Dallas Partner Obtains Appellate Victory for Mortgage Servicing Client

Dallas, Tex. (January 2, 2025) - Dallas Partner Mark Cronenwett secured a decision from the Amarillo Court of Appeals affirming a summary judgment that Lewis Brisbois obtained for a mortgage servicing client. 

The dispute concerned whether a mortgage borrower presented a fact issue on whether its servicer, which allegedly orally promised not to foreclose for 60 days, was estopped to deny the agreement when it nevertheless conducted a non-judicial foreclosure sale. At the heart of the case was the exact nature of the servicer’s alleged promise. According to the borrower, the servicer promised to sign an extension agreement in the future. 

The Court of Appeals held that the promissory-estoppel exception to the Statute of Frauds will only apply based upon a promise to sign an existing writing. As the borrower did not allege the existence of a present writing or a promise to sign it, the promissory-estoppel exception did not apply. Further, the Court of Appeals agreed with Lewis Brisbois that new consideration is required to support an alleged agreement not to foreclose. The borrower in the case offered nothing to suggest than any consideration was exchanged to support the purported extension agreement.