Texas

Santos v. Yellowfin Loan Servicing Corporation (22-0910)

Questions Presented: 

  1. Whether, under contract law, when a senior lienholder forecloses on real property, extinguishing a junior lien, the foreclosure accelerates the junior loan and the junior creditor’s claim to recover any remaining unpaid debt accrues, triggering a two-year limitations period under Texas Property Code § 51.003 or a four-year limitations period under Texas Civil Practice & Remedies Code § 16.004(a)(3).
  2. If a senior lienholder’s foreclosure does not accelerate the junior loan, triggering the statute of limitations on the junior creditor’s claim to remaining debt, whether the junior creditor waives its right to accelerate the junior loan by sitting on that right for over twelve years.
  3. Whether the junior loan was a non-negotiable instrument governed by contract law, and whether the creditor below proved it was the owner of the note it seeks to enforce.
  4. Whether the junior creditor below met its burden to show that there was no genuine issue of any material fact entitling it to judgment as a matter of law under Texas Rule of Civil Procedure 166a.

Clinic:   Georgetown Appellate Courts Immersion Clinic

Briefing:   

Result:  Pending.