Oxford Finance Companies v. Jossie A. Velez and Mid-Tex Investments

Jossie Velez contracted with Major Material Corporation to install aluminum siding on her home. The Oxford Finance Companies, Inc. ("Oxford"), as permanent lender, accepted assignment of the contract as well as the lien Major Material had obtained thereunder. When a dispute arose and Velez discontinued her payments, Oxford foreclosed. Mid-Tex Investments ("Mid-Tex") purchased the home at the foreclosure sale. When Mid-Tex attempted to take possession, Velez sued all three companies, alleging: (1) that Major Material had violated, among other statutes, the Texas Deceptive Trade Practices Act, Tex. Bus. & Com. Code Ann. §§ 17.41-.63 (1987 & Supp. 1991) (DTPA), and the Home Solicitation Transactions Act, Tex. Rev. Civ. Stat. Ann. art. 5069-13.01-.07 (1987) (HSTA); and (2) that, as a result of the violations, Major Material and Oxford, as its assignee, were liable to her in damages, and the lien under which the house was sold was void, precluding Mid-Tex from taking good title. Mid-Tex brought a cross-claim against Oxford for restitution and recovery from Oxford of the purchase price it had paid at the sale. The jury found violations of the DTPA and HSTA by Major Material, which voided the underlying contract, the lien, and the foreclosure sale. The trial court rendered judgment on the jurys verdict, declaring the lien and foreclosure sale void, assessing damages and attorneys fees against Major Material and Oxford, and also assessing "additional damages" under the DTPA against Major Material. The court also rendered judgment that Mid-Tex obtain restitution from Oxford.