Preview
Electronically Filed
2/23/2022 6:23 PM
Hidalgo County District Clerks
Reviewed By: Jose C. Hernandez
CAUSE NO. C-4215-19-C
M.A.R. DESIGNS & CONSTRUCTION, INC. § IN THE DISTRICT COURT
Plaintiff §
§
v. §
§
ALEJANDRO MORENO AND PATRICK § 139TH JUDICIAL DISTRICT
MOORE, TRUSTEE §
Defendants § HIDALGO COUNTY, TEXAS
SIERRA TITLE OF HIDALGO COUNTY, INC. AND KING LAW FIRM’S
COUNTERCLAIM AND CROSS CLAIM
SIERRA TITLE OF HIDALGO COUNTY, INC. (“SIERRA TITLE”) and KING LAW FIRM
(“KING”) file this Counterclaim against ALEJANDRO MORENO and Cross-Claim against MAR
DESIGNS & CONSTRUCTION, INC., and in support would show:
I.
DISCOVERY
1. SIERRA TITLE and KING intend that discovery be conducted under Level 3.
II.
SPECIFIC STATEMENT OF RELIEF
2. Subject to later amendment, at this time, SIERRA TITLE and KING seek monetary
relief of $250,000.00 or less and non-monetary relief.
III.
PARTIES
3. KING LAW FIRM is a law firm having its principal office in Hidalgo County,
Texas.
4. SIERRA TITLE OF HIDALGO COUNTY, INC. has its principal office in Hidalgo
County, Texas.
5. Counter-Defendant, ALEJANDRO MORENO (“MORENO”) is an individual
residing in Hidalgo County, Texas. MORENO may be served through his counsel of record.
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6. Cross-Defendant, MAR DESIGNS & CONSTRUCTION, INC., (“MAR”) is a
domestic for profit corporation organized under the laws of the State of Texas, having its
principal office in McAllen, Hidalgo County, Texas. MAR may be served through its counsel of
record.
IV.
VENUE AND JURISDICTION
7. Venue has already been established and is proper in Hidalgo County, Texas.
8. This Court has jurisdiction over the parties and the subject matter of this lawsuit
based on the facts alleged herein, and because the relief sought is within the jurisdictional limits
of the Court.
V.
FACTUAL BACKGROUND
A. Avalos Tract
9. MORENO allegedly loaned MAR $150,000.00, taking a first lien on real property
now known as the Avalos Tract. This transaction was documented on November 8, 2013, by
MAR executing a Note in the amount of $150,000.00 in favor of MORENO, secured by a Deed of
Trust lien on certain real property situated in Hidalgo County, Texas. Said real property (Avalos
Tract) is legally described as follows:
Lot 10, Villa Valencia Subdivision, Hidalgo County, Texas, according to the map or
plat thereof recorded in Volume 2267085, Page Map Records of Hidalgo County,
Texas.
10. On November 1, 2015, MORENO and MAR enter into a Modification and
Extension Agreement on the Avalos Tract extending the maturity date for the Note to November
1, 2016.
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Hidalgo County District Clerks
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11. MORENO allegedly lent MAR an additional $50,000.00, taking a second lien on the
Avalos Tract. This transaction was documented on February 24, 2016, by MAR executing a Note
in the amount of $50,000.00 in favor of Moreno, secured by a second lien deed of trust on the
Avalos Tract.
12. On November 23, 2016, MORENO and MAR enter into a Modification and
Extension Agreement on the first lien Note for the Avalos Tract extending the maturity date for
the Note to November 1, 2017.
13. In August of 2018, MAR sold the Avalos Tract to Humberto Avalos (“AVALOS”).
The real estate contract was deposited with SIERRA TITLE for closing. KING prepared some of
the legal documents for the closing.
14. In August 2018, in connection with the closing process, MORENO and MAR made
false representations to SIERRA TITLE and KING regarding MORENO’s liens on the Avalos
Tract. More specifically, MORENO and MAR expressly represent to SIERRA TITLE and KING
that the MORENO liens on the Avalos Tract would be released and that other collateral would be
substituted. MORENO and MAR repeatedly promised to SIERRA TITLE and KING that the
releases would be forthcoming, which SIERRA TITLE and KING relied on to their detriment.
15. On August 24, 2018, sale to AVALOS was closed and the releases were never
delivered, reportedly because MORENO was convicted and imprisoned. SIERRA TITLE and
KING asked MORENO’s attorney to secure the promised release documents, but they were
never forthcoming.
