Buckeye Retirement Co., LLC, Ltd. v. Bank of America

239 S.W.3d 394, 2007 WL 3121669
CourtCourt of Appeals of Texas
DecidedNovember 26, 2007
Docket05-06-01136-CV
StatusPublished
Cited by42 cases

This text of 239 S.W.3d 394 (Buckeye Retirement Co., LLC, Ltd. v. Bank of America) 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
Buckeye Retirement Co., LLC, Ltd. v. Bank of America, 239 S.W.3d 394, 2007 WL 3121669 (Tex. Ct. App. 2007).

Opinion

OPINION

Opinion by

Justice O’NEILL.

In this garnishment case, the trial court determined appellee Bank of America, N.A. (the “Bank”) did not possess any property of the judgment debtor relevant to the garnishment proceeding. On appeal, appellant Buckeye Retirement Co., LLC, LTD. (“Buckeye”) alleges (1) the trial court erred in striking its first amended petition; (2) the trial court erred in limiting certain discovery; (3) the trial court erred in failing to apply a spoliation presumption in its favor; (4) the evidence is legally and factually insufficient to support the trial court’s finding that the Bank was not in possession of any property of judgment debtor Thomas J. Lykos, Jr.; and (5) the trial court erred in failing to make findings of fact and conclusions of law concerning spoliation. In a cross-issue, the Bank claims it is entitled to recovery of its attorneys’ fees. We affirm the trial court’s judgment.

Factual Background

Buckeye obtained a judgment against Dale C. Bullough and Thomas J. Lykos, Jr. (“Thomas”) for approximately $4.6 million in a separate lawsuit. Buckeye obtained a writ of garnishment against the Bank for Thomas J. Lykos, Jr.’s accounts and assets. In the Bank’s answer to the writ of garnishment, it stated on May 17, 2004 “garnishee was in possession of two safe deposit boxes possibly belonging to Thomas J. Lykos, Jr. and Irene D. Lykos” in Houston and Dallas. On July 1, 2004 the trial court ordered the Bank to open and inventory the contents of both boxes. The Houston box was empty.

Buckeye later learned the Bank had allowed Irene D. Lykos, Thomas’s mother, access to the Houston safe deposit box on June 8 and 9. During this time, she removed the box’s contents and closed the account. Believing the Bank violated the court’s garnishment order, Buckeye asked the trial court to sever the claims related to the Houston box from those of the Dallas box. The trial court severed the cause of action and held a bench trial to determine whether the Houston box contained any property belonging to Thomas, which Irene improperly removed without the Bank’s intervention. After a bench trial, the trial court entered a take nothing judgment against Buckeye, along with findings of fact and conclusions of law. This appeal followed.

Standard of Review

We first address the challenge to the sufficiency of the evidence. Garnishment is a proceeding in which the property, money, or credits of a debtor that are in possession of another-the garnishee-are applied to the payment of a debt. Bank One, Tex., N.A. v. Sunbelt Sav., F.S.B., 824 S.W.2d 557, 558 (Tex.1992); HTS Servs., Inc. v. Hallwood Realty Partners, L.P., *399 190 S.W.3d 108, 112 (Tex.App.-Houston. [1st Dist.] 2005, no pet.). The garnishor may enforce against the garnishee any rights the debtor could have enforced had he sued the garnishee directly. IITS Servs., Inc., 190 S.W.3d at 112. The primary issue in a garnishment suit is whether the garnishee is indebted to, or has in its possession effects belonging to the debtor. Id.

When reviewing a case tried to the bench where findings of fact and conclusions of law have been entered, findings of fact have the same force and effect as jury findings. Young v. Young, 168 S.W.3d 276, 280-81 (Tex.App.-Dallas 2005, no pet.). The applicable standard of review is the same as that applied in the review of jury findings. Id.

When appealing the legal sufficiency of the evidence supporting an adverse finding on which appellant had the burden of proof, it must show the evidence establishes, as a matter of law, all vital facts in support of the issue. Dow Chem. Co. v. Francis, 46 S.W.3d 237, 241 (Tex.2001). In reviewing a “matter of law” challenge, we must first examine the record for evidence supporting the finding, then we will examine the entire record to determine if the contrary proposition is established as a matter of law. Id. The point of error should be sustained only if the contrary proposition is conclusively established. Id.

When a party attacks the factual sufficiency of an adverse finding, it must demonstrate the adverse finding is against the great weight and preponderance of the evidence. Id. We must consider and weigh all of the evidence and can set aside a verdict only if the evidence is so weak or if the finding is so against the great weight and preponderance of the evidence that it is clearly wrong and unjust. Id. In a bench trial the court, as trier of fact, judges the witnesses, assigns the weight to be given their testimony, and resolves any conflicts or inconsistencies in the testimony. LaCroix v. Simpson, 148 S.W.3d 731, 734 (Tex.App.-Dallas 2004, no pet.).

Sufficiency of the Evidence

In its fourth issue, the Bank alleges the evidence is legally and factually insufficient to support the trial court’s findings that the Bank was not in possession of Thomas’s property. Specifically, it contends the only evidence provided was from an interested witness, Thomas’s mother, which cannot be considered credible.

Buckeye challenges the following trial court findings:

(1) Nothing in the box at Bank of America San Felipe banking center in Houston, Texas was the property of Thomas Lykos, Jr. There was no contrary evidence.

(2) Thomas Lykos, Jr. had no property or other thing of value at the Bank of America San Felipe banking center in Houston, Texas, at any material time.

(3) No property or thing of value belonging to Thomas Lykos, Jr. was removed from the Bank of America San Felipe banking center in Houston, Texas.

(4) Thomas Lykos, Jr. was never a signatory for the safe deposit box located at the Bank of America San Felipe banking center in Houston, Texas.

(5) Thomas Lykos, Jr. did not have authority to access the safe deposit box located at the Bank of America San Felipe banking center Houston, Texas.

(6) Bank of America is not now indebted to Thomas Lykos, Jr., one of the two named Judgment Defendants in the writ of garnishment, as a result of the judgment in cause number 04-4336-C.

*400 The parties provided evidence through two witnesses’ deposition testimony. Thomas’s mother, Irene, testified she had owned the Houston safe deposit box for over twenty years. She usually accessed it every three to six months. Although she admitted her son was listed as a signatory on the box, along with her husband and other son, she testified they were listed because she felt someone besides her and her husband should have access in the event something happened to them. She admitted she visited the Bank in May and June because she wanted to remove jewelry 1 and birth certificates and close the account.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Latisha Hassen v. Paul Demetriou
Court of Appeals of Texas, 2024
John Ellis v. Dallas Area Rapid Transit
Court of Appeals of Texas, 2021
Jodi Strobach v. WesTex Community Credit Union
Court of Appeals of Texas, 2019
Manuel Rocha Jr v. State
Court of Appeals of Texas, 2019
Hernandez v. Moss
538 S.W.3d 160 (Court of Appeals of Texas, 2017)
John Russell Coffman v. Celeste Elane Coffman
Court of Appeals of Texas, 2014
JGM Holdings, L.L.C. v. T-Mobile USA, Incor
568 F. App'x 316 (Fifth Circuit, 2014)
Raymundo Rico, Jr. v. L-3 Communications Corporation and Megan Ridge
420 S.W.3d 431 (Court of Appeals of Texas, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
239 S.W.3d 394, 2007 WL 3121669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckeye-retirement-co-llc-ltd-v-bank-of-america-texapp-2007.