NUMBER 13-24-00450-CV
COURT OF APPEALS
THIRTEENTH DISTRICT OF TEXAS
CORPUS CHRISTI – EDINBURG
SOUTH TEXAS CRANE SERVICE, INC., SANDRA JOYCE VAUGHT, JERRY YOUNG, THOMAS RANDAL YOUNG, TRY EQUIPMENT RENTALS, LLC, AND YOUNG HEAVY HAULING, INC., Appellants,
v.
COMMERCIAL CREDIT GROUP, INC., Appellee.
ON APPEAL FROM THE 267TH DISTRICT COURT OF VICTORIA COUNTY, TEXAS
OPINION ON MOTION FOR REVIEW OF SUPERSEDEAS ORDER
Before Justices Silva, Peña, and Cron Opinion by Justice Cron
In this commercial lending dispute, appellants South Texas Crane Service, Inc.,
Sandra Joyce Vaught, Jerry Young, Thomas Randal Young, TRY Equipment Rentals, LLC, and Young Heavy Hauling, Inc. (Judgment Debtors) appeal from a summary
judgment entered in favor of appellee Commercial Credit Group, Inc. (Judgment Creditor)
on its claims for breach of contract, possession of personal property, and foreclosure on
real property. The judgment awards Judgment Creditor nearly $3.9 million in unpaid debt
and default interest, the right to possess and sell personal property pledged as security,
and the right to foreclose on real property pledged as security. Judgment Debtors filed
negative net-worth affidavits, and the trial court determined that “no additional
supersedeas or security is required” to suspend the entire judgment.
Judgment Creditor has filed a motion in this Court challenging that ruling. See TEX.
R. APP. P. 24.4. Judgment Creditor acknowledges that the negative net-worth affidavits,
which went unchallenged in the hearing below, are currently sufficient to suspend the
money portion of the judgment. See id. R. 24.2(a)(1)(A). Judgment Creditor argues,
however, that the trial court abused its discretion by failing to require Judgment Debtors
to post sufficient security to protect Judgment Creditor’s property interests in the
collateral. See id. R. 24.2(a)(2). We grant Judgment Creditor’s motion in part, vacate the
trial court’s November 8, 2024 bond order, and remand for further proceedings.
I. BACKGROUND
The parties entered into a series of secured loan agreements and guarantees
whereby Judgment Debtors granted Judgment Creditor security interests in certain
collateral, including commercial cranes, vehicles, and trailers, as well as a parcel of land.
Judgment Debtors allegedly defaulted on their loan obligations, leading to the underlying
litigation.
2 The trial court granted Judgment Creditor’s motion for summary judgment and
entered a final order that provides, in pertinent part, as follows:
IT IS FURTHER ORDERED that [Judgment Creditor] be awarded $3,879,069.64 for actual damages constituting the total amount of unpaid debt and default interest.
....
IT IS FURTHER ORDERED that [Judgment Debtors] or any other person or entity in possession of any personal property or other assets of [Judgment Debtors] used as collateral to secure the loan agreements be required to tender the personal property and assets to [Judgment Creditor] and permit [Judgment Creditor] to recover the personal property and assets covered by the liens.
IT IS FURTHER ORDERED that [Judgment Creditor] be authorized to foreclose on its security interest in the real property contained in the Deed [of Trust], and the sheriff or constable be directed to seize and sell the real property in satisfaction of the unpaid debt in the Final Judgment.
Two days after Judgment Debtors filed their notice of appeal, Judgment Creditor
sent Judgment Debtors notice that some of the personal property collateral would be sold
at public auction. That same day, Judgment Debtors filed net-worth affidavits with the
district clerk claiming that their liabilities exceeded their assets. Based on these negative
net-worth affidavits, the trial court ordered the district clerk to immediately issue a writ of
supersedeas suspending all collection efforts and execution on the judgment. The district
clerk complied with the order, and Judgment Creditor canceled the auction.
