Opinion ID: 50580
Heading Depth: 3
Heading Rank: 2

Heading: Alleged violations of the Texas Property Code

Text: 21 In addition to arguing the foreclosure was void because they had already paid the mortgage in full, the Lozanos also sought to void the foreclosure on the basis that Ocwen violated the notice requirements in the Texas Property Code. See TEX. PROP.CODE ANN. § 51.002(d) (Vernon 2006) (requiring mortgage servicers to serve debtors in default with written notice of default and give the debtor at least twenty days to cure the default before foreclosing); see also Mitchell v. Texas Commerce Bank-Irving, 680 S.W.2d 681, 682 (Tex.App. — Fort Worth 1984, writ ref'd n.r.e.) (holding that failure to comply with section 51.002 invalidates the foreclosure). 22 Ocwen did not move for summary judgment on this claim, and although the district court granted summary judgment and purportedly dismissed the entire case, it did not address this claim in its Opinion and Order on Summary Judgment. Generally, a district court may not grant summary judgment sua sponte on grounds not requested by the moving party. Baker v. Metro. Life Ins. Co., 364 F.3d 624, 632 (5th Cir.2004) (quoting John Deere Co. v. Am. Nat'l Bank, 809 F.2d 1190, 1192 (5th Cir. 1987)). An exception exists when the district court gives a party ten days notice; in those situations a court may grant summary judgment sua sponte on grounds not urged in a pending motion. See Judwin Properties, Inc. v. U.S. Fire Ins. Co., 973 F.2d 432, 436-37 (5th Cir.1992). 23 Here the record does not indicate the district court gave any notice to the Lozanos before dismissing this claim sua sponte. Consequently, the Lozanos were not on notice to present arguments on this claim in their response to Ocwen's summary judgment motion, and the court did not have the benefit of the parties' arguments. 24 Ocwen argues that this claim is dependent on the Lozanos' prepayments claim; that is, if we do not recognize the prepayments this claim must fail as a matter of law. This argument is unpersuasive. Section 51.002(d) contains a notice requirement that may be violated even if the debt is valid. See TEX. PROP.CODE ANN. § 51.002(d). Further, the statute of limitations does not bar this claim. It is undisputed the foreclosure occurred in March 2003 and the Lozanos filed this suit two-months later in May 2003, well within the allowed period. Consequently, we reverse and remand for consideration of the Lozanos' Texas Property Code claim. 25