Ann BASLEY, Laura Hale, Lindell L. Hale, and Vickie Hale Whitt, Appellants, v. ADONI HOLDINGS, LLC, and Dodeka, LLC, Appellees

373 S.W.3d 577, 2012 WL 2298787, 2012 Tex. App. LEXIS 4838
CourtCourt of Appeals of Texas
DecidedJune 19, 2012
Docket06-11-00128-CV
StatusPublished
Cited by35 cases

This text of 373 S.W.3d 577 (Ann BASLEY, Laura Hale, Lindell L. Hale, and Vickie Hale Whitt, Appellants, v. ADONI HOLDINGS, LLC, and Dodeka, LLC, Appellees) 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
Ann BASLEY, Laura Hale, Lindell L. Hale, and Vickie Hale Whitt, Appellants, v. ADONI HOLDINGS, LLC, and Dodeka, LLC, Appellees, 373 S.W.3d 577, 2012 WL 2298787, 2012 Tex. App. LEXIS 4838 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion by

Justice MOSELEY.

In a case rising out of the District Court of Hunt County, Adoni Holdings, LLC, and Dodeka, LLC, had filed pleadings seeking relief under the Texas Declaratory Judgments Act (Chapter 37 of the Texas *581 Civil Practice and Remedies Code) and Ann Basley, Laura Hale, Lindell L. Hale, and Vickie Hale Whitt had responded with a counterclaim, also seeking a declaratory judgment. After a bench trial, the trial court awarded a declaratory judgment in favor of Adoni Holdings, LLC, and Dode-ka, LLC, and against the original defendants. It is from that judgment that Bas-ley, et al., appeal.

Background of Controversy

On March 19, 2008, Dodeka obtained a justice court judgment in Dallas County against Whitt for $8,614.64 for credit card debt. In an effort to collect on that judgment, representatives of Dodeka discovered a 0.887-acre tract of land with a dwelling house in Hunt County to be held in Whitt’s name and obtained a writ of execution. 1 On February 2, 2010, a constable’s sale was conducted pursuant to the writ of execution on the judgment, and the real estate (carried on the tax rolls as valued at $54,800.00) was struck off at sale for $4,442.43 to Adoni. On February 18, 2010 (before the constable’s deed to Adoni was signed or placed of record), Whitt signed a general warranty deed conveying the property to Ann Basley (her niece), Laura Hale (her sister), and Lindell L. Hale (her brother), 2 and the deed was promptly placed of record.

Upon discovering that Whitt had made a conveyance of the realty, Dodeka brought a declaratory judgment action against Whitt and her grantees, alleging that the deed she had given to her relatives was a fraudulent transfer. At trial, Dodeka and Adoni asserted a challenge to the jurisdiction of the court, maintaining that the sole jurisdiction to determine the validity of the procedures followed pursuant to the writ of execution lay with the court which issued the writ (a justice court in Dallas County).

Whitt and her grantees responded with a counterclaim alleging that discrepancies in the notice of the execution sale rendered the resulting sale void, that the underlying debt owed by Whitt to Dodeka was no longer valid under a theory of offer of payment and refusal, alleging that Dodeka was guilty of malicious prosecution, and seeking attorney’s fees, invoking declaratory judgment claims as the basis.

The trial court explicitly refused to rule on Dodeka’s and Adoni’s jurisdiction argument, 3 found the transfer from Whitt to her relatives to be a fraudulent transfer, declared Adoni to be the sole owner of the realty the subject of the controversy, and awarded attorney’s fees to Adoni and Dodeka.

On appeal, Whitt raises five issues arguing the evidence was legally insufficient, the constable’s sale violated Whitt’s right to due process, the trial court erred in refusing to set aside the constable’s sale, the trial court had jurisdiction to entertain her claims that the execution sale was invalid, and attorney’s fees should be awarded to Whitt and the other appellants rather than there being an award of attorney’s fees in favor of Dodeka and Adoni. Unless the context requires it, references to the appellants will hereafter be made as “Whitt.”

*582 I. The Evidence of Insolvency Is Legally Insufficient

In her first point of error, Whitt argues that the record contains legally insufficient evidence that she was insolvent. The Fraudulent Transfer Act provides:

(a) A transfer made or obligation incurred by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.
(b) A transfer made by a debtor is fraudulent as to a creditor whose claim arose before the transfer was made if the transfer was made to an insider for an antecedent debt, the debtor was insolvent at that time, and the insider had reasonable cause to believe that the debtor was insolvent.

Tex. Bus. & Com.Code Ann. § 24.006(a), (b) (West 2009).

The Act provides that “[a] debtor is insolvent if the sum of the debtor’s debts is greater than all of the debtor’s assets at a fair valuation.” Tex. Bus. & Com.Code Ann. § 24.003(a) (West 2009). The Act also defines “asset” as:

property of a debtor, but the term does not include:
(A) property to the extent it is encumbered by a valid lien;
(B) property to the extent it is generally exempt under nonbankruptcy law; or
(C) an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant, under the law of another jurisdiction.

Tex. Bus. & Com.Code Ann. § 24.002(2) (West 2009).

In determining legal sufficiency, we analyze “whether the evidence at trial would enable reasonable and fair-minded people to reach the verdict under review.” City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex.2005); see also Walker & Assocs. Surveying, Inc. v. Austin, 301 S.W.3d 909, 916 n. 4 (Tex.App.-Texarkana 2009, no pet.). We credit favorable evidence if a reasonable fact-finder could, and disregard contrary evidence unless a reasonable fact-finder could not. City of Keller, 168 S.W.3d at 827. The evidence is legally insufficient if (1) there is a complete absence of evidence of a vital fact; (2) the rules of law or of evidence prevent giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to prove a vital fact is no more than a mere scintilla; or (4) there is conclusive evidence of the opposite of the vital fact. Jelinek v. Casas, 328 S.W.3d 526, 532 (Tex.2010). More than a scintilla of evidence exists when the evidence “rises to a level that would enable reasonable and fair-minded people to differ in their conclusions.” Merrell Dow Pharms., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex.1997). “Less than a scintilla of evidence exists when the evidence is ‘so weak as to do no more than create a mere surmise or suspicion’ of a fact.” King Ranch, Inc. v. Chapman, 118 S.W.3d 742, 751 (Tex.2003).

In its findings of fact, the trial court made a finding that other than the property which had been the subject of the execution sale, Whitt “had no other nonexempt assets subject to execution.”

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373 S.W.3d 577, 2012 WL 2298787, 2012 Tex. App. LEXIS 4838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ann-basley-laura-hale-lindell-l-hale-and-vickie-hale-whitt-appellants-texapp-2012.