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MORLOCK, L.L.C., Appellant v. The BANK OF NEW YORK, as Trustee on Behalf of the Certificate Holders of Cwabs, Inc., Asset–Backed Certificates, Series 2004–13, Appellee.

MICHAEL MASSENGALE

Affirmed; rehearing denied.

Jerry L. Schutza, Houston, TX, for Appellant. Philip J. Morgan, Lara D. Pringle, Jones Walker LLP, Houston, TX, for Appellee.

Panel consists of Justices JENNINGS, BLAND, and MASSENGALE. OPINION


MICHAEL MASSENGALE, Justice.

Appellant Morlock, L.L.C. sued The Bank of New York to stop foreclosure on a Harris County house. Morlock alleged that it owned the house, and that the bank had no interest in it and no authority to foreclose. The bank counterclaimed, requesting a declaratory judgment acknowledging its rights as mortgagee in the home. The bank then successfully moved for traditional summary judgment, obtaining both dismissal of Morlock's claims and the declaratory judgment it sought. Finding no reversible error, we affirm.

The Supreme Court's resolution of Nobles was directly cast in terms of a lack of “standing,” and the analysis of our opinion echoed that holding. The Supreme Court stated: “A party who was not defrauded by the conveyance has not suffered an invasion of a legal right and therefore does not have standing to bring suit based on that fraud.” Id. at 927. Morlock's motion for rehearing does not question the continuing validity of Nobles—in fact, the motion does not mention Nobles. Nor did the Fourteenth Court's Nationstar opinion. Regardless of whether the Supreme Court today still would apply the label of “standing” to the substantive rule of law announced in Nobles, the outcome is the same for Morlock: “A suit to set aside a deed obtained by fraud can only be maintained by the defrauded party.” Id.

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Morlock, L.L.C. v. Bank of N.Y. ex rel. Certificate Holders of Cwabs, Inc.
(Dec 30, 2014)