2024, Maison KW Inc, Kamilah Willacy, Individually, AP Remittance Corp, LMA Global Inc, QRG Corp, Saba Retail Inc, Williacy Group v. Sallyport Commercial Finance, LLC

CourtCourt of Appeals of Texas
DecidedOctober 22, 2024
Docket01-24-00082-CV
StatusPublished

This text of 2024, Maison KW Inc, Kamilah Willacy, Individually, AP Remittance Corp, LMA Global Inc, QRG Corp, Saba Retail Inc, Williacy Group v. Sallyport Commercial Finance, LLC (2024, Maison KW Inc, Kamilah Willacy, Individually, AP Remittance Corp, LMA Global Inc, QRG Corp, Saba Retail Inc, Williacy Group v. Sallyport Commercial Finance, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
2024, Maison KW Inc, Kamilah Willacy, Individually, AP Remittance Corp, LMA Global Inc, QRG Corp, Saba Retail Inc, Williacy Group v. Sallyport Commercial Finance, LLC, (Tex. Ct. App. 2024).

Opinion

Opinion issued October 22, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-24-00082-CV ——————————— MAISON KW INC, KAMILAH WILLACY, INDIVIDUALLY, AP REMITTANCE CORP, LMA GLOBAL INC., QRG CORP, SABA RETAIL INC, AND WILLACY GROUP INCORPORATED, Appellants V. SALLYPORT COMMERCIAL FINANCE, LLC, Appellee

On Appeal from the 234th District Court Harris County, Texas Trial Court Case No. 2022-48481

MEMORANDUM OPINION

Appellants, Maison KW Inc, Kamilah Willacy, individually, AP Remittance

Corp, QRG Corp, SABA Retail Inc, and Willacy Group Incorporated (collectively, “appellants”),1 proceeding pro se challenge the trial court’s no-answer default

judgment entered against certain appellants in favor of appellee, Sallyport

Commercial Finance, LLC (“Sallyport”), in Sallyport’s suit against appellants for

breach of contract, fraud, conspiracy to commit fraud, and theft. In six issues,

appellants contend that their due process rights were violated and the trial court erred

in entering a no-answer default judgment and not granting Willacy’s motion to

dismiss.2

1 The notice of appeal also lists LMA Global Inc. as an appellant seeking to appeal from the trial court’s no-answer default judgment. But the trial court did not enter a no-answer default judgment against LMA Global Inc., and appellee, Sallyport Commercial Finance, LLC (“Sallyport”), non-suited its claims against LMA Global Inc. before a final judgment was entered in the trial court and before the notice of appeal was filed. When a plaintiff non-suits its claims against a defendant, who has no outstanding affirmative claims for relief, there are no longer any claims pending against that defendant and the defendant becomes a non-party, with no standing to appeal. See In re Guardianship of Semrad, No. 01-21-00491-CV, 2023 WL 5534251, at *13 (Tex. App.—Houston [1st Dist.] Aug. 29, 2023, no pet.) (mem. op.); In the Interest of M.W., No. 02-22-00095-CV, 2022 WL 2071785, at *1 (Tex. App.—Fort Worth June 9, 2022, no pet.) (mem. op.) (“[A]fter a plaintiff takes a nonsuit against a defendant, a defendant, who has no outstanding claims for affirmative relief is no longer a party to the suit with standing to appeal.”); White v. Zhou Pei, 452 S.W.3d 527, 534 n.5 (Tex. App.—Houston [14th Dist.] 2014, no pet.) (noting where two parties nonsuited their claims, they were no longer parties to the litigation). Accordingly, we dismiss the appeal of LMA Global Inc. for lack of jurisdiction. See, e.g., In the Interest of M.W., 2022 WL 2071785, at *1; In re Estate of Garza, No. 13-14-00730-CV, 2015 WL 3799370, at *3–4 (Tex. App.—Corpus Christi–Edinburg June 18, 2015, no pet.) (mem. op.). 2 In their briefing, appellants phrase their issues as follows: (1) “The Harris County District Court of the 234th Judicial District error [sic] in granting the interlocutory default judgment against the [a]ppellants”; (2) “[t]he Harris County District Court of the 234th Judicial District errored [sic] in not ordering the [a]ppellants [sic] [r]ule 91a [m]otion to dismiss the [a]ppellees [sic] complaint for failure to state a claim”; (3) “[t]he fundamental due process rights of the [a]ppellants were violated”; 2 We affirm in part and dismiss in part.

