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Factual and Procedural Background

Valdemar Lopez inherited an undivided one-fifth interest in six tracts of land totaling approximately 1,100 acres in Webb and Duval Counties. After partitioning and selling some surface land, Lopez retained 114 surface acres and a one-fifth mineral interest in all six tracts. In August 2000, Lopez and Gassan Dwairy entered into an Unimproved Property Contract for the sale of approximately 146 acres including all minerals for $50,000, contingent upon Lopez conveying 100% of the mineral interest. The contract referenced only 114 acres in an attached exhibit.

In November 2000, the parties met again, and Dwairy paid Lopez an additional $5,000. At this meeting, the parties dispute what document was executed: Dwairy claimed Lopez executed a Mineral Deed to 1,109 acres in his favor, while Lopez and the notary, Nora Cremar, testified that two Unimproved Earnest Money Contracts were executed instead, not a Mineral Deed.

In December 2000, Lopez conveyed the 114 acres to Dwairy by General Warranty Deed, and Dwairy paid the remaining balance of the purchase price. Later, when Lopez attempted to lease his mineral rights, he was informed that he did not own them due to the recorded Mineral Deed. Lopez sued Dwairy, alleging the Mineral Deed was a forgery, a cloud on his title, and sought its cancellation along with damages and attorney’s fees. The trial court found the Mineral Deed invalid, rescinded it, quieted title in Lopez’s favor, and found the signatures on the Mineral Deed were forged and fraudulently procured by Dwairy. Dwairy appealed.

Legal Issues Presented

  1. Whether the evidence was legally and factually sufficient to support the trial court's finding that the signatures on the Mineral Deed were forged.
  2. Whether Lopez’s cross-issue seeking rescission of the mineral interest conveyed in the General Warranty Deed could be considered without a separate notice of appeal.

Arguments of the Parties

Appellant's Arguments (Dwairy)

  • The evidence is insufficient to prove the Mineral Deed signatures were forged.
  • The presence of the notary’s acknowledgment (Nora Cremar) conclusively proves the validity of the Mineral Deed.
  • Lopez’s testimony denying his signature does not invalidate the deed without proof of fraud or imposition.

Appellee's Arguments (Lopez)

  • Lopez denied signing the Mineral Deed and testified the signature was forged.
  • The notary, Cremar, testified her signature on the Mineral Deed was also forged and that she never notarized that document.
  • Lopez sought a declaration that the Mineral Deed was void, rescinded, and a cloud on title removed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tucker v. Tucker, 908 S.W.2d 530, 532 (Tex.App.-San Antonio 1995, writ denied) Standard for reviewing legal sufficiency of evidence in bench trials. Used to affirm the standard of review for the trial court’s factual findings.
City of Keller v. Wilson, 168 S.W.3d 802, 822 (Tex. 2005) Standards for legal sufficiency review of evidence. Applied to evaluate the sufficiency of evidence supporting the forgery finding.
Pool v. Ford Motor Co., 715 S.W.2d 629, 635 (Tex. 1986) Standards for factual sufficiency review of evidence. Guided the court’s factual sufficiency assessment of the forgery evidence.
Hennessy v. Blair, 173 S.W. 871, 874 (Tex. 1915) A forged deed is void ab initio and passes no title. Supported the holding that the forged Mineral Deed was null and void and conveyed no title.
Dyson Descendant Corp. v. Sonat Exploration Co., 861 S.W.2d 942, 947 (Tex.App.-Houston [1st Dist.] 1993, no writ) Reinforces that a forged deed is void and passes no title. Used to affirm the invalidity of the forged Mineral Deed.
Bellaire Kirkpatrick Joint Venture v. Loots, 826 S.W.2d 205, 210 (Tex.App.-Fort Worth 1992, writ denied) Confirms that a forged deed conveys no title. Supported the court’s conclusion that the Mineral Deed conveyed no mineral interest.
G. Prop. Mgmt, Ltd. v. Multi-vest Fin. Serv. of Texas, Inc., 219 S.W.3d 37, 49 (Tex.App.-San Antonio 2006, no pet.) The trial court is the sole judge of witness credibility in bench trials. Justified the court’s acceptance of Lopez’s and Cremar’s testimony over Dwairy’s evidence.
Lubbock County, Tex. v. Trammel's Lubbock Bail Bonds, 80 S.W.3d 580, 584 (Tex. 2002) Requirement of filing a notice of appeal to seek alteration of trial court’s judgment. Applied to reject Lopez’s cross-issue due to failure to file a notice of appeal.
Brooks v. Northglen Ass'n, 141 S.W.3d 158, 171 (Tex. 2004) Appellate courts may not grant relief to parties who fail to file a proper notice of appeal. Supported the court’s refusal to consider Lopez’s cross-issue.
In re M.P.M., 161 S.W.3d 650, 660-61 (Tex.App.-San Antonio 2005, no pet.) Reinforces procedural requirements for appeal and post-judgment motions. Further supported denial of Lopez’s cross-issue for lack of proper appeal procedure.

