Ditech Servicing, LLC v. Perez (Opinion)
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The Supreme Court held that a Hidalgo County court at law had jurisdiction over a civil case within the $750,000 limit involving the foreclosure of a lien on land.
The McMasters executed a deed of trust to Ditech Servicing, LLC to secure a loan to purchase property. Thereafter, Jerry Perez acquired the property at a sheriff's sale to enforce a judgment. When the McMasters defaulted on their note Ditech initiated nonjudicial foreclosure proceedings. Perez subsequently sued Ditech in County Court seeking a declaration that Ditech had waived its right to foreclose. Ditech counterclaimed for judicial foreclosure. The trial court ultimately granted summary judgment for Ditech. The court of appeals vacated the trial court's judgment and dismissed the case for want of jurisdiction, concluding that the trial court had no jurisdiction under Tex. Gov't Code 26.043. The Supreme Court reversed and entered judgment for Ditech, holding (1) suits for the enforcement of a lien on land or for the recovery of land are "civil cases" over which a district court has jurisdiction; and (2) where the amount in controversy was less than $750,000, the Hidalgo County court at law had jurisdiction over Ditech's counterclaim.
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