B. Ridley Tract
16. MORENO allegedly loaned MAR $127,000.00, taking a first lien on real property
now known as the Ridley Tract. This transaction was documented on April 2, 2014, by MAR
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executing a Note in the amount of $127,000.00 in favor of MORENO, secured by a Deed of Trust
lien on certain real property situated in Hidalgo County, Texas. Said property (Ridley Tract) is
legally described as follows:
Lot 15, Sendero Ranch Estates Subdivision, Hidalgo County, Texas according to
the map or plat thereof recorded in Volume 50, Page 121, Map Records of Hidalgo
County, Texas.
17. On April 22, 2014, MAR sold the Ridley Tract to Emmanuel Cervantes
(“CERVANTES”) and Jocelyn Faz (“FAZ”).
18. In early May 2019, CERVANTES and FAZ sold the Ridley Tract to Robert Ridley
and Johanna Ridley (“RIDLEY”). The real estate contract was deposited with SIERRA TITLE for
closing. KING prepared some of the legal documents for the closing. In preparing for the closing,
SIERRA TITLE discovered the existed of the MORENO lien. Since the MORENO lien should
have been discharged when MAR sold the Ridley Tract to CERVANTES and FAZ, SIERRA
TITLE expected to find a Release of Lien. Having found none, SIERRA TITLE contacted
MORENO to ask for a copy of the Release (or for him to sign a Release), but MORENO declined,
claiming he was never paid.
19. SIERRA TITLE contacted Fidelity National Insurance Company who issued the title
insurance policy on April 24, 2014, for the sale from MAR to CERVANTES and FAZ. This placed
Fidelity squarely on the risk. Fidelity instructed SIERRA TITLE to issue a new title policy on
Fidelity paper so that Fidelity would continue to be on the risk. Thus, SIERRA TITLE proceeded
to close the sale to Ridley, in accordance with instructions from the underwriter.
20. In this action, MORENO filed claims against SIERRA TITLE and KING claiming
that MORENO never released nor agreed to release the MORENO liens on the Avalos Tract and
Ridley Tract. MORENO’s position in this lawsuit is contrary to the promises and representations
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Hidalgo County District Clerks
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made by MORENO and MAR to SIERRA TITLE to induce them to close or help close on MAR’s
sale to Avalos.
VI.
CLAIMS AGAINST MORENO AND MAR
C. Statutory Fraud
21. The transactions involving the Avalos Tract and the Ridley Tract involve real
property located in Hidalgo County, Texas. SIERRA TITLE’s involvement in the transactions
began when the real estate contracts were deposited with SIERRA TITLE and continued through
the closings. KING’s involvement in the transactions was limited to preparation of some of the
closing documents. During the course of these transactions, MORENO and MAR knowingly
made false and fraudulent representations of fact to SIERRA TITLE and KING. More specifically,
MORENO and MAR expressly promised and represented that MORENO’s lien on the Avalos
Tract would be released and other collateral would be substituted. These representations
occurred before and after the closing of the sale to Avalos. Despite repeated promises to provide
the Releases, SIERRA TITLE and KING were told that MORENO could not sign because he was
sentenced to prison. This excuse is a pretext, however, since MORENO had many opportunities
to provide the Releases before his incarceration. MORENO’s lawyer was also unable to secure
the Releases from MORENO. The false and fraudulent promises and representations were was
made with the intent of inducing SIERRA TITLE to close the transaction and KING to prepare
some of the documents used for the closing. SIERRA TITLE and KING justifiably relied on the
representations to their detriment. The statutory fraud committed by MORENO and MAR
proximately caused harm to SIERRA TITLE and KING.
D. Common Law Fraud
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Hidalgo County District Clerks
Reviewed By: Jose C. Hernandez
22. MORENO and MAR knowingly made false and fraudulent representations of fact
to SIERRA TITLE and KING. More specifically, MORENO and MAR expressly promised and
represented that MORENO’s lien on the Avalos Tract would be released and other collateral
would be substituted. These representations occurred before and after the closing of the sale to
Avalos. Despite repeated promises to provide the Releases, SIERRA TITLE and KING were told
that MORENO could not sign because he was sentenced to prison. This excuse is a pretext,
however, since MORENO had many opportunities to provide the Releases before his
incarceration. MORENO’s lawyer was also unable to secure the Releases from MORENO.
MORENO and MAR made the representations knowing they were false, or recklessly, as a
positive assertion, without knowledge of its truth. The false and fraudulent promises and
representations were made with the intent that SIERRA TITLE would close the transaction and
KING would prepare some of the documents used for the closing. SIERRA TITLE and KING
justifiably relied on the representations to their detriment. The fraud committed by MORENO
and MAR proximately caused harm to SIERRA TITLE and KING.
