M. Jay Carter v. Ernie Cline and Karen Cline

CourtCourt of Appeals of Texas
DecidedOctober 13, 2011
Docket03-10-00855-CV
StatusPublished

This text of M. Jay Carter v. Ernie Cline and Karen Cline (M. Jay Carter v. Ernie Cline and Karen Cline) 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
M. Jay Carter v. Ernie Cline and Karen Cline, (Tex. Ct. App. 2011).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-10-00855-CV

M. Jay Carter, Appellant



v.



Ernie Cline and Karen Cline, Appellees



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 126TH JUDICIAL DISTRICT

NO. D-1-GN-10-003100, HONORABLE JEFF L. ROSE, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N



In this garnishment proceeding, Ernie and Karen Cline (collectively "the Clines") sought a writ of garnishment to satisfy two domesticated foreign judgments obtained against M. Jay Carter for breach of contract. Carter seeks to avoid enforcement of the domesticated judgments on the ground that the underlying foreign judgments are interlocutory under the laws of the jurisdiction in which they were rendered and are therefore not entitled to full faith and credit under Texas's Uniform Enforcement of Foreign Judgments Act ("UEFJA"), Tex. Civ. Prac. & Rem. Code Ann. §§ 35.001-.008 (West 2008). The trial court held that Carter failed to timely challenge the alleged defects in the domestication proceedings and therefore waived any objections to enforcement of those judgments in Texas. In seven issues on appeal, Carter contends that there was no valid, subsisting judgment upon which garnishment could be based because the foreign judgments were interlocutory and because there were procedural irregularities in the domestication proceedings. See id. § 63.001(3) (grounds for obtaining writ of garnishment). We will affirm.



FACTUAL AND PROCEDURAL BACKGROUND

In 2006 Carter, a Texas resident, entered into a contract to purchase the Clines' home in Little Rock, Arkansas. When Carter attempted to withdraw from the purchase agreement, the Clines sued him for breach of contract. Carter, in turn, sued both the realtor, Robert "Casey" Jones, and the real estate company, the Janet Jones Company, that represented him in the disputed real estate transaction (collectively "the Jones defendants"). The two cases were subsequently consolidated and proceeded to a jury trial in Pulaski County, Arkansas.

Before the Arkansas case was submitted to the jury, the trial judge directed a verdict in the Clines' favor regarding the existence of a contract with Carter. The Clines' remaining claims and Carter's claims against the Jones defendants were submitted to the jury on special interrogatories, with the jury awarding the Clines $42,500 in damages against Carter for breach of contract and awarding Carter $30,000 in damages based on the Jones defendants' negligence. On August 31, 2009, the trial judge issued a "Judgment" on the jury verdict (the "Jury Verdict Judgment"). There was no statement in the judgment that it was a final judgment, but the judgment addressed the claims between all the parties, recited that a jury trial had occurred, included the special interrogatories and jury verdict, and entered judgment on the verdict. The judgment did not indicate that there were any other issues, matters, or claims that remained pending before the court. Two months later, on October 19, 2009, the trial court entered an "Order" that awarded the Clines $85,266 in attorney's fees and costs, denied the Clines' request for prejudgment interest, denied Carter's motion for judgment notwithstanding the verdict, and denied Carter's motion for attorney's fees and costs (the "Attorney's Fees Order"). The Jones defendants were not mentioned in this order. On November 13, 2009, Carter appealed the Jury Verdict Judgment and the Attorney's Fees Order as well as a November 12, 2009 order awarding Carter $59,756 against the Jones defendants for attorney's fees. There is no evidence in the record that Carter successfully posted security or a supersedeas bond to stay collection efforts pending appeal.

In an attempt to collect the amounts awarded in the Arkansas litigation, the Clines sought to domesticate the Arkansas judgments in Texas, where Carter resides. To that end, the Clines filed a petition to domesticate the Jury Verdict Judgment in Harris County Court at Law No. 4 on December 3, 2009. They filed a separate petition to domesticate the Attorney's Fees Order in Harris County Court at Law No. 1 on December 30, 2009. Along with the petitions, the Clines attached copies of the foreign judgments to be domesticated and attorney affidavits showing the names and last known post office addresses of the judgment debtor (Carter) and the judgment creditors (the Clines), in accordance with UEFJA requirements. See id. § 35.004. Neither petition included a certificate of authentication, as required by the UEFJA, see id. § 35.003, but the certificates of authentication were subsequently issued on February 1, 2010 for the Jury Verdict Judgment and January 26, 2010 for the Attorney's Fees Order. The Harris County Courts at Law issued abstracts of judgments in the domestication proceedings on December 11, 2009 and February 11, 2010, respectively.

Meanwhile, on December 28, 2009, the Arkansas trial court had ordered a new trial between Carter and the Jones defendants. Although that order did not affect the Clines' claims against Carter, concerns were raised about the finality of the judgments in the Clines' favor. The Clines therefore sought an order from the Arkansas trial court severing their claims from Carter's claims against the Jones defendants pursuant to rule 54(b) of the Arkansas Rules of Civil Procedure. Under rule 54(b), when a case involves multiple claims or parties, the trial court may issue a certification of final judgment as to one or more but fewer than all of the claims or parties "upon an express determination, supported by specific factual findings, that there is no just reason for delay and upon an express entry of judgment." Ark. R. Civ. P. 54(b)(1). Absent a properly executed certification,



any judgment, order, or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the judgment, order, or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.



Id. 54(b)(2).

On April 28, 2010, the Arkansas trial court directed entry of a "Final Judgment" in the Clines' favor in the amount of $127,766, which consolidated both the Jury Verdict Judgment and Attorney's Fees Order into a single final judgment. The Final Judgment included the requisite rule 54(b) certification and fact findings, including a finding that "[a]s a result of the Court's order of a new trial between Carter and the Jones Defendants, the Clines' judgments are not final for purposes of appeal or collection." Despite this finding, the Clines did not seek to domesticate the Final Judgment or file the Final Judgment in the domestication proceedings at issue in this case.

Similarly, although Carter had notice that the Jury Verdict Judgment and Attorney's Fees Order had been domesticated in Texas and now contends that those judgments were interlocutory under Arkansas law, Carter never challenged the validity or finality of the Arkansas judgments in the Harris County domestication proceedings based on either the new trial order or the rule 54(b) final judgment.

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M. Jay Carter v. Ernie Cline and Karen Cline, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-jay-carter-v-ernie-cline-and-karen-cline-texapp-2011.