Jack D. Tarter Et Ux. v. Metropolitan Savings & Loan Association

This cause concerns the extent to which the doctrine of collateral estoppel bars claims arising from an alleged wrongful foreclosure. Respondent Metropolitan Savings and Loan Association (Metropolitan) was the holder of a note and first lien deed of trust on the home of Petitioners Jack and Margaret Tarter. The Tarters fell into arrears on the note, and Metropolitan notified them of its intent to foreclose. Before the Tarters could reinstate the loan, Metropolitan sold the note and first lien deed of trust to the holders of a second lien deed of trust on the Tarter home. The trustee then sold the Tarter property. In a suit brought prior to the instant case, the Tarters sued the second lien holders for wrongful foreclosure. The trial court found that the foreclosure was valid and rendered judgment awarding the second lien holders title and possession of the property. The Tarters then brought suit against Metropolitan for breach of contract and deceptive trade practices. The trial court rendered judgment in favor of the Tarters. The court of appeals reversed the judgment of the trial court, holding that the doctrine of collateral estoppel barred all of the Tarters claims against Metropolitan. 730 S.W.2d 1. We reverse the judgment of the court of appeals and remand the cause to that court for a consideration of the points of error not previously reached.