creditors’ rights course

CREDITORS’ RIGHTS COURSE

INTRODUCTION

Do not let the name mislead you. This course is really about rights and remedies of both

creditors and debtors. For every right a creditor may have, a failure to follow the law regarding

that right creates a right or remedy for the debtor. For example, while a creditor has the right to

foreclose on real property, the failure to correctly foreclose will create causes of action for the

debtor such as conversion or wrongful foreclosure. Similarly, a creditor may assign a debt to an

attorney or collection agency for collection, but to collect the debt attorney or collection agency

must comply with the Federal Fair Debt Collection Practices Act, as well as the Texas Debt

Collection Statute if the debt is a consumer debt.

Moreover, in commercial or consumer litigation there is generally no insurance to pay a

judgment. Often the real battle begins after the judgment is taken when the creditor tries to collect

the judgment. Texas is the most difficult state in the United States to collect judgments. In this

course we will explore how a successful plaintiff, be it consumer, financial institution or small

business, can attempt to collect its judgment.

COURSE TOPICS

In this course we will learn how to collect on debts secured by real or personal property,

as well as unsecured debts. We will review both the Texas Property Code, the Texas version of

the Uniform Commercial Code. In addition, we will learn what property is exempt from collection

so as to know what a creditor can or cannot seize. As noted above we will cover the Federal Fair

Debt Collection Practices Act and the Texas Debt Collection Act. We will study the specific tools

used to enforce judgments such as writs of execution, writs of garnishments, turnover orders and

receiverships. We will conclude the course by covering fraudulent conveyances and post judgment

discovery which includes unique depositions and jail time for those refusing to obey a court’s

order.

HIGHLIGHTS

The course begins with a review of the basic elements of a real estate mortgage

arrangement. If you don’t know the difference between a Warranty deed and deed of trust this

course is for you. (I know, I graduated without knowing the difference and imagine the shock

when my first employer asked me to review some real estate papers). Also, besides learning to

find assets to satisfy a judgment, we will learn how a wrongful foreclosure on a motor home worth

less than $ 15,000 led to a $307,000 settlement against a credit union.

Should you have any questions about the course please feel free to contact me, M. H.

“Butch” Cersonsky at 713-600-8500 or at [email protected]. If using e-mail please

reference the Texas Creditor’s Rights course.

mailto:[email protected]

wp60\wpdocs\Teach\Cases. 2

Page 1

I. Debts Secured by Real Property

1. Texas Property Code §51.002

Texas Property Code §51.003

Texas Property Code §51.005

2. Highpoint of Montgomery Corporation v. Vail, 638 S.W.2d 624 (T ex. App. —Houston [1st

Dist.] 1982, no writ)

3. Harwath v. Hudson, 654 S.W.2d 851 (Dallas 1983, writ ref’d n.r.e.)

4. Ogden v. Gibralter Savings, 640 S.W.2d 232 (Tex. 1982)

4(a). Boatwright v. Texas American Title Co., 790 S.W.2d 722 (Tex,App.—El Paso 1990, writ dism’d)

5. 26 U.S.C. §7425

6. Southern Bank of Lauderdale County v. IRS, 770 F.2d 1001 (11th Cir. 1985) cert. den. 476 U.S.

1169, 90 L.Ed. 977, 106 S.Ct. 2890 (1986)

7. BFP v. RTC, 511 U.S.128 L.Ed. 2d 556, 114 S.Ct. (1994)

II. Unsecured Debts

8. Clark v. Dedina, 658 S.W.2d 293 (Tex.App.—Houston [1st Dist.]1983, writ dism’d.)

9. Bean v. Bluebonnet Sav. Bank F.S.B., 884 S.W.2d 520 (Tex.App.—Dallas1994, no writ)

10. FDIC v. McCrary, 977 F.2d 192 (5th Cir. 1992)

11. Bray v. Cadle Co., 880 S.W.2d 813 (Tex.App.—Houston [14th Dist.] 1994, writ denied)

12. Tex. Bus. & Comm. Code §3.309 (1996 version)

13. Tex. Bus. & Comm. Code §1.201(20) (1996 version)

14. Carroll v. Kennon, 734 S.W.2d 34 (Tex.App.—Waco 1987, no writ)

15. Priestmeyer v. Pacific Southwest Bank, 917 S.W.2d 937 (Tex.App.—Austin 1996, no writ)

16. Jernigan v. Bank One, Texas, N.A., 803 S.W.2d 774 (Tex.App.—Houston [14th Dist.] 1991,

no writ)

