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539 S.W.3d 278
Tex.
2018
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Background

  • In 2014 the trial court declared Broadway Coffeehouse owned 25% and the Saks Children Trust 75% of commercial property, ordered partition by sale, awarded attorney's fees, and included a Mother Hubbard clause deeming the judgment final and appealable.
  • McFadin appealed and posted a supersedeas bond set at $170,237.76 (rental value for 18 months); SureTec was the surety. The court of appeals affirmed and this Court denied review.
  • After the appeals concluded, Coffeehouse and the Trust moved to cancel lis pendens, obtain attorney's fees and payment from the supersedeas bond, and appoint a receiver to sell the property. McFadin objected, arguing no evidence showed actual loss from the suspended judgment during the appeal.
  • The trial court appointed a receiver, cancelled the lis pendens, reaffirmed attorney's fees, and ordered McFadin and SureTec to pay the full bond amount to Coffeehouse and the Trust (allocated by ownership percentages).
  • McFadin appealed the post-judgment payment order. The court of appeals dismissed for want of jurisdiction, treating the payment order as an enforcement order (nonfinal). McFadin sought review in this Court.

Issues

Issue Plaintiff's Argument (McFadin) Defendant's Argument (Coffeehouse) Held
Whether the trial court exceeded jurisdiction by ordering payment under the supersedeas bond Trial court lacked jurisdiction; payment order is void because it exceeded judgment obligations Order merely enforced the 2014 judgment and effectuated the appellate mandate; nonfinal and not appealable Trial court had jurisdiction to effectuate mandate, but the payment order went beyond the 2014 judgment and therefore was a final, appealable order
Whether the court of appeals had jurisdiction to hear McFadin's appeal of the payment order Court of appeals should have considered the merits; dismissal for lack of jurisdiction was erroneous Post-judgment enforcement orders are nonfinal; mandamus, not appeal, is the proper vehicle Court of appeals had jurisdiction because the payment order imposed monetary liability beyond the original judgment and disposed of all issues between parties
Whether evidence of actual damages was required to order payment from the bond Payment without proof of actual damages violated due process Evidence presented at the supersedeas-bond-setting hearing sufficed to support enforcement Court distinguished bond-setting evidence (prospective harms) from evidence of actual damages; due process objection waived for failure to raise earlier
Whether post-judgment order awarding bond funds merely effectuated or materially changed the original judgment N/A (overlaps other issues) Argued it merely effectuated the judgment Court concluded the payment order materially imposed new monetary obligations beyond the 2014 judgment, making it final and appealable

Key Cases Cited

  • Lehmann v. Har-Con Corp., 39 S.W.3d 191 (Tex. 2001) (finality for appeal depends on disposing of all claims and parties)
  • Dubai Petroleum Co. v. Kazi, 12 S.W.3d 71 (Tex. 2000) (policy favors protecting final judgments from collateral attack)
  • Wagner v. Warnasch, 295 S.W.2d 890 (Tex. 1956) (post-judgment order that only enforces prior judgment is not a new final judgment)
  • Los Campeones, Inc. v. Valley Int'l Prop., Inc., 591 S.W.2d 312 (Tex. Civ. App.-Corpus Christi 1979) (trial court ordered return of cash supersedeas bond where original judgment was nonmonetary)
  • Jack M. Sanders Family Ltd. P'ship v. Roger T. Fridholm Revocable, Living Tr., 434 S.W.3d 236 (Tex. App.-Houston [1st Dist.] 2014) (post-judgment orders often nonfinal; mandamus may be appropriate remedy)
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Case Details

Case Name: McFadin v. Broadway Coffeehouse, LLC
Court Name: Texas Supreme Court
Date Published: Feb 2, 2018
Citations: 539 S.W.3d 278; No. 16-0560
Docket Number: No. 16-0560
Court Abbreviation: Tex.
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