Sloan v. Douglass

713 S.W.2d 436, 1986 Tex. App. LEXIS 8169
CourtCourt of Appeals of Texas
DecidedAugust 7, 1986
Docket2-85-095-CV
StatusPublished
Cited by40 cases

This text of 713 S.W.2d 436 (Sloan v. Douglass) 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
Sloan v. Douglass, 713 S.W.2d 436, 1986 Tex. App. LEXIS 8169 (Tex. Ct. App. 1986).

Opinion

OPINION

HOPKINS, Justice.

This is an appeal of a denial of a post-judgment application for turnover under *438 former TEX.REV.CIV.STAT.ANN. art. 3827a. 1 Sloan and Ruffin filed suit against Douglass and Rivers, individually and d/b/a Wash Up, Inc. A default judgment was entered on June 27, 1983 against Rivers and nonsuit was taken against Douglass inasmuch as he had filed for bankruptcy. There is nothing in the record to indicate what occurred as to Wash Up, Inc., but they are not before the Court as part of this appeal. Accordingly, any mention herein of “appellee” refers only to Rivers. Subsequent to the trial in this case, appellants, Sloan and Ruffin, assigned their entire interest in the judgment to a third party, Willie Ross, and have remained in the lawsuit as nominal appellants. Appellants seek turnover under art. 3827a of appellee’s deferred income in payment of their judgment.

We affirm the judgment of the trial court.

Appellee signed a contract with the Texas Rangers, Ltd. (Rangers) on April 3, 1981. The contract called for services to be rendered for the seasons 1981 through 1985. The salary was set out as: $250,000 for 1981, $275,000 for 1982, and $450,000 for 1983, 1984 and 1985. Payments were to be made in semi-monthly installments beginning January 1, 1981 and continuing thereafter until December 31, 1985.

In an addendum to the contract between appellee and the Rangers under Section 4.2 the following appears:

For the years 1983,1984 and 1985, One Hundred Fifty Thousand Dollars ($150,-000.00) of the Player’s Salary in each year is to be deferred, with ten percent (10%) interest per annum accruing thereon. It is hereby agreed by the Parties hereto that the deferred portion of the Player’s salary under this Contract shall be paid to Player in the following manner: Eighty Thousand Dollars ($80,-000.00) a year for ten (10) years beginning in 1986. The ten (10) annual $80,-000.00 payments will be made to the Player in twelve (12) equal monthly installments of $6,666.67 for each month of each such year, beginning January 1st each year and continuing throughout until December 1st each year.

According to the contract provision, in 1983, 1984 and 1985 a portion of appellee’s annual salary earned in those years was to be deferred and paid in monthly installments beginning in 1986, and continuing over a ten-year period, which is after the contract between appellee and the Rangers expires.

Appellants received a final and valid money judgment against appellee and moved for the trial court to order certain “compensation and benefits” be turned over to the sheriff for execution, pursuant to former art. 3827a, which provided:

(a) A judgment creditor whose judgment debtor is the owner of property, including present or future rights to property, which cannot readily be attached or levied on by ordinary legal process and is not exempt from attachment, execution, and every type of seizure for the satisfaction of liabilities, is entitled to aid from a court of appropriate jurisdiction by injunction or otherwise in reaching the property to satisfy the judgment.

Id. Specifically, appellants sought all the deferred compensation from appellee’s employment contract with the Rangers in an amount to satisfy their judgment, and all other “current wages” in excess of $30,000 also in an amount to satisfy their judgment. See TEX.PROP.CODE ANN. secs. 42.001(a), 42.002(8) (Vernon 1984).

The trial court denied this motion for turnover and entered its findings of facts as follows:

6. That the compensation for services which is received by Mickey Rivers is not paid simultaneously with the rendition of his services.
7. All sums due to be paid Mickey Rivers in 1986 are in payment for his rendi *439 tion of personal services but are not past due.
8. No funds are presently in existence to pay Mickey Rivers in 1986.
9. The funds due to be paid Mickey Rivers in 1986 are not presently in his possession or under his control.