Court's Reasoning and Analysis

The court reviewed the trial court’s findings of forgery under the standards for legal and factual sufficiency applicable to bench trials. The court recognized that a forged deed is void ab initio and conveys no title. Despite Dwairy’s argument that the notary’s acknowledgment established validity, the notary herself testified that her signature on the Mineral Deed was forged and that she never notarized the document. Lopez testified he did not sign the Mineral Deed nor authorize anyone to do so, and he never appeared before the notary for that deed.

The court gave deference to the trial court’s role as factfinder and sole judge of witness credibility, noting it could accept or reject any testimony. The court found the evidence sufficient to support the trial court’s conclusion that both Lopez’s and Cremar’s signatures on the Mineral Deed were forged. Consequently, the Mineral Deed was void and passed no title to Dwairy.

Regarding Lopez’s cross-issue requesting rescission of the mineral interest conveyed in the General Warranty Deed, the court found Lopez failed to file a separate notice of appeal as required by Texas Rules of Appellate Procedure. Without this procedural prerequisite and no just cause shown, the court declined to consider the cross-issue.

Holding and Implications

The Court of Appeals affirmed the trial court’s judgment that the Mineral Deed was invalid, null, and void, and rescinded it. The court upheld the quieting of title in favor of Lopez for the six tracts of land.

The direct effect is that the forged Mineral Deed conveys no mineral interest to Dwairy, preserving Lopez’s mineral rights. The court did not award damages to Lopez. The opinion does not establish new precedent but applies established principles regarding forgery, deed validity, and appellate procedure.

Gassan DWAIRY, Appellant, v. Leonardo LOPEZ, As Attorney In Fact for Valdemar Lopez, Appellee.

OPINION

Opinion by SANDEE BRYAN MARION, Justice.

This is an appeal from the trial court's judgment decreeing that a mineral deed was invalid. We affirm.

BACKGROUND

Valdemar Lopez inherited an undivided one-fifth interest in six tracts of land, totaling approximately 1,100 acres, located in Webb and Duval Counties. After partitioning the surface and selling some of the land, Lopez owned 114 surface acres and an undivided one-fifth mineral interest in the full six tracts of land.

In August 2000, Lopez met with Gassan Dwairy to discuss the sale of Lopez's land to Dwairy. After touring the land, Lopez and Dwairy executed an Unimproved Property Contract under which Lopez agreed to sell to Dwairy "146 acres, more or less, including all minerals" for a total sales price of $50,000. The contract contained a "Special Provision" stating the sale was contingent upon Lopez's "ownership and conveyance to [Dwairy] of 100% of the mineral interest in said property." An Exhibit A, attached to the contract, specified that the tract of land was only 114 acres. The contract was signed by both Lopez and Dwairy and notarized by Nora Cremar. Pursuant to the terms of the contract, Dwairy gave Lopez an earnest money deposit in the amount of $5,000.