E. Fraud in the Inducement
23. MORENO and MAR concealed from or failed to disclose certain facts to SIERRA
TITLE and KING which MORENO and MAR had a duty to disclose. Among others, MORENO
and MAR failed to disclose a) the nature of the relationship between them; b) the origin, purpose
and use of the monies involved in the transactions; c) the enormous gambling debts and other
kinds of debts owed to each other; and d) the true status of the MORENO liens. These
undisclosed facts were material and MORENO and MAR knew that SIERRA TITLE and KING
had no knowledge of these facts, nor did SIERRA TITLE and KING have an equal opportunity to
discover the facts. MORENO and MAR were deliberately silent when they had a duty to speak.
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Hidalgo County District Clerks
Reviewed By: Jose C. Hernandez
By failing to disclose these facts, MORENO and MAR intended to induce SIERRA TITLE into
closing the transactions and KING into preparation of some of the closing documents. SIERRA
TITLE and KING would not have participated in the transactions had these facts been disclosed.
MORENO and MAR’s failure to disclose material facts proximately caused harm to SIERRA
TITLE and KING.
F. Conspiracy to Defraud
24. MORENO and MAR, and may be others, conspired to commit fraud against
SIERRA TITLE and KING. MORENO and MAR, and possibly others, had knowledge of, agreed
to, and intended a common objective or course of action that resulted in damages to SIERRA
TITLE and KING. MORENO and MAR each performed an act or acts in furtherance of the
conspiracy. SIERRA TITLE and KING suffered injury as a proximate result of MORENO and
MAR’s conspiracy to defraud.
G. Frivolous Lawsuit by Moreno
25. SIERRA TITLE and KING sue MORENO for bringing an entirely frivolous lawsuit
against them. MORENO was not a party any of the transactions closed by SIERRA TITLE
involving the Avalos Tract or the Ridley Tract. Thus, SIERRA TITLE owes no legal duty to
MORENO. Furthermore, MORENO was not a party to any of the transactions involving the
Avalos Tract or the Ridley Tract to which KING prepared some of the document used at closing.
KING never represented MORENO, never agreed to represent MORENO, and no attorney client
relationship has ever existed between KING and MORENO with respect to the Avalos Tract or
the Ridley Tract. MORENO’s lawsuit against SIERRA TITLE and KING was presented for an
improper purpose, including to harass or to cause unnecessary delay or needless increase in the
cost of litigation. The transparent motive of MORENO’s claims against SIERRA TITLE and KING
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Reviewed By: Jose C. Hernandez
is also to extort an unwarranted settlement.
VII.
DAMAGES
26. SIERRA TITLE and KING seek to recover their reasonable and necessary attorney’s
fees pursuant to Texas Business & Commerce Code §27.01(e) against MORENO and MAR.
27. SIERRA TITLE and KING seek to recover their reasonable expenses and attorney's
fees incurred in presenting their claim for frivolous lawsuit against MORENO pursuant to Texas
Civil Practice & Remedies Code 10.001.
28. SIERRA TITLE and KING seek rescission of the transactions involving the Avalos
and Ridley Tracts. In the alternative, SIERRA TITLE and KING seek to recover damages
proximately caused by MORENO and MAR.
VIII.
CONDITIONS PRECEDENT AND CAPACITIES
29. All conditions precedent have been performed or have occurred. SIERRA TITLE
and KING bring these claims in all capacities in which they are able to recover and in all
capacities against MORENO and MAR in which they may be liable.
PRAYER
SIERRA TITLE and KING pray that, after a trial on the merits, they recover judgment
against MORENO and MAR, jointly and severally, for the relief requested. SIERRA TITLE and
KING also pray for general relief.
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Electronically Filed
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Hidalgo County District Clerks
Reviewed By: Jose C. Hernandez
Respectfully submitted,
By:
RAYMOND L. THOMAS
State Bar No. 19865350
rthomas@raythomaspc.com
Olegario Garcia
State Bar No. 24069759
ogarcia@raythomaspc.com
RAY THOMAS, PC
4900-B North 10th Street
McAllen, Texas 78504
(956) 632-5033
(956) 540-5631 (Fax)
ATTORNEYS FOR SIERRA TITLE OF
HIDALGO COUNTY, INC. AND KING
LAW FIRM (affirmative claims only)
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Hidalgo County District Clerks
Reviewed By: Jose C. Hernandez
CERTIFICATE OF SERVICE
A true and correct copy of the above and foregoing instrument has been properly
delivered pursuant to Texas Rules of Civil Procedure, on February 23, 2022, to the following
counsel of record:
Carlos Macias Rolando Cantu
MACIAS LAW FIRM ROLANDO CANTU & ASSOCIATES
515 Pecan 1111 W. Nolana
McAllen, Texas 78501 McAllen, Texas 78504
Maciaslawoffice1@gmail.com rcantu@cantulawfirm.com
Gerald B. Sager Marcus C. Barrera
Gregory T. Brewer Aaron M. Alaniz
FIDELITY NATIONAL LAW GROUP BARRERA, SANCHEZ & ASSOCIATES, PC
6900 Dallas Parkway, Suite 610 10113 N. 10th Street, Suite A
Plano, Texas 75024 McAllen, Texas 78504
jerry.sager@fnf.com marcus@bsmlawyers.com
gregory.brewer@fnf.com
Gil P. Peralez
Jordan King Chris Franz
KING LAW FIRM PERALEZ FRANZ LLP
3409 N. 10th Street 1416 Dove Avenue
McAllen, Texas 78501 McAllen, Texas 78504
Jordan.king@kingrgvlaw.com service@peralezfranzlaw.com
corozco@kingrgvlaw.com
Robert L. Guerra
David J. Hargis THORNTON, BIECHLIN,
Randy E. Lopez REYNOLDS & GUERRA, L.C.