Conclusions of law were also entered and held as follows:

1. That the funds due to be paid to Mickey Rivers in 1986 constitute current wages for personal service.
2. That the funds due to be paid Mickey Rivers in 1986 are exempt from execution.
3. That an order requiring Mickey Rivers to turn over funds when received by him in 1986 would be tantamount to garnishment of current wages in violation of Art. 16, Sec. 28, Texas Constitution.

Appellants’ first point of error complains that the trial .court erred in refusing to order turnover of the interest income appel-lee is to receive in the future on his deferred income. In points two and three, appellants argue that the court erred in holding the funds due appellee in 1986 are current wages and to order a turnover would be tantamount to garnishment of current wages, which is unconstitutional. Points of error four, five and six contend the trial court erred in concluding the compensation to be paid in 1986 should not be turned over to the sheriff, the funds due in 1986 are not presently in appellee’s possession or under his control and that the sums to be paid appellee in 1986 are payment for rendition of personal services but are not past due. Appellants’ final two points of error, seven and eight, contend the trial court erred in not turning over to the sheriff appellee’s present salary in excess of $30,000 as provided by TEX.PROP.CODE ANN. sec. 42.001. Appellants’ first six points of error are governed by the determination of whether the compensation to be paid appellee in 1986 through 1996, for services rendered in 1983,1984 and 1985, is current wages for the years 1983 through 1985 and therefore subject to the turnover statute, or for the years 1986 through 1996 and exempt from turnover.

The issue before us is: when an employee contracts with his employer, in advance of wages being earned for personal services, that a portion of the employee’s salary will not be paid to him during the year in which it is earned, but at a specified later date with accumulated interest at a set amount, are the deferred payments “current wages” for the year in which earned or received? This appears to be a case of first impression in Texas.

“Current” is defined as “ ‘running; now passing or present in its progress.’ ” Dempsey v. McKennell, 2 Tex. 284, 23 S.W. 525, 525 (1893). “Wages” means a “ ‘compensation given to a hired person for his services.’ ” Id. “Current wages” are “such compensation for personal services as are to be paid periodically, or from time to time, as the services are rendered.” Id. Appellants argue that the deferred income to be paid appellee three to thirteen years after it is earned does not fall under the current wage exemption for that ten-year period, but is current when earned in 1983 through 1985. See TEX. CONST, art. XVI, sec. 28 and TEX.PROP.CODE ANN. secs. 42.001(a), 42.002(8).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robert Klinek v. Luxeyard, Inc.
Court of Appeals of Texas, 2023
Charilta Ayllene Marrs v. Michael Dennis Marrs and Jacqueline Taylor
401 S.W.3d 122 (Court of Appeals of Texas, 2011)
Wasim Ahmed Sheikh v. Shama Sheikh
Court of Appeals of Texas, 2007
Sheikh v. Sheikh
248 S.W.3d 381 (Court of Appeals of Texas, 2007)
General Electric Capital Corp. v. ICO, Inc.
230 S.W.3d 702 (Court of Appeals of Texas, 2007)
Goebel Ex Rel. Goebel v. Brandley
174 S.W.3d 359 (Court of Appeals of Texas, 2005)
Stephenson, Jr., Cecil B. v. Leboeuf, Diann
Court of Appeals of Texas, 2003
Burns v. Miller, Hiersche, Martens & Hayward, P.C.
948 S.W.2d 317 (Court of Appeals of Texas, 1997)
Santibanez v. Wier McMahon & Co.
105 F.3d 234 (Fifth Circuit, 1997)
Ex Parte Prado
911 S.W.2d 849 (Court of Appeals of Texas, 1995)
Ex Parte: Leonard Chavez Prado
Court of Appeals of Texas, 1995
DeVore v. Central Bank & Trust
908 S.W.2d 605 (Court of Appeals of Texas, 1995)
In Re Standel
185 B.R. 227 (N.D. Texas, 1995)
Roosth v. Roosth
889 S.W.2d 445 (Court of Appeals of Texas, 1994)
Orange County v. Ware
819 S.W.2d 472 (Texas Supreme Court, 1991)
Caulley v. Caulley
806 S.W.2d 795 (Texas Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
713 S.W.2d 436, 1986 Tex. App. LEXIS 8169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sloan-v-douglass-texapp-1986.