Lincoln Ten, Ltd. v. White

706 S.W.2d 125, 1986 Tex. App. LEXIS 12043
CourtCourt of Appeals of Texas
DecidedJanuary 30, 1986
DocketNo. A14-85-585-CV
StatusPublished
Cited by4 cases

This text of 706 S.W.2d 125 (Lincoln Ten, Ltd. v. White) 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
Lincoln Ten, Ltd. v. White, 706 S.W.2d 125, 1986 Tex. App. LEXIS 12043 (Tex. Ct. App. 1986).

Opinion

OPINION

J. CURTISS BROWN, Chief Justice.

This is an original mandamus proceeding. Lincoln Ten, LTD, (Lincoln) seeks a writ of mandamus to compel Judge Frank O. White to set aside his order dissolving the distress warrant in Lincoln Ten, LTD. v. The Wadkins Corporation and Gary B. Wadkins, pending in the 295th Judicial District Court of Harris County, Texas.

The underlying causes of action are, the breach of a lease agreement, suit on a guaranty and foreclosure of a landlord’s lien. Lincoln states that Wadkins is in arrears in its rent payment for leased office space, thus breaching the lease. Lincoln also sued Gary Wadkins individually on his unconditional guaranty of the Wad-kins Corporation obligation to pay rent. The third cause of action concerns Lincoln’s attempt to foreclose on its statutory landlord’s lien. Under this lien, Lincoln has a preference on the property of the Wadkins Corporation for rent that is due and rent that is to become due. See Tex.Prop.Code Ann. 54.021 (Vernon 1984). It is an attempt by Lincoln to preserve its rights under this lien, through the auspices of the distress warrant, which brings this Mandamus to this court.

On March 8, 1985, Lincoln filed its original lawsuit in the 295th District Court seeking the above mentioned damages. Near the end of March, 1985, after the filing of the lawsuit, the parties entered into an agreement whereby the proceeds from the sale of certain real estate, owned by Gary Wadkins, would be set aside to [127]*127pay the rent owed by Wadkins. The tena-tive closing date of the real estate sale was March 29, 1985. The sale never took place. Lincoln continued in its demand for payment of rent. On June 3, 1985, Lincoln filed a forcible detainer action in the Justice of the Peace Court for Precinct 5, in Harris County, Texas. In addition to the forcible detainer action it filed an application for a distress warrant.

Judge Till, the Justice of the Peace for Precinct 5, reviewed the documents and concluded that the issuance of a distress warrant was proper. Bond was set at $50,-000.00. The distress warrant was issued on June 12, 1985, and served on Wadkins Corporation on June 14, 1985, but no property was seized by the constable at that time.

Both parties appeared before Judge Till on June 19, 1985, for a jury trial on the forcible detainer action. After a short conference, the parties entered into an agreed judgment of eviction.

On June 22, 1985, Lincoln learned that Wadkins was removing property from the premises without its consent. Lincoln also learned that the distress warrant had not been properly served on Wadkins. The distress warrant was reissued by Judge Till. The constable served the writ on Wadkins and seized its property.

On June 24,1985, Wadkins filed a motion to dissolve distress warrant in the 295th District Court and a hearing was held on July 24, 1985. The trial court granted the motion to dissolve on July 25, 1985. Lincoln filed its motion for leave to file a petition for writ of mandamus in this court on the same day.

As a general rule, mandamus will not issue to compel the performance of a discretionary act, Pat Walker Co. v. Johnson, 623 S.W.2d 306 (Tex.1981), nor will it lie when the court is required to resolve disputed fact issues. Jessen Associates, Inc. v. Bullock, 531 S.W.2d 593, 602 (Tex.1975). The writ may be granted where it appears that the trial judge has abused his discretion in granting interlocutory orders where no appeal lies and such orders affect a right that will be destroyed. Crane v. Tunks, 160 Tex. 182, 328 S.W.2d 434 (1959); State v. Sewell, 487 S.W.2d 716 (Tex.1972); Dresser Industries, Inc. v. Solito, 668 S.W.2d 893 (Tex.App.—Houston [14th Dist.] 1984, no writ). The issue before us is whether Judge White abused his discretion in dissolving the distress warrant.

The distress warrant was created to give landlords a summary method of enforcing their statutory liens. Its purpose is to provide landlords with “speedy and effective” or “simple and inexpensive” means of preserving a lien until suit to foreclose that lien can be filed and prosecuted to judgment. Soules & Potter, Distress Warrant and Trial of Rights of Property Under the 1981 Texas Rules, 12 St. Mary’s L.J. 693 (1981). By filing an application for distress warrant, Lincoln was attempting to preserve its statutory lien on the property of Wadkins.

After the property was seized, Wadkins filed a motion to dissolve the distress warrant. The motion heard by the court contained four grounds in support of dissolution. During the hearing an additional ground concerning the constitutionality of the distress warrant was raised. When the motion to dissolve was granted, the order, signed by the court, did not state upon which ground or grounds the court relied. Thus, we will discuss each ground relied on by Wadkins.

It was argued that the procedures for obtaining a distress warrant, as amended, violated the due process clause of the 14th Amendment, in that they deprive individuals of a property right without a hearing. In Fuentes v. Shevin, 407 U.S. 67, 92 S.Ct. 1983, 32 L.Ed.2d 556 (1972) the United States Supreme Court held that prejudgment provisions which deprived one of property without the right to be heard or without the participation of a judicial officer, to be a violation of the due process clause. In order to seize property before final judgment an adversary hearing was mandated.

[128]*128In Mitchell v. W.T. Grant Company, 416 U.S. 600, 94 S.Ct. 1895, 40 L.Ed.2d 406 (1974) the United States Supreme Court significantly narrowed the scope of Fuentes. In Mitchell, it was held that property may be seized by an ex parte order, without prior notice or opportunity for a hearing, as long as certain safeguards are followed to ensure that due process is afforded all parties. It was noted in Mitchell:

“[T]here is scant support in our cases for the proposition that there must be final judicial determination of the seller’s entitlement before the buyer may even be temporarily deprived of possession of the purchased goods. On the contrary, it seems apparent that the seller with his own interest in the disputed merchandise would need to establish in any event only the probability that his case will succeed to warrant the bonded sequestration of the property pending outcome of the suit. C.f. Bell v. Burson, 402 U.S. 535, 91 S.Ct. 1586, 29 L.Ed.2d 90 (1971); Ewing v. Mytinger Casselberry, 339 U.S. 594, 70 S.Ct. 870, 94 L.Ed. 1088 (1950). The issue at this stage of the proceeding concerns possession pending trial and turns on the existence of the debt, the lien, and the delinquency.

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Cite This Page — Counsel Stack

Bluebook (online)
706 S.W.2d 125, 1986 Tex. App. LEXIS 12043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-ten-ltd-v-white-texapp-1986.