersey Village, Texas 77040, or wherever she may be found.

4.            Defendant Texas Net Realty, LLC (“Net Realty”), is a limited liability company based in Texas and may be served with process through its registered agent, Rachel Luna, at 21901 State Highway 249 Suite 500B, Houston, Texas 77070.

5.            Defendant Patriot Title- Vintage Park (“Patriot Title”) is a sole proprietorship and may be served with process through its owner, Rachel Luna, at 21901 State Highway 249 Suite 500B, Houston, Texas 77070.

6.            Third-Party Defendant Maria Fernanda Baron (“Baron”) is an individual who is a resident of Texas and may be served with process at 3663 Washington Avenue #3039, Houston, Texas 77007, or wherever she may be found.

II.

JURISIDICTION, VENUE AND INTERVENTION

7.            The Court has jurisdiction over the lawsuit because it concerns title to real property located in Harris County, Texas.

8.            Pursuant to Section 15.011 of the Texas Civil Practices & Remedies Code, venue is proper in Harris County, Texas, because this is the county where the real property that is the subject of this case is located.

III.

RULE 47 STATEMENT

9.            Lollipop seeks non-monetary relief and monetary relief of $250,000 or less and non-monetary relief.

IV.

DISCOVERY CONTROL PLAN

10.         Discovery shall be conducted pursuant to Level 2 of Texas Rule of Civil Procedure 190.4 2 and affirmatively pleads that this suit is not governed by the expedited- actions process under Rule 169 of the Texas Rules of Civil Procedure.

V. FACTS

11.         This is an action related to the title of real property, currently held by Lollipop, commonly known as 2617 Sam Wilson St. Houston, Texas 77020 (the “Property”), and described as follows:

LOT THREE (3), BLOCK TWENTY-THREE 923), F.F. CHEW ADDITION, an addition in Harris Conty, Texas according to the map thereof recorded in Volume 1, Page, 8 of the Map of Records of Harris County, Texas.

12.         On May 5, 1970, George Harris conveyed the Property to Woodrow Johnson (“Johnson”) via a General Warranty Deed recorded in the Real Property Records of Harris County under File No. D102776.

13.         On January 1, 1993, the City of Houston issued a demolition lien against the Property, which was recorded in the Real Property Records of Harris County at File No. P046635 (“City Lien”).

14.         Johnson died intestate on February 14, 2001.

15.         On June 8, 2014, Merrell was appointed as the independent administratrix of the Estate of Woodrow Johnson by Probate Court No. 1, Harris County, Texas, in Cause No. 413565.

16.         On June 25, 2014, Karon Merrell, Howard Johnson, Michael Wayne Johnson, Donnie Johnson, and Robert Johnson were each awarded a 20% interest in the Estate.

17.         On April 27, 2018, Karon Merrell and Rachel Luna on behalf TLP Land INV, LLC (“TLP Land”), entered into a Purchase and Sale Agreement for Merrill to convey the Property to TLP Land for $27,500.

18.         A settlement statement reflecting the $27,500 sales price was prepared, charging the seller $12,391.00, which was inclusive of back taxes, court costs and fees. A total of $15,108.89 was due to the seller.

19.         On June 19, 2018, a check from Rachel Luna d/b/a Lonestar Partners was issued in the amount of $15,108.89 to Karon Merrell.

20.         On June 19, 2018, Merrell on behalf of the Estate conveyed the property to Texas Net Realty (“Net Realty”) via a General Warranty Deed recorded on June 20, 2023, in the Real Property Records of Harris County at File No. RP-2023-227373.

21.         On June 12, 2023, Maria Fernanda Baron and Texas Net Capital, LLC (“Net Capital”) entered into a Purchase and Sale Agreement for Net Capital to purchase the Property.

22.         On June 13, 2023, Net Capital assigned the Purchase and Sale Agreement with Baron to Harkor Homes, LLC (“Harkor Homes”).

23.         On June 15, 2023, Net Realty conveyed the property to Baron through a General Warranty Deed recorded in the Real Property Records of Harris County at File No. RP-2023-227374.

24.         On June 29, 2023, Harkor Homes assigned the Purchase and Sale Agreement with Net Realty, which was an assignment of the Purchase and Sale Agreement with Baron, to Lollipop.

25.         On June 30, 2023, Maria Fernanda Baron conveyed the Property to Lollipop through a General Warranty Deed recorded in the Real Property Records of Harris County at File No. RP-2023-249335.

26.         On July 24, 2023, following Lollipop’s payment at closing, the City of Houston recorded a Release of Involuntary Lien for Demolition in the Real Property Records of Harris County at File No. RP-2023-284493.

27.         After its acquisition of the Property, Lollipop paid taxes on the Property and made improvements to the Property.

28.         On June 27, 2023, Merrell filed suit against Luna and Patriot Title seeking a declaratory judgment that the Estate is the sole and rightful owner of the Property.