The parties met again on November 24, 2000, at which time Dwairy paid Lopez an additional $5,000 toward the purchase price of the land. It is at this point in time that the parties' agreement over what document or documents were executed diverge. According to Dwairy, Lopez executed a Mineral Deed to 1,109 acres in Dwairy's favor, which was notarized by Cremar. Dwairy claimed, at trial, that he accepted Lopez's one-fifth mineral interest in the approximately 1,109 acres to compensate for receiving less than the original 146 acres and 100% of the minerals in the August 2000 deal. According to both Lopez and Cremar, Lopez and Dwairy met in Cremar's office to execute two Unimproved Earnest Money Contracts, and not a Mineral Deed.

On December 26, 2000, Lopez and Dwairy met in the offices of Dwairy's attorney, this time to execute a General Warranty Deed, under which Lopez conveyed to Dwairy the 114 acres. On the same date, Dwairy paid Lopez the balance outstanding on the $50,000 purchase price.

When Lopez later attempted to lease his mineral rights, the oil and gas company advised him that he did not own the mineral rights in view of the Mineral Deed that had subsequently been recorded. Lopez sued Dwairy, asserting the Mineral Deed was a slander on his title and the deed was voidable because his signature on the deed was a forgery. Lopez sought a declaration that the deed was of no force or effect, an order canceling the deed and removing the cloud on his title, as well as actual and exemplary damages and attorney's fees, costs, and post-judgment interest. The trial court decreed the Mineral Deed "invalid, null and void, and hereby rescinded and of no force and effect." The court also quieted title in Lopez to the six tracts of land. The court did not award any monetary damages to Lopez. The trial court issued findings of fact, which included findings that the transaction was void of consideration, that Lopez's and Cremar's signatures on the Mineral Deed were both forged, and Dwairy fraudulently procured the deed. Dwairy now appeals.

DISCUSSION

On appeal, Dwairy asserts the evidence is legally and factually insufficient to support the trial court's finding that the signatures on the Mineral Deed were forged. In a bench trial, such as here, we review the findings of fact for legal and factual sufficiency of the evidence by the same standards used in reviewing the evidence supporting a jury's verdict. Tucker v. Tucker, 908 S.W.2d 530, 532 (Tex.App.-San Antonio 1995, writ denied); see City of Keller v. Wilson, 168 S.W.3d 802, 822 (Tex. 2005) (discussing standards for legal sufficiency review); Pool v. Ford Motor Co., 715 S.W.2d 629, 635 (Tex. 1986) (discussing standards for factual sufficiency review).

Here, Lopez claimed his signature was forged. Dwairy counters that the lack of a genuine grantor's signature is not sufficient to set aside an acknowledged instrument as a forgery, unless fraud or imposition is established. According to Dwairy, the presence of Cremar's acknowledgment is irrefutable proof of its validity and Lopez's testimony that he did not sign the Mineral Deed does not invalidate the deed. However, Cremar testified her signature was also forged. A forged deed is void ah initio. Hennessy v. Blair, 107 Tex. 39, 173 S.W. 871, 874 (1915); Dyson Descendant Corp. v. Sonat Exploration Co., 861 S.W.2d 942, 947 (Tex.App.-Houston [1st Dist.] 1993, no writ). Thus, a forged deed passes no title. See Bellaire Kirkpatrick Joint Venture v. Loots, 826 S.W.2d 205, 210 (Tex.App.-Fort Worth 1992, writ denied).

At trial, Lopez testified he did not sign the Mineral Deed; the signature on the deed was not his; he did not know who signed his signature; he did not give anyone permission to sign his signature; and he never appeared before Cremar to sign the deed. Cremar testified she provided notary services to Lopez on three occasions: (1) on August 12, 2000 to notarize the Unimproved Property Contract in the presence of Lopez and Dwairy; (2) on November 24, 2000 to notarize two "property contracts" similar to the August 2000 Unimproved Property Contract in the presence of Lopez and Dwairy; and (3) on December 1, 2000 to provide notary services on another document unrelated to the underlying litigation in the presence of Lopez, Yolanda Pais and her sister, Diane Santian. Cremar said she recalled that the only difference between the two November 2000 "property contracts" was that one was for Webb County and the other for Duval County, and in all other respects she remembered them as being the same. She said she was told the August 2000 Unimproved Property Contract was not valid because it listed both counties in the property description, while the November 2000 "property contracts" listed one county per contract to allow for each contract to be separately recorded in the appropriate county. Cremar admitted she maintains no written records, in the form of a notary log or receipt book, to show what documents she notarized. However, Cremar unequivocally stated she never notarized the Mineral Deed dated November 24, 2000; had never seen the document; the signature purporting to be hers was, in fact, not her signature; and she did not know who signed her signature to the deed.

