Opinion issued January 26, 2012
In The
Court of
Appeals
For The
First District
of Texas
————————————
NO. 01-10-00010-CV
———————————
KATHRYN MYLES JACKSON AND
CLIFTON JACKSON, Appellants
V.
NORTH FOREST INDEPENDENT SCHOOL
DISTRICT, Appellee
On Appeal from the 113th District Court
Harris
County, Texas
Trial
Court Cause No. 2009-69445
MEMORANDUM OPINION
Appellants,
Kathryn Myles Jackson and Clifton Jackson, appearing pro se, challenge the
trial court’s order dismissing their lawsuit against appellee, North Forest
Independent School District (“North Forest ISD”), multiple other governmental
entities, and Mandola Jos. F. In their sole issue, the Jacksons contend
that the trial court erred in sustaining the Harris County District Clerk’s
contest to their affidavit of indigence and ultimately dismissing
their lawsuit for failing to pay the filing fee and other costs.
We
reverse and remand.
Background
On
October 27, 2009, the Jacksons filed their Original Petition for Title of Real
Property Acquired by Adverse Possession and Temporary Restraining Order, alleging
that they had acquired property located at “0 Laura Koppe
Rd. Houston, Texas 77028” by adverse possession after
maintaining the property for twenty-five years.
The Jacksons further allege that, as a result of a judgment obtained by North
Forest ISD in a separate lawsuit, the property was scheduled to be sold “for
delinquent taxes” on November 3, 2009. The Jacksons seek an order temporarily
restraining the sale of the property.
The Jacksons attached to their petition
a notarized Application to Proceed without Payment of Fees, which they both signed. In their application, the Jacksons jointly declare
that they are unable to pay the costs of the proceedings and are “entitled to
the relief sought in the petition.” They state that they are not incarcerated, are
not currently employed, and their last day of employment had been on July 15,
2008. They aver that, in the previous twelve
months, they have not received money from “business, profession, or other self
employ,” “rent payments, interest or dividends,” “annuities or life insurance
payments,” “disability or workers compensation payments,” or
“inheritances.” Finally, the Jacksons
state,
I declare that I have less
than $20.00 in my checking account; I own a frame house, and a 2002 Honda CRV
that is currently in bankruptcy. There
is no one that depends on me for support[.] My husband and I both are currently employed
and receives 12 dollars an hour 20 hours per week as
of Sept. 2009. Our current expenses exceeds [sic] our combined income. Bankruptcy payment is $865 per month,
furniture payment $232.72, car insurance $85.00, house insurance $140.00, food
$200.00, phone bill $45.00, $102.00.
On November 13, 2009, the district
clerk filed a Contest of Affidavit of Indigence. Contending that the Jacksons had failed to
comply with one or more unspecified “statutory requirements,” the district clerk “demand[ed] strict proof”
that the Jacksons were “too poor to pay filing fees.” On December 7, 2009, the trial court conducted
a hearing on the district clerk’s contest.
The reporter’s record from this hearing reveals that, immediately after a
trial court clerk had notified the trial court that the Jacksons had called the
court to state that they could not attend the hearing, the trial court
instructed the Harris County Attorney to “fill in the blanks” of the proposed
order sustaining the contest. It then stated
that it would sign the order. Neither
the district clerk nor the trial court ever discussed on the record the substance
of the Jacksons’ affidavit.
Also on December 7, 2009, the trial
court signed the Judgment and Order Sustaining Contest to Pauper’s Oath. In its order, the trial court found that the
Jacksons were able to pay the filing fees, the Jacksons’ affidavit was not
filed in good faith, and the contest should be sustained. The trial court made no other findings in
support of its order, nor did it set forth any reasons to support its finding that
the Jacksons had filed their affidavit in bad faith. The trial court enjoined any further proceedings
in the case until the Jacksons paid $509 in filing fees, and other incurred
costs. It also ordered that the case
would be dismissed without prejudice and noted that it would enter a judgment
against the Jacksons in the amount of $509 if they did not pay such fees by
February 8, 2010.
On December 18, 2009, the Jacksons
filed a document entitled “Appeal from Adverse Decision,” in which they asked
the trial court to vacate its order granting the district clerk’s contest. It appears that, based upon the substance of this
document, the Jacksons may have intended this document to constitute a request for
the trial court to reconsider its ruling.
