At issue in this case is whether a property owner can recover damages based solely upon a violation of a Temporary Restraining Order (TRO) by the lienholder, without alleging an independent cause of action. The trial court dismissed the action for damages. The court of appeals reversed the judgment of the trial court and remanded the cause for trial.
Green Oaks Apartments, Ltd. owned an apartment complex in San Antonio. Morris Cannan, the first lienholder on the property, served notice of foreclosure after Green Oaks’ default. Green Oaks sought and obtained a TRO enjoining the foreclosure sale. The trustee nevertheless conducted the sale in violation of the TRO and Cannan purchased the property. Green Oaks then filed an amendment to its petition for a TRO and a temporary injunction, alleging that the foreclosure sale was void and that Cannan had ousted Green Oaks. On Can-nan’s motion, the trial court dissolved the TRO on jurisdictional grounds and dismissed Green Oaks’ amended petition. The court of appeals reversed the trial court judgment and ordered Green Oaks’ action restored to the docket.
Green Oaks Apts., Ltd. v. Cannan,
After reinstatement by the trial court, Green Oaks amended its petition and sought damages for Cannan’s violation of the TRO. The trial court held that the first foreclosure sale was void and severed out the issue of damages. After title was restored to Green Oaks, Cannan again foreclosed. On Cannan’s motion the trial court dismissed Green Oaks’ cause of action for damages. The court of appeals reversed, holding that green Oaks was entitled to seek money damages based on 'Cannan’s violation of the TRO.
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The issuance of a temporary restraining order, like the issuance of a temporary injunction, is to maintain the status quo between the parties.
Transport Co. of Texas v. Robertson Transports, Inc.,
