Fela B. Olivarez v. Cristo Rey Garza

Court of Appeals of Texas·Decided November 18, 2021·No. 13-20-00025-CV·Published

Opinion

NUMBER 13-20-00025-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

FELA B. OLIVAREZ, Appellant,

v.

CRISTO REY GARZA, ET AL., Appellees.

On appeal from the County Court at Law No. 5 of Hidalgo County, Texas.

MEMORANDUM OPINION Before Justices Benavides, Longoria, and Tijerina Memorandum Opinion by Justice Tijerina

Appellant and cross-appellee Fela B. Olivarez appeals the trial court’s modification

of a final judgment in a turnover proceeding awarding damages and attorney’s fees to

appellees and cross-appellants Cristo Rey Garza, Justino Garza, Jr., and Keith C. Livesay.1 By five issues, Fela asserts the trial court erred in: (1) awarding damages in

Cristo’s favor (a) without an underlying judgment against her and (b) without evidence to

support a breach of contract claim; (2) awarding liquidated damages without hearing

evidence of actual damages; (3) awarding attorney’s fees without statutory or contractual

authority; (4) awarding attorney’s fees in the amount of $7,700 without hearing evidence

to support the award; and (5) partially denying her motion for new trial.

By four issues, appellees and cross-appellants argue the trial court erred by

“deleting the award for” post-judgment interest, court costs, appellate attorney’s fees, and

turnover relief. We affirm in part and reverse and remand in part.

I. BACKGROUND

A. Procedural History

In a prior cause, Cristo sued Sandra Arroyo in July 2013, alleging that property in

Sandra’s name belonged to him. He later filed a motion for summary judgment, and the

district court granted Cristo’s motion, which this Court affirmed. See Arroyo v. Garza,

No.13-15-00211-CV, 2015 WL 9487259 (Tex. App.—Corpus Christi–Edinburg Dec. 29,

2015, no pet.) (mem. op.). Sandra then filed a bill of review in the district court seeking to

set aside the judgment. Cristo again filed a motion for summary judgment, and on October

13, 2016, the district court granted summary judgment in Cristo’s favor. Sandra appealed.

See Arroyo v. Garza, No. 13-16-00633-CV, 2018 WL 3583789, at *1 (Tex. App.—Corpus

Christi–Edinburg July 26, 2018, pet. denied) (mem. op.).

1 We will address the parties by their first names for simplicity. 2 Meanwhile, Cristo filed an eviction proceeding in a justice of the peace court asking

that Sandra be evicted from his property. A justice of the peace entered a judgment in

Sandra’s favor, which Cristo appealed to the county court on April 26, 2017. On August

10, 2017, the county court granted summary judgment in Cristo’s favor requiring Sandra

to vacate the premises, and Sandra appealed to this Court (2017 summary judgment).

See Arroyo v. Garza, No. 13-17-00496-CV, 2018 WL 3583789 (Tex. App.—Corpus

Christi–Edinburg Aug. 8, 2018, pet. denied) (mem. op.).

While both of Sandra’s appeals were pending before us, on August 19, 2017,

Sandra, as principal, signed a supersedeas bond. As a surety, Sandra’s previous trial

counsel, Fela “covenant[ed] that [Sandra] would prosecute her appeal with effect and pay

all costs and damages which may be adjudged against her, provided the surety shall not

be liable in an amount greater than $11,000, said amount being the amount of the bond

herein.” In her affidavit of personal surety, Fela attested to the fact that she currently held

nonexempt assets that exceeded the amount of $22,000. About a year later, this Court

affirmed the district court’s October 13, 2016 summary judgment in Cristo’s favor and

dismissed Sandra’s 2017 summary judgment appeal as moot. See Arroyo, 2018 WL

3583789, at *1.

B. Demand for Payment

On August 15, 2018, after all appeals were exhausted, Cristo filed a forcible entry

and detainer lawsuit in county court against Sandra to obtain use of his property and filed

a motion to “Determine Plaintiff’s Damages and Motion to Require Sureties to Deposit

$11,000.00 into Registry of the Court.” In the motion, Cristo averred that Fela, as surety,

3 swore under oath that she would pay all costs and damages which may be adjudged

against Sandra and that the amount of $11,000 was agreed to as the proper measure of

damages for rental value of the property. On October 3, 2018, the county court granted

Cristo a writ of possession for the property. On October 12, 2018, the county court issued

a permanent injunction enjoining Sandra from interfering with the property.

On March 19, 2019, Cristo filed a motion to modify the supersedeas bond to a cash

bond. On April 26, 2019, Cristo filed a second motion for writ of possession to enforce the

county court’s 2017 summary judgment while Sandra filed for bankruptcy and requested

an automatic stay of the proceedings. After the bankruptcy stay was lifted, the writ of

possession was executed on August 16, 2019.

On August 22, 2019, Cristo filed an application for turnover relief against Fela

requesting that a receiver be appointed to assist in collection of his judgment. In turn, Fela

filed a third-party petition against Sandra, claiming that Sandra is responsible to satisfy

the judgment.

Two months later, Cristo amended his application and requested a judgment

against Fela for the bond, plus interest, and reasonable attorney’s fees. Fela responded

asserting the judgment had been satisfied in its entirety upon the execution of the writ of

possession when a constable took possession of the property and turned it over to Cristo.

Therefore, Fela requested that turnover relief be denied as the judgment was against

Sandra, not Fela.

C. Turnover Hearing

On October 9, 2019, the county court held a hearing on Cristo’s amended turnover

4 application. Cristo’s trial counsel, Keith and Justino, appeared and testified; Fela did not

appear. According to cross-appellants, Keith and Justino presented live testimony that:

Fela signed the supersedeas bond and conditions for her liability on it had been satisfied;

the agreed-to bond amount was to pay for the loss of rental value on the property and

was less than Cristo’s actual damages; the appointment of a receiver was necessary for

the collection of the judgment because Fela was unwilling to satisfy her legal obligations;

and attorney’s fees were reasonable.2

D. Motion to Show Cause

On October 15, 2019, the county court issued a final judgment granting the

amended application for turnover relief and appointing a receiver (final judgment). On

October 24, 2019, the receiver filed a motion to show cause, stating that he noticed Fela

for examination under oath on October 24, 2019, and Fela failed to appear. Additionally,

he alleged that Fela failed to produce documents that the trial court ordered her to

produce. The motion stated:

Given [Fela] is an officer of the Court, [Fela’s] conduct is even more egregious and demands firm action in which the Court insists [Fela] comply with the order and issue punitive and/or coercive measures/remedies to force compliance. [Fela] is acting as though she is above the law and does not have to comply with lawful orders and directives made in accordance with law and due process.

Four days later, the county court judge recused himself from serving on the case.3 A third

judge was appointed (third court), and he granted the receiver’s motion to show cause on

November 13, 2019.

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