Neither of these documents were admitted into evidence, and Cremar described them only as "property documents." However, she testified the two documents were similar to the August 12, 2000 Unimproved Property Contract.

Both Lopez and Cremar testified Yolanda Pais was also present when both sets of the Unimproved Property Contracts were notarized. Ms. Pais, who is a friend of Lopez's, did not testify at trial. The December 1, 2000 document was not admitted into evidence.

Dwairy testified he and Lopez executed the Mineral Deed, which was notarized by Cremar, on November 24, 2000. Dwairy denied ever seeing copies of any November 24, 2000 Unimproved Property Contracts. Dwairy's handwriting expert, William Simpson, testified he examined a copy of Lopez's known signature and a copy of the questioned signature, and he concluded the signatures were written by the same hand. Likewise, Simpson stated the known signature of Cremar and the questioned signature of Cremar were written by the same hand. Simpson admitted the documents he examined were not the originals, but instead, were certified copies, and he agreed photographic copies can be distorted. Simpson testified that although there were discrepancies between the known and questioned signatures, he thought there were more similarities than differences.

Although Lopez's and Cremar's testimony conflicted with Dwairy's, in a bench trial, the trial court, as factfinder, is the sole judge of the credibility of the witnesses. G. Prop. Mgmt, Ltd. v. Multi-vest Fin. Serv. of Texas, Inc., 219 S.W.3d 37, 49 (Tex.App.-San Antonio 2006, no pet.). And, although Lopez was at times confused in his testimony, in a bench trial the trial court has the right to accept or reject any part or all of a witness's testimony. Id. The court may believe one witness and disbelieve others and may resolve inconsistencies in any witness's testimony. Id. Because it was within the trial court's province here to weigh the credibility of the witnesses and the weight to be given their testimony, the evidence is sufficient to support the trial court's findings that the signatures of Lopez and Cremar on the Mineral Deed were forged. Because the evidence supports a finding that the signatures were forged, the Mineral Deed was an absolute nullity and did not pass title to Dwairy. See Hennessy, 173 S.W. at 874.

Lopez was seventy-nine years old at the time of trial and relied, in part, on an interpreter.

LOPEZ'S CROSS-ISSUE

In a cross-issue, Lopez complains that the trial court's judgment voided the Mineral Deed, but failed to nullify Dwairy's mineral interest conveyed in the General Warranty Deed. Lopez asks this court to render a judgment rescinding the one-fifth mineral interest conveyed in the General Warranty Deed. However, Lopez did not file a separate notice of appeal, even though he asks this court to alter the trial court's judgment and grant him more favorable relief than did the trial court. See TEX.R.APP. P. 25.1(C).

Pursuant to Rule 25.1(c), a party seeking to alter the trial court's judgment must file a notice of appeal. Lubbock County, Tex. v. Trammel's Lubbock Bail Bonds, 80 S.W.3d 580, 584 (Tex. 2002). An "appellate court may not grant a party who does not file a notice of appeal more favorable relief than did the trial court except for just cause." TEX.R.APP. P. 25.1(c). No just cause exists here to review Lopez's cross-issue. Because Dwairy filed a motion for new trial, Lopez had ninety days after the judgment, plus an additional fifteen days, in which to file a notice of appeal. TEX.R.APP. P. 26.1(a), (d). Also, Lopez did not bring his complaint to the trial court's attention in his own post-judgment motion. Therefore, we do not consider Lopez's cross-issue. See Brooks v. Northglen Ass'n, 141 S.W.3d 158, 171 (Tex. 2004); In re M.P.M., 161 S.W.3d 650, 660-61 (Tex.App.-San Antonio 2005, no pet).

CONCLUSION

We overrule Dwairy's issue on appeal, and affirm the trial court's judgment.

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DWAIRY v. LOPEZ
(Oct 10, 2007)