Williams Farms Produce Sales, Inc. v. R & G Produce Company
2014 Tex. App. LEXIS 3369
Tex. App.2014Background
- R&G obtained a judgment against Williams Farms Produce Sales, Inc. for over $2.33 million on breach of contract and related claims.
- After judgment, the trial court enjoined dissipation or transfer of assets to satisfy the judgment and Williams filed a negative net worth affidavit.
- R&G contested the net worth finding, held a hearing, and the court determined Williams had $2 million in net worth and required a bond.
- R&G then sought turnover relief, alleging Williams owned a nonexempt asset: a federal civil action in South Carolina against the United States government.
- R&G submitted multiple exhibits (including federal docket records and SC LLC filings) claiming Williams owned the federal action; Williams argued these were unauthenticated hearsay and that the action belonged to Williams LLC, not Williams Farms, Inc.
- The trial court granted turnover, found Williams Farms Produce Sales, Inc. owned the federal action despite amendments, and the appellate record later noted missing exhibits and potential evidentiary issues, but the court affirmed the turnover order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there was probative evidence Williams owned the federal action | Williams argued no competent evidence proved ownership | R&G contended sufficient probative evidence showed ownership by Williams Farms, Inc. | Ownership proved; turnover upheld |
| Admissibility of exhibits supporting ownership | Exhibits were unauthenticated hearsay and inadmissible | Exhibits were self-authenticating as government-site printouts | Exhibits properly admitted; no reversal |
Key Cases Cited
- Beaumont Bank, N.A. v. Buller, 806 S.W.2d 223 (Tex. 1991) (abuse-of-discretion standard for turnover orders; jurisdictional predicates)
- Ex parte Johnson, 654 S.W.2d 415 (Tex. 1983) (no requirement for notice/hearing before turnover order under predecessor statute)
- Tanner v. McCarthy, 274 S.W.3d 311 (Tex. App.—Houston [1st Dist.] 2008) (turnover requires probative evidence of property not readily subject to execution)
- Charles v. Tamez, 878 S.W.2d 201 (Tex. App.—Corpus Christi 1994) (cause of action subject to turnover as property right not subject to ordinary execution)