LEWIS BRISBOIS BISGAARD & SMITH 418 E. Dove Avenue
24 Greenway Plaza, Suite 1400 McAllen, TX 78504-2240
Houston, Texas 77046 rguerra@thorntonfirm.com
david.hargis@lewisbrisbois.com
randy.lopez@lewisbrisbois.com
David Ewers
LAW OFFICE OF DAVID A. EWERS, PC
323 West Nolana
McAllen, Texas 78504
david@ewers.com
Raymond L. Thomas
Page 10 of 11
Automated Certificate of eService
This automated certificate of service was created by the efiling system.
The filer served this document via email generated by the efiling system
on the date and to the persons listed below. The rules governing
certificates of service have not changed. Filers must still provide a
certificate of service that complies with all applicable rules.
Lisa Shawn on behalf of Raymond Thomas
Bar No. 19865350
lshawn@raythomaspc.com
Envelope ID: 62029312
Status as of 2/24/2022 7:58 AM CST
Associated Case Party: M.A.R. Designs & Construction, Inc.
Name BarNumber Email TimestampSubmitted Status
ROLANDO CANTU rcantu@cantulawfirm.com 2/23/2022 6:23:40 PM SENT
Associated Case Party: Alejandro Moreno
Name BarNumber Email TimestampSubmitted Status
Carlos Macias maciaslawoffice1@gmail.com 2/23/2022 6:23:40 PM SENT
Gil PPeralez gpp@peralezfranzlaw.com 2/23/2022 6:23:40 PM SENT
Gil PPeralez service@peralezfranzlaw.com 2/23/2022 6:23:40 PM SENT
Associated Case Party: Patrick Moore
Name BarNumber Email TimestampSubmitted Status
Marcus C.Barrera marcus@bsmlawyers.com 2/23/2022 6:23:40 PM SENT
Aaron M. Alaniz aaron@bsmlawyers.com 2/23/2022 6:23:40 PM SENT
Melissa Kalifa melissa@bsmlawyers.com 2/23/2022 6:23:40 PM SENT
Associated Case Party: SIERRA TITLE OF HIDALGO COUNTY, INC.
Name BarNumber Email TimestampSubmitted Status
David Hargis David.Hargis@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT
Emely Orozco eorozco@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
Randy Lopez randy.lopez@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT
Deborah Husband Deborah.Husband@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT
Jordan King jordan.king@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
Associated Case Party: Robert Ridley
Automated Certificate of eService
This automated certificate of service was created by the efiling system.
The filer served this document via email generated by the efiling system
on the date and to the persons listed below. The rules governing
certificates of service have not changed. Filers must still provide a
certificate of service that complies with all applicable rules.