wp60\wpdocs\Teach\Cases.2

Page 2

17. RTC v. Camp, 965 F.2d 25 (5th Cir. 1992)

18. Christian v. University Federal Savings Assoc., 792 S.W.2d 533 (Tex.App.—Houston [1st


Defense of Payment

19. Osborne v. Durnell, 412 S.W.2d 383 (Tex.Civ.App. —Amarillo 1967, no writ)

20. Rea v. Sunbelt Savings, 822 S.W.2d 370 (Tex.App.—Dallas 1992, no writ)

21. S.W. Fire & Casualty Co. v. LaRue, 367 S.W.2d 162 (Tex. 1963)

22. Naylor v. Gutteridge, 430 S.W.2d 726 (Tex.Civ.App.—Austin 1968, writ ref’d n.r.e.)

Guarantor Cases

23. Long v. NCNB, 882 S.W.2d 861 (Tex.App.—Corpus Christi 1994, no writ)

24. Barclay v. Waxahachie Bank & Trust Co., 568 S.W.2d 721 (Tex.App.—Waco 1978, no writ)

Duty of Good Faith & Fair Dealing - Guarantors & Obligors

25. Lovell v. Western Nat’l Life Ins. Co., 754 S.W.2d 298 (Tex.App.—Amarillo 1988, writ

denied)

26. FDIC v. Coleman, 795 S.W.2d 706 (Tex. 1990)

Impairment of Collateral

27. T. O. Stanley Boot Co. v. Bank of El Paso, 847 S.W.2d 218 (Tex. 1992)

28. Bus. & Comm. Code §3.605(e), (f) & (g)

Material Alteration

29. Vastine v. Bank of Dallas, 808 S.W.2d 463 (Tex. 1991)

30. Fidelity & Dep. Co. of Maryland v. Caldwell Livestock Comm. Co., Inc., 698 S.W.2d 375

(Tex.App.—Houston [14th Dist] 1985, writ ref’d n.r.e.)


Page 3

III. Collecting Debts Secured by Personal Property - Don’t Breach the Peace

31. Tex. Bus. & Comm. Code §9.503

32. MBank El Paso, N.A. v. Sanchez, 836 S.W.2d 151 (Tex. 1992)

33. Godwin v. Stanley, 331 S.W.2d 341 (Tex.Civ.App.—Amarillo 1959, writ ref d n.r.e.)

34. Duke v. First National Bank, 698 S.W.2d 230 (Tex.App.—Beaumont 1985, no writ)

35. Surko Enter, v. Borg-Warner Acceptance Corp., 782 S.W.2d 223 (Tex.App.—Houston [1st

Dist] 1989, no writ)

35a. Invoking the Court’s Assistance

1. Pre-Judgment writ of sequestration

2. Pre-Judgment writ of attachment

3. Inj./Order

Disposing of the Collateral - The Types of Collateral


Tex. Bus. & Comm. Code §9.505

Tex. Bus. & Comm. Code §9.502

37. Tanenbaum v. Economics Laboratory, Inc., 628 S.W.2d 769 (Tex. 1982)

38. Cullen Frost Bank v. Dallas Sportswear Co., 730 S.W.2d 668 (Tex. 1987)

39. Tex. Bus. & Comm. Code §9.505 (Already copied)

Public Sale v. Private Sale

40. See 9.504(c) (Already copied)

41. Valley Acceptance Co. v. Durfey (waiver of notice), 800 S.W.2d 672 (Tex.App.—Austin 1990,

writ denied) i '• .

42. MBank Dallas, N.A. v. Sunbelt Mfg,, Inc., (notice to debtor), 710 S.W.2d 633 (Tex.App,—

Dallas 1986, writ ref d n.r.e.)

43. Barr y. White Oak State Bank, (notice to other lienholders), 677 S.W.2d 707 (Tex.App.— Tyler

1984, writ ref d n.r.e.)

44. 26 U.S.C. §7425 (Already copied)

Commercially Reasonable Disposition i


Page 4

45. Tex. Bus. & Comm. Code §9.504(c) (Alreadycopied), and§9.507(a)


Tex. Bus. & Comm. Code §1.201(19)

47. Gordon & Assoc, v. Cullen Bank/City West, 880 S.W.2d 93 (Tex.App.—Corpus Christi 1994, no writ)

48. Havins v. First Natl Bank of Paducah, 919 S.W.2d 177 (Tex.App.—Amarillo 1996, no writ)

49. Tex. Bus. & Comm. Code §9.507(a) and (b) (Collateral sold in a recognized market)

50. Roquemore v. National Commerce Bank, 837 S.W.2d 212 (Tex.App.—Texarkana 1992, no

writ)

50a. Nations Bank of North Carolina v. American Doubloon Corp., 481 S.E.2d 387 (N.C.App.— 1997)

