Kevin T. MORTON, Petitioner, v. Hung NGUYEN and Carol S. Nguyen, Respondents

Kevin T. MORTON, Petitioner, v. Hung NGUYEN and Carol S. Nguyen, Respondents

The Court held that Subchapter D's cancellation-and-rescission remedy contemplates the common-law element of mutual restitution; therefore buyers who cancel must restore benefits received (including pay for interim occupancy) although notice or tender are not absolute prerequisites; because the appellate court reversed the statutory claims that supported attorney's fees and mental anguish damages, those awards must be reversed.

Citation
412 S.W.3d 506; 56 Tex. Sup. Ct. J. 955; 2013 WL 4493799; 2013 Tex. LEXIS 605
Parties
Petitioner (seller): Kevin T. Morton; Respondent (buyer): Hung Nguyen; Respondent (buyer): Carol S. Nguyen
Court
Texas Supreme Court
Jurisdiction
United States
Judgment Date
23 August 2013
Case Number
12-0539
Procedural Posture
Civil Appeal Petition for Review (contract for Deed) / Supreme Court of Texas Opinion; Case Remanded to Trial Court for Further Proceedings
Outcome
Supreme Court of Texas grants petition for review, reverses in part the court of appeals, holds mutual restitution applies to Subchapter D rescission, reverses awards of attorney's fees and mental anguish damages, and remands to trial court to determine rental value and for further proceedings consistent with opinion.
Legal Topics
Contract for Deed, Rescission and Restitution, Mutual Restitution, Setoff for Use and Occupation, Attorney's Fees, Mental Anguish Damages, Liquidated Damages, Finance Code, Deceptive Trade Practices Act
Source Language
English
Property Law Restitution/unjust Enrichment Consumer Protection Civil Procedure Statutory Interpretation Contract for Deed Rescission and Restitution Mutual Restitution +6 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 20 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Kevin T. Morton

Petitioner (seller)

Hung Nguyen

Respondent (buyer)

Carol S. Nguyen

Respondent (buyer)

Procedural Posture

Civil Appeal Petition for Review (contract for Deed) / Supreme Court of Texas Opinion; Case Remanded to Trial Court for Further Proceedings

Legal Issues

  1. 1 Whether Subchapter D cancellation-and-rescission remedy incorporates common-law mutual restitution
  2. 2 Whether buyer must restore benefits received (e.g., rental value for occupation) upon statutory rescission
  3. 3 Whether notice or tender are prerequisites to statutory cancellation-and-rescission

Ratio Decidendi

The Court held that Subchapter D's cancellation-and-rescission remedy contemplates the common-law element of mutual restitution; therefore buyers who cancel must restore benefits received (including pay for interim occupancy) although notice or tender are not absolute prerequisites; because the appellate court reversed the statutory claims that supported attorney's fees and mental anguish damages, those awards must be reversed.

Court Disposition

Supreme Court of Texas grants petition for review, reverses in part the court of appeals, holds mutual restitution applies to Subchapter D rescission, reverses awards of attorney's fees and mental anguish damages, and remands to trial court to determine rental value and for further proceedings consistent with opinion.

Orders

  • Grant petition for review
  • Reverse portion of court of appeals' judgment affirming trial court's awards of actual damages for cancellation and rescission, mental anguish damages, and attorney's fees