Bayoud v. North Central Investment Corp. Ex Rel. Bayoud

751 S.W.2d 525, 1988 Tex. App. LEXIS 1525, 1988 WL 63625
CourtCourt of Appeals of Texas
DecidedMarch 22, 1988
Docket05-87-00950-CV, 05-87-01332-CV
StatusPublished
Cited by19 cases

This text of 751 S.W.2d 525 (Bayoud v. North Central Investment Corp. Ex Rel. Bayoud) 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
Bayoud v. North Central Investment Corp. Ex Rel. Bayoud, 751 S.W.2d 525, 1988 Tex. App. LEXIS 1525, 1988 WL 63625 (Tex. Ct. App. 1988).

Opinion

LAGARDE, Justice.

In a single point of error in cause No. 05-87-00950-CV, appellants Paige B. Bay-oud and North Central Investment Corporation complain that the trial court erred in denying their motion for termination of receivership, asserting that the trial court lacked jurisdiction and authority to continue administration of the receivership and should have dismissed or vacated same. Although not presented in a point of error, appellant’s appeal bond complains of the order appointing receiver dated August 7, 1987. Because we agree that the trial court lacked jurisdiction, we reverse the judgment of the trial court and render judgment dismissing the receivership. In effect, this holding vacates the order appointing the receiver.

The subject of the receivership is North Central Investment Corporation (“NCIC”), the principals of whom are brothers, appellant Paige B. Bayoud (“Paige”) and appel-lee George S. Bayoud (“George”).

Cause No. 05-87-01332-CV, an original proceeding in the nature of an application for writ of prohibition, has been consolidated for purposes of submission and oral argument with cause No. 05-87-00950-CV. The issues of fact and law are identical in each case. For the reasons given below, the writ of prohibition is denied.

A discussion of the procedural aspects of this case is warranted in that we have a hybrid appeal before us. The appellants’ appeal bond states that they are appealing from two orders. Properly, the appeal from the appointment of receiver is interlocutory. TEX.CIV.PRAC. & REM.CODE ANN. § 51.014(1). However, complaint of the order denying the motion to terminate the receivership should be brought by regular appeal as a final order pursuant to Christie v. Lowrey, 589 S.W.2d 870, 874, (Tex.Civ.App.—Dallas 1979, no writ). The correct procedure, therefore, would have been to file two appeals, one interlocutory and one from a final order. Then this *527 Court could have consolidated the two appeals. However, given that the appellants complied with the more rigid time frames for an interlocutory appeal, both aspects of this hybrid appeal can, and will, be considered.

I.

The convoluted history of this cause mandates a detailed discussion of its background. For at least ten years, brothers Paige and George have been engaged in protracted litigation involving the operation of NCIC. In 1978 the present cause was initiated by George filing a shareholder derivative suit alleging Paige’s failure to allow him access to the corporate records and breach of fiduciary duty by Paige. George subsequently amended his petition to include a claim for damages for tortious interference with business relations, for fraud and for conversion. Among other responses, Paige asserted that George had no ownership interest in NCIC.

In his original petition, George requested that a receiver be appointed to rehabilitate NCIC or, failing that, to liquidate NCIC. Paige joined in the application for the appointment of a receiver who was appointed by an order signed on February 5, 1979.

Unchallenged statements in Paige’s brief indicate that there have been no directors of NCIC since February 5, 1980, and no plan for rehabilitation of NCIC has been approved. The corporation’s income, which is derived from a guaranteed lease through 1996, is approximately $25,000 per month. Assets include several acres of land and buildings, together with about $1,000,000 in cash.

George, in his derivative action filed in 1979, pleaded that even if he were not a shareholder in NCIC he was entitled to ownership of one-half of the outstanding shares in NCIC. Paige denied George’s claims, including his right to bring the derivative action, on the basis that George was not a shareholder in NCIC.

On the issue of ownership, George filed a motion for summary judgment which was granted and appealed by Paige. The remaining issues were tried to the court and judgment was rendered on September 17, 1981. The judgment denied all derivative and individual relief claimed by George against either Paige or NCIC. In addition, the judgment concluded that none of the parties to the suit were entitled to recover damages from each other. This Court ultimately affirmed the September 1981 judgment.

After the signing of the September 1981 judgment, the lawsuit was divided into three suits: (1) the summary judgment in favor of George; (2) the receivership; and (3) the judgment of 1981 disposing of the other issues in the case.

The history of the case subsequent to the three-part division is as follows:

(1) On the ownership issue, in 1982 this Court reversed the summary judgment and remanded for a new trial which was held in 1983. This trial resulted in a judgment that Paige and George were equal shareholders in NCIC. Paige 3 appealed and this Court again reversed and remanded for a new trial. Once again, Paige and NCIC appealed the May, 1986 judgment in favor of George. This Court on January 28, 1988, issued its opinion in that case, affirming the judgment of the trial court which held George and Paige to be equal co-owners of NCIC.

(2) The September 17, 1981 judgment, which disposed of all issues except ownership and the receivership, was affirmed by this Court in 1982.

(3) This appeal arises from the trial court’s denial of Paige’s motion to terminate the receivership which has been administered by the trial court since February 1979.

Some discussion of the application for writ of prohibition, which has been consolidated with this appeal, is warranted. In that original proceeding, Paige requests this Court to issue a writ of prohibition *528 directing the trial court to cease and desist from exercising any jurisdiction over the cause, including any pending and undetermined motions in this cause or, alternatively, prohibiting respondents from proceeding on any hearing for interim receiver’s and accountant’s fees and from any further proceedings or actions in the receivership other than maintaining the status quo, pending determination of the present appeal by this Court. Paige also asks that this Court prohibit any award or payment of attorney’s fees or costs in favor of respondents and against Paige and, in any event, to prohibit any claims for fees and costs incurred prior to December 30, 1982 or September 17, 1981.

II.

Paige argues that the trial court has lost jurisdiction over administration of the receivership and requests that all assets of NCIC be returned to Paige. George argues that Paige’s dilatory tactics have resulted in continuation of the receivership. George argues for liquidation of the receivership, but presents no cross-point on that or any other issue. Paige argues loss of jurisdiction on the following bases:

(1) By virtue of the judgment dated September 17, 1981;

(2) By virtue of mandatory provisions of TEX.REY.CIY.STAT.ANN. art. 2317 (repealed 1985) which limit the duration of a corporate receivership to, at most, eight years;

(3) By virtue of the mandatory provisions of TEX.CIV.PRAC. & REM.CODE ANN. § 64.072(d) (Vernon 1985) limiting the duration of a corporate receivership to, at most, eight years.

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Bluebook (online)
751 S.W.2d 525, 1988 Tex. App. LEXIS 1525, 1988 WL 63625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayoud-v-north-central-investment-corp-ex-rel-bayoud-texapp-1988.