51. Tex. Bus. & Comm. Code §9.505(a) (Compulsory disposition of collateral)


Deficiency Suit Requirements

53. Greathouse v. Charter Nat'l Bank Southwest, 851 S.W.2d 173 (Tex. 1992)

Accounting for Expenses & Applying Proceeds

54. See Gordon (#47 above)

Limitations

55. Tex. Bus. & Comm. Code §3,118(a) (MHC: See p. 91 of outline for NB1)

IV. Exemptions - Real Property

62. Texas Constitution Art. XVI, §50

63. Texas Property Code, 41.001 et seq., including Art. 41„002(a)(b)(c)

64. Harlan v. Schulze, 94 P. 379, 7 Cal.App. (1908)

65. RTC v. Oliveras, 29 F.3d 201 (5th Cir. 1994)

wp60\\vpdocs\Teach\Cases.2

Page 5

66. National Union Fire Insurance Co. v. Olson, 920 S.W.2d 458 (Tex.App.— Austin 1996, no

writ)

67. Bank of San Antonio v. Renaldo, 626 S.W.2d 318 (Tex.Civ.App.—Eastland 1981, reversed on

other grounds 630 S.W.2d 638 (Tex. 1982)

68. Johnson v. Proper State Bank, 125 S.W.2d 707 (Tex.Civ.App.--Dallas 1939), aff’d. 134 Tex.

677, 138 S.W.2d 1117 (1940)

69. Houston Chronicle Publishing Co. v. Allen, 70 S.W.2d 482 (Tex.Civ.App.—Beaumont 1934,

no writ)

70. Spikes-Nashco v. Manning, 204 S.W. 374 (Tex.Civ.App.-Texarkana 1918, no writ)

71. Alexander v. Lovitt, 69 S.W. 68 (1902)

72. Braden Steel Corp. v. McClure, 603 S.W.2d 288 (Tex.Civ.App.-Amarillo 1980, no writ)

73. O’Brien v. Johnson, 148 N.W.2d 357, 275 Minn. 305 (1967)

74. Swayne v. Chase, 30 S.W. 1649 (Tex. 1895)

MHC: Personal Note, see p. 460-462 old text

75. RTC v. Oliveras [Type of interest in property required for HomesteadExemption]

76. Matter of England, 975 F.2d 1168 (5th Cir. 1992) [Case on proceeds from sale of

homestead]

Exemptions - Personal Property

A. Texas Property Code - Art. 42.001 et seq.

Current wages Health Aids

Commissions for personal services

Home furnishings

Provisions for consumption

Fanning or ranching vehicles/implements

Trade or professional items

Weaming apparel

Jewelry

Firearms

Athletic and sporting equipment Family

vehicles

wp60\wpdocs\TeachVCases,2

Page 6

Critters for farm or ranch

Critters for the house

Cash value of life insurance

Retirement plan contributions

Benefits Exempt

Worker’s compensation

Unemployment Benefits

Health/Life/Accident Insurance

Crime Victim benefits

B. Federal Exemptions

Wearing Apparel

77. Independence Bank v. Heller, 215 Cal.App. 2d 84, 79 Ca. Rpter. 868 (1969)

78. In Re: Richards, 64 F.Supp. 923 (S.D. Tex. 1946)

79. Matter of Fernandez, 855 F.2d 855 (5th Cir. 1988)

80. In Re: Gemmell, 155 F.Supp. 551 (W.D. Pa. 1907)

1. Social Security benefits 42 U.S.C. §407

2. Veteran’s benefits 38 U.S.C. §3101

3. Civil Service Retirement benefits 5 U.S.C. §8346

4. Seamen’s (Longshoreman’s) benefits 46 U.S.C. §11108 and §11109 5. Railroad Retirement Benefits 45 U.S.C. §352(e)

6. Limit on Wage Garnishments 15 U.S.C. §1673

(Consumer Credit Protection Act)

Labor Code §408.201 Labor

Code §207.075(b) Insurance

Code §21.221

Code of Crim. Pro. §56.49(a)

Tools. Equipment Used in a Trade or Profession In Texas

wp60\wpdocs\Teacb\Cases.2

Page 7

81. McMillan v. Dean, 174 S.W.2d 737 (Tex.Civ.App,—Austin 1943, writ ref’d w.o.m.)

82. England v. First National Bank (In Re: England) 22 B.R. 389 (Bankr. N.D. Tex. 1982)

83. Seagraves v. Weitzel, 734 S.W.2d 773 (Tex.Civ.App.—Ft. Worth 1987, writ ref d n.r.e.)

84. In Re: Legg, 164 B.R. 69 (Bankr. N.D. Tex. 1994)

85. In Re: Baldowski, 191 B.R. 102 (Bankr. N.D. Tex. 1996)

86. Phillips v. C. Palomo & Sons, 270 F.2d 791 (5th Cir. 1959) MHC: Old Text, P. 478-482

V. Wage Garnishment

A. In Texas

87. Texas Property Code §42.001 (b)(1) (Already copied)

88. Texas Civil Practice & Remedies Code §31.0025

89. Hennigan v. Hennigan, 666 S.W.2d 322 (Tex.Civ.App.—Houston [14th Dist.] 1984, writ ref

d n.r.e.) 677 S.W.2d 495 (Tex. 1984)

