Lance Investments, Inc. brought suit to set aside an execution sale and cancel a sheriff’s deed on certain residential property owned by Lаnce prior to the sale. The property was sold at the execution sale to satisfy a default judgment entered against Lance in favor of Dallas Power & Light Company. Group Purchases, Inc. bought the property at the execution sale and received a sheriff’s deed conveying thе property. Both Dallas Power & Light Company and Group were named as defendants in the suit to set aside the sale. The trial court rendered a summаry judgment for Lance setting aside the sheriff’s deed and declaring it null and void on the basis of the court’s findings that (1) since Group and Dallas Power & Light Company failed to present any rebutting evidence to the affidavit of Lance’s expert as to the value of the property, it was established as a mattеr of law that the property sold for a grossly inadequate consideration; (2) a defect existed in the published notice of the execution sale; and (3) no evidence was presented by Dallas Power & Light Co. and Group creating a fact issue as to a lack of causal connection between the defect in the notice and the gross inadequacy of consideration.
On appeal, Group contends that there are genuine issues of material fact (1) as to whether or not the price obtained at the execution sale was grossly inadequate and (2) as to whеther or not the irregularity, if any, in the execution sale was reasonably calculated to cause and actually produced the alleged grossly inadequate price. We agree that material issues of fact exist as to whether the price was grossly inadequate. Accordingly, we reverse the trial court’s judgment and remand the cause for trial.
GROSSLY INADEQUATE PRICE
To set aside an execution sale, a plaintiff must show an irregularity calculated tо affect the sale and an inadequate price.
Prudential Corp. v. Bazaman,
DISPOSITION OF MOTIONS
Although our ruling on Lance’s motion to dismiss appeal and Group’s motion for reversal and rendition of judgment is evident from our reversаl and remand for trial, the rationale for the ruling merits explanation.
As the basis of its Motion to Dismiss Appeal, Lance states that Group failed to file a supersedeas bond, and that during the pendency of the appeal Lance conveyed the property involved in the suit to James Crow, Sr., the incorporator and former shareholder of Lance. As a result of such conveyance, Lance contends that this cause is moоt. We disagree with this contention. The failure of Group to file a supersedeas bond under the provisions of Tex.R.Civ.P. 364(c) (Vernon 1967) would have no effect on the conveyance of the property by Lance to a third party. A supersedeas bond does not suspend or stay a judgment, but is a method of
suspending execution
of a judgment before it becomes final and while an appeal is pending.
Renger v. Jeffrey,
We conclude that the notice of lis pendens filed regarding this case governs the effect of the conveyance during the pendency of the appeal. When ownership of land is claimed by both parties in a lawsuit, “if a lis pendens has been filed, either оf the litigants may freely convey to third parties.”
Neel v. Fuller,
In its motion, Group requests that this court reverse the judgment entered by thе trial court and render judgment in favor of Group. The basis of this request is Group’s contention that Lance has made a judicial admission and admission under oath in its motion to dismiss appeal and its affidavit in support thereof. That alleged admission is that Lance “claims no right, title or interest in or to said Property.” We reject this contention. A review of the motion and affidavit reveals that the actual statement is that “[t]he corporation no longer claims any right, title or interest or claim in or to said property” (emphasis added). In context, it is clear that the statement means as a result of the sale by Lancе to James Crow, Sr., Lance no longer asserts a claim to the property. Group’s motion for reversal and rendition of judgment based on admissions is denied.
Reversed and remanded.
Costs of this appeal taxed against appel-lee.