Judgment Creditor filed a motion to vacate or modify the writ of supersedeas in the
trial court, arguing that because the judgment awarded both money and an interest in
personal and real property, the net worths of the Judgment Debtors were irrelevant to the
amount of security necessary to suspend the portion of the judgment awarding Judgment
3 Creditor an interest in property. 1 Judgment Creditor submitted a supporting affidavit from
its Regional Vice President, Justin Mock, who attested to the following facts: (1) the total
fair market value of the personal property collateral is $702,000; (2) the “tax value” of the
real property collateral is $270,454; (3) Judgment Debtors are in possession of two cranes
pledged as collateral, and at least one of those cranes is being used in the Judgment
Debtors’ normal course of business; (4) the two cranes are collectively valued at
$350,000, thereby representing nearly fifty percent of the total value of the personal
property collateral; (5) continued use of the cranes causes wear and tear that depreciates
the value of the collateral; and (6) the insurance policy that protected the cranes from loss
or damage was canceled, and Judgment Debtors have not provided Judgment Creditor
with proof that the cranes are currently insured, as required by the security agreements.
Judgment Creditor requested that the trial court require Judgment Debtors to post security
under Texas Rule of Appellate Procedure 24.2(a)(2) to protect its property interests in the
collateral.
Judgment Debtors filed a response contending that the “primary nature” of the
judgment is for money, and thus, their negative net-worth affidavits were sufficient to
suspend the entire judgment. Alternatively, they argued that, given their negative net
worths, requiring them to post any security would cause them substantial economic harm.
See id. R. 24.2(b). Finally, as a second alternative argument, Judgment Debtors asserted
that requiring them to post a security would interfere with their use of the operational crane
1 Judgment Creditor additionally argued that the net-worth affidavits were deficient for various
reasons and should be struck. See TEX. R. APP. P. 24.2(c)(2).
4 in the normal course of business. See id. R. 24.2(d).
At the beginning of the hearing on Judgment Creditor’s motion, the parties agreed
that the scope of the hearing should be limited to an initial determination about “the nature
of the judgment” and whether Rule 24.2(a)(2) applied, along with testimony about the
value of the collateral. Judgment Creditor also informed the trial court that it was reserving
its right to conduct discovery and contest the validity of Judgment Debtors’ claimed net
worths at a later time. See id. R. 24.2(c)(2).
During argument, Judgment Debtors conceded that the judgment authorizes the
Judgment Creditor to possess and sell the personal property collateral but argued that
these property interests are merely “part of the money judgment” because the proceeds
would be credited against the unpaid debt. According to Judgment Debtors, a judgment
does not award an interest in property for purposes of supersedeas unless the property
interest is “on top of the money owed.” For those reasons, Judgment Debtors asked the
trial court to find “that this is strictly a money judgment.”
Judgment Creditor responded that Rule 24.2(a) does not present an either-or
proposition because a judgment can be both for money and an interest in property.
Judgment Creditor maintained that, in addition to money, the plain language of the
judgment awarded an interest in property. Judgment Creditor asked the trial court to
require Judgment Debtors to post a bond in an amount equal to the fair market value of
the personal property collateral under Rule 24.2(a)(2)(B). 2 The trial court then heard
2 Judgment Creditor did not address the portion of the judgment awarding it an interest in the real
property collateral, there was no evidence offered on the rental value of such property, and Judgment Creditor has not addressed this portion of the judgment in its motion to this Court. See TEX. R. APP. P. 24.2(a)(2)(A). 5 testimony from Mock and Judgment Debtor Thomas Young, who, in addition to personally
guaranteeing the subject loans, identified himself as the general manager of Judgment
Debtors South Texas Crane Service, Inc. and Young Heavy Haul, Inc.