90. Brink v. Ayre, 855 S.W.2d 44 (Tex.App.—Houston [14th Dist.] 1993, no writ)

B. Garnishment Outside of Texas

91. Edwards v. Henry, 91 Mich. App. 173, 293 N.W.2d 756 (1980) MHC: See your notes old text

p. 485-487

C. When Do Wages Lose Exempt Status

92. Porter v. Aetna Casualty & Surety Co., 370 U.S. 159, 82 S.Ct. 1231, 8 L.Ed. 2d 407 (1967)

93. Gaddy v. First National Bank, 115 Tex. 393, 283 S.W. 2d 472 (1926)

Challenging Exemptions

A. Non-Bankruptcy

96. Property Code §42.003(b) (Already copied) MHC: On your draft insert p. M-5 of Chip

Mathews Article

97. Roosth v. Roosth, 889 S.W.2d 445 (Tex.Civ.App.—Houston [14th Dist.] 1994, reh. den.)

wp6 0\wpdocs\Teach\Cases. 2

Page 8

98. Coghlan v. Sullivan, 480 S.W.2d 229 (Tex.Civ.App.-~El Paso 1972, no writ)

99. Hall v. Miller, 51 S.W. 36 (Tex.Civ.App.—Austin 1899, no writ)

100. In Re: Young, 166 B.R. 854 (E.D.Tex. 1994) (Insurance Proceeds)

Conversion of Non-Exempt Property to Exempt Property

101. Property Code §42.004 (MHC: See C. Mathews Article p. M-5)

102. In Re: Driscoll, 142 F.Supp. 300 (S.D. Cal. 1956) (The general rule ok to transfer, i.e. pay off

insurance policy and then file BKA)

103. Phillips v. C. Palomo & Sons, 270 F.2d 791 (5th Cir. 1959) (Already copied)

104. Kangas v. Robie, 264 F.2d 92 (8th Cir. 1920) - Wrong Cite, ask Librarian for Help.

105. Hanson v. First Nat I Bank in Brookings, 848 F.2d 866, 869 (8th Cir. 1988)

106. Norwest Bank Nebraska, N.A. v. Tveten, 848 F.2d 871 (8th Cir. 1988) Better copy - Need

from our Federal Reporter

107. First Texas Savings Association v. Reed, 700 F.2d 986 (5th Cir. 1983)

108. Ford v. Poston, 773 F.2d 52 (4th Cir. 1985) -

MHC: Move Fraudulent Conveyance discussion here. Just a Thought.


Page 9

THIS TOO MAY BE MOVED, BUT NOT YET.

Claiming Exemptions

A. Dollar Limitation

Dollar Limitations - Family 42.001(a)(1)

Dollar Limitations - Single Adult 42.001(a)(2)

B. Exclusions from Cap

1. Current wages & health aids 2. Any exemption not referenced in 42.002

3. Insurance proceeds, annuities, cash

surrender value

C. Valuation of Property Is Fair Market Value, not

liquidation value In Re: Swift, 124 B.R. 475

(W.D. Tex. 1991)

D. Ways to Claim Homestead Exemptions & Statute

1.

2.

3.

MHC: See Mathews Article p. M-4

E. Ways to Claim Personal PropertyExemption

1. Property Code §42.001(a), 42.002 and 42.003

MHC: See Mathews Article p. M-4

42.001(b) 42.001(a)

Insur. Code §1.22, §1

VI. Debt Collection


Page 10

A. State Court Common Law Restraints

1. Park v. Wise, 155 So.2d 909 (La. App. 1963, cert, denied), 245 La. 84, 157 So.2d 23 (1963)

2. Santiesteban v. Goodyear Tire & Rubber Co306 F.2d 9 (5th Cir. 1962)

3. Public Finance Corp. v. Davis, 66 111. 2d 85, 360 N.E.2d 765 (1976)

4. Bast v. Ford Motor Credit, 631 F.2d 508 (7th Cir. 1980)

5. Jones v. U.S. Child Support Recovery, 1997 WL 199955 (D. Utah 1997)

B. Federal Fair Debt Collection Practices Act

15 U.S.C. § 1692, et seq.

1. Copy of Statute 15 U.S.C. §1692, et seq.

2. Handout of 15 U.S.C. §1692g(a)(l)-(5) and 15 U.S.C. §1692e(ll)

3. What is a debt? §1692a(5)

a. Old Test - Zimmerman v. HBO Affiliate Group, 834 F.2d 1163 (3rd Cir. 1987)

b. New Test - Bass v. Stolper, Koritzinsky, Brewster & Neider, 111 F,3d 1322 (7th Cir. 1997)

