Ana Margarita Fushille Abraham, Margaret Abraham, & the Tap Lounge, LLC v. Rita Hernandez, Charlene Soule, Soule Corporation, Inc., & 408 Espita, LLC

Court of Appeals of Texas·Decided October 21, 2024·No. 08-23-00152-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

ANA MARGARITA FUSHILLE § No. 08-23-00152-CV ABRAHAM, MARGARET ABRAHAM, and THE TAP LOUNGE, LLC, § Appeal from the

Appellants, § 41st Judicial District Court v. § of El Paso County, Texas

RITA HERNANDEZ, CHARLENE SOULE, § Cause No. 2019DCV0403 SOULE CORPORATION, INC., and 408 ESPITA, LLC,

Appellees.

OPINION

This appeal involves disputes related to the Tap Lounge, a long-operating restaurant and bar in downtown El Paso. After a bankruptcy proceeding involving debtor William Abraham (who is not a party to this appeal), Appellants Ana Margarita Fushille Abraham, Margaret Abraham, and The Tap Lounge, LLC, filed suit in state court against Appellees Rita Hernandez, Charlene Soule, and Soule Corporation, Inc. 1 Soon thereafter, Appellee 408 Espita, LLC, intervened in the suit. Appellants asserted claims of breach of fiduciary duty, conversion, and theft liability, and they sought monetary damages, equitable remedies, and declaratory relief to include a determination of

1 For clarity and distinction, we refer at times to William Abraham and the individual Appellants by their given names.

the ownership of the restaurant/bar and its related assets. Appellees filed competing claims. The trial court determined ownership issues against Appellants on partial summary judgment, and a jury later returned a take-nothing verdict on Appellants’ liability claims against Hernandez and Soule for mismanagement of the business and theft. On appeal, we dismiss Appellants Margaret Abraham and the Tap Lounge, LLC, pursuant to Appellees’ motion to dismiss, based on their respective failure to timely perfect appeal and to prosecute the appeal. Finally, based on procedural grounds and controlling precedent, we conclude the trial court did not err in rendering judgment against Ana Margarita’s claims. Accordingly, we affirm the trial court’s judgment.

I. FACTUAL AND PROCEDURAL BACKGROUND The Tap Lounge is a family-owned restaurant and bar in El Paso, continuously operating since 1956 at 408 E. San Antonio. The real property where the business is located was deeded to Charlene Soule in 1998, after she executed a deed of trust granting a security interest in the establishment and its furniture, fixtures, and equipment (FFE).

Through a series of transfers, an entity owned by William D. Abraham acquired the deed of trust, and he formed an entity called the Tap Lounge, LLC, in 2001. Abraham’s entity later foreclosed on the liens against all of the real and personal property located at 408 E. San Antonio. Eventually, through a series of additional transfers through a number of William’s entities, including The Tap Lounge, LLC, the real property came to be owned in 2013 by yet another one of William’s entities.

In 2015, William transferred all of his interest in The Tap Lounge, LLC, by transferring 50% of his ownership interest to Margaret Abraham, his mother, and the other 50% to Ana Margarita Fushille Abraham, his ex-wife. That same day, William executed a Bill of Sale

transferring the FFE to Ana Margarita. Later in 2015, Margaret Abraham transferred The Tap Lounge, LLC, to Rita Hernandez, Soule’s sister-in-law.

In 2018, William declared bankruptcy. The entity that owned the real property was subsequently consolidated with William’s bankruptcy estate. William did not disclose in the bankruptcy proceeding either his prior ownership in or his entity’s month-to-month lease with The Tap Lounge, LLC.

The bankruptcy trustee filed a motion to sell the real property of the establishment free and clear of liens, claims, interests and encumbrances. Ana Margarita received a copy of the pleading as one of William’s creditors, and she did not object to the sale. The bankruptcy court later entered an order approving the sale, and the sale documents confirmed that the FFE was transferred, along with the real property, to the buyer. In December 2018, the buyer assigned the contract to 408 Espita, LLC, and 408 Espita entered into a lease of the real property with Soule.

In January 2019, Ana Margarita and Margaret filed suit seeking declaratory relief against Appellees Soule and Hernandez regarding the ownership of The Tap Lounge, LLC, and sought damages and equitable remedies for their breach of fiduciary duty, theft, and conversion. Appellants’ petition alleged that Soule and Hernandez conspired and devised a plan to usurp ownership of the Tap Lounge, LLC, and claim it for themselves. Subsequently, The Tap Lounge, LLC, was added as a plaintiff, and 408 Espita and Soule Corporation intervened, all seeking declaratory relief on the ownership of The Tap Lounge, LLC, among other claims.

Soon, 408 Espita filed a motion for traditional and no-evidence partial summary judgment.

408 Espita asserted there was no genuine issue of material fact and sought declaratory judgment on the ownership of the personal property, equipment, furniture, and fixtures located at the real

property; on Soule’s right to operate under a lease at the real property and Appellants’ lack thereof; and other issues.

The trial court granted summary judgment declaring ownership on 408 Espita’s motions.

Prior to trial on the remaining issues, the trial court allowed Appellants’ attorney to withdraw. Appellants failed to provide evidence of damages in response to discovery requests, and the trial court excluded that evidence prior to trial. At trial, the trial court granted directed verdicts on all of Appellants’ causes of action except breach of fiduciary duty, which went to the jury. A jury found that Soule and Hernandez each had a fiduciary duty to The Tap Lounge, LLC, but neither breached their respective duty. The jury awarded attorney’s fees to Appellees, which the trial court adjusted in its judgment. Having obtained new counsel, Ana Margarita and The Tap Lounge, LLC, filed a notice of appeal, and this appeal followed.

II. MOTION TO DISMISS

As a preliminary matter, we consider a pending motion to dismiss. Appellees Hernandez, Soule, and Soule Corporation, Inc. (the Soule parties) moved to dismiss Margaret’s and The Tap Lounge, LLC’s appeals. The Soule parties base their motion to dismiss Margaret’s appeal on two grounds, that she neither filed a notice of appeal nor an appellant’s brief on her own behalf. Similarly, they seek dismissal of The Tap Lounge, LLC’s appeal based on its failure to file either an appellant’s brief or a motion for extension of time to file a brief. We called for responses from Ana Margarita, Margaret, and The Tap Lounge, LLC. Only Margaret responded, with a letter stating there was a clerical error in leaving her off Ana Margarita’s brief and the notice of appeal and requesting our Court to “accept and acknowledge” her participation in the brief and her appeal, both “personally and as 50% owner of . . . The Tap Lounge, LLC.” Because the motion to dismiss is based on both Margaret’s and The Tap Lounge, LLC’s failure to properly act on their own accord

or through legal representation, we first address Ana Margarita’s ability to act on behalf of either of them considering she appears pro se, as her attorney of record was permitted to withdraw after the filing of the notice of appeal.

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Ana Margarita Fushille Abraham, Margaret Abraham, & the Tap Lounge, LLC v. Rita Hernandez, Charlene Soule, Soule Corporation, Inc., & 408 Espita, LLC, (Tex. Ct. App. 2024).

Ana Margarita Fushille Abraham, Margaret Abraham, & the Tap Lounge, LLC v. Rita Hernandez, Charlene Soule, Soule Corporation, Inc., & 408 Espita, LLC (Ana Margarita Fushille Abraham, Margaret Abraham, & the Tap Lounge, LLC v. Rita Hernandez, Charlene Soule, Soule Corporation, Inc., & 408 Espita, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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