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

CourtCourt of Appeals of Texas
DecidedOctober 21, 2024
Docket08-23-00152-CV
StatusPublished

This text of 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) 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.

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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).

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

2 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

3 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

4 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.

A. The unauthorized practice of law

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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, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ana-margarita-fushille-abraham-margaret-abraham-the-tap-lounge-llc-v-texapp-2024.