Background

In its petition, Sallyport alleged that it was “in the factoring business, which

involve[d] the purchas[ing] of accounts receivable at a discount (‘Accounts’) from

businesses.” According to Sallyport, “in the factoring business,” the entity “that

purchase[d] the Accounts [was] known as the ‘Factor.’” The entity “from whom the

Factor purchase[d] the Accounts [was] the ‘Factoring Client,’” and “[t]he Factoring

Client’s customer, who owe[d] payment on the Account, [was the] ‘Account

Debtor.’”

Sallyport further alleged that as a Factor, it would “advance[] funds to its

Factoring Clients by purchasing the Factoring Client’s Accounts.” Sallyport would

also “take[] a security interest in the Factoring Client’s assets . . . to secure

repayment of the Factoring Client’s obligations.” Additionally, Sallyport would

notify the Factoring Client’s customers, also known as the Account Debtors, that the

Factoring Client’s Accounts had been assigned to Sallyport for payment and “that

(4) “[a]n interlocutory default judgment should not have been ordered by the trial court as it was not pursuant to the statutes and rules of the State of Texas”; (5) “[j]udicial discretion did not extend to the courts [sic] refusal to dismiss the [a]ppellants [sic] [r]ule 91(a) [m]otion to dismiss the [a]ppellees [sic] complaint for failure to state a claim upon which relief could be granted”; and (6) “[a]ppellants [sic] due process rights were violated when the court errored [sic] in entering an [i]nterlocutory [d]efault [j]udgment against the [a]ppellants, in violation of due process afforded them in the Texas Constitution and applicable Texas [l]aw and case [l]aw.”

3 all obligations owed to the Factoring Client[s] [were] to be paid directly to Sallyport

(including amounts owed on Accounts which [Sallyport] ha[d] not purchased).”

According to Sallyport, as to the Accounts that it had purchased from a Factoring

Client, the Factoring Client “d[id] not retain any legal or equitable interest in the

Account[s] sold.” “All legal and equitable interests in the sold Accounts, including

the exclusive right to receive payment from the Account Debtor, vest[ed] with

Sallyport.”

On or about March 20, 2020, Sallyport and Maison KW Inc entered into a

Factoring Agreement, under which Sallyport “agreed to purchase eligible Accounts

from Maison KW [Inc] under an agreed-upon formula.” Sallyport purchased

Accounts from Maison KW Inc “arising from the services that Maison KW [Inc]

rendered to its purported customers.” Maison KW Inc, as the Factoring Client, “did

not retain any legal or equitable interest in the Accounts that it sold to Sallyport.”

According to Sallyport, Maison KW Inc, and its guarantor, Willacy,3 “warranted and

represented that the Accounts sold to Sallyport were legitimate, valid, due and owing

from Account Debtors that were in existence and operating at an arm’s length with

Maison KW [Inc].”

3 Sallyport alleged that Willacy “unconditionally and personally guaranteed the obligation of Maison KW [Inc]” and Willacy was “liable for the full payment and performance of all existing and future indebtedness, obligations or liabilities arising under the Factoring Agreement.”

4 Sallyport further alleged that Maison KW Inc and Willacy “submitted

falsified invoices and backup documentation [to Sallyport] that were fraudulently

made to appear like legitimate and authentic invoices from [Maison KW Inc’s]

Account Debtors.”4 “When Sallyport sought collection and verification of the[]

invoices from [Maison KW Inc’s] Account Debtors, Sallyport was able to determine

that [they] were not legitimate companies.” Instead, Willacy had “create[d] multiple

shell companies with dummy invoices in order to obtain funds from Sallyport” and

had made “partial payments on fake invoices to prolong Sallyport from noticing the

illegitimacy of [Maison KW Inc’s] Account Debtors.” According to Sallyport,

Maison KW Inc and Willacy “created strawman Account Debtors[] and used some

of the money they received from the sale of fake invoices to partially pay the invoices

and keep up appearances.”

Sallyport brought claims against Maison KW Inc and Willacy for breach of

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2024, Maison KW Inc, Kamilah Willacy, Individually, AP Remittance Corp, LMA Global Inc, QRG Corp, Saba Retail Inc, Williacy Group v. Sallyport Commercial Finance, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/2024-maison-kw-inc-kamilah-willacy-individually-ap-remittance-corp-lma-texapp-2024.