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Huston v. U.S. Bank National Ass'n

Huston v. U.S. Bank Nat'l Ass'n, 359 S.W.3d 679 (Tex. App.—Houston [1st Dist.] 2011)

Court
Court of Appeals of Texas, First District (Houston)
Decided
2011-10-27
Docket
01-10-01026-CV

What happened

U.S. Bank filed a Rule 736 application to foreclose the Hustons' home-equity loan. The Hustons filed a counterclaim inside that expedited case, and the court dismissed it.

What the court decided

The court of appeals held that a counterclaim seeking affirmative relief cannot be brought inside an expedited Rule 736 proceeding. The rule's path for contesting the right to foreclose is a separate suit in district court, which abates and dismisses the 736 case.

Why it may matter to you

It explains the procedure: in a Rule 736 case you file a response on the narrow issues, and any bigger claims go in a separate lawsuit — which has its own risks (see Murphy).

Why it might not apply

Rule 736 was rewritten in 2012; the automatic stay-and-dismiss provision is now Rule 736.11. Check the current rule text.

Most useful when

  • You were served with a Rule 736 application for expedited foreclosure

How to cite it

The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.

Full citationHuston v. U.S. Bank Nat'l Ass'n, 359 S.W.3d 679 (Tex. App.—Houston [1st Dist.] 2011)Short formHuston, 359 S.W.3d 679

Draft — check it with free legal aid before you file or say it in court.

In Huston v. U.S. Bank Nat'l Ass'n, 359 S.W.3d 679 (Tex. App.—Houston [1st Dist.] 2011), the court held that a counterclaim seeking affirmative relief cannot be asserted in an expedited Rule 736 foreclosure proceeding, and a separate district-court suit is the route to contest the right to foreclose. Here, [say in one sentence what happened in your case]

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