Lisa Shawn on behalf of Raymond Thomas
Bar No. 19865350
lshawn@raythomaspc.com
Envelope ID: 62029312
Status as of 2/24/2022 7:58 AM CST
Associated Case Party: Robert Ridley
Name BarNumber Email TimestampSubmitted Status
Gerald Sager jerry.sager@fnf.com 2/23/2022 6:23:40 PM SENT
GERALD B.SAGER ZACHARY.SPECTOR@FNF.COM 2/23/2022 6:23:40 PM SENT
Case Contacts
Name BarNumber Email TimestampSubmitted Status
Susan ACagle susan@maciaslawfirm.com 2/23/2022 6:23:40 PM SENT
Gregory Brewer gregory.brewer@fnf.com 2/23/2022 6:23:40 PM SENT
April Goekin agoekin@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
Jordan King 24090522 jordan.king@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
DAVID EWERS DAVID@EWERS.COM 2/23/2022 6:23:40 PM SENT
John King jking@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
John King svasquez@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT
Gerald B.Sager jerry.sager@fnf.com 2/23/2022 6:23:40 PM SENT
Amy Deck legal_asst@cantulawfirm.com 2/23/2022 6:23:40 PM SENT
Zulma Rosa zulma.rosa@fnf.com 2/23/2022 6:23:40 PM SENT
CHRIS FRANZ CCF@PERALEZFRANZLAW.COM 2/23/2022 6:23:40 PM SENT
Anita Gray anita.gray@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT
Olegario Garcia ogarcia@raythomaspc.com 2/23/2022 6:23:40 PM SENT
Raymond LThomas rthomas@raythomaspc.com 2/23/2022 6:23:40 PM SENT
Associated Case Party: King Law Firm
Name BarNumber Email TimestampSubmitted Status
Robert LGuerra rguerra@thorntonfirm.com 2/23/2022 6:23:40 PM SENT
Preview
Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez CAUSE NO. C-4215-19-C M.A.R. DESIGNS & CONSTRUCTION, INC. § IN THE DISTRICT COURT Plaintiff § § v. § § ALEJANDRO MORENO AND PATRICK § 139TH JUDICIAL DISTRICT MOORE, TRUSTEE § Defendants § HIDALGO COUNTY, TEXAS SIERRA TITLE OF HIDALGO COUNTY, INC. AND KING LAW FIRM’S COUNTERCLAIM AND CROSS CLAIM SIERRA TITLE OF HIDALGO COUNTY, INC. (“SIERRA TITLE”) and KING LAW FIRM (“KING”) file this Counterclaim against ALEJANDRO MORENO and Cross-Claim against MAR DESIGNS & CONSTRUCTION, INC., and in support would show: I. DISCOVERY 1. SIERRA TITLE and KING intend that discovery be conducted under Level 3. II. SPECIFIC STATEMENT OF RELIEF 2. Subject to later amendment, at this time, SIERRA TITLE and KING seek monetary relief of $250,000.00 or less and non-monetary relief. III. PARTIES 3. KING LAW FIRM is a law firm having its principal office in Hidalgo County, Texas. 4. SIERRA TITLE OF HIDALGO COUNTY, INC. has its principal office in Hidalgo County, Texas. 5. Counter-Defendant, ALEJANDRO MORENO (“MORENO”) is an individual residing in Hidalgo County, Texas. MORENO may be served through his counsel of record. Page 1 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez 6. Cross-Defendant, MAR DESIGNS & CONSTRUCTION, INC., (“MAR”) is a domestic for profit corporation organized under the laws of the State of Texas, having its principal office in McAllen, Hidalgo County, Texas. MAR may be served through its counsel of record. IV. VENUE AND JURISDICTION 7. Venue has already been established and is proper in Hidalgo County, Texas. 8. This Court has jurisdiction over the parties and the subject matter of this lawsuit based on the facts alleged herein, and because the relief sought is within the jurisdictional limits of the Court. V. FACTUAL BACKGROUND A. Avalos Tract 9. MORENO allegedly loaned MAR $150,000.00, taking a first lien on real property now known as the Avalos Tract. This transaction was documented on November 8, 2013, by MAR executing a Note in the amount of $150,000.00 in favor of MORENO, secured by a Deed of Trust lien on certain real property situated in Hidalgo County, Texas. Said real property (Avalos Tract) is legally described as follows: Lot 10, Villa Valencia Subdivision, Hidalgo County, Texas, according to the map or plat thereof recorded in Volume 2267085, Page Map Records of Hidalgo County, Texas. 10. On November 1, 2015, MORENO and MAR enter into a Modification and Extension Agreement on the Avalos Tract extending the maturity date for the Note to November 1, 2016. Page 2 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez 11. MORENO allegedly lent MAR an additional $50,000.00, taking a second lien on the Avalos Tract. This transaction was documented on February 24, 2016, by MAR executing a Note in the amount of $50,000.00 in favor of Moreno, secured by a second lien deed of trust on the Avalos Tract. 12. On November 23, 2016, MORENO and MAR enter into a Modification and Extension Agreement on the first lien Note for the Avalos Tract extending the maturity date for the Note to November 1, 2017. 13. In August of 2018, MAR sold the Avalos Tract to Humberto Avalos (“AVALOS”). The real estate contract was deposited with SIERRA TITLE for closing. KING prepared some of the legal documents for the closing. 