Mock’s testimony largely tracked his affidavit. He explained that, prior to the
litigation, Judgment Creditor seized seventeen pieces of collateral consisting of vehicles,
trailers, and one crane (the collateral noticed for auction), but Judgment Debtors were still
in possession of two other cranes pledged as collateral. Based on his twenty years of
experience conducting foreclosure sales, the condition of the collateral, and the current
market conditions for similar collateral, Mock assigned the following fair market values for
the collateral: the collateral in Judgment Creditor’s possession has a total fair market
value of $352,000 3; the nonoperational crane in Judgment Debtors’ possession has a fair
market value of $50,000; and the operational crane in Judgment Debtors’ possession has
a fair market value of $300,000. Mock confirmed that Judgment Creditor intends to sell
the personal property collateral in partial satisfaction of the unpaid debt. He also testified
that the loan documents require Judgment Debtor to provide Judgment Creditor with proof
of insurance on the collateral and that Judgment Debtor had not provided a current
certificate of insurance (COI) on either of the cranes in its possession “in years.” Mock
did not offer any testimony on the rental value of the real property pledged as collateral.
Young did not have an opinion on the value of the collateral in Judgment Creditor’s
possession because he had not recently inspected the items. But he opined that the
3 Mock provided a separate fair market value for each of the seventeen pieces of collateral in
Judgment Creditor’s possession.
6 nonoperational crane has no value because it is missing critical components4 and that
the fair market value of the operational crane is $250,000. Like Mock, Young did not testify
about the rental value of the real property pledged as collateral.
Young further testified that South Texas Crane uses the operational crane “on a
weekly basis” to generate revenue for the company. He explained that customers hire
South Texas Crane to perform “taxi work.” Under this arrangement, rather than renting
the crane to customers, South Texas Crane maintains possession and control over the
crane by providing an operator who performs the necessary work. Young estimated that
South Texas Crane generates 98% of its total revenue from performing taxi work with the
operational crane. Without it, “[t]here would be no more South Texas Crane,” according
to Young. He also testified that the operational crane is integral to the services provided
by Young Heavy Haul because the crane is sometimes used to load heavy equipment the
company is hired to haul. Young estimated that 30–40% of the hauling company’s
business involves using the operational crane.
Young confirmed that the nonoperational crane is not insured but said insurance
was unnecessary because, in his opinion, the crane has no value in its current condition.
He testified, though, that the operational crane is currently insured, and the only reason
Judgment Creditor had not been provided a COI is because it had failed to request one.
Young did not produce the policy that allegedly covers the operational crane.
The trial court took the motion under advisement. On November 8, 2024, the trial
4 It was uncontested that the crane was nonoperational because Judgment Creditor had previously
seized the component parts referred to by Young.
7 court signed an order finding that “no additional supersedeas or security is required.” The
net effect of the trial court’s order is that the Judgment Debtors have superseded the
judgment without posting any security.
II. STANDARD OF REVIEW & APPLICABLE LAW
A judgment debtor is entitled to supersede and defer payment of a judgment while
pursuing an appeal. Miga v. Jensen, 299 S.W.3d 98, 100 (Tex. 2009). Texas Rule of
Appellate Procedure 24.4 authorizes an appellate court to engage in a limited
supersedeas review. See TEX. R. APP. P. 24.4. On any party’s motion, we may review:
(1) the sufficiency or excessiveness of the amount of security, (2) the sureties on a bond,
(3) the type of security, (4) the determination whether to permit suspension of
enforcement, and (5) the trial court’s exercise of discretion in ordering the amount and
type of security. See id. R. 24.4(a). We may require that the amount of a bond be
increased or decreased and that another bond or security be provided. See id. R. 24.4(d).
We may also require other changes in the trial court’s order and remand for entry of
findings of fact or for the taking of evidence. See id.
We generally review a trial court’s supersedeas ruling for an abuse of discretion.
