Lee Weir, Mike Weir, and Al Weir v. Sterling State Bank
05-16-00500-CV
| Tex. App. | May 2, 2017Background
- Sterling State Bank obtained a default judgment against Lee, Mike, and Al Weir for about $60,000 in February 2015.
- In November 2015, Sterling filed an application for a turnover order and appointment of a receiver to aid in satisfying the judgment; the application included no evidentiary attachments.
- At the hearing on the application (under five minutes), the Weirs did not appear and Sterling put on no evidence.
- The trial court signed a turnover order and appointed a receiver at the conclusion of that hearing.
- The Weirs appealed, arguing (1) no evidence supported the turnover order and (2) the turnover order was overly broad and nonspecific.
- The Court of Appeals reversed the turnover order and remanded, holding Sterling presented no evidence to support relief under Tex. Civ. Prac. & Rem. Code § 31.002; the court did not address the second issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether evidence supported issuance of a turnover order and appointment of a receiver under Tex. Civ. Prac. & Rem. Code § 31.002 | Sterling: sought turnover relief to reach property not readily attachable to satisfy its judgment (no evidence presented at hearing) | Weirs: argued there was no evidence to show debtors owned property that could not be readily attached or levied | Court: Reversed — no evidence was presented to satisfy statutory requirements, so granting relief under § 31.002 was an abuse of discretion |
| Whether the turnover order was overly broad and nonspecific | Sterling: (implicitly contended order was proper) | Weirs: argued order was overly broad and nonspecific | Court: Did not reach this issue after finding no evidence supported turnover relief |
Key Cases Cited
- Beaumont Bank, N.A. v. Buller, 806 S.W.2d 223 (Tex. 1991) (review standard for turnover orders and relevance of no-evidence to abuse of discretion)
- Clayton v. Wisener, 169 S.W.3d 682 (Tex. App.—Tyler 2005) (an application for turnover relief is not evidence)
- HSM Dev., Inc. v. Barclay Props., Ltd., 392 S.W.3d 749 (Tex. App.—Dallas 2012) (judgment creditor must present proof that debtor owns property not readily attachable to obtain turnover relief)