14. In August 2018, in connection with the closing process, MORENO and MAR made false representations to SIERRA TITLE and KING regarding MORENO’s liens on the Avalos Tract. More specifically, MORENO and MAR expressly represent to SIERRA TITLE and KING that the MORENO liens on the Avalos Tract would be released and that other collateral would be substituted. MORENO and MAR repeatedly promised to SIERRA TITLE and KING that the releases would be forthcoming, which SIERRA TITLE and KING relied on to their detriment. 15. On August 24, 2018, sale to AVALOS was closed and the releases were never delivered, reportedly because MORENO was convicted and imprisoned. SIERRA TITLE and KING asked MORENO’s attorney to secure the promised release documents, but they were never forthcoming. B. Ridley Tract 16. MORENO allegedly loaned MAR $127,000.00, taking a first lien on real property now known as the Ridley Tract. This transaction was documented on April 2, 2014, by MAR Page 3 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez executing a Note in the amount of $127,000.00 in favor of MORENO, secured by a Deed of Trust lien on certain real property situated in Hidalgo County, Texas. Said property (Ridley Tract) is legally described as follows: Lot 15, Sendero Ranch Estates Subdivision, Hidalgo County, Texas according to the map or plat thereof recorded in Volume 50, Page 121, Map Records of Hidalgo County, Texas. 17. On April 22, 2014, MAR sold the Ridley Tract to Emmanuel Cervantes (“CERVANTES”) and Jocelyn Faz (“FAZ”). 18. In early May 2019, CERVANTES and FAZ sold the Ridley Tract to Robert Ridley and Johanna Ridley (“RIDLEY”). The real estate contract was deposited with SIERRA TITLE for closing. KING prepared some of the legal documents for the closing. In preparing for the closing, SIERRA TITLE discovered the existed of the MORENO lien. Since the MORENO lien should have been discharged when MAR sold the Ridley Tract to CERVANTES and FAZ, SIERRA TITLE expected to find a Release of Lien. Having found none, SIERRA TITLE contacted MORENO to ask for a copy of the Release (or for him to sign a Release), but MORENO declined, claiming he was never paid. 19. SIERRA TITLE contacted Fidelity National Insurance Company who issued the title insurance policy on April 24, 2014, for the sale from MAR to CERVANTES and FAZ. This placed Fidelity squarely on the risk. Fidelity instructed SIERRA TITLE to issue a new title policy on Fidelity paper so that Fidelity would continue to be on the risk. Thus, SIERRA TITLE proceeded to close the sale to Ridley, in accordance with instructions from the underwriter. 20. In this action, MORENO filed claims against SIERRA TITLE and KING claiming that MORENO never released nor agreed to release the MORENO liens on the Avalos Tract and Ridley Tract. MORENO’s position in this lawsuit is contrary to the promises and representations Page 4 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez made by MORENO and MAR to SIERRA TITLE to induce them to close or help close on MAR’s sale to Avalos. VI. CLAIMS AGAINST MORENO AND MAR C. Statutory Fraud 21. The transactions involving the Avalos Tract and the Ridley Tract involve real property located in Hidalgo County, Texas. SIERRA TITLE’s involvement in the transactions began when the real estate contracts were deposited with SIERRA TITLE and continued through the closings. KING’s involvement in the transactions was limited to preparation of some of the closing documents. During the course of these transactions, MORENO and MAR knowingly made false and fraudulent representations of fact to SIERRA TITLE and KING. More specifically, MORENO and MAR expressly promised and represented that MORENO’s lien on the Avalos Tract would be released and other collateral would be substituted. These representations occurred before and after the closing of the sale to Avalos. Despite repeated promises to provide the Releases, SIERRA TITLE and KING were told that MORENO could not sign because he was sentenced to prison. This excuse is a pretext, however, since MORENO had many opportunities to provide the Releases before his incarceration. MORENO’s lawyer was also unable to secure the Releases from MORENO. The false and fraudulent promises and representations were was made with the intent of inducing SIERRA TITLE to close the transaction and KING to prepare some of the documents used for the closing. SIERRA TITLE and KING justifiably relied on the representations to their detriment. The statutory fraud committed by MORENO and MAR proximately caused harm to SIERRA TITLE and KING. D. Common Law Fraud Page 5 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez 22. MORENO and MAR knowingly made false and fraudulent representations of fact to SIERRA TITLE and KING. More specifically, MORENO and MAR expressly promised and represented that MORENO’s