See EnviroPower, L.L.C. v. Bear, Stearns & Co., 265 S.W.3d 1, 2 (Tex. App.—Houston
[1st Dist.] 2008, pet. denied). A trial court “abuses its discretion when it renders an
arbitrary and unreasonable decision lacking support in the facts or circumstances of the
case,” or “when it acts in an arbitrary or unreasonable manner without reference to guiding
rules or principles.” Samlowski v. Wooten, 332 S.W.3d 404, 410 (Tex. 2011). A trial court
has no discretion in determining what the law is or in applying the law to the facts. See
8 Gonzalez v. Reliant Energy, Inc., 159 S.W.3d 615, 624 (Tex. 2005). A failure by the trial
court to analyze or apply the law correctly is an abuse of discretion. Id. However, to the
extent the trial court’s ruling turns on a question of law, our review is de novo. Senior Care
Living VI, LLC v. Preston Hollow Cap., LLC, 695 S.W.3d 446, 455 (Tex. App.—Houston
[1st Dist.] 2023, order), dis. on merits, 695 S.W.3d 446, 464 (Tex. App.—Houston [1st
Dist.] 2023, pet. filed).
Among other methods, a judgment debtor may supersede a judgment by filing a
“good and sufficient bond,” the amount of which is determined by Rule 24.2. See TEX. R.
APP. P. 24.1(a)(2), (b)(1)(A). Rule 24.2 places judgments into three general categories—
money, property, and other—with each category having its own guidelines about the
necessary amount of security to supersede the judgment. See id. R. 24.2(a)(1)–(3). Only
the first two categories apply in this case. “When the judgment is for money, the amount
of the bond, deposit, or security must equal the sum of compensatory damages awarded
in the judgment, interest for the estimated duration of the appeal, and costs awarded in
the judgment.” Id. R. 24.2(a)(1); see TEX. CIV. PRAC. & REM. CODE ANN. § 52.006(a).
However, “the [security] amount must not exceed the lesser of: (A) 50 percent of the
judgment debtor’s current net worth; or (B) 25 million dollars.” TEX. R. APP. P. 24.2(a)(1);
see TEX. CIV. PRAC. & REM. CODE ANN. § 52.006(b). Stated differently, Rule 24.2 sets a
ceiling on the amount of security the judgment debtor must provide to supersede a
judgment for money. See TEX. R. APP. P. 24.2(a)(1).
Conversely, Rule 24.2 sets a mandatory floor “[w]hen the judgment is for the
recovery of an interest in real or personal property.” See id. R. 24.2(a)(2). “The amount
9 of that security must be at least: (A) the value of the property interest’s rent or revenue, if
the property interest is real; or (B) the value of the property interest on the date when the
court rendered judgment, if the property interest is personal.” Id. R. 24.2(a)(2)(A)–(B).
Upon a proper showing, the trial court must lower the security amount required
under either category “to an amount that will not cause the judgment debtor substantial
economic harm.” Id. R. 24.2(b). A judgment debtor seeking relief under Rule 24.2(b) bears
the burden of demonstrating substantial economic harm if the amount of security is not
decreased. Drake Interiors, Inc. v. Thomas, 531 S.W.3d 325, 328 (Tex. App.—Houston
[14th Dist.] 2017, order), disp. on merits, 544 S.W.3d 449 (Tex. App.—Houston [14th
Dist.] 2018, no pet.). In granting relief under Rule 24.2(b), the trial court must, after
providing notice to all parties and holding a hearing on the matter, find that requiring the
amount under Rule 24.2(a) “is likely to cause the judgment debtor substantial economic
harm.” TEX. R. APP. P. 24.2(b). The inquiry should focus “on the judgment debtor’s actual
ability to post the security required.” Ramco Oil & Gas, Ltd. v. Anglo Dutch (Tenge) L.L.C.,
171 S.W.3d 905, 917 (Tex. App.—Houston [14th Dist.] 2005, order), disp. on merits, 207
S.W.3d 801 (Tex. App.—Houston [14th Dist.] 2006, pet. denied).
Finally, Rule 24.2 also permits the trial court to “enjoin the judgment debtor from
dissipating or transferring assets to avoid satisfaction of the judgment.” TEX. R. APP. P.
