Downstream Investments, LLC v. Jay Krcmar as Guardian of the Estate and Person of Holly Latham Bonin

Summary

The Texas Court of Appeals, Third District, reversed a summary judgment declaring a land-sale contract void based on the seller’s alleged mental incapacity. The court held that the buyer’s realtor affidavit raised a material fact issue regarding the seller’s capacity to contract, making summary judgment inappropriate. The case was remanded for further proceedings.

Holdings

1. Downstream's evidence, including Blanchard's affidavit describing Bonin's understanding of and conduct concerning the transaction, was sufficient to raise a material fact issue regarding Bonin's mental capacity on November 5, 2022.
2. The trial court erred by granting summary judgment because the record contained a genuine issue of material fact concerning Bonin's competency.

Questions Presented

1. Whether the trial court erred in granting traditional summary judgment on Krcmar's affirmative defense that Bonin lacked mental capacity to execute the contract.
2. Whether Downstream's summary-judgment evidence, particularly Blanchard's affidavit, raised a genuine issue of material fact regarding Bonin's capacity on the date she executed the contract.

Disposition

reversed_and_remanded