Smith v. PNC BANK

CourtDistrict Court, S.D. Texas
DecidedMay 30, 2025
Docket7:24-cv-00438
StatusUnknown

This text of Smith v. PNC BANK (Smith v. PNC BANK) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. PNC BANK, (S.D. Tex. 2025).

Opinion

UNITED STATES DISTRICT COURT May 30, 2025 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk MCALLEN DIVISION CRAIG S. SMITH, § § Plaintiff, § § v. § Civil Action No. 7:24-CV-00438 § PNC BANK § § Defendant/Garnishee, § § and § § RHONDA ROSS, § § Debtor. §

MEMORANDUM OPINION AND ORDER Pending before the Court is Plaintiff Craig S. Smith’s First Amended Application for Post-Judgment Writ of Garnishment against PNC Bank. (Dkt. No. 8). For the reasons below, the Court GRANTS the motion. I. BACKGROUND In its February 18, 2025, Order, the Court recounted the long history of this decades-old dispute. (See Dkt. No. 7 at 2–3). Relevant there, in the underlying lawsuit, Plaintiff Craig S. Smith—an attorney—successfully moved for sanctions against Debtor Rhonda C. Ross and was awarded attorney’s fees. See Order Granting Defendant Smith’s Motion for Sanctions, Rodriguez v. Rodriguez et al., No. 7:22-CV-00176, (S.D. Tex. Sept. 30, 2022), ECF No. 73 at 29–31 [hereinafter Order Granting Sanctions, ECF No. 73]; (Dkt. No. 8-1). To enforce the award, Smith initiated this garnishment proceeding, seeking a writ of garnishment against PNC Bank to recover sanctions awarded against Ross. (Dkt. No.

1). This Court denied Smith’s initial application because he failed to submit an affidavit affirming that Ross does not own property in Texas subject to execution sufficient to satisfy the judgment, as required by Section 63.001(3) of the Texas Civil Practice and Remedies Code and Texas Rule of Civil Procedure 658. (Dkt. No. 7 at 7–8). Smith has now filed an Amended Application for Post-Judgment Writ of Garnishment, (Dkt. No. 8), along with an amended affidavit that states: “Within my

knowledge, Debtor possesses no property within the state that is subject to execution that is sufficient to satisfy the judgment,” (Dkt. No. 8-2). II. LEGAL STANDARD Rule 69 of the Federal Rule of Civil Procedure governs how courts enforce money judgments, including an award of unpaid attorney’s fees. 2 Steven S. Gensler, Federal Rules of Civil Procedure, Rules and Commentary Rule 69 (2024); see also RMA Ventures

Cal. v. SunAmerica Life Ins., 576 F.3d 1070, 1074 (10th Cir. 2009) (“A judgment granting attorneys’ fees is ‘collected or executed in the same manner as any other money judgment.’” (quoting 10 James Wm. Moore et al., Moore’s Federal Practice § 54.158[2][a], at 54–262 (3d ed. 2009))). Rule 69 states: A money judgment is enforced by a writ of execution, unless the court directs otherwise. The procedure on execution— and in proceedings supplementary to and in aid of judgment or execution—must accord with the procedure of the state where the court is located, but a federal statute governs to the extent it applies. Fed. R. Civ. P. 69(a)(1). Thus, Rule 69 establishes two relevant principles: “(1) that the usual recourse is a writ of execution” and “(2) that the writ [and supplementary

proceedings] will be enforced using the local state practices for executing judgments.” 2 Gensler, supra, Rule 69; see also Hewlett-Packard Co. v. Quanta Storage, Inc., 961 F.3d 731, 735 (5th Cir. 2020) (“The federal rules provide judgment creditors the enforcement tools available under the law of the state in which the court is located.” (citing Fed. R. Civ. P. 69(a)(1)). While Rule 69 “establishes the writ of execution as the general vehicle for enforcing

a money judgment,” 2 Gensler, supra, Rule 69, it does not foreclose other enforcement mechanisms if permitted by the state, Peacock v. Thomas, 516 U.S. 349, 359 n.7, 116 S.Ct. 862, 869 n.7, 133 L.Ed.2d 817 (1996) (“Rule 69(a) . . . permits judgment creditors to use any execution method consistent with the practice and procedure of the State in which the district court sits.” (emphasis added)). The Fifth Circuit has specifically held that Rule

