National Health Resources Corporation v. TBF Financial, LLC.
429 S.W.3d 125
| Tex. App. | 2014Background
- TBF Financial sued National Health Resources (formerly Zybec) for breach of a copier-lease, alleging KMBS originally leased the copier to NHRC, KMBS assigned the lease to CIT, and CIT assigned it to TBF.
- TBF moved for traditional summary judgment; its evidence centered on two affidavits by Brett Boehm (TBF managing member and records custodian) and business records reflecting a $4,140 unpaid balance.
- Boehm attested he negotiated TBF’s acquisition of many leases from CIT, reviewed KMBS/CIT records showing the assignments, verified their accuracy, and incorporated those records into TBF’s files; a Bill of Sale from CIT to TBF (with redacted exhibit) referencing TBF file number 81347 was attached.
- NHRC filed a verified denial of TBF’s capacity and moved to dismiss for lack of standing; it also filed a no-evidence summary-judgment motion arguing lack of documentary proof of assignment and contested admissibility/authentication of KMBS/CIT records.
- The trial court granted TBF’s motion, awarded $4,140 plus attorney’s fees, and denied NHRC’s motion. NHRC appealed.
Issues
| Issue | Plaintiff's Argument (TBF) | Defendant's Argument (NHRC) | Held |
|---|---|---|---|
| Whether TBF had standing/capacity to sue as assignee | TBF asserted it is the assignee/owner of the lease via assignments from KMBS→CIT→TBF | NHRC argued TBF lacked capacity/standing because it was not party or documentary assignee of the lease | Court: Privity/capacity is a merits issue, not standing; resolved against NHRC |
| Whether TBF’s evidence established ownership of the lease | Boehm’s affidavits and incorporated business records show assignments and ownership; balance due $4,140 | NHRC argued documents from KMBS/CIT were hearsay, unauthenticated, and insufficient to prove assignment | Court: Boehm’s role, review, and incorporation of records satisfied personal-knowledge and business-records bases; evidence sufficient |
| Admissibility/authentication of KMBS/CIT records | Records incorporated into TBF’s business files and Boehm attested to their trustworthiness and accuracy | NHRC contended records were hearsay/not properly authenticated as business records | Court: NHRC waived hearsay objection by failing to raise it below; records could be TBF records and were sufficiently authenticated |
| Trial court’s summary-judgment rulings (traditional and no-evidence) | Movant (TBF) said evidence conclusively established breach and ownership; NHRC’s no-evidence motion failed to identify lacking elements | NHRC sought no-evidence dismissal for lack of documentary proof of assignment | Court: Viewed evidence favorably to nonmovant; TBF established elements (valid lease, breach, damages, ownership); trial court did not err |
Key Cases Cited
- Tex. Ass’n of Bus. v. Tex. Air Control Bd., 852 S.W.2d 440 (Tex. 1993) (standing is component of subject-matter jurisdiction)
- Heckman v. Williamson Cnty., 369 S.W.3d 137 (Tex. 2012) (standing is reviewed de novo and affects jurisdiction)
- John C. Flood of DC, Inc. v. SuperMedia, L.L.C., 408 S.W.3d 645 (Tex. App.—Dallas 2013) (challenge to privity is capacity/merits, not standing)
- In re E.I. DuPont de Nemours & Co., 136 S.W.3d 218 (Tex. 2004) (affidavit must state personal knowledge and basis for it)
- Hydroscience Technologies, Inc. v. Hydroscience, Inc., 401 S.W.3d 783 (Tex. App.—Dallas 2013) (an affiant’s job duties can establish personal knowledge)
- Ortega v. Cach, LLC, 396 S.W.3d 622 (Tex. App.—Houston [14th Dist.] 2013) (officer may testify to transfers based on company records without separate supporting documents)