Alford v. Thornburg

113 S.W.3d 575, 2003 WL 21804727
CourtCourt of Appeals of Texas
DecidedAugust 26, 2003
Docket06-02-00168-CV
StatusPublished
Cited by43 cases

This text of 113 S.W.3d 575 (Alford v. Thornburg) 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
Alford v. Thornburg, 113 S.W.3d 575, 2003 WL 21804727 (Tex. Ct. App. 2003).

Opinion

OPINION

Chief Justice MORRISS.

Opinion by

Fredye Long Alford 1 (Alford) and Thomas Lynn Thornburg, Jr. (Thornburg) were divorced on October 17, 1995. While negotiating the division of property, the parties agreed Thornburg owed Alford $85,000.00. Alford agreed to collect that $85,000.00 through trust fund proceeds that were to be distributed to Thornburg, provided the proceeds would bypass him and go directly to her. 2 Specifically, the divorce decree provided, in pertinent part:

[t]he sum of Eighty Five Thousand and No/100 Dollars ($85,000.00) cash payable by Lynn Thomas Thornburg, Jr. upon the first to occur of the following events: a. receipt by Lynn Thomas Thornburg, Jr. of the balance of his inheritance out of a trust fund administered by Mike Augustine, said sum to be secured by a lien to be placed upon the proceeds of such inheritance OR b. upon the death of Lynn Thomas Thornburg, Jr., prior to his receipt of such inheritance, by means of an assignment in favor of Fredye Mac Long as the irrevocable beneficiary of $85,000.00 out of proceeds from a life insurance policy on the life of Lynn Thomas Thornburg, Jr.

(Emphasis added). Pursuant to their agreement, Thornburg executed a “designation of lien on proceeds of inheritance due to Lynn Thomas Thornburg, Jr.” (the Assignment), which directed Michael Augustine (Augustine), as trustee, to pay the $85,000.00 directly to Alford once the trust was funded. The trust document, however, contained a spendthrift clause that made invalid any effort by Thornburg to assign the trust proceeds. 3

*579 Augustine, as trustee, filed a petition in the Superior Court of the State of California, County of Los Angeles, in case number MP 000 551, to determine the validity of the Assignment in light of the spendthrift clause, and, by an order dated July 3, 2000, that court declared the Assignment void and directed Augustine that, on funding of the trust, he was not to pay the funds directly to Alford.

On February 27, 1997, Thornburg filed for Chapter 13 bankruptcy in the United States Bankruptcy Court for the Eastern District of Texas. On filing for bankruptcy, a stay was automatically imposed on all entities, preventing the “commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding against the debtor, [Thornburg], that was or could have been commenced before the commencement of the case.” 11 U.S.C.A. § 362 (1993). Pursuant to Section 362(d), however, the bankruptcy court subsequently granted Alford limited relief from the automatic stay. 11 U.S.C.A. § 362(d).

After getting relief from the stay in bankruptcy, Alford filed suit against Thornburg for the enforcement of a portion of the divorce decree pertaining to a life insurance policy that was ordered maintained by Thornburg. Alford obtained a final judgment in that proceeding against Thornburg, and, without permission from the bankruptcy court, Alford filed an abstract of that judgment in Bowie County, Texas. In addition, while Thorn-burg was still under the protection of the automatic stay, Alford filed a notice of lis pendens, without the permission of the bankruptcy court, on May 9, 2000, against a piece of property owned by Thornburg in Bowie County. 4 On March 12, 2002, the bankruptcy court entered an order and an accompanying opinion, declaring the abstract of judgment and the lis pendens void because they violated the automatic stay. Alford has appealed the bankruptcy court’s decision, and that appeal is currently pending.

On August 27, 1999, Alford filed this cause of action. 5 In response, Thornburg filed a “motion for leave to request release of judgment and removal of lis pendens from respondent’s homestead,” and the court ordered Alford to release the abstract of judgment and the lis pendens.

Alford contended she would have collected the $85,000.00 in a different manner had she known the trust proceeds would have to actually be distributed to Thorn-burg before she received payment. In her second amended petition, she alleged Thornburg was guilty of fraud, civil conspiracy, and breach of contract, and that Augustine was guilty of fraud and civil conspiracy. In the alternative, Alford contended she was entitled to a rescission and/or reformation or a bill of review with regard to the divorce decree. The trial court granted summary judgment in favor of Thornburg and Augustine, and Alford brings this appeal.

Alford asserts the trial court erred (1) by issuing, without subject matter jurisdiction, an oral order enforcing an appealed bankruptcy ruling; (2) by issuing that order without notice or an evidentiary hearing, thus denying Alford due process of law; (3) by considering Thornburg’s evi *580 dence in support of his motion for summary judgment; (4) by granting Thorn-burg’s motion for summary judgment; (5) by striking Alford’s affidavits filed in response to Augustine’s motion for summary judgment; and (6) by granting Augustine’s motion for summary judgment.

1. Subject Matter Jurisdiction

On appeal, Alford contends that, because the bankruptcy court’s order, voiding the abstract of judgment and lis pendens, was pending on appeal, the state court did not have subject matter jurisdiction to order a release of the same. 6 We disagree.

It is well settled that the mere pendency of an action in federal court involving the same parties and issues is not a reason for abating the subsequent state court proceeding. Williamson v. Tucker, 615 S.W.2d 881, 885-86 (Tex.Civ.App.-Dallas 1981, writ ref d n.r.e.); Byrnes v. Univ. of Houston, 507 S.W.2d 815, 816 (Tex.Civ. App.-Houston [14th Dist.] 1974, writ refd n.r.e.). As a matter of comity, however, it is the custom for the court in which the later action is instituted to stay proceedings therein until the prior action is determined or, at least, for a reasonable time, and the custom has practically grown into a general rule which strongly urges the duty on the court in which the subsequent action is instituted to do so. Williamson, 615 S.W.2d at 885-86. While the prudent course of action would have been to request a stay of the proceeding and allow the federal court to reach a final determination on the issue, which could have led to a res judicata defense, neither party requested the state court to stay the proceeding. As a result, the state court was not precluded from exercising subject matter jurisdiction over this dispute. We overrule Alford’s first point of error.

2. Due Process

In her next point of error, Alford contends that, if the court is found to have properly exercised its jurisdiction, the trial court erred by rendering its order without notice or a hearing.

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Cite This Page — Counsel Stack

Bluebook (online)
113 S.W.3d 575, 2003 WL 21804727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alford-v-thornburg-texapp-2003.