Jeffrey Rago and Christine Rago v. City of El Paso

Texas Court of Appeals, 8th District (El Paso)·Decided June 4, 2026·No. 08-24-00328-CV·Published

Opinion

COURT OF APPEALS

EIGHTH DISTRICT OF TEXAS

EL PASO, TEXAS

amend pleadings; and (3) the trial court erred in admitting and excluding evidence. Finding no reversible error, we affirm.

I. BACKGROUND

In October 2016, the City filed suit against the Ragos to recover delinquent ad valorem taxes assessed against the real property located at 813 Myrtle Ave, El Paso County, for tax years 2015 through 2016 (the Real Property); and for business personal property located at the same address, for tax years 2006 through 2007, 2010 through 2013, and 2016 (the Business Property).1 The City’s live petition named Jeffrey Rago as a defendant in his individual capacity and Christine Rago as a defendant “in rem only.” The City alleged it was owed an aggregate total of $19,799.38 in taxes, penalties, and interests, on the real and personal property, and the amount owed remained subject to additional taxes, penalties, interest, and attorney’s fees accruing subsequent to the filing of suit. The Ragos appeared and filed an answer generally denying the City’s allegations. Additionally, their answer alleged they had previously filed a suit against the El Paso Central Appraisal District and the El Paso County Appraisal Review Board, docketed under trial cause number 2015DTX0977, in which they protested the value assessed on the real property subject of the suit for the tax year 2015.

The suit proceeded to a bench trial on March 27, 2024. At the outset, the City moved to strike several exhibits offered as evidence by the Ragos, asserting the exhibits were received just 15 minutes prior to the start of trial. With the exception of one exhibit, the trial court granted the City’s motion and struck the Ragos’s exhibits. As for the one exception, the trial court took judicial notice and admitted a final judgment entered in trial cause number 2015DTX0977, styled Jeffrey

1 The City sought recovery for unpaid taxes on personal property including furniture, fixtures, inventory, machinery, and equipment used in the operations of a law office located on the site. The suit also named an unrelated third party lien holder who is not a party to this appeal.

Rago and Christine Rago v. El Paso Central Appraisal District, filed in the 327th Judicial District Court of El Paso County, Texas, and signed on December 11, 2022 (the 2022 Judgment). For the property identified as “Property ID 253149”, the 2022 Judgment recited that the court: (1) approved the parties’ agreement as to the appraised value for the 2015 tax year; (2) it ordered, adjudged, and decreed the appraised value for the tax years 2016 through 2022; and (3) provided that any amounts due and owing as penalties and interest for the tax years 2016 through 2022 are to be refunded or not charged.

On the City’s motion, the trial court admitted two exhibits identified as delinquent tax statements for the property identified as “Property ID. No. 253149,” certified by Maria O. Pasillas, the City of El Paso’s Tax Assessor-Collector. The exhibits showed delinquent taxes for the tax years 2016 to 2023, as to the real property, and for tax years 2008, 2011 to 2014, 2017 to 2020, and 2022 and 2023, as to personal property. As rebuttal evidence, the Ragos attempted to introduce a copy of a check made out to the “Tax-Assessor-Collector” in the amount of $4,000 along with an associated bank statement. The City objected on grounds of relevancy, hearsay, and authenticity. The City also argued that the check and statement were evidence supporting an affirmative defense of payment, which the Ragos had not pleaded. The trial court sustained the objections.

At the close of evidence, the trial court rendered judgment in favor of the City awarding all requested damages, penalties, interest, and fees, in the total sum of $80,648.61, for the real and personal property at issue. The Ragos filed a motion to reconsider and motion for new trial. Their motions argued the trial court’s judgment modified and conflicted with the 2022 Judgment because “it allowed penalties and interest to be calculated into the prior tax amounts.” They also contended that, because the City had been aware of their defense of payment, it should be barred from objecting to their assertion of a payment defense pursuant to the doctrine of laches. In response,

the City reiterated that the Ragos had not pleaded their affirmative defense of payment. The City also asserted that the penalties and interest in the judgment resulted from a delinquency in paying the corrected tax bills issued in 2023 in the wake of the 2022 Judgment. In support of its response, the City attached an affidavit from Tax Assessor Pasillas. Among other things, Pasillas averred that her office corrected the Ragos’s tax bills for tax years 2016 through 2022 as required by the 2022 Judgment, removed all penalties and interest, and mailed updated tax bills on January 25, 2023.

The trial court set a hearing on the Ragos’s motions. The morning of the hearing, the Ragos filed a motion for leave of court to file a supplemental answer adding an affirmative defense of payment. The City moved to strike their motion and supplemental answer as untimely. The trial court denied the Ragos leave to amend, and their motion to reconsider.

This appeal followed.

II. CONFLICTING JUDGMENT

In their first issue, the Ragos contend the trial court’s final judgment improperly contravened the 2022 Judgment by imposing penalties and interest on the taxes adjudicated delinquent.

A. Standard of review The interpretation of a judgment is a pure question of law which we review de novo. See Robinson v. Home Owners Mgmt. Enters., Inc., 590 S.W.3d 518, 525 (Tex. 2019). “‘Courts construe orders and judgments under the same rules of interpretation as those applied to other written instruments.’” In re Estate of Renz, 662 S.W.3d 531, 537 n.4 (Tex. App.—El Paso 2022, pet. denied). When interpreting a judgment, our goal is “to determine not what the trial court should have done, but what the court actually did.” Shanks v. Treadway, 110 S.W.3d 444, 447 (Tex. 2003). We begin with the “literal” text within the four corners of the judgment. Bush v. Yarborough Oil &

Gas, LP, 705 S.W.3d 451, 459 (Tex. App.—El Paso 2024, pet. denied) (citing Kourosh Hemyari v. Stephens, 355 S.W.3d 623, 626 (Tex. 2011)). If the language is clear and unambiguous, we look no further than the face of the instrument under review. Id. We do not read provisions of the judgment in isolation, but we must look at the judgment as a whole. See id.; Berwick v. Wagner, 336 S.W.3d 805, 809 (Tex. App.—Houston [1st Dist.] 2011, pet. denied) (“Courts should not give conclusive effect to a judgment’s use or omission of commonly employed decretal words, but should instead determine what the court adjudicated from a fair reading of all the judgment’s provisions.”).

B. Applicable provisions of the Tax Code The Texas Tax Code establishes a comprehensive regime governing the collection of delinquent ad valorem taxes, which includes penalties and interest. Tex. Tax Code § 33.41. Delinquent taxes create an automatic lien on the taxed property securing the payment of all taxes, penalties, and interest. Id. § 32.01. At any point after a tax becomes delinquent, the taxing authority may file suit to foreclose on the lien and enforce liability on the owner. Id. § 33.41(a).

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