Pharus Funding , LLC as Assignee of LHR, Inc. v. Jorge J. Garcia

CourtCourt of Appeals of Texas
DecidedAugust 12, 2021
Docket01-20-00411-CV
StatusPublished

This text of Pharus Funding , LLC as Assignee of LHR, Inc. v. Jorge J. Garcia (Pharus Funding , LLC as Assignee of LHR, Inc. v. Jorge J. Garcia) 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
Pharus Funding , LLC as Assignee of LHR, Inc. v. Jorge J. Garcia, (Tex. Ct. App. 2021).

Opinion

Opinion issued August 12, 2021

In The

Court of Appeals For The

First District of Texas ——————————— NO. 01-20-00411-CV ——————————— PHARUS FUNDING, LLC, AS ASSIGNEE OF LHR, INC., Appellant V. JORGE J. GARCIA, Appellee

On Appeal from the County Civil Court at Law No. 2 Harris County, Texas Trial Court Case No. 845221

MEMORANDUM OPINION

Appellant, Pharus Funding, LLC, as assignee of LHR, Inc. (“Pharus”),

challenges the trial court’s order denying its application for a writ of scire facias to revive a dormant judgment1 rendered against appellee, Jorge J. Garcia. In its sole

issue, Pharus contends that the trial court erred in denying its application.

We affirm.

Background

In its application for a writ of scire facias to revive a dormant judgment,

Pharus alleged that on June 7, 2006, the trial court signed a final judgment against

Garcia and in favor of LHR, Inc., awarding LHR, Inc. $15,060.42 in damages and

its attorney’s fees. LHR, Inc. did not collect the judgment, and Pharus acquired the

judgment after it became dormant.2 On May 23, 2018, within the two-year period

during which the dormant judgment could be revived,3 Pharus sought a writ of scire

facias. Its application included a certificate of service stating that Pharus served the

application on Garcia “by certified U.S. mail, return receipt requested” on May 17,

2018. Pharus attached to its application a copy of the dormant judgment, a copy of

the “Notice of Change in Ownership,” and two assignment agreements.

The trial court, finding that “no [w]rit of [s]cire [f]acias was issued/served

within the 12[-]year residual period from [the] judgment date,” denied Pharus’s

application for writ of scire facias to revive a dormant judgment.

1 See TEX. CIV. PRAC. & REM. CODE ANN. § 31.006; see also § 34.001. 2 See id. § 31.001. 3 See id. § 31.006 (“A dormant judgment may be revived by scire facias . . . not later than the second anniversary of the date the judgment bec[ame] dormant.”). 2 Standard of Review

Texas Civil Practice and Remedies Code section 34.001, which governs

preservation and dormancy of judgments, provides, in pertinent part,

(a) If a writ of execution is not issued within 10 years after the rendition of a judgment of a court of record or a justice court, the judgment is dormant and execution may not be issued on the judgment unless it is revived.

(b) If a writ of execution is issued within 10 years after rendition of a judgment but a second writ is not issued within 10 years after issuance of the first writ, the judgment becomes dormant. A second writ may be issued at any time within 10 years after issuance of the first writ.

TEX. CIV. PRAC. & REM. CODE ANN. § 34.001. Under section 34.001, a judgment

creditor may renew a judgment and keep the judgment alive indefinitely by having

a writ of execution issued within ten years of the prior writ. Cadle Co. v. Rollins,

No. 01-09-00165-CV, 2010 WL 670561, *2 (Tex. App.—Houston [1st Dist.] Feb.

25, 2010, no pet.) (mem. op.). Once a judgment becomes dormant, the “dormant

judgment may be revived by scire facias[4] or by an action of debt brought not later

than the second anniversary of the date that the judgment becomes dormant.” TEX.