4. Who is a debt collector - §1692a(6)

a. l Heintz’s letter

a. Heintz v. Jenkins, 514 U.S. 291, 131 L.Ed.2d 395, 115 S.Ct. 1489 (1995)

b. Wadlington v. Credit Acceptance Corp., 76 F.3d 103 (6th Cir. 1996)

c. Marwick v. Texas Commerce Bank, 1997 WL 244333 (S.D. Tex. 1997)

d. Taylor v. Perrin Landry, deLaunay & Durand, 103 F.3d 1232 (5th Cir. 1997)

[Both creditor and its attorneys violated act]

wp6G\wpd o cs\Teach\Cases. 2

Page 11

Examples of Violations of FDCPA

a. Herbert v. Monterey Financial Servs. Inc., 863 F.Supp. 76 (D. Conn. 1994)

b. Kuhn v. Account Control Technology Inc., 865 F.Supp. 1443 (D. Nev.

1994)

c. Russell v. Equifax A.R.S., 74 F.3d 30 (2d Cir. 1996)

(Improper Notice Case)

6. Overshadowing

a. Swanson v. Southern Oregon Credit Service, Inc., 869 F.2d 1222 (9th Cir.

1988)

b. Chauncey v, JDR Recovery Corporation, 118 F.3d 516 (7th Cir. 1997)

c. Terran V. Kaplan, 109 F.3d 1428 (9th Cir. 1997)

d. Gammon v. G. C. Serv. Ltd. Pshp., 21 F.3d 1254 (7th Cir. 1994) (7th Cir.

Test)

e. Harrison v. NBD, Inc., 968 F.Supp. 837, 845-850 (E.D. N.Y. 1997)

(overshadowing and confusion onamount owed)

7. Attorney Review of files & AttorneyLiability

a. Cloman v. Jackson, 988 F.2d 1314 (2d Cir. 1993)

b. Avila v. Rubin, 84 F.3d 222 (7th Cir. 1996)

c. Smith v. Transworld, 953 F.2d 1025 (6th Cir. 1992)

d. Hubbard V. National Bond & Collection Ass ‘n, 126 B.R. 422 (D. Del.

), aff d without opinion, 947 F.2d 935 (3rd Cir. 1991)"

e. Ducrest v. Alco Collections, Inc., 931 F.Supp. 459 (M.D. La. 1996)

8. Bona Fide Error Defense

a. Jenkins v. Heintz, 124 F.3d 824 (7th Cir, 1997)

b. 15 U.S.C. 1692k(c)

1. Unintentional

5.


Page 12

2. Resulted from bona fide error 3. Resulted notwithstanding procedures adapted to avoid such errors

c. Simmons v. Miller, 970 F.Supp. 661 (S.D. Ind. 1997) [Lack of intent found]

d. Pittman v. MacIntyre of Nevada, Inc., 969 F.Supp. 609 (D. Nev. 1997) (Lack

of Knowledge and Lack of Intent)

e. De Mininis error - yes - Library Stojanovski v. Strobl and Manoogian, P.C., 783 F.Supp. 319 (E.D. Mich. 1992)

f. De Mininis error - no - Library Cavallaro v. Shapiro & Kreismah, 933 F.Supp. 1148 (E.D. N.Y. 1996)

9. Venue - 15 U.S.C. 1692i(l) and (2) - Fox v. Citicorp Credit Services, Inc., 15 F.3d 507 (9th Cir. 1994)

9.1 Vicarious Liability - Is Creditor liable for Debt Collector’s Actions

a. Fox v. Citicorp Credit Services, Inc., 15 F.3d 1507, 1516 (9th Cir. 1994)

b. Wadlington v. Credit Acceptance Corp., 76 F.3d 103,106-108 (6th Cir. 1996)

(Already copied)

9.2 Limitations

a. Mattson v. U S. West Communications, Inc., 967 F.2d 259 (8th Cir. 1992)

b. Maloy v. Phillips, 64 F.3d 607 (11th Cir. 1995)