69(a) allows the use of garnishment to enforce a money judgment if that remedy is available under state law. Grenada Bank v. Willey, 694 F.2d 85, 87–88 (5th Cir. 1982). Texas permits writs of garnishment to enforce money judgments. See Tex. R. Civ. P. 621 (“The judgments of the . . . courts shall be enforced by execution or other appropriate process.” (emphasis added)); Tex. Civ. Prac. & Rem. Code §§ 63.001–.008 (providing for

garnishment actions); Tex. R. Civ. P. 657–79 (same); Grenada Bank, 694 F.2d at 87 n.2 (“A writ of execution cannot be the exclusive means of enforcing a judgment since [the State’s] practice and procedure provides for garnishment.”). “As actions supplemental to or in aid of execution, according to Federal Rule of Civil Procedure 69, garnishment actions are governed by state law to the extent it does not conflict with federal law.” FG Hemisphere Assocs., LLC v. Republique du Congo, 455 F.3d 575, 595 (5th Cir. 2006).

“Garnishment actions in Texas are ‘purely statutory[,]’ and courts have no power to extend the benefits of garnishment beyond the relief available under statute.” JGM Holdings, LLC v. T-Mobile USA, Inc., 568 F.App’x 316, 319 (5th Cir. 2014) (per curiam) (first quoting Af-Cap, Inc. v. Republic of Congo, 462 F.3d 417, 423 (5th Cir. 2006); and then citing Tex. Civ. Prac. & Rem. Code § 63.001 (listing the scenarios in which garnishment is available)). In Texas, post-judgment garnishment is available when “a plaintiff has a

valid, subsisting judgment and makes an affidavit stating that, within the plaintiff’s knowledge, the defendant does not possess property in Texas subject to execution sufficient to satisfy the judgment.” Tex. Civ. Prac. & Rem. Code § 63.001(3); see also Tex. R. Civ. P. 658. A party must strictly comply with Section 63.001 to receive a writ of garnishment.

Texas courts are clear that “the remedy of garnishment is summary and harsh[] and should not be sustained unless there is strict compliance with the statutory requirements.” In re Tex. Am. Exp., Inc., 190 S.W.3d 720, 725 (Tex. App.—Dallas 2005, orig. proceeding) (collecting cases); Beggs v. Fite, 130 Tex. 46, 52, 106 S.W.2d 1039, 1042 (1937); Premium Latin Publ’g, Inc. v. Fredonia Enters., No. 4:07-CV-02739, 2010 WL

11586404, at *1 (S.D. Tex. Jan. 12, 2010). They explain that the “garnishment statute must be strictly construed to protect third parties from the ‘inconvenience and hazard’ of suit.” Premium Latin Publ’g, Inc., 2010 WL 11586404, at *1 (first quoting Owen Elec. Supply, Inc. v. Brite Day Constr., Inc., 821 S.W.2d 283, 286 (Tex. App.—Houston [1st Dist.] 1991, writ denied); and then citing Beggs, 130 Tex. at 52, 106 S.W.2d at 1042).

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Related

Af-Cap, Inc. v. Republic of Congo
462 F.3d 417 (Fifth Circuit, 2006)
Peacock v. Thomas
516 U.S. 349 (Supreme Court, 1996)
RMA Ventures California v. SunAmerica Life Insurance
576 F.3d 1070 (Tenth Circuit, 2009)
LEASE FINANCE GROUP, LLC v. Childers
310 S.W.3d 120 (Court of Appeals of Texas, 2010)
In Re Texas American Express, Inc.
190 S.W.3d 720 (Court of Appeals of Texas, 2005)
Abdullah v. State
211 S.W.3d 938 (Court of Appeals of Texas, 2007)
Zeecon Wireless Internet, LLC v. American Bank of Texas, N.A.
305 S.W.3d 813 (Court of Appeals of Texas, 2010)
Owen Electric Supply, Inc. v. Brite Day Construction, Inc.
821 S.W.2d 283 (Court of Appeals of Texas, 1991)
Beggs v. Fite
106 S.W.2d 1039 (Texas Supreme Court, 1937)

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Bluebook (online)
Smith v. PNC BANK, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-pnc-bank-txsd-2025.