24.2(d). Nevertheless, “the trial court may not make any order that interferes with the
judgment debtor’s use, transfer, conveyance, or dissipation of assets in the normal course
of business.” Id.
10 III. ANALYSIS
A. Rule 24(a)(2) Applies
To put it succinctly, as the parties did below, our analysis turns on “the nature of
the judgment” and the operation of Rule 24.2(a), which is a question of law. See Senior
Care Living, 695 S.W.3d at 455. Judgment Debtors maintain that the “primary nature” of
the judgment is for the recovery of money, and therefore, their negative net-worth
affidavits were sufficient to suspend the entire judgment, including the portions awarding
an interest in property. Yet, Judgment Debtors have not cited any cases where a judgment
that awards an interest in property was superseded under Rule 24.2(a)(1), and we have
found none.
On the other hand, it is not unusual for a judgment to award both money and an
interest in property. In cases where different types of relief are awarded, like this one,
courts generally take a siloed approach, analyzing the sufficiency of the security for each
portion of the judgment according to the corresponding provision under Rule 24.2(a). See,
e.g., Ahlgren v. Ahlgren, No. 13-22-00029-CV, 2022 WL 1260190, at *4–5 (Tex. App.—
Corpus Christi–Edinburg Apr. 25, 2022, order) (mem. op.) (applying Rule 24.2(a)(1) to
the money portion of the judgment and Rule 24.2(a)(2)(B) to the portion awarding an
interest in personal property); Butler v. Kaur Holdings, LLC, No. 08-15-00232-CV, 2015
WL 7348970, at *1–2 (Tex. App.—El Paso Nov. 20, 2015, order) (mem. op.) (rejecting
judgment debtor’s argument that his negative net-worth affidavit suspended the entire
judgment because “[§] 52.006(a) and Rule 24.2(a)(1) apply to the portion of the judgment
awarding to Kaur Holdings unpaid rent in the amount of $2,687.10, but these provisions
11 do not apply to the portion of the judgment awarding Kaur Holdings possession of the
property”); Kanan v. Plantation Homeowners Ass’n, No. 13-11-00282-CV, 2012 WL
593067, at *4–5 (Tex. App.—Corpus Christi–Edinburg Feb. 21, 2012, order) (mem. op.)
(applying Rule 24.2(a)(2) to the property portion and Rule 24.2(a)(3) to the injunctive
portion).
The fact that the Judgment Creditor intends to sell the collateral to partially satisfy
the money portion of the judgment does not diminish or alter its property interest in the
collateral. See Hibernia Energy III, LLC v. Ferae Naturae, LLC, 668 S.W.3d 771, 772, 775
(Tex. App.—El Paso 2022, order) (Rule 24.2(a)(2)(A) applied to a judgment for
foreclosure on a judgment lien that incumbered a mineral lease); see also Brady v.
Compass Bank, No. 04-19-00021-CV, 2019 WL 1459257, at *1–2 (Tex. App.—San
Antonio Apr. 3, 2019, order) (mem. op.) (Rule 24.2(a)(2)(A) applied to a judgment
ordering foreclosure on a home equity loan). To hold otherwise would effectively turn
Judgment Creditor into an unsecured creditor for the duration of the appeal. That is
particularly troubling here because South Texas Crane and Young Heavy Haul continue
to use the most valuable piece of collateral on a regular basis, and without a bond or
some other form of security, Judgment Creditor would not be able to recover any
diminution in the crane’s value should Judgment Creditor ultimately prevail on appeal. 5
See Adams v. Godhania, 635 S.W.3d 454, 458 (Tex. App.—Austin 2021, pet. denied)
(explaining that recovery on a supersedeas bond is conditioned on a showing of damages
incurred during the pendency of the appeal).