29.         All conditions precedent to this intervention and the relief requested herein have been performed or are excused.

VI. CAUSES OF ACTION

A.   INTERVENOR’S INTEREST IN THE LAWSUIT

30.         A party has a justiciable interest in a lawsuit when its interest will be affected by the litigation. See In re Union Carbide Corp., 273 S.W.3d 152, 155 (Tex. 2008). A party may intervene in a suit if it could have brought all or part of the same suit in its own name. See Nghiem v. Sajib, 567 S.W.3d 718, 721 n. 16 (Tex. 2019).

31.         There is no question Lollipop has a justiciable interest in this case.

Lollipop is a bona fide purchaser who purchased the property for consideration, and is the title holder of record pursuant to the Harris County real property records.

In the alternative, should Lollipop’s title be found invalid, Lollipop has an equitable lien against the Property because it has made improvements and paid taxes thereon.

B.   INTERVENOR’S CAUSES OF ACTION

Declaratory Judgment

32.         Lollipop hereby incorporates by reference the preceding paragraphs as if fully restated herein.

33.         Lollipop seeks and is entitled to a declaration under Chapter 37 of the Texas Civil Practice and Remedies Code of the rights, status, and legal relations between Plaintiff, Defendants, Third Party Defendant, and Lollipop. Specifically, a justiciable controversy exists regarding the title to the Property.

34.         Lollipop acquired title to the Property via General Warranty Deed.

35.         Lollipop is the possessor of the property, and the tax assessee in Harris County. A declaration would resolve the controversy, which is real and substantial, involving a genuine conflict of material interests, and not merely a hypothetical dispute. Therefore, Plaintiff seeks a declaration that:

a.            Lollipop is the fee simple owner of the Property; and

b.            The Estate of Woodrow Johnson has no interest in the Property.

36.         Lollipop seeks to recover its reasonable and necessary attorneys’ fees incurred through trial and any subsequent appeal pursuant to TEX. CIV. PRAC. & REM. CODE § 37.009.

Suit to Quiet Title

37.         Plaintiff hereby incorporates by reference the preceding paragraphs as if fully restated herein.

38.         A suit to quiet title – also known as a suit to remove cloud from title – relies on the invalidity of the defendant’s claim to the property. Gordon v. West Houston Trees, Ltd., 352 S.W.3d 32, 42 (Tex. App. — Houston [1st Dist.] 2011, no pet.). A cloud on title exists when an outstanding claim or encumbrance is shown, which on its face, if valid,

would affect or impair the title of the owner of the property. Id. The effect of a suit to quiet title is to declare invalid or ineffective the defendants’ claim to title. Id.

39.         Lollipop is the record title owner of the Property by virtue of the general warranty deed. To the extent the claims by the Estate of Woodrow Johnson or other parties cloud the title, Lollipop seeks judgment quieting title to Lollipop and removing the cloud on title by the Estate and finding it holds good and superior title to the Property over all parties.

Breach of Contract

(Maria Fernanda Baron)

40.         Lollipop hereby incorporates by reference the preceding paragraphs as if fully restated herein.

41.         In the unlikely event that the record owner, Lollipop, is found to not hold good and superior title to the Property, Baron has breached the contract for the sale of the Property. Lollipop was assigned a valid and subsisting contract with Baron to purchase fee simple title to the Property. Lollipop performed under the contract by delivering the funds required for closing. However, if Baron failed to convey fee simple title to the Property, free and clear of the interests of other parties, this was a breach of a material term of the contract. Lollipop has sustained actual damages as a result Baron’s breach of contract.

Breach of Warranty of Title

(Maria Fernanda Baron)

41.         Lollipop hereby incorporates by reference the preceding paragraphs as if fully restated herein.

42.         In the unlikely event that the record owner, Lollipop, is found to not hold good and superior title to the Property, Baron has breached the warranty of title to the Property in the general warranty deed to Lollipop. Baron failed to convey the property free and clear of all unexpected encumbrances. As a result, Lollipop was damaged.

Equitable Subrogation

43.         Lollipop hereby incorporates by reference the preceding paragraphs as if fully restated herein.

44.         Lollipop, as the owner of the Property, has expended funds paying taxes on the Property, including removing the City Lien. In the alternative, and in the unlikely event Lollipop’s recorded title is not good and valid, Lollipop is entitled to an equitable lien to compensate its contributions to the property.

PRAYER

WHEREFORE, Lollipop respectfully requests that citation be issued for Maria Fernanda Baron and she be commanded to appear and answer herein, that upon final trial or hearing of this matter that it have and recover judgment in its favor, that it be awarded the declaratory and other relief alleged above, that it recover damages and its reasonable attorneys’ fees as may be established at trial, that it recover costs and prejudgment and post-judgment interest as allowed by law, and that it have and recover all other and further relief to which it may be entitled.