CIV. PRAC. & REM. CODE ANN. § 31.006. The effect of section 31.006 is to provide

4 “Scire facias” means “a judicial writ, founded on some matter of record, such as a judgment or recognizance, and requiring the person against whom it is brought to show cause why the party bringing it should not have advantage of such record. The name is used to designate both the writ and the whole proceeding.” Int’l Fid. Ins. Co. v. State, 71 S.W.3d 894, 897 n.2 (Tex. App.—Texarkana 2002, no pet.) (internal quotations omitted). 3 a twelve-year residual limitations period for final judgments. Rollins, 2010 WL

670561, at *2.

A scire facias hearing is non-evidentiary, requiring no findings of fact or

conclusions of law. Id. In determining whether to revive a dormant judgment, the

trial court considers the date of the judgment, the date of the motion, and any

evidence that the time to bring the scire facias proceeding was extended by the

issuance of a writ of execution. See id. Revival of a judgment is not discretionary

if the statutory requirements to revive a dormant judgment are satisfied. See Cadle

Co., 2010 WL 670561, at *2. Thus, we review the trial court’s decision on an

application for a writ of scire facias de novo. See id.; see also David Powers Homes,

Inc., 355 S.W.3d 327, 335 (Tex. App.—Houston [1st Dist.] 2011, no pet.)

(explaining where facts are undisputed, whether they satisfy statute is question of

law subject to de novo review).

Service of Scire Facias

In its sole issue, Pharus argues that the trial court erred in denying his

application for a writ of scire facias to revive a dormant judgment because the trial

court found that the writ of scire facias was not issued or served within the

twelve-year period following the 2006 entry of judgment against Garcia and “that is

not the applicable legal standard.” Pharus argues that because Texas Civil Practice

and Remedies Code section 31.006 does not specifically require personal service,

4 service of citation is not required, and service of its application for a writ of scire

facias only had to comply with one of the methods provided under Texas Rule of

Civil Procedure 21a.5 See TEX. R. CIV. P. 21a.

Pharus is correct that Texas Civil Practice and Remedies Code section 31.006

does not set out the procedure for obtaining the revival of a dormant judgment by

scire facias. See TEX. CIV. PRAC. & REM. CODE ANN. § 31.006 (only explaining “[a]

dormant judgment may be revived by scire facias or by an action of debt brought not

later than the second anniversary of the date that the judgment becomes dormant”).

But Texas Rule of Civil Procedure 154 expressly requires that an application for a

writ of scire facias “conform to the requisites of citations and the returns thereon” as

specified in the Texas Rules of Civil Procedure. TEX. R. CIV. P. 154; see also TEX.

R. CIV. P. 15, 16, 17 (procedures applicable to all writs and process).

5 In attempting to justify service according to Texas Rule of Civil Procedure 21a, Pharus relies on Berly v. Sias, which described a proceeding for revival of a judgment as “a continuation of the original suit” in which the judgment was rendered and not an independent suit for debt on the judgment. 255 S.W.2d 505, 508 (Tex. 1953). This description did not implicate the service requirements for scire facias. In Berly, the execution predated the promulgation of the Texas Rules of Civil Procedure, and the statute then in effect required the execution to “conform to the requirements of writs” and “describe the judgment.” Id. Berly thus does not support Pharus’s position that service under rule 21a is sufficient. See also Pharus Funding, LLC v. Solley, No. 06-20-00090-CV, 2021 WL 1680206, at *1 (Tex. App.—Texarkana Apr. 29, 2021, no pet.) (mem. op.) (explaining procedure set out in reported cases, including Berly, requires judgment creditor to “obtain[] service of the writ on the judgment debtors as required for all writs and process”).

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Related

Berly v. Sias
255 S.W.2d 505 (Texas Supreme Court, 1953)
In Re the City of Georgetown
53 S.W.3d 328 (Texas Supreme Court, 2001)
International Fidelity Insurance Company v. State
71 S.W.3d 894 (Court of Appeals of Texas, 2002)
Assignees of Best Buy v. Combs
395 S.W.3d 847 (Court of Appeals of Texas, 2013)

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