5 Judgment Creditor also argues that limiting protections for secured lenders will increase the credit
risk for lenders, ultimately leading to fewer loans and worse terms for borrowers. 12 At bottom, Judgment Debtors are asking this Court to engraft an exception onto
Rule 24.2 that simply does not exist in the text. Under the plain language of Rule 24.2,
the amount of security required to suspend a judgment awarding an interest in personal
property “must be at least . . . the value of the property interest on the date when the court
rendered judgment.” TEX. R. APP. P. 24.2(a)(2)(B); see also Johnson v. Villatoro, No. 14-
18-00150-CV, 2018 WL 3848070, at *1 n.2 (Tex. App.—Houston [14th Dist.] Aug. 14,
2018, order) (mem. op.) (rejecting judgment debtor’s argument that his negative net worth
should suspend a judgment for possession of real property because Rule 24.2(a)(1) only
applies “to the amount of security necessary to suspend enforcement of a money
judgment, not a judgment for recovery of an interest in property”); Butler, 2015 WL
7348970, at *1–2. The trial court’s failure to follow that statutory directive was an abuse
of discretion. See Gonzalez, 159 S.W.3d at 624.
B. Substantial Economic Harm was not Considered or Proven
Judgment Debtors also argue that we should deny Judgment Creditor’s motion
because they demonstrated substantial economic harm. See TEX. R. APP. P. 24.2(b). To
begin, the question of substantial economic harm was not presented to the trial court. The
parties agreed to litigate the supersedeas issue in a sequential order by limiting the
hearing to an initial determination on the “nature of the judgment” and the value of the
personal property collateral. In other words, the purpose of the hearing was to first
determine the amount of security required by Rule 24.2(a), and because the trial court
kept the security amount at $0, it was not necessary for the trial court to determine
whether to “lower the amount of security required by (a)” based on a finding of substantial
13 economic harm. See id. R. 24.2(b) (emphasis added); Senior Care Living, 695 S.W.3d.
at 458 (“Because the trial court concluded that Senior Care’s $10.00 deposit in lieu of
bond was sufficient to supersede the judgment pending appeal, the question whether
some other bond amount pursuant to Rule 24.2(a) would cause Senior Care substantial
economic harm was never properly before the trial court.”). Indeed, the trial court’s order
does not contain a finding of substantial economic harm; it merely states that that “no
additional supersedeas or security is required.” See TEX. R. APP. P. 24.2(b) (requiring the
trial court to find that the amount required under Rule 24.2(a) would cause substantial
economic harm).
Nevertheless, Judgment Debtors claim that their negative net-worth affidavits are
sufficient to show that they would suffer substantial economic harm if they were required
to post security in the amount required by Rule 24.2(a). While we agree that a negative
net worth could be relevant to a substantial-economic-harm inquiry, the affidavits filed in
this case only show that Judgment Debtors’ liabilities exceed their assets. There is no
evidence in the record that Judgment Debtors attempted to obtain a bond or that they are
incapable of raising the funds to pay for a bond. 6 See Ramco Oil, 171 S.W.3d at 918
6 One of our sister courts has suggested the following line of inquiry when considering a claim of
substantial economic harm:
How much cash or other resources would it take to post a supersedeas bond in the amount in question? Does the judgment debtor have sufficient cash or other assets on hand to post a supersedeas bond in this amount or to post a deposit in lieu of bond in this amount? Does the judgment debtor have any other source of funds available? Does the judgment debtor have the ability to borrow funds to post the requisite security? Does the judgment debtor have unencumbered assets to sell or pledge? What economic impact is such a transaction likely to have on the judgment debtor? Would requiring the judgment debtor to take certain action likely trigger liquidation or bankruptcy or have other harmful consequences?
