PATRICIA PHILLIPS v. LARY JENKINS

Missouri Court of Appeals·Decided June 16, 2022·No. SD37327·Published

Opinion

Missouri Court of Appeals Southern District

Division Two

PATRICIA PHILLIPS, )

)

Respondent, )

)

vs. ) No. SD37327 )

LARY JENKINS, ) FILED: June 16, 2022 )

Appellant. )

APPEAL FROM THE CIRCUIT COURT OF DALLAS COUNTY Honorable Michael O. Hendrickson, Judge AFFIRMED Lary Jenkins appeals the circuit court’s judgment denying his motion to strike the registration of a Texas judgment (“the foreign judgment”) that his niece, Patricia Phillips, obtained against him in the District Court of Brazoria County, Texas (“the Texas court”). See section 511.760; Rule 74.14.1 In two points, Jenkins contends that the court erred in determining that Texas had the necessary personal jurisdiction over him to render the foreign judgment because (1) “the trial court’s findings that [Jenkins] purposely availed himself of Texas jurisdiction erroneously applied the law” and (2) “the trial court’s findings that jurisdiction in Texas under these facts comported with fair play and substantial justice erroneously applied the

1 All statutory references are to RSMo (2016) and all rule references are to Missouri Court Rules (2022).

law[.]” Because Jenkins has failed to establish any erroneous application of law by the circuit court in its judgment, we affirm.

Applicable Principles of Review

Under article IV, section 1 of the United States Constitution, this Court must give full faith and credit to the valid judgment of a sister state unless there is (1) a lack of subject matter jurisdiction, (2) a lack of personal jurisdiction, or (3)

fraud in the procurement of the judgment. A foreign judgment, regular on its face, is entitled to a strong presumption that the foreign court had jurisdiction both over the parties and the subject matter and the court followed its laws and entered a valid judgment. The burden to overcome the presumption of validity and jurisdiction must be met with the clearest and most satisfactory evidence, and this burden lies with the party asserting the invalidity of the foreign judgment.

Peoples Bank v. Frazee, 318 S.W.3d 121, 126-27 (Mo. banc 2010) (footnote, internal quotation marks, and citations omitted).

As to the issue of personal jurisdiction, a defendant may challenge, during the registration process in a Missouri circuit court, whether a foreign court had personal jurisdiction if the issue has not already been previously litigated. Id. at 127. The Missouri circuit court’s decision regarding personal jurisdiction and whether a foreign judgment should be registered are legal conclusions subject to a de novo review on appeal. Id. Here, because the foreign judgment was rendered by a Texas court, we look to Texas’ substantive law to determine whether the Texas court had personal jurisdiction over Jenkins. See id. at 128.

However, “[t]he facts and circumstances considered in determining whether personal jurisdiction exists are those found by the registering and enforcing jurisdiction, rather than the rendering jurisdiction.” Id. “Therefore, this jurisdictional inquiry can be made without deferring to any of the jurisdictional facts recited in the foreign judgment, and Missouri civil procedure rules will govern the proceedings in the circuit court and this Court’s review of the circuit court’s judgment.” Id. (citation omitted). “Under Missouri’s procedural rules, if personal jurisdiction is challenged in a motion to register a foreign judgment, the parties may present affidavits to

supplement the pleadings or the court may direct that the matter be heard wholly or partly on oral testimony or deposition.” Id. (internal quotation marks omitted). “The circuit court can believe or disbelieve any statement in such affidavits, and factual determinations are within the sole discretion of the circuit court.” Id. Additionally, “[a]ll fact issues upon which no specific findings are made shall be considered as having been found in accordance with the result reached.” Rule 73.01(c).

Factual and Procedural Background The Texas court issued the foreign judgment in favor of Phillips and against Jenkins after Jenkins failed to answer or appear for trial and was found to be in default. The Texas court stated that it heard evidence on liability and damages and found, in pertinent part, as follows: Jenkins entered into a contract to sell Phillips “farm land located at 17 Bentwood Lane, Tunas, Missouri 65764 for $150,000.00 to be paid by [Phillips] with a one-time down payment of $50,000.00 and $10,000.00 cash payment annually or two $5,000.00 cash installment options to be paid two times a year over a period of ten years” (“the contract”); Phillips “paid the one time cash down payment of $50,000.00” and the “$10,000.00 cash payment for the annual payment in 2019”; Jenkins “breached the contract”; Jenkins “fraudulently induced [Phillips] to enter into the contract, in violation of section 27.01 of the Texas Business & Commerce Code by making [a] false promise . . . with actual awareness of its falsity”; and Jenkins’ “course of conduct in the transaction was unconscionable in violation of section 17.50 of the Texas Business & Commerce Code.” The Texas court awarded, in Phillips’ favor and against Jenkins, $61,400 in actual damages, $180,000 in punitive damages, attorney fees, and pre- and post-judgment interest.

Thereafter, Phillips filed an authenticated copy of the foreign judgment with the Circuit Court of Dallas County, Missouri, and the court issued notice thereof to Jenkins. Jenkins then filed a motion to strike the registration of the foreign judgment asserting that, among other

things, the Texas court lacked personal jurisdiction to render the foreign judgment. In support of that motion, Jenkins presented his affidavit testimony, his in-person testimony, and exhibits consisting of the contract; an April 14, 2020, letter that Jenkins sent to Phillips accusing her of defaulting on her obligations under the contract (“the letter alleging default”); Phillips’ petition against Jenkins filed in the Texas court; and the resulting foreign judgment.

The contract contains two pages, each signed by Jenkins and Phillips, with the first page dated December 6, 2018, and the second page dated December 7, 2018. Generally, the first page is titled “Agreement for Sale of Property” and contains a legal description of the subject property of the contract, a statement that the parties “are awaiting for [sic] additional detailed information about the house and the 40 acres that are included in the purchase[,]” and a statement that the down payment “is a onetime cash payment of $50,000.00.” The second page contains the terms of the sale. The terms listed, in toto, are as follows:

1. Total sale price is $150,000.00 2. Zero percent interest 3. $50,000.00 one time, cash down payment due December, 2018 4. $10,000.00 cash payment, paid annually over a period of ten years, or sooner

5. Two, $5,000.00 cash installment options may be paid bi-annually (January and June)

6. The Deed will remain in Lary Jenkins name and Patricia Phillips as beneficiary until said debt is paid.

7. Lary Jenkins is responsible for all fixed expenses and miscellaneous expenses 8. Lary Jenkins is responsible for regular maintenance and repairs

9. Homeowners Insurance to be paid by Patricia Phillips, to company of Lary’s choosing

10. Real Estate Taxes to be paid by Patricia Phillips

11. Lary Jenkins is to remain a permanent resident for life without ever paying to live there

*We need the Deed for the house and acreage to be listed

*Lary needs to make changes in his Last Will and Testament making clear the beneficiary and send Patricia a copy

*Patricia needs to create a Last Will and Testament claiming the debt and who the beneficiary will be upon her death, and send Lary a copy

*Patricia will put Lary’s name on her private bank box at Wells Fargo Bank in Angleton, TX. The only other person who will be on the list is Mikey when he is 25 years old.

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PATRICIA PHILLIPS v. LARY JENKINS, (Mo. Ct. App. 2022).

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