Carmack v. Park Cities Healthcare LLC

CourtDistrict Court, N.D. Texas
DecidedSeptember 10, 2021
Docket3:16-cv-03500
StatusUnknown

This text of Carmack v. Park Cities Healthcare LLC (Carmack v. Park Cities Healthcare LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carmack v. Park Cities Healthcare LLC, (N.D. Tex. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION CHARLOTTE CARMACK, § individually and on behalf of others § similarly situated, § § Plaintiff, § § VS. § Civil Action No. 3:16-CV-3500-D § PARK CITIES HEALTHCARE, LLC, § et al., § § Defendants. § MEMORANDUM OPINION AND ORDER Charlotte Carmack, Teresa Miller, and Jovan Aniagu, plaintiffs and judgment creditors in this lawsuit (collectively, “plaintiffs”), apply pursuant to Fed. R. Civ. P. 69(a)1 for a writ of execution and move for seizure of non-exempt assets held by defendant- judgment debtor Sharon Westen (“Westen”). At issue are a residence, located in Texas, and two horses, located in New Hampshire. Without suggesting that plaintiffs can never obtain any form of post-judgment relief from Westen, the court denies the application and motion (collectively, “the motion,” unless the context otherwise requires) for the reasons that 1Plaintiffs rely in part on Rule 64(a) as well. But Rule 64(a) provides for prejudgment remedies; Rule 69(a) is the proper rule for post-judgment remedies. See In re 2920 ER, L.L.C., 607 Fed. Appx. 349, 354 (5th Cir. 2015) (per curiam) (“The Federal Rules of Civil Procedure set up a dichotomy. Rules 64 and 65 provide for pre judgment remedies, and Rule 69 provides for post judgment remedies.”) (emphasis in original); 3 Kids, Inc. v. Am. Jewel, LLC, 2019 WL 462781, at *2 (N.D. Tex. Jan. 15, 2019) (Ramirez, J.) (“Rule 64 does not govern the enforcement of judgments after they have been obtained.”), rec. adopted, 2019 WL 460325 (N.D. Tex. Feb. 6, 2019) (Scholer, J.). follow.2 I The court will briefly recount the background facts and procedural history and defer

a more detailed discussion of the evidence to its analysis of the issues presented. In August 2018 plaintiffs obtained a judgment against defendants for the principal sum of $32,323.34, liquidated damages in the sum of $32,323.34, post-judgment interest at the rate of $2.44% per annum, and attorney’s fees and costs, to be awarded separately. In

October 2018 the court awarded attorney’s fees in the sum of $103,429.25 and costs, and ordered that they be paid within 30 days. As of December 16, 2019 the judgment had not been satisfied, and the court granted plaintiffs’ motion for turnover relief. The motion concerned rent owed to Westen by tenants living at her Irving, Texas residential property (the “Property”). The order (“Turnover

Order”) required that Westen turn over “(1) current rent from the property within 14 days of the date of this order; and (2) future rent of property, up to the amount of plaintiffs’ judgment plus accrued interest.” Dec. 16, 2019 Turnover Order at 1. As of September 8, 2021, however, the judgment still had not been paid. The

2Although this memorandum opinion and order focuses on Westen, plaintiffs also seek relief from Park Cities Healthcare, LLC (“Park Cities”), which is also a defendant and judgment debtor. The property that plaintiffs seek, however, is only in Westen’s possession or control, and plaintiffs advance no arguments or evidence that shows that Park Cities possesses or controls the property. Because Texas law provides that “[t]he court may order the judgment debtor to turn over nonexempt property that is in the debtor’s possession or is subject to the debtor’s control,” Tex. Civ. Prac. & Rem. Code Ann. § 31.002(a) (West 2016), the court denies the motion to the extent plaintiffs seek relief from Park Cities. - 2 - Turnover Order failed to compel Westen to satisfy the judgment because the tenants at the Property do not pay rent directly to Westen but instead pay the mortgage and property taxes on the Property in exchange for a right of possession. Plaintiffs now apply for a writ of

execution and move to seize nonexempt assets to satisfy the judgment. At issue are the Property, located in Texas, and two horses, located in New Hampshire. The court is hearing the motion on the papers. See Rule 43(c) (“Evidence on a Motion. When a motion relies on facts outside the record, the court may hear the matter on affidavits or may hear it wholly or

partly on oral testimony or on depositions.”). II Rule 69(a) provides that “[t]he procedure on execution, in proceedings supplementary to and in aid of a judgment, and in proceedings on and in aid of execution shall be in accordance with the practice and procedure of the state in which the district court is held.”

For a judgment for money, a writ of execution is the appropriate vehicle to seize the nonexempt personal or real property of the judgment debtor (here, Westen) that is subject to execution. See Tex. Civ. Prac. & Rem. Code Ann. § 31.002(a) (West 2016); Tex. R. Civ. P. 621, 630. III

The court considers, first, whether plaintiffs have proved by a preponderance of the evidence that they are entitled to relief as to the Property on the basis that it is nonexempt, i.e., that it is subject to execution.

- 3 - A Westen maintains that the Property is exempt from execution because it is her homestead, and that plaintiffs have failed to show that her move to, and new residence in,

New Hampshire have changed the homestead status of the Property. Plaintiffs respond that the Property is nonexempt because Westen has abandoned it as her homestead. They rely on evidence of Westen’s move to New Hampshire, her rental of the Property, and her social media posts.

B Westen has the initial burden of establishing the homestead status of the Property. See In re Perry, 345 F.3d 303, 311 (5th Cir. 2003) (first citing Burk Royalty Co. v. Riley, 475 S.W.2d 566, 568 (Tex. 1972); and then citing Lifemark Corp. v. Merritt, 655 S.W.2d 310 (Tex. App. 1983, writ ref’d n.r.e.)). This burden is a “short hurdle.” Id. A homestead

designation is considered prima facie evidence of homestead status. In re Comu, 542 B.R. 371, 385 n.76 (Bankr. N.D. Tex. 2015); Wade v. First Nat’l Bank, 263 S.W. 654, 656 (Tex. Civ. App. 1924, writ dism’d w.o.j.). The claimant of the exemption may also present evidence of both (i) overt acts of homestead usage and (ii) an intent to assert the land as a homestead to establish homestead status. In re Bradley, 960 F.2d 502, 507 (5th Cir.1992).

“Possession and use of land by one who owns it and who resides upon it makes it the homestead in law and in fact.” Id. (citation omitted). “[W]hen the claimant actually resides at the property, a court generally does not need to investigate the second prong of ‘intention to claim as a homestead’ because actually residing on the property is ‘the most satisfactory - 4 - and convincing evidence of intention.’” Comu, 542 B.R. at 385 (citing PaineWebber Inc. v. Murray, 260 B.R. 815, 822-23 (E.D. Tex. 2001)). If the homestead claimant does not currently reside at the property, however, evidence of prior residence at the home is

sufficient. See id.

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Carmack v. Park Cities Healthcare LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carmack-v-park-cities-healthcare-llc-txnd-2021.