lien on the Avalos Tract would be released and other collateral would be substituted. These representations occurred before and after the closing of the sale to Avalos. Despite repeated promises to provide the Releases, SIERRA TITLE and KING were told that MORENO could not sign because he was sentenced to prison. This excuse is a pretext, however, since MORENO had many opportunities to provide the Releases before his incarceration. MORENO’s lawyer was also unable to secure the Releases from MORENO. MORENO and MAR made the representations knowing they were false, or recklessly, as a positive assertion, without knowledge of its truth. The false and fraudulent promises and representations were made with the intent that SIERRA TITLE would close the transaction and KING would prepare some of the documents used for the closing. SIERRA TITLE and KING justifiably relied on the representations to their detriment. The fraud committed by MORENO and MAR proximately caused harm to SIERRA TITLE and KING. E. Fraud in the Inducement 23. MORENO and MAR concealed from or failed to disclose certain facts to SIERRA TITLE and KING which MORENO and MAR had a duty to disclose. Among others, MORENO and MAR failed to disclose a) the nature of the relationship between them; b) the origin, purpose and use of the monies involved in the transactions; c) the enormous gambling debts and other kinds of debts owed to each other; and d) the true status of the MORENO liens. These undisclosed facts were material and MORENO and MAR knew that SIERRA TITLE and KING had no knowledge of these facts, nor did SIERRA TITLE and KING have an equal opportunity to discover the facts. MORENO and MAR were deliberately silent when they had a duty to speak. Page 6 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez By failing to disclose these facts, MORENO and MAR intended to induce SIERRA TITLE into closing the transactions and KING into preparation of some of the closing documents. SIERRA TITLE and KING would not have participated in the transactions had these facts been disclosed. MORENO and MAR’s failure to disclose material facts proximately caused harm to SIERRA TITLE and KING. F. Conspiracy to Defraud 24. MORENO and MAR, and may be others, conspired to commit fraud against SIERRA TITLE and KING. MORENO and MAR, and possibly others, had knowledge of, agreed to, and intended a common objective or course of action that resulted in damages to SIERRA TITLE and KING. MORENO and MAR each performed an act or acts in furtherance of the conspiracy. SIERRA TITLE and KING suffered injury as a proximate result of MORENO and MAR’s conspiracy to defraud. G. Frivolous Lawsuit by Moreno 25. SIERRA TITLE and KING sue MORENO for bringing an entirely frivolous lawsuit against them. MORENO was not a party any of the transactions closed by SIERRA TITLE involving the Avalos Tract or the Ridley Tract. Thus, SIERRA TITLE owes no legal duty to MORENO. Furthermore, MORENO was not a party to any of the transactions involving the Avalos Tract or the Ridley Tract to which KING prepared some of the document used at closing. KING never represented MORENO, never agreed to represent MORENO, and no attorney client relationship has ever existed between KING and MORENO with respect to the Avalos Tract or the Ridley Tract. MORENO’s lawsuit against SIERRA TITLE and KING was presented for an improper purpose, including to harass or to cause unnecessary delay or needless increase in the cost of litigation. The transparent motive of MORENO’s claims against SIERRA TITLE and KING Page 7 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez is also to extort an unwarranted settlement. VII. DAMAGES 26. SIERRA TITLE and KING seek to recover their reasonable and necessary attorney’s fees pursuant to Texas Business & Commerce Code §27.01(e) against MORENO and MAR. 27. SIERRA TITLE and KING seek to recover their reasonable expenses and attorney's fees incurred in presenting their claim for frivolous lawsuit against MORENO pursuant to Texas Civil Practice & Remedies Code 10.001. 28. SIERRA TITLE and KING seek rescission of the transactions involving the Avalos and Ridley Tracts. In the alternative, SIERRA TITLE and KING seek to recover damages proximately caused by MORENO and MAR. VIII. CONDITIONS PRECEDENT AND CAPACITIES 29. All conditions precedent have been performed or have occurred. SIERRA TITLE and KING bring these claims in all capacities in which they are able to recover and in all capacities against MORENO and MAR in which they may be liable. PRAYER SIERRA TITLE and KING pray that, after a trial on the merits, they recover judgment against MORENO and MAR, jointly and severally, for the relief requested. SIERRA TITLE and KING also pray for general relief. Page 8 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez Respectfully