The Jacksons asserted that, as early as December 4, 2009, they had
notified the district clerk, through the Harris County Attorney, that they had
not received proper notice of the December 7, 2009 hearing and that they could
not attend the hearing in light of a conflicting medical appointment at a
hospital. The Jacksons also attached a
bank statement reflecting a current available balance of $17.07. In January 2010, the district clerk
forwarded this document to this Court, and we treated it as a notice of appeal
from the trial court’s order sustaining the district clerk’s contest.
We then notified the Jacksons that
their appeal of the trial court’s order sustaining the district clerk’s contest
had been filed in this Court. After sending
them this notice, the Jacksons began to direct additional motions to this Court,
but they also continued to make filings in the trial court. For example, on January 26, 2010, the
Jacksons filed in this Court an “Emergency Motion to Enforce Hearing on TRO’s
in Adverse Possession Proceeding,” complaining that they had not received
timely notice of the contest hearing and they had notified the Harris County
Attorney that they could not attend the hearing because they needed to attend a
hospital appointment. On April 2, 2010,
the Jacksons filed in this Court a Motion to Proceed Without
Payment of Fees, in which they outlined all of their outstanding bills and
averred that their expenses exceeded their combined income. The Jacksons also attached copies of their
payroll sheets and bills to this motion.
This Court subsequently found, in a separate order, that the Jacksons were
indigent for purposes of appeal, and we directed the filing of a record from
the trial court.
On March 4, 2011, the Jacksons
filed with the district clerk a document entitled Notice of Motion Opposing
Counsel’s Motion for Submission, in which the Jacksons again complained they had
not received notice of the contest hearing and that the hearing had proceeded
“in spite of [their] circumstances and [their] explanation” for not attending
the hearing. The Jacksons noted that,
because the trial court had only previously “dismissed the pauper’s without
prejudice,” they were again requesting that the trial court permit them to “proceed
without payment of fees,” and they asserted that they were “receiving food
stamps” and other social service assistance. The Jacksons attached to their
“notice” a new Application to Proceed as Paupers, in which they averred that they
were unable to pay the court costs and not receiving money from business, rent,
insurance, annuities, or other sources.
They also outlined their monthly expenses.
On March 8, 2011, the trial court
signed its Dismissal Order, noting that it had
sustained the district clerk’s Contest to the Pauper’s Oath on December 7, 2009
and, in its prior order, found that the Jacksons were able to pay all
costs. It further noted that it had
ordered the Jacksons to pay the filing fee of $509 by February 8, 2010 and
their failure to pay the fee would result in a dismissal of their lawsuit. The trial court stated that, in accord with
its December 7, 2009 order, the Jacksons’ lawsuit was dismissed without
prejudice because they had not paid the filing fee and other costs by February
8, 2010. The trial court also entered a
judgment against the Jacksons and in favor of the district clerk for $509. The Jacksons then filed another document
entitled Appeal from Adverse Decision.
Standard of Review
We review for an abuse of
discretion the trial court’s dismissal order. Black v. Jackson, 82 S.W.3d 44, 49–50 (Tex. App.—Tyler 2002, no pet.)
(providing that standard of review of dismissal under
section 13.001 of Texas Civil Practice and Remedies Code is abuse of
discretion); Johnson v. Peterson, 799 S.W.2d 345,
347 (Tex. App.—Houston [14th Dist.] 1990, no writ) (same); see also Arevalo v. Millan,
983 S.W.2d 803, 804 (Tex. App.—Houston [1st Dist.] 1998, no pet.) (reviewing for
abuse of discretion appeal of trial court’s order sustaining contest to
affidavit of indigency that was filed for purposes of
obtaining free appellate record); Jones
v. Duggan, 943 S.W.2d 90, 93 (Tex. App.—Houston [1st Dist.] 1997, orig.
proceeding) (reviewing, by mandamus, trial court’s order sustaining contest to
affidavit to inability to pay appellate costs for abuse of discretion); Douglas v. Ingersoll, No. 14–09–00930–CV, 2010 WL 1077420, at *1
(Tex. App.—Houston [14th Dist.] Mar. 25, 2010, no pet.)