10. Damages

a. 15 U.S.C. 1692k(a), 1692k(b)

b. Johnson v. Eaton, 80 F.3d 148 (5th Cir. 1996)

c. Graziano v. Harrison, 950 F.2d 107 (3d. Cir. 1991)

d. Class Action Damages - 15 U.S.C. 1692(a)(2)(B)

e. Wright v. Finance Service of Norwalk, Inc., 22 F.3d 647 (6th Cir. 1994)

[Limitations on damages] ' f. Thomas v. Pierce, Hamilton and Stern, Inc., 967 F.Supp. 507 (N.D. Ga. 1997)

g. Defendant’s damages - 15 U.S.C. §1692k(a) - A case may be added here.

wp60\wpdocs\Teach\Cases .2

Page 13

h. Attorney’s Fees - Zagorski v. Midwest Billing Services, Inc., 128 F.3d 1164

(7th Cir. 1997)

VII. Texas Debt Collection Act

a. Finance Code §392.001 et seq., formerly V.A.C.S. Art. 5069 - 11.01 et seq.

b. Catherman v. First State Bank, 796 S.W.2d 299 (Austin 1990, no writ)

[Are attorneys covered by Act?]

c. Monroe v. Frank, 936 S.W.2d 654 (Tex.App.-Dallas 1996, writ dism’d w.o.j.)

d. Waterfield Mortg. Co. v. Rodriguez, 929 S.W.2d 641 (Tex.App.—San Antonio

1996, no writ)

e. Rey v. Acosta, 860 S.W.2d 654 (Tex.App.—El Paso 1993, no writ)

f. Brown v. Oaklawn Bank, 718 S.W.2d 678 (Tex. 1986)


Page 14

VIII. Executions

A. The Procedure

1. Tex. R. Civ. P. 621 and 628 (General Authority and time of issuance)

2. Tex. R. Civ. P. 629-633

3. Tex. R. Civ. P. 636-639 (Officer’s procedure when serving writ)

4. Tex. R. Civ. P. 646a-652 (Sale of real and personal property)

B. Dangers of Execution

1. Nulla Bona

2. Wrongful Execution - Executive Sportsman Association v. Southwest Bank & Trust

Co., 436 S.W.2d 184 (Tex.Civ.App.—Waco 1969, writ dism’d)

3. Wrongful Execution - Southwestern Bell Telephone v. Wilson, 768 S.W.2d 755 (Tex.App.—Corpus Christi 1988, writ denied)

C. Sale of the Property -

1. Personal Property, Tex.R.Civ.P. 649, 650, 651, 652

2. Real Property, Tex.R.Civ.P. 646a, 647

3. Interest Conveyed - General Motors Acceptance Corp. v. Byrd, 707 S.W.2d 292

(Tex.App.—Ft. Worth 1986, no writ)

4. How Proceeds of Sale Applied - Byrd supra

5. Costs of Moving and Storage

6. Fraudulent Conveyance Example - Donovan & Rankin, 768 S.W.2d 443 (Tex.App.—

Houston [1st Dist.] 1989, writ denied)

Abstracts of Judgment

wp60\wpd oc s\Teach\C ases. 2

Page 15

1. Texas Property Code §52.001 - 52.007, Judgment Liens

2. Contents of Abstract - Caruso v. Shropshire, 954 S.W.2d 115 (Tex.App.—San Antonio 1997)

3. Revival & Dormancy

Civil Practice & Remedies Code §34.001 Civil Practice & Remedies Code §31.006

4. Abstracts and Homesteads - Tarrant Bank v. Miller, 833 S.W.2d 666 (Tex.App.—Eastland

1992, writ denied)

5. Gibralter Savings Association v. Martin, 784 S.W.2d 555 (Tex.App.—Amarillo 1990, writ

denied)

Writs of Garnishment

A. Pre-Judgment

1. Civil Practice & Remedies Code §63.001 et seq.

2. Tex. R. Civ. P. 658, 657-679

3. Tex. R. Civ. P. 658a

4. Constitutionality - Southwest Metal Fabricators, Inc. v. Internacional de Aceros, S.A.,

503 F.Supp. 76 (S.D. Tex. 1980)

B. Post Judgment

1. Civil Practice & Remedies Code §63.001

2. Tex. R. Civ. P. 658

a. Application for writ

b. Affidavit - Metroplex Factors, Inc. v. First Nat’l Bank, Bridgeport, 610

S.W.2d 862 (Tex.App.—Ft. Worth 1980, writ ref’d n.r.e.)