submitted, By: RAYMOND L. THOMAS State Bar No. 19865350 rthomas@raythomaspc.com Olegario Garcia State Bar No. 24069759 ogarcia@raythomaspc.com RAY THOMAS, PC 4900-B North 10th Street McAllen, Texas 78504 (956) 632-5033 (956) 540-5631 (Fax) ATTORNEYS FOR SIERRA TITLE OF HIDALGO COUNTY, INC. AND KING LAW FIRM (affirmative claims only) Page 9 of 11 Electronically Filed 2/23/2022 6:23 PM Hidalgo County District Clerks Reviewed By: Jose C. Hernandez CERTIFICATE OF SERVICE A true and correct copy of the above and foregoing instrument has been properly delivered pursuant to Texas Rules of Civil Procedure, on February 23, 2022, to the following counsel of record: Carlos Macias Rolando Cantu MACIAS LAW FIRM ROLANDO CANTU & ASSOCIATES 515 Pecan 1111 W. Nolana McAllen, Texas 78501 McAllen, Texas 78504 Maciaslawoffice1@gmail.com rcantu@cantulawfirm.com Gerald B. Sager Marcus C. Barrera Gregory T. Brewer Aaron M. Alaniz FIDELITY NATIONAL LAW GROUP BARRERA, SANCHEZ & ASSOCIATES, PC 6900 Dallas Parkway, Suite 610 10113 N. 10th Street, Suite A Plano, Texas 75024 McAllen, Texas 78504 jerry.sager@fnf.com marcus@bsmlawyers.com gregory.brewer@fnf.com Gil P. Peralez Jordan King Chris Franz KING LAW FIRM PERALEZ FRANZ LLP 3409 N. 10th Street 1416 Dove Avenue McAllen, Texas 78501 McAllen, Texas 78504 Jordan.king@kingrgvlaw.com service@peralezfranzlaw.com corozco@kingrgvlaw.com Robert L. Guerra David J. Hargis THORNTON, BIECHLIN, Randy E. Lopez REYNOLDS & GUERRA, L.C. LEWIS BRISBOIS BISGAARD & SMITH 418 E. Dove Avenue 24 Greenway Plaza, Suite 1400 McAllen, TX 78504-2240 Houston, Texas 77046 rguerra@thorntonfirm.com david.hargis@lewisbrisbois.com randy.lopez@lewisbrisbois.com David Ewers LAW OFFICE OF DAVID A. EWERS, PC 323 West Nolana McAllen, Texas 78504 david@ewers.com Raymond L. Thomas Page 10 of 11 Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules. Lisa Shawn on behalf of Raymond Thomas Bar No. 19865350 lshawn@raythomaspc.com Envelope ID: 62029312 Status as of 2/24/2022 7:58 AM CST Associated Case Party: M.A.R. Designs & Construction, Inc. Name BarNumber Email TimestampSubmitted Status ROLANDO CANTU rcantu@cantulawfirm.com 2/23/2022 6:23:40 PM SENT Associated Case Party: Alejandro Moreno Name BarNumber Email TimestampSubmitted Status Carlos Macias maciaslawoffice1@gmail.com 2/23/2022 6:23:40 PM SENT Gil PPeralez gpp@peralezfranzlaw.com 2/23/2022 6:23:40 PM SENT Gil PPeralez service@peralezfranzlaw.com 2/23/2022 6:23:40 PM SENT Associated Case Party: Patrick Moore Name BarNumber Email TimestampSubmitted Status Marcus C.Barrera marcus@bsmlawyers.com 2/23/2022 6:23:40 PM SENT Aaron M. Alaniz aaron@bsmlawyers.com 2/23/2022 6:23:40 PM SENT Melissa Kalifa melissa@bsmlawyers.com 2/23/2022 6:23:40 PM SENT Associated Case Party: SIERRA TITLE OF HIDALGO COUNTY, INC. Name BarNumber Email TimestampSubmitted Status David Hargis David.Hargis@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT Emely Orozco eorozco@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT Randy Lopez randy.lopez@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT Deborah Husband Deborah.Husband@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT Jordan King jordan.king@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT Associated Case Party: Robert Ridley Automated Certificate of eService This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules. Lisa Shawn on behalf of Raymond Thomas Bar No. 19865350 lshawn@raythomaspc.com Envelope ID: 62029312 Status as of 2/24/2022 7:58 AM CST Associated Case Party: Robert Ridley Name BarNumber Email TimestampSubmitted Status Gerald Sager jerry.sager@fnf.com 2/23/2022 6:23:40 PM SENT GERALD B.SAGER ZACHARY.SPECTOR@FNF.COM 2/23/2022 6:23:40 PM SENT Case Contacts Name BarNumber Email TimestampSubmitted Status Susan ACagle susan@maciaslawfirm.com 2/23/2022 6:23:40 PM SENT Gregory Brewer gregory.brewer@fnf.com 2/23/2022 6:23:40 PM SENT April Goekin agoekin@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT Jordan King 24090522 jordan.king@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT DAVID EWERS DAVID@EWERS.COM 2/23/2022 6:23:40 PM SENT John King jking@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT John King svasquez@kingrgvlaw.com 2/23/2022 6:23:40 PM SENT Gerald B.Sager jerry.sager@fnf.com 2/23/2022 6:23:40 PM SENT Amy Deck legal_asst@cantulawfirm.com 2/23/2022 6:23:40 PM SENT Zulma Rosa zulma.rosa@fnf.com 2/23/2022 6:23:40 PM SENT CHRIS FRANZ CCF@PERALEZFRANZLAW.COM 2/23/2022 6:23:40 PM SENT Anita Gray anita.gray@lewisbrisbois.com 2/23/2022 6:23:40 PM SENT Olegario Garcia ogarcia@raythomaspc.com 2/23/2022 6:23:40 PM SENT Raymond LThomas rthomas@raythomaspc.com 2/23/2022 6:23:40 PM SENT Associated Case Party: King Law Firm Name BarNumber Email TimestampSubmitted Status Robert LGuerra rguerra@thorntonfirm.com 2/23/2022 6:23:40 PM SENT