Estate of Montague v. Nationl Loan Investors, L.P.

The Estate of Frank M. Montague, Jr. (“Estate”) and Virginia Montague, Individually and as Executrix of the Estate of Frank M. Montague, Jr. (“Virginia”) appeal a judgment rendered in favor of National Loan Investors (“NLI”) in a suit to collect on a note. The appellants raise three issues in their brief, asserting the trial court erred: (1) in disregarding the jury’s negative answer to an estoppel question; (2) in failing to disregard the jury’s answer to the amount due under the note because NLI is barred by limitations from recovering the entire note balance; and (3) in refusing to segregate or limit recoverable attorney’s fees. NLI asserts a cross-point contending that the trial court erred in failing to disregard the jury’s answer as to whether Frank (“Frank”) and Virginia had abandoned their homestead claim. We sustain the first two issues and reverse the trial court’s judgment. We render judgment that the Estate and Virginia are not estopped from claiming the Montague Ranch as homestead against the enforcement of the deed of trust referenced in NLI’s cause of action.

We further render judgment that NLI is barred from recovering each installment payment due under the note with the exception of the March 15, 1992 installment. Although we overrule the appellants’ issue regarding attorney’s fees, we remand the cause to the trial court to determine: (1) the amount of attorney’s fees to be awarded in view of our disposition of the damages award; and (2) the amount of damages recoverable by NLI for the March 15, 1992 installment payment.