in the Interest of C.D.E., a Child

533 S.W.3d 367
Court of Appeals of Texas·Decided January 27, 2015·No. NO. 14-14-00086-CV·Published·Cited by 8 cases

Opinion

OPINION

Ken Wise, Justice

The Office of the Attorney General (OAG) appeals from an order vacating and terminating its lien on a child support obli-gor’s accounts, conditionally enjoining the OAG from instituting any further liens against the obligor, and directing the OAG to credit any funds previously levied from the obligor’s accounts as of the date the lien was imposed. The OAG contends that the trial court lacked jurisdiction to enjoin the OAG and that its directives violate the separation of powers doctrine. The OAG also contends that the trial court erred in terminating the child support lien and ordering that levied funds be first applied against interest accrued on the arrearage. We reverse and remand.

Factual and Peocedueal Backgeound

Mother and Father were married in 1992 and divorced in 1994. They had one child, C.D.E. Father was ordered to pay child support of $200.00 semimonthly, beginning in July 1994.

On May 23, 2011, the trial court signed an order enforcing and modifying Father’s current child support obligation. The trial court upwardly modified Father’s ongoing child support obligation to $1,000.00 per month. The trial court also found that Father was in arrears in the amount of $126,290.50, and granted a judgment in favor of the OAG for that amount, plus interest.

Father was ordered to pay the arrear-age judgment by paying $200.00 each month beginning in June 2011, until the arrearage was paid in full, or on the termination of current child support for the child. At that point, if Father had not paid the judgment in full by the date his current child support obligation ended, he was ordered to pay $1,200.00 each month until the remainder of the arrearage was paid. The order included a wage withholding order and specified that “[t]he withholding order authorized herein shall include such payments, but nothing herein shall prohibit the use of other collection methods authorized by law.” The order also informed Father that “[t]he court’s order setting payments on a child support judgment ... does not preclude or limit the use of any other means for enforcement of the judgment.”

Additionally, the order included a “Notice to Obligor” informing Father that any judgment rendered in the order was not an installment debt and that the entire judgment was now due and owing. The notice warned that the OAG “may take whatever enforcement remedies deemed necessary[,] including any remedies required by federal or state laws to collect this judgment, even if regular periodic payments on this judgment are being made.”

Under the May 23, 2011 order, all of Father’s support obligations were to be paid to the Texas Child Support Disbursement Unit for distribution to Mother. ' The order reflected that both Mother and Father agreed to the entry of this order, and it was not appealed.

In February 2012, Father moved to terminate or clarify the May 23, 2011 order concerning his ongoing child support obligation for the now nineteen-year-old child. On May 11, 2012, the trial court signed an *369 order granting father’s motion, terminating the ongoing child support obligation. However, because Father had failed to pay the arrearage judgment in full by the date his current child support obligation ended, he became obligated to pay $1,200.00 each month until the arrearage was paid in full as provided in the May 23, 2011 order.

On September 12, 2012, the OAG issued a “Notice of Child Support Lien/Child Support Lien” on several of Father’s Wells Fargo accounts. In response, Father filed a petition for declaratory judgment to set aside the child support lien. Father requested a declaration that arrearages no longer exist or, if they do exist, the lien should be terminated because Father was paying off those arrearages in accordance with the May 23, 2011 order. After an associate judge denied the petition, Father appealed this decision to the trial court.

In October 2013, the trial court heard Father’s declaratory judgment action. In the hearing, Father claimed that the OAG had placed a lien on seven Wells Fargo accounts and that funds had been removed from all of the accounts except for two, a Roth IRA and a brokerage account. Father requested that the OAG’s lien be removed from the Roth IRA and brokerage accounts, subject to being refiled if he failed to timely make payments on the child support arrearages. Father also testified that his employer withholds approximately $1,200.00 per month pursuant to the wage withholding order.

Father acknowledged that he owed ar-rearages and agreed that any funds removed from his other Wells Fargo accounts should be transferred to the OAG and credited toward his child support obligation. However, because Father claimed that the OAG had removed the funds from those accounts a year earlier, he requested that his account be credited as of the time the funds were removed, rather than when they were transferred to the OAG. No documentary or other evidence was admitted to show whether or when any funds had been removed from those accounts, nor was evidence presented to show when any funds that may have been removed were transferred to the OAG or distributed to Mother. Evidence submitted by the OAG reflected that as of the time of the hearing, Father still owed $106,857.74 on the arrearage judgment.

On November 22, 2013, the trial court issued an order on Father’s motion for declaratory relief. The trial court vacated and terminated the OAG’s September 12, 2012 child support lien as to the Wells Fargo Roth IRA and brokerage accounts. The trial court also enjoined the OAG from instituting any further child support liens against Father “unless [Father], after the date of this order, should be more than 30 days in arrears towards any confirmed child support arrearage obligation previously ordered.” Additionally, the trial court ordered the OAG and the Child Support Disbursement Unit to apply any and all funds levied from the other accounts to the child support account and to credit Father’s obligation as of September 12, 2012, the date of the lien, “for the purposes of reducing the interest owed by [Father] against any confirmed arrearage of [Father].”

The OAG moved for a new trial, arguing that the trial court lacked authority to vacate or terminate a child support lien, to order the OAG to apply levied funds to interest, or to conditionally enjoin the OAG from instituting any child support liens against Father. After a hearing, the trial court denied the motion.

Analysis or the OAG’s Issues

The OAG contends that the trial court (1) lacked subject matter jurisdiction to enjoin the OAG; (2) violated the separa *370 tion of powers doctrine when it enjoined the OAG from filing child support liens when arrearages were owed; (3) erred in terminating the child support lien when the trial court found that Father owed child support liens; and (4) erred in ordering that levied funds from Father’s Wells Fargo accounts be first applied against interest accrued on his child support ar-rearage. • •

We -review the court’s ruling under an abuse of discretion standard. Attorney Gen. of Tex, v. Stevens, 84 S.W.3d 720, 722 (Tex.App.-Houston [1st Dist.] 2002, no pet.).

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in the Interest of C.D.E., a Child, 533 S.W.3d 367 (Tex. Ct. App. 2015).

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