(mem. op.) (stating that
when “contest is sustained and a review of the ruling is sought, the question
is whether an examination of the record as a whole establishes that the trial
court abused its discretion”; reversing trial court’s order sustaining
district clerk’s contest to affidavit of indigence filed for purposes of appeal);
Auto v. Travelers Ins. Co., No.
01-05-00327-CV, 2006 WL 2893324, at *2 (Tex. App.—Houston [1st Dist.] 2006,
pet. denied) (mem. op.) (stating
that if “trial court sustains the contest, we must determine whether the court
abused its discretion.”). A trial court
abuses its discretion when it acts in an arbitrary or unreasonable manner
without reference to guiding rules or principles. Arevalo, 983 S.W.2d at 804. To show a clear abuse of discretion, an
appellant must show that, under the circumstances of the case, the facts and
law permitted the trial court to make but one decision. Id.; Cronen v. Smith, 812 S.W.2d 69, 71 (Tex.
App.—Houston [1st Dist.] 1991, orig. proceeding).
Indigency
In
their sole issue, the Jacksons argue that the trial court erred in dismissing
their lawsuit because they did not receive notice of the hearing on the
district clerk’s contest to their affidavit of indigency
and they could not attend the hearing. We
also construe the Jacksons’ brief to present a general challenge to the trial
court’s order dismissing their lawsuit based upon the implied finding that
their allegation of poverty was false.
A party who is unable to afford
costs associated with an original action must file an affidavit in lieu of
paying or giving security for such costs. Tex. R. Civ. P. 145(a). A party “unable to afford costs” is defined
as a person who is presently receiving a governmental entitlement based on indigency or any other person who has no ability to pay
costs. Id. Upon a party’s filing of
such an affidavit, the clerk must docket the action, issue citation, and
provide such other customary services as are provided any party. Id.
The Texas Rules of Civil Procedure
prescribe the contents of an affidavit of indigency
that must be filed by a party unable to afford costs. Id. The affidavit
[M]ust
contain complete information as to the party’s identity, nature and amount of
governmental entitlement income, nature and amount of employment income, other
income, (interest, dividends, etc.), spouse’s income if available to the party,
property owned (other than homestead), cash or checking account, dependents,
debts, and monthly expenses. The affidavit shall contain the following
statements: “I am unable to pay the court costs. I verify that the statements
made in this affidavit are true and correct.” The affidavit shall be sworn before a notary
public or other officer authorized to administer oaths. . . .
Tex. R.
Civ. P. 145(b).
Once a contest is filed, if the
court finds at the first regular hearing in the course of the action that the
party, other than a party receiving a governmental entitlement based on indigency, is able to afford costs, the party must pay the
costs of the action. Tex. R. Civ. P. 145(d). A trial court that finds that a party is able
to afford costs must set forth its “[r]easons for such a finding” in an order. Id.
(emphasis added). Except with leave of
court, no further steps in the action will be taken by a party who is found
able to afford costs until payment is made.
Id.
When an affidavit of indigence is filed
pursuant to rule 145, a trial court may dismiss the case on a finding that the
allegation of poverty in the affidavit is false. Tex.
Civ. Prac. & Rem. Code Ann. § 13.001(a)(1) (Vernon 2002); In
re Kastner, No. 14-09-00653-CV, 2009 WL 3401867,
at *1 (Tex. App.—Houston [14th Dist.] 2009, orig. proceeding [mand. denied]) (mem. op.) (“When
the trial court has sustained a contest to an affidavit of indigence filed
pursuant to Texas Rule of Civil Procedure 145, the court typically dismisses
the case, finding the allegation of poverty is false and/or the case is
frivolous.”). The purpose of section
13.001 is to ensure that limited resources are employed as efficiently as
possible to resolve arguable claims and claims without merit are dismissed at
an early stage in the proceedings. Black, 82 S.W.3d at 53; Pedraza v. Tibbs, 826
S.W.2d 695, 698 (Tex. App.—Houston [1st Dist.] 1992, writ dism’d
w.o.j.).
Although the trial court did not
state its statutory basis for dismissing the Jacksons’ case, it expressly found
that the Jacksons were able to pay all costs.
