Tarrant Restoration v. TX Arlington Oaks Apartments, Ltd.

225 S.W.3d 721, 2007 WL 1113364
CourtCourt of Appeals of Texas
DecidedJune 25, 2007
Docket05-05-01411-CV
StatusPublished
Cited by28 cases

This text of 225 S.W.3d 721 (Tarrant Restoration v. TX Arlington Oaks Apartments, Ltd.) 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
Tarrant Restoration v. TX Arlington Oaks Apartments, Ltd., 225 S.W.3d 721, 2007 WL 1113364 (Tex. Ct. App. 2007).

Opinion

OPINION

Opinion By

Justice MAZZANT.

In this bill of review of case, Tarrant Restoration and Timothy G. Pletta appeal the trial court’s grant of the bill of review, the setting aside of their default judgment against TX Arlington Oaks, Ltd., the take-nothing judgment on Tarrant Restoration’s breach of contract cause of action, and the imposition of a $5000 sanction against Tar-rant Restoration and Pletta. Appellee brings two crosspoints asserting (1) the trial court erred in imposing only $5000 in sanctions and should have imposed a $10,000 sanction against appellants and (2) this Court should impose sanctions against appellants for bringing a frivolous appeal. We modify the trial court’s judgment to vacate the award of sanctions, and we affirm the judgment as modified.

I. BACKGROUND

In April 2004, Tarrant Restoration performed work at an apartment complex called Arlington Oaks Apartments, located in Arlington, Texas, which is owned by appellee. The apartment complex is managed by Sandalwood Management, Inc. Tarrant Restoration presented employees of Sandalwood Management with two invoices, one for $240 and the second for $35. The employees signed the invoices just below the statement on the invoice, “Customer acknowledges and accepts all work and invoice(s) herein, having been performed and completed timely and in a good and workmanlike manner and conforming to all representations and warranties. Customer agrees past due amounts shall incur late charges at the rate of 1.5% per month or 18% APR.” When the invoices were not paid, Tarrant Restoration hired Timothy Pletta to pursue collection and assigned Pletta ten percent of the claim. Pletta then filed a petition in justice court presenting causes of action for breach of contract and quantum meruit.

To serve the lawsuit on appellee, Tar-rant Restoration mailed a copy of the petition with the citation to the office of the apartment complex where it performed the work. The citation and petition were received by an employee of Sandalwood Management. Appellee’s principal place of business and its registered agent for service of process were located in Austin, Texas, and they were not served with process.

*725 Attached to the petition mailed to Sandalwood Management was a “Notice of Assignment” stating:

The right to payment under this invoice has been transferred and assigned to the Law Office [of Timothy G. Pletta for Collection. All] Payments hereunder and/or communications are to be directed to the assignee at the below-listed office address. Remittance for all or part to anyone other than the Law Office of Timothy G. Pletta does not constitute payment of any invoice sought to be collected. The Law office of Timothy G. Pletta must be given notification of any claims, agreements or merchandise returns which would affect the payment of all or part of this invoice not later than the due date. This is an attempt to collect a debt and all information obtained will be used for that purpose.

(Printed in all capitals in original; bracketed material not legible in copy of the Notice in the record; bracketed material taken from Pletta’s affidavit admitted as exhibit at trial.)

After receiving the lawsuit, Sandalwood Management’s vice president, Kelly Cooper, sent a check for $275 and a letter to Timothy Pletta, Tarrant Restoration’s attorney, stating that the correct legal entity was not served, and “We have consulted with counsel who has advised we submit payment for this invoice as an act of good will. Please accept this payment as consideration in full.” Pletta held the check, without either cashing it or returning it. Pletta did not respond to Cooper’s letter. Appellee did not appear in the lawsuit. On September 21, 2004, the justice court entered a default judgment against appel-lee for $1294.25, consisting of $275 actual damages, $19.25 prejudgment interest, and $1000 attorney’s fees. On October 6, 2004, Pletta negotiated the $275 check.

On January 3, 2005, the constable served a writ of execution and seized money orders payable to “Arlington Oaks.” That same day, appellee filed a bill of review in the justice court naming both Tarrant Restoration and Pletta. On January 12, 2005, Tarrant Restoration filed a release of judgment stating that the judgment had been paid in full. By this time, because of post-judgment interest and attorney’s fees, the amount of the judgment exceeded $5000. The justice court granted the bill of review and set aside the default judgment.

Appellants appealed the grant of the bill of review to the county court at law for trial de novo. The trial court granted appellee’s motion for summary judgment on the bill of review and then held a trial before the court on Tarrant Restoration’s underlying claim for breach of contract and quantum meruit. The trial court rendered judgment that Tarrant Restoration take nothing on its claim, and the court imposed sanctions of $5000 against Tar-rant Restoration and Pletta.

II. JURISDICTION OF THE JUSTICE COURT

In their first issue, appellants assert the justice court lacked jurisdiction over appellee’s bill of review action because (a) Tarrant Restoration had filed a release of judgment after it was paid through the writ of execution, and (b) the amount in controversy exceeded the justice court’s jurisdictional limit of $5000 1

*726 A. Release of Judgment

Appellants assert that when the judgment against appellee was satisfied and Tarrant Restoration filed the release of judgment, at that moment the debt, the judgment, and Tarrant Restoration’s causes of action were extinguished. Therefore, appellants argue, there was no judgment for the justice court and county court at law to set aside, no causes of action for the county court at law to try, and appellee’s bill-of-review case was moot.

Appellants rely on Piro v. Piro, 349 S.W.2d 626 (Tex.Civ.App.-Houston 1961, no writ). That divorce case involved the division of the couple’s community property. The husband had recovered a judgment against a workers’ compensation insurer, the insurer had paid the judgment in full, and the husband had filed a release of the judgment. Id. at 629. The appellate court determined no judgment remained to divide, stating “ ‘The satisfaction of a judgment by one primarily liable thereon operates to extinguish it for all purposes,’ and also to extinguish the original debt or claim.” Id. at 629-30 (quoting 49 C.J.S. Judgments § 577 (1947)).

Pin is distinguishable from this case for at least two reasons. First, Pin appears to involve a voluntary satisfaction of the judgment by the judgment debtor, while this case involves an involuntary satisfaction of the judgment through execution. Second, Pin did not involve a direct attack on the judgment by the judgment debtor. Pin did not purport to address the situation before us. Satisfaction of a judgment does not bar a party from later bringing a bill of review to set aside the judgment. See Walker v. State, 103 S.W.2d 404, 405-06 (Tex.Civ.App.-Waco 1937, no writ).

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Cite This Page — Counsel Stack

Bluebook (online)
225 S.W.3d 721, 2007 WL 1113364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarrant-restoration-v-tx-arlington-oaks-apartments-ltd-texapp-2007.