Clayton Lattimer Copeland v. Bluebonnet Financial Assets

CourtCourt of Appeals of Texas
DecidedJune 7, 2023
Docket05-21-00714-CV
StatusPublished

This text of Clayton Lattimer Copeland v. Bluebonnet Financial Assets (Clayton Lattimer Copeland v. Bluebonnet Financial Assets) 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
Clayton Lattimer Copeland v. Bluebonnet Financial Assets, (Tex. Ct. App. 2023).

Opinion

AFFIRMED and Opinion Filed June 7, 2023

In the Court of Appeals Fifth District of Texas at Dallas No. 05-21-00714-CV

CLAYTON LATTIMER COPELAND, Appellant V. BLUEBONNET FINANCIAL ASSETS, Appellee

On Appeal from the 298th Judicial District Court Dallas County, Texas Trial Court Cause No. DC-09-17121

MEMORANDUM OPINION Before Justices Carlyle, Garcia, and Miskel Opinion by Justice Carlyle Bluebonnet Financial Assets obtained a default judgment against Clayton

Lattimer Copeland based on an unpaid debt. After years of unsuccessfully attempting

to collect the judgment, Bluebonnet filed an application for turnover and the

appointment of a receiver, which the trial court granted. The trial court ordered Mr.

Copeland to turnover nonexempt property and appointed a receiver to assist

Bluebonnet with collecting the judgment.

The receiver levied Mr. Copeland’s bank account, recovering $16,077.43, and

filed a verified motion to distribute the funds. Mr. Copeland moved to vacate the turnover and receivership order. According to the parties, the trial court held a

hearing at which it announced it would grant the receiver’s motion and deny Mr.

Copeland’s. But the record reflects no ruling on either motion. In any event, the

parties agree that Mr. Copeland’s motion to vacate was overruled by operation of

law. Mr. Copeland appeals, and we affirm in this memorandum opinion. See TEX. R.

APP. P. 47.4.

Mr. Copeland first argues the turnover and receivership order is invalid

because Bluebonnet produced no evidence showing that he owned nonexempt

property. See Goodman v. Compass Bank, No. 05-15-00812-CV, 2016 WL 4142243,

at *4 (Tex. App.—Dallas Aug. 3, 2016, no pet.) (mem. op.) (“Issuance of a turnover

order requires a factual showing that the judgment debtor has nonexempt

property . . . .”). We review a trial court’s post-judgment turnover order for abuse of

discretion, considering evidentiary sufficiency as a factor relevant to our review. Id.

In determining whether legally sufficient evidence supports the court’s order, “we

must view the evidence in a light that tends to support the finding of the disputed

fact and disregard all evidence and inferences to the contrary.” Id. (quoting Bradford

v. Vento, 48 S.W.3d 749, 754 (Tex. 2001)).

Before Bluebonnet filed its application, it sent Mr. Copeland post-judgment

discovery to which he did not respond. Consequently, the trial court entered an order

stating that:

–2– Admissions in [Bluebonnet’s] Request for Admissions in Aid of Judgment have been and are hereby deemed admitted and established, and [Mr. Copeland] hereby is, prevented from making or supporting any claims [he] may have, or may ever have, in any proceeding, that are contrary in any way to any of the deemed Admissions, which are attached hereto and incorporated herein for all purposes.”

The admissions attached and incorporated into the court’s order included among

others:

Admit that you currently have a bank account. . .

Admit that you own and have, or will have, within your possession or control, property, which is not exempt from attachment, execution, or any other type of seizure for the satisfaction of the judgment in this cause. . .

Admit that the court is within its discretion to sign an order granting turnover and appointing a master in chancery and appointing a receiver to satisfy the judgment in this cause. . .

Admit that you own and have, or will have, within your possession or control, property, which cannot be readily attached or levied on by ordinary legal process. . . .

Admit that the property of [Mr. Copeland] which is subject to collection, and not exempt therefrom, includes, all of your right, title, and interest to all money in any checking account, brokerage account, and any savings account in [Mr. Copeland’s] name. . . .

These deemed admissions are judicial admissions that Mr. Copeland owned

nonexempt property subject to turnover, including a bank account. See Marshall v.

Vise, 767 S.W.2d 699, 700 (Tex. 1989) (“An admission once admitted, deemed or

otherwise, is a judicial admission, and a party may not then introduce testimony to

controvert it.”).

–3– The turnover and receivership order states that the trial court took “judicial

notice of the judgment and all of the court’s file,” which included its order

confirming Mr. Copeland’s deemed admissions.1 Thus, we conclude the record

sufficiently supports the trial court’s conclusion that Mr. Copeland owned

nonexempt property. See Troutman v. NASA Fed. Credit Union, No. 02-21-00412-

CV, 2022 WL 3464555, at *2–3 (Tex. App.—Fort Worth Aug. 18, 2022, no pet.)

(mem. op.) (deemed admissions addressing elements of turnover statute were

sufficient evidence to support turnover order); Morrison v. Cogdell, No. 02-02-

00261-CV, 2003 WL 21476243, at *1 (Tex. App.—Fort Worth June 26, 2003, no

pet.) (mem. op.) (deemed admissions supported judgment where trial court took

judicial notice of its file).

Mr. Copeland next argues the turnover order is invalid because there is no

reporter’s record from the hearing on Bluebonnet’s application. He contends that,

without a record of the hearing, it is impossible to assess the sufficiency of the

evidence supporting the turnover order. But the turnover statute requires neither a

hearing nor any particular form of evidence to support an application. See Goodman,

2016 WL 4142243, at *4. Nothing in the record suggests the trial court received

evidence at any hearing on Bluebonnet’s application. And the turnover order itself

1 Mr. Copeland does not directly address the deemed admissions on appeal. He argues that a trial court may not take judicial notice of the truth of any “factual allegations” in its file. But deemed admissions are not “factual allegations”; they are judicial admissions that conclusively establish the matter admitted unless the trial court permits their withdrawal. See Marshall, 767 S.W.2d at 700; TEX. R. CIV. P. 198.3. –4– specifies that the trial court considered the application, the evidence attached to the

application, and the trial court’s judicially noticed file. Thus, the lack of a reporter’s

record from the hearing does not affect our ability to assess the evidence supporting

the order.

Mr. Copeland next contends the trial court abused its discretion by “pre-

setting the receiver’s fee at 25%” and “ordering that the receiver be paid the 25%

fee without a determination of reasonableness.” Mr. Copeland’s contentions are not

supported by the record.

In its turnover order, the trial court found that “the usual, customary post

judgment receiver’s fee is 25% of funds recovered by the receiver.” It thus ordered

that the receiver’s fee would be 25% “subject to a later determination as to

reasonableness by the court, or to a written agreement with Judgement Debtor as to

the amount of the fee to be paid.” By its plain language, the turnover order makes

the 25% receiver’s fee contingent upon either a subsequent determination of

reasonableness by the court or Mr. Copeland’s approval. Accordingly, the turnover

order does not support Mr. Copeland’s argument that the trial court abused its

discretion by “pre-setting the receiver’s fee at 25%” and “ordering that the receiver

be paid the 25% fee without a determination of reasonableness.” See Evans v. Frost

Nat’l Bank, No.

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Related

Bradford v. Vento
48 S.W.3d 749 (Texas Supreme Court, 2001)
Marshall v. Vise
767 S.W.2d 699 (Texas Supreme Court, 1989)

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