Court Holds That Statute Of Limitations Applies To Section 50(a)(6) Constitutional Claims


In Priester v. JPMorgan Chase Bank, N.A., homeowners sued for declaratory relief against their lender claiming that the lien on their home was void under the Texas Constitution. No. 12-40032, 2013 U.S. App. LEXIS 3097 (5th Cir. February 13, 2013).  The plaintiffs alleged that the lender violated several provisions of Section 50(a)(6) of the Texas Constitution: that the lender did not give them a 12-day notice, that the lien agreement was closed in their living room, and that the lender did not cure when served with notice.  The lender alleged that the plaintiffs' claim was barred by the statute of limitations.  The court of appeals held that the residual four-year statute of limitations applied to the plaintiff's claim.  It also held that limitations accrued at the time that the lien was created -- not later when notice of defect was served. The court affirmed the judgment for the lender.

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