And, in its prior order sustaining the district clerk’s contest, which
the trial court effectively incorporated into its dismissal order, the trial
court stated that the Jacksons had not filed their affidavit in good
faith. We consider the trial court’s
dismissal to be based upon section 13.001(a)(1), which
permits a court to dismiss a lawsuit upon a finding that the allegation of
poverty is false. See In re Kastner,
2009 WL 3401867, at *1 (noting that courts, after sustaining contest to affidavit of indigence, “typically” dismiss
cases under grounds articulated in section 13.001); see also In re Tilotta, No.
01–11–00570–CV, 2011 WL 3505502, at *1
(Tex. App.—Houston [1 Dist.] 2011, orig. proceeding) (stating that trial
court’s order sustaining the contest to rule 145 affidavit of indigence was
“merged into the trial court’s final judgment” of dismissal for want of
prosecution).
In their affidavit, the Jacksons
stated that they were unable to pay the costs of the proceedings, they were not
employed, their last day of employment had been on July 15, 2008, they had no
other income from any other sources (including interest or dividends), and they
had less than $20.00 in their checking account.
The Jacksons further stated that they owned a car “that is currently in
bankruptcy.” They set forth their
monthly expenses, which included a sizeable “bankruptcy payment,” house and car
insurance costs, and other basic monthly obligations, such as food, utilities,
and telephone bills. Finally, they averred that their current
expenses exceeded their combined income.
By the plain terms of the figures set forth in their affidavit, the
Jacksons represented an approximate weekly income of $240 and a monthly
obligation of bills for approximately $1,870. The Jacksons affidavit complies
in all material respects with rule 145 and provided the information
specifically articulated in the rule. We
conclude that, in considering the record as a whole, the preponderance of the
evidence demonstrates that the Jacksons are unable to pay the costs ordered by
the trial court. See In re C.H.C., 331 S.W.3d 426, 429 (Tex. 2011) (stating that
test “for determining indigence is straightforward: Does the record as a whole
show by a preponderance of the evidence that the applicant would be unable to
pay the costs, or a part thereof, or give security therefor, if he really
wanted to and made a good-faith effort to do so?”; further stating that
affidavit may provide sufficient information to demonstrate that party is
unable to pay costs (on appeal), even if affidavit does not discuss each of items
enumerated in rules) (citations omitted).
The district clerk contested the
Jacksons’ affidavit only with a general citation to rule 145 and the assertion
that the affidavit did not comply “with one or more of the statutory
requirements.” It did not attack the
affidavit in any particular respect. The
trial court ruled on the contest at a hearing, which was recorded, but the
record reflects that there was no substantive discussion regarding either the
contest or the affidavit. The only matter
discussed at the hearing was that the Jacksons had notified the trial court
that they could not attend the hearing. The
district clerk, who was represented by the Harris County Attorney, did not
identify any errors or omissions in the Jacksons’ affidavit, nor did it counter
the Jacksons’ assertions in their affidavit regarding their monthly income and
expenses. In its order sustaining the
contest and in its subsequent dismissal order, the trial court set forth no
reasoning to support its finding that the Jacksons’ allegations of poverty were
false. See Tex. R. Civ. P.
145 (“Reasons for such a finding must be contained in an order.”). The record also reflects that the Jacksons
themselves did not attend the hearing.
Although the affidavit could have been subject to critique because it
was prepared as a joint affidavit and did not make any distinction between the
Jacksons, the affidavit also indicates that the Jacksons were married and shared
a household, monetary resources, and monthly obligations. The district clerk did not complain about the
format of the joint application at the hearing or in its written contest.
Without any record as to why the
trial court found the Jacksons’ affidavit of indigency
to be false, and without the benefit of any reasoning set forth by the trial
court in its order sustaining the contest or in its subsequent dismissal order,
we conclude that the trial court, in dismissing the Jacksons’ lawsuit, acted
arbitrarily and without reference to guiding rules or principles. See
Jones v. CGU Ins. Co., 78 S.W.3d 626, 628 (Tex. App.—Austin 2002, no pet.). Accordingly,
we hold that the trial court abused its discretion in dismissing the Jacksons’
suit pursuant to section 13.001.
We sustain the Jacksons’ sole issue.
Conclusion
We
reverse the order of the trial court and remand the case for further
proceedings consistent with this opinion.
Terry Jennings
Justice
Panel
consists of Justices Jennings, Massengale, and Huddle.