Haden v. DAVID J. SACKS, PC

332 S.W.3d 523, 2009 WL 1270392
CourtCourt of Appeals of Texas
DecidedSeptember 11, 2009
Docket01-03-00025-CV
StatusPublished
Cited by2 cases

This text of 332 S.W.3d 523 (Haden v. DAVID J. SACKS, PC) 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
Haden v. DAVID J. SACKS, PC, 332 S.W.3d 523, 2009 WL 1270392 (Tex. Ct. App. 2009).

Opinion

OPINION ON REMAND

SHERRY RADACK, Chief Justice.

Appellants, Charles M. Haden, Jr., individually (Haden), and Charles McIntyre Haden & Company d/b/a Haden & Company (the company), challenge an award of $90,000 for attorney’s fees and costs to appellee, David J. Sacks, P.C. d/b/a Sacks & Associates (the law firm), incident to turnover relief obtained by the law firm pursuant to section 31.002(e) of the Civil Practice and Remedies Code. Tex. Civ. Prac. & Rem.Code Ann. § 31.002(e) (Vernon 2008) (the turnover statute). The law firm sought relief under the turnover statute to enforce the final judgment previously rendered on the law firm’s motions for summary judgment for breach of contract and for attorney’s fees. We initially reversed that judgment, in Cause No. 01-01-00200-CV, but the Supreme Court of Texas affirmed the portion of the judgment that awarded the law firm $30,314.38 plus interest pursuant to its fee agreement with Haden and the company. David J. Sacks P.C. v. Haden, 266 S.W.3d 447, 450-51 (Tex.2008) (per curiam). On remand, we addressed Haden’s and the company’s remaining issues and have affirmed the judgment in Cause No. 01-01-00200-CV in an opinion issued concurrently with this opinion. 1 See Tex. Civ. Prac. & Rem.Code Ann. § 31.002 (Vernon 2008); see generally Tex. Civ. Prac. & Rem.Code Ann. § 31.002-.008 (Vernon 2008) (governing judgments and their enforcement).

Haden and the company present two major issues on appeal. Their first issue, however, is conditioned on our having reversed the underlying judgment in Cause No. 01-01-00200-CV. Having affirmed the judgment in that cause, we overrule the first issue. Their second issue presents three sub-issues that challenge the *525 award of $90,000 in attorney’s fees to the law firm for collection procedures initiated pursuant to the turnover statute, Tex. Civ. Prac. & Rem.Code Ann. § 31.002(e) (Vernon 2008). In the first sub-issue, Haden and the company contend that the attorney’s fee award must be reversed because the law firm cannot recover as a matter of law under the turnover statute for work done in federal bankruptcy court. 2

This Court’s Jurisdiction

The trial court signed the judgment challenged in this appeal on February 19, 2002, and Haden and the company filed their notice of appeal on March 14, 2002. Though the law firm sought recovery of attorney’s fees and costs incurred in pursuing turnover relief against both Haden and the company, the trial court’s judgment granted relief only against Haden and did not dispose of the law firm’s request for costs and attorney’s fees against the company. We notified the parties sua sponte that the judgment did not appear to be final and that we would therefore be required to dismiss the appeal unless the appellate record were supplemented to establish that the judgment was final as to all issues and parties. See Lehmann v. HarCon Corp., 39 S.W.3d 191, 195 (Tex.2001) (defining judgment that is final for purposes of appeal as one that disposes of all pending parties and claims in record, except as necessary to carry out decree); see also Fisher v. P.M. Clinton Int’l Investigations, 81 S.W.3d 484, 486 (Tex.App.Houston [1st Dist.] 2002, no pet.) (holding that postjudgment discovery order did not resolve all issues and parties and was therefore not appealable).

In response to our order, Haden and the company filed a supplemental clerk’s record. As supplemented, the record on appeal includes an “Order for Judgment Nunc pro Tunc,” which the trial court signed on May 6, 2006. This order refers to “Defendants’ Unopposed Motion for Judgment Nunc Pro Tunc,” and includes the following:

Defendants’ Motion for Judgment Nunc Pro Tunc is hereby GRANTED; and, the Court will enter a Judgment Nunc Pro Tunc which will add CHARLES MCINTYRE HADEN & COMPANY d/b/a HADEN & COMPANY, to the Judgment entered by this Court on February 19, 2002, so as to correct the clerical error omitting the Defendant from the Judgment.

The supplemental clerk’s record also contains a “Final Judgment Nunc Pro Tunc,” which the trial court signed on May 1, 2006.

In contrast to the original judgment signed on February 19, 2002, the trial court’s May 1, 2006 judgment awards the law firm relief and costs not only against Haden, individually, but also against the company. We have concluded, from the supplemental clerk’s record, that the judgment is now final as to all issues and parties and that we therefore have jurisdiction to address the merits of the appeal. See Schultz v. Fifth Jud. Dist. Court of Appeals, 810 S.W.2d 738, 740 (Tex.1991) (orig. proceeding) (upholding appealability of section 31.002 orders).

Factual and Procedural Background

In Cause No. 01-01-00200-CV, we affirmed the trial court’s summary judgments in favor of the law firm on its claims *526 for breach of contract and attorney’s fees. Charles McIntyre Haden, Jr., individually and Charles McIntyre Haden, Jr. & Company d/b/a Haden & Company v. David J. Sacks, P.C., d/b/a Sacks & Associates, 382 S.W.3d 503 (Tex.App.-Houston [1st Dist.] 2009, no pet. h.). When Haden and the company did not supersede that judgment pending the appeal of Cause No. 01-01-00200-CV, the law firm began extensive proceedings to discover nonexempt assets and sought to execute on the judgment by requesting the following relief from the trial court, as authorized by section 31.002: a turnover order, appointment of a receiver, and injunctive relief to prevent postjudgment transfer of assets. After obtaining service on Haden and the company by court-authorized substituted service, the law firm prevailed on each of these requests, and the trial court required turnover of property to the receiver. 3 The receiver succeeded in seizing $6,715 from a bank account, which the court ordered disbursed to satisfy part of the judgment and expenses incurred by the receiver.

Before the receiver was able to secure any other property to satisfy the judgment, however, Haden filed a petition, as an individual, in the United States District Court for the Southern District of Texas at Houston, seeking protection from creditors under chapter 13 of the United States Bankruptcy Code. This filing arrested all action by the court-appointed receiver on behalf of the law firm against Haden. See 11 U.S.C. § 362 (2000) (providing for automatic stay against bankruptcy debtor). Haden later converted his individual petition to a request for chapter 11 protection.

After appearing through independent bankruptcy counsel in Haden’s individual bankruptcy case, the law firm asserted its rights as creditor and challenged Haden’s declaration of bankruptcy.

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332 S.W.3d 523, 2009 WL 1270392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haden-v-david-j-sacks-pc-texapp-2009.