Braden v. New Ulm State Bank

618 S.W.2d 780, 1981 Tex. App. LEXIS 3435
CourtCourt of Appeals of Texas
DecidedMarch 26, 1981
Docket17847
StatusPublished
Cited by11 cases

This text of 618 S.W.2d 780 (Braden v. New Ulm State Bank) 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
Braden v. New Ulm State Bank, 618 S.W.2d 780, 1981 Tex. App. LEXIS 3435 (Tex. Ct. App. 1981).

Opinion

*781 PEDEN, Justice.

Ann A. Braden appeals from a summary judgment that awarded the plaintiff-gar-nishor, New Ulm State Bank, $7,340.04 of the escrowed proceeds from the sale of Mrs. Braden’s home. She contends that the trial court erred in granting the judgment because there were genuine issues of material fact 1) as to whether the subject property was her homestead and 2) as to whether she had abandoned the property as her homestead; she also contends 3) that the trial court erred in ruling that the bank’s failure to release its judgment lien was not prohibited by Article 3834 Vernon’s Tex.Civ.Stat. and (4) that it erred in dismissing her counterclaims because she adequately pleaded causes of action both for slander of title and wrongful garnishment. We affirm in part and in part we reverse and remand.

The parties agree that this timetable of events was before the trial court in summary judgment evidence:

October 20, 1977 New Ulm State Bank took a default judgment for $4,868.74 principal, $277.57 interest, and $750.00 attorney fees against Ann A. Braden, and foreclosed on the security for the loan.
October 31, 1977 The bank filed an abstract of judgment for $5,146.31 in the property records of Harris County, Texas. It listed Mrs. Braden’s address at 6009 Burgoyne in Houston.
February 9, 1979 Ann A. Braden sold the property located at 6009 Burgoyne, and American Title Company retained $10,292.62 in escrow pending the release of the bank’s judgment lien.
November 6,1979 Ann A. Braden wrote a letter to American Title Company telling them that she was creating a lien for attorney’s fees in favor of Bryan W. Scott against the money they were holding in escrow subject to New Ulm State Bank’s releasing the judgment lien.
December 12, 1979 The bank filed an application for garnishment on the funds held in escrow by American Title Company (ATC).

ATC answered the bank’s garnishment suit and filed a counterclaim against the bank and a third-party action against Mrs. Braden and her attorney. On or about July 21, 1980, the title company deposited $9,092.62 in the registry of the court and made an agreement whereby all other parties to the suit took nonsuits as to ATC, and the bank released its judgment lien against the property at 6009 Burgoyne St.

Mrs. Braden filed a third-party action against the bank, alleging that she should recover the funds paid into the registry and that she was entitled to actual and exemplary damages because of the bank’s slander of her title to the homestead and its wrongful garnishment of the funds in escrow; she alleged that the bank should respond in actual and exemplary damages for its failure to respond to her written request that it release its judgment lien against the proceeds of the sale of her homestead. An affidavit was attached alleging that the subject property was Mrs. Braden’s homestead. The bank filed a motion for summary judgment, based on Mrs. Braden’s answers to the bank’s request for admissions, seeking recovery of $4,868.74 as principal, an attorney’s fee, costs and interest from the amount paid into the registry.

The bank’s motion for summary judgment contained numerous allegations of fact which it says are demonstrated in the record without dispute.

In answer to the bank’s motion Mrs. Bra-den filed an unsworn written response, which she labeled a “brief.”

Section (c) of Rule 166-A, Texas Rules of Civil Procedure, has provided since January 1, 1978, that issues not expressly presented to the trial court by written motion, answer, or other response shall not be considered on appeal as grounds for reversal.

Mrs. Braden’s written response did not dispute these allegations expressly presented in the bank’s motion for summary judgment:

1. The bank’s judgment lien was already attached to Mrs. Braden’s property when she sold it in February of 1979.
*782 2. The title company was instructed to release the proceeds placed in escrow only upon delivery of a release of the bank’s judgment lien.
3. Before the proceeds of the sale were garnished, more than six months had elapsed since Mrs. Braden had sold her property, had authorized retention of the funds by the title company, and had granted a lien on those funds in favor of her attorney.

The above allegations are supported by the summary judgment evidence.

Mrs. Braden’s unsworn written response did expressly allege that:

1. The recording of the bank’s abstract of judgment in Harris County amounted to an illegal lien on the proceeds from the sale of her homestead.
2. The bank’s refusal to release its judgment lien on the proceeds from the sale of her homestead in response to her written request was an intentional interference with her rights and thus was a tort.
3. But for the bank’s tortious interference, she would already have reinvested the proceeds from the sale in a new homestead.

Article 3834 provides: “The proceeds of the voluntary sale of the homestead shall not be subject to garnishment or forced sale within six months after such sale.”

The appellant’s first two points of error are that the trial court erred in granting the bank’s motion for summary judgment because genuine issues of material fact were presented as to 1) whether the subject real property was her homestead, and 2) whether she had abandoned the subject property as her homestead.

We agree with the appellant that these two issues have not been resolved, but we hold that they do not constitute genuine issues for trial in that they cannot defeat the movant/plaintiff’s right to a summary judgment for recovery from the funds deposited in the registry of the court. The bank’s presentation in the trial court, by written motion, of the uncontroverted issue that the sale of Mrs. Braden’s property was made more than six months before the writ of garnishment was issued establishes that the garnishment was not prevented by the provisions of Article 3834. The appellant’s first two points do not present reversible error.

The appellant’s third point of error is:

The trial court erred in ruling that New Ulm State Bank’s failure to release their lien was not prohibited by Tex.Ann. Civ.Stat. Art. 3834.

We find no such direct ruling by the trial court, but Mrs. Braden argues under this point that the trial judge should have applied the provisions of Article 3834 more broadly. She says that a judgment creditor who knows that its lien has attached to the proceeds from the sale of a homestead and who has refused a request to release that lien is guilty of a wrongful taking prohibited by Article 3834.

Mrs. Braden’s attack on the summary judgment in this third point of error is a complaint about the bank’s recovery, as a plaintiff, in satisfaction of its judgment lien. As a defendant, Mrs.

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Bluebook (online)
618 S.W.2d 780, 1981 Tex. App. LEXIS 3435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braden-v-new-ulm-state-bank-texapp-1981.