3. Tex. R. Civ. P. 662-3

a. Service of the writ on garnishee


Page 16

Service of the writ on defendant - Hering v. Norbanco Austin I, Ltd., 735

S.W. 2d 638 (Tex.App.—Austin 1987, no writ), and Walnut Equipment Leasing

Co. v. J V Dirt & Loam, 907 S.W.2d 912 (Tex.App.—Austin 1995, writ

denied)

4. Tex. R. Civ. P. 661, 665, 666, 667

a. Healy v. Wick Bldg. Sys. Inc., 560 S.W.2d 713 (Tex.Civ.App.—Dallas 1977,

writ ref’d n.r.e.) [Elements of Answer] '

Answer date

b. Default Judgment possible - Bank One, Texas, N.A. v. Moody, 800 S.W.2d 280

(Tex.App.—El Paso 1990, reversed 830 S.W.2d 81 (Tex. 1992))

c. Sworn Answer Required - Swiderski v. Victoria Bank & Trust Co., 706 2d 676

(Tex.App.—Corpus Christi 1986, no writ)

d. Sweeney Bank v. Ritchie, Hobson & Associates, Inc., 628 S.W.2d 175

(Tex.Civ.App.—Houston [14th Dist,] 1982, writ ref’d n.r.e.)

e. Limit on Bank’s duty to determine ownership - Bank One Texas, N.A. v.

Sunbelt Savings F.S.B., 824 2d 557 (Tex. 1992) '

5. Reply Bond - Tex. R. Civ. P. 664

6. Order to Disburse

7. Motion to Dissolve - Tex. R. Civ. P. 664a

a. Black Coral Inv. v. Bank of the Southwest, 650 S.W.2d 135 (Tex.App.—

Houston [14th Dist.] 1983, no writ)

b. Swiderski (Already copied)

c. American Express v. Harris, 831 S.W.2d 531 (Tex.App.—Houston [14th Dist.]

1992, no writ)

d. Highland State Bank v. Salazar, 555 S.W.2d 484 (Tex.Civ.App.—San Antonio


e. Brooks v. Sherry Lane Natl Bank, 788 S.W.2d 874 (Tex.App.—Dallas 1990, no

writ) (Req’d to be sworn to, but is failure to do so fatal?)

b.

wp60\wpdocs\T each\Cases.2

Page 17

Walnut Equipment Leasing Co. v. J-V Dirt & Loam, 907 S.W.2d 912

(Tex.App.--Austin 1995, writ denied)

8. Controverting Affidavit

a. Tex. R. Civ. P. 673, 674, 675

b. A. Wolfson’s Inc. v. First State Bank, 152 S.W.2d 614 (Tex.App.—Corpus

Christi 1988, writ denied)

9. Offset

a. San Felipe Natl Bank v. Caton, 668 S.W.2d 804 (Tex.App.—Houston [14th


b. Bank One, Texas, N.A. v. Sunbelt Savings F.S.B., 816 S.W.2d 106 (Tex.App.- -

Dallas 1991, reversed on other grds) 824 S.W.2d 557 (Tex. 1992)

c. Holt’s Sporting Goods v. American Nat’l Bank, 400 S.W.2d 943

(Tex.Civ.App.—Amarillo 1966, writ dism’d)

10. Garnishee’s Attorney’s Fees

a. Tex. R. Civ. P. 677

b. City of Houston v. Blackbird, 658 S.W.2d 269 (Tex. App.—Houston [1st Dist.]

1983, no writ) [Can’t defeat claim by non-suiting]

11. Wrongful Garnishment

a. Aetna Cas. & Sur. Co. v. Raposa, 560 S.W.2d 106 (Tex.Civ.App.—Ft. Worth

1977, writ dism’d)

b, Beutel v. Paul, 741 S.W. 2d 510 (Tex.App.—Houston [14th Dist.] 1987, no

writ)

[Types of damages avail - losst bus. opp. and interest at legal rate of money

wrongfully retained]

f.

wp60\wpdocs\Teacb\Cases.2

Page 18

12, What Can be Garnished - That which is not exempt.

a. Oglesby v. Durr, 173 S.W. 275 (Tex.Civ.App.-Austin 1915, no writ)

b. Bank of Dallas v. Republic Natl Bank of Dallas, 540 S.W.2d 499

(Tex.Civ.App,—Waco 1976, writ ref’d n.r.e.)