Ramco Oil & Gas, Ltd. v. Anglo Dutch (Tenge) L.L.C., 171 S.W.3d 905, 917 (Tex. App.—Houston [14th 14 (affirming a determination of no substantial economic harm in part because the judgment
creditor “introduced no evidence of any efforts on their part to obtain a supersedeas bond
or of what the premium, other costs, and required collateral, if any, would be to obtain a
supersedeas bond”); see also Premier Pools Mgmt. Corp. v. Premier Pools, Inc., No. 05-
14-01388-CV, 2015 WL 465168, at *3–4 (Tex. App.—Dallas Feb. 4, 2015, order) (mem.
op.) (affirming a refusal to find substantial economic harm because “there was no
evidence as to the cost to obtain a bond much less that they even made an attempt to
obtain a bond”). Consequently, Judgment Debtors failed to carry their burden of proving
substantial economic harm. See Drake Interiors, 531 S.W.3d at 328. To the extent the
trial court made its ruling based on an implicit finding of substantial economic harm, it
abused its discretion. See Gonzalez, 159 S.W.3d at 624.
C. Rule 24.2(d) Does Not Apply
Finally, Judgment Debtors contend that Rule 24.2(d) also prevents the trial court
from setting a bond in the amount required under Rule 24.2(a)(2) because doing so would
interfere with South Texas Crane and Young Heavy Haul’s use of the operational crane
“in the normal course of business.” See TEX. R. APP. P. 24.2(d). Judgment Debtors’
reliance on Rule 24.2(d) is misplaced. Subsection (b) acts as the only escape hatch for
the otherwise mandatory requirements of subsection (a), while subsection (d) concerns
the trial court’s limited authority to “enjoin the judgment debtor from dissipating or
transferring assets to avoid satisfaction of the judgment.” See id. There is no such
injunction in place, and Judgment Debtors’ suggested construction of subsection (d) is
Dist.] 2005, order), disp. on merits, 207 S.W.3d 801 (Tex. App.—Houston [14th Dist.] 2006, pet. denied).
15 incongruent with subsections (a) and (b). See State v. Chacon, 273 S.W.3d 375, 379
(Tex. App.—San Antonio 2008, no pet.) (“We also construe the statute as a whole and
will not give one provision a meaning which is out of harmony or inconsistent with other
provisions.” (citing Marcus Cable Assocs., L.P. v. Krohn, 90 S.W.3d 697, 706 (Tex.
2002))).
Further, Judgment Debtors’ premise is based on the unproven assumption that
they could not post the required security under subsection (a) and would thus lose
possession of the operational crane that accounts for 98% of South Texas Crane’s
revenue. Such an argument is properly raised in a claim of substantial economic harm,
which, as explained above, has yet to be litigated. See TEX. R. APP. P. 24.2(b). We
conclude that the trial court’s failure to correctly apply Rule 24.2 to the judgment and facts
in this case was an abuse of discretion. See Gonzalez, 159 S.W.3d at 624.
D. Need for Remand
Judgment Creditor asks us to require Judgment Debtors to post security in the
amount of $702,000. See TEX. R. APP. P. 24.4(d). While Judgment Creditor presented
uncontested evidence on the value of the personal property collateral in its possession,
the trial court heard conflicting testimony about the fair market value of the two cranes in
Judgment Debtors’ possession and never resolved this factual dispute. Thus, we remand
this matter to the trial court with instructions to take additional evidence to determine the
fair market value of those two cranes, to set a bond in an appropriate amount based on
Rule 24.2, to enter findings of fact in support of its bond setting, and to render any other
16 orders necessary to effectuate its bond setting. 7 See id.
IV. CONCLUSION
We grant Judgment Creditor’s motion in part, vacate the trial court’s November 8,
2024 bond order, and remand for further proceedings consistent with our opinion. 8
JENNY CRON Justice
Delivered and filed on the 7th day of March, 2025.
7 During this hearing, the trial court may also entertain evidence on the rental value of the real
property pledged as collateral, see TEX. R. APP. P. 24.2(a)(2)(A), any challenges to the Judgment Debtors’ net-worth affidavits, see id. R. 24.2(c), and any claims of substantial economic harm. See id. R. 24.2(b). 8 All other pending motions related to supersedeas are dismissed as moot.