Turnover Orders

A. Civil Practice & Remedies Code §31.002 - 31.0025

B. Childre v. Great Southwest Life Ins. Co., 700 S.W.2d 284 (Tex.App.—Dallas 1985, no writ)

(Timing-can be sought as soon as judgment signed)

C. Hennigan v. Hennigan, 666 2d 322 (Tex.App.—Houston [14th Dist.] 1984, writ ref d n.r.e.) [No need to exhaust other remedies]

D. Types of Property which can be reached

E. Beaumont Bank, N.A. v. Buller, 806 S.W.2d 223 (Tex. 1991) To be covered by lecture

F. Ex parte Buller, 834 2d 622 (Tex. App.—Beaumont 1992, no writ) •

G. Burns v. Miller, Hiersche, Martens & Hayward, P.C., 948 S.W.2d 317 (Tex.App.—Dallas

1997, no writ)

H. Schultz v. Cadle Co., 825 S.W.2d 151 (Tex.App.—Dallas 1992, writ den. with per curiam

opinion) 852 S.W.2d 499

Receivers

A. Tex. Civ. Prac. & Rem. Code §64.001 et seq.

B. Childre v. Great Southwest Life Ins. Co., 700 S.W.2d 284 (Tex.App.—Dallas 1985, no writ)

(Already copied)

C. Huston v. FDIC, 800 S.W.2d 845 (Tex. 1990)

D. Schultz v. Cadle (Already copied) [Factors to balance as to whether to appoint receiver]

E. Newman v. Toy, 926 S.W.2d 629 (Tex.App.—Austin 1996, writ denied)


Page 19

F. Bond Required or Not Harmon v. Schoelpple, 730 S.W.2d 376 ([14th Dist.] 1987, no writ)

G. Receiver’s Comp.

Bergeron v. Sessions, 561 S.W.2d 551 (Tex.Civ.App.--Dallas 1977, writ ref d n.r.e.)

H. Enforcement by Contempt - Add Santibanez?

Fraudulent Conveyances

A. Tex. Bus. & Com. Code §24.001, et. seq., including§24.005, §24.006,§24.010

B. BMG Music v. Martinez, 74 F.3d 87 (5th Cir. 1996) (Badges of Fraud -Family)

C. Owen v. Vibrosearch Exploration, Inc., 694 S.W.2d 421 (Tex.App.—Houston [14th Dist.]


D. Thomas v. Casale, 924 S.W.2d 433 (Tex.App.—Ft. Worth 1996, writ denied)

E. Airflow Houston, Inc. v. Theriot, 849 S.W.2d 928 (Tex.App.—Houston [1st Dist] 1993, no

writ)

F. Englert v. Englert, 881 S.W.2d 517 (Tex.App.—Amarillo 1994, no writ)

[Preference for creditor allowed]

[Fraudulent intent must be shown by evidence]

G. In Re: WCC Holding Corp., 171 B.R. 972 (Bankr. N.D. Tex. 1994) [Rbly Equivalent Value]

H. In Re: Sherman, 67 F.3d 1348 (8th Cir. 1995) [Badges of Fraud in Bkrcy]

Copy only p. 1348-1355

I. Limitations - §24.010

Post Judgment Discovery

A. Location of Assets - Non Judicial

B. Location of Assets - Judicial Means - Tex. R. Civ. P. 621a

L Tex. R. Civ. P. 168 - Interrogatory

2. Tex. R. Civ. P. 167(1) - Request for Production

3. Tex. R. Civ. P. 167(4) - Motion for Production


Page 20

4. Tex. R. Civ. P. 200, 202 - Depositions

5. Tex. R. Civ. P. 166C

6. Checklist - Post Judgment Questions

7. Subpoenas & Bank Records, Tex. Civ. Prac. & Rem. Code §30.007

C. Sanctions

1. Tex. R. Civ. P. 215

2. Tex. Govt. Code Ann. §21.002

3. In Re: Roberts, 584 S.W.2d 925 (Tex.Civ.App.—Dallas 1979, no writ)

4. Ex parte Vetterick, 744 S.W.2d 598 (Tex. 1988)

5. Ex parte Johnson, 654 S.W.2d 415 (Tex. 1983)

6. Ex parte Herring, 438 S.W.2d 801 (Tex. 1964)

7. Ex parte Conway, 419 S.W.2d 827 (Tex. 1967) .

8. Ex parte Kottwitz, 8 S,W.2d 508 (Tex. 1928)

9. Ex parte Johnson, 669 S.W.2d 869 (Tex.App.—Austin 1984, no writ)

10. Examples of Discovery Violations

Arndt v. Farris, 633 S.W.2d 497 (Tex. 1982)

Firestone Photographs, Inc. v. Lamaster, 567 S.W.2d 273 (Tex. Civ.App.—Texarkana

1978, no writ)

D. Motions for Protection

1. Dresser Industries, Inc. v. Soldo, 668 S.W.2d 893 (Tex.App.—Houston [14th Dist.]

1984, no writ)

2. Downer v. Aqua Marine, 701 S.W.2d 238 (Tex. 1985) cert, denied 106 S.Ct 2279

3. Collier Services Corp. v. Salinas, 812 S.W.2d 372 (Tex.App.—Corpus Christi 1991,

no writ)

creditors’ rights course

Documents