File: 051575F - From documents transmitted: 10/19/2007
REVERSE and REMAND; Opinion Filed October 19, 2007.
In The
Court of Appeals
Fifth District of Texas at Dallas
............................
No. 05-05-01575-CV
............................
SAMUEL DABNEY WARE, Appellant
V.
THE EVEREST GROUP, L.L.C., Appellee
.............................................................
On Appeal from the 101st District Court
Dallas County, Texas
Trial Court Cause No. 04-07111-E
.............................................................
OPINION
Before Justices Whittington, Francis, and Lang
Opinion By Justice Lang
The Everest Group, L.L.C. (“Everest”) filed an action against Samuel
Dabney Ware (“Ware”) to domesticate and enforce a foreign judgment it owned against
Ware. The trial court granted summary judgment in favor of Everest. Ware timely perfected this
appeal. In two issues, Ware argues the trial court erred: (1) by granting Everest's motion for
summary judgment, and (2) by applying a post-judgment interest rate of 18% to the
domesticated foreign judgment. For the reasons set forth below, we reverse the trial court's
summary judgment and remand this case to the trial court for further proceedings consistent with
this opinion.
In
this appeal, we determine that the applicable limitations periods bar
Everest's claims. However, to reach that conclusion, we must address a complicated factual and
procedural scenario involving common law domestication of a foreign judgment in Texas,
domestication of a foreign judgment in Texas pursuant to the Uniform Enforcement of Foreign
Judgments Act (chapter 35 of the Texas Civil Practice and Remedies Code), (“UEFJA”), and
the legal concepts of dormancy, revival, and statute of limitations as to Texas judgments.
The following conclusions support our ultimate decision that Everest's claims
are barred by limitations and that we must reverse the trial court's summary judgment and
remand this case for further proceedings consistent with this opinion. First, the record reflects
that when Everest filed its suit on July 23, 2004, it sought to domesticate and enforce a 1990
New Mexico “Sister-State Judgment” against Ware. Everest did not proceed pursuant to the
UEFJA or refer to an earlier, dormant 1992 Dallas County UEFJA judgment rendered against
Ware, which was a domestication under the UEFJA of the same 1990 New Mexico judgment.
Everest contends the 1990 New Mexico judgment and the 1992 Dallas County UEFJA
judgment are one and the same. We disagree. On this record and as to these issues, we
conclude the two judgments are distinct.
Second, the 1992 Dallas County UEFJA judgment became dormant on
November 16, 2002. Thus, pursuant to section 31.006 of the Texas Civil Practice and
Remedies Code, which provides for revival of a dormant judgment under Texas law, the 1992
Dallas County UEFJA judgment could be revived within two years of that date. See Tex. Civ.
Prac. & Rem. Code Ann. § 31.006 (Vernon 1997) (dormant judgment may be revived by
action of debt brought not later than second anniversary of date judgment becomes dormant).
Third,
Everest's July 23, 2004 original petition, rather than asserting an
action of debt sufficient to revive the 1992 Dallas County UEFJA judgment, asserted an action to
domesticate and enforce only the 1990 New Mexico judgment. That action, commenced more
than ten years after the 1990 New Mexico judgment was rendered, was barred by the statute of
limitations governing actions on foreign judgments. Fourth, Everest asserts the
limitations period applicable to revival of a dormant judgment under Texas law was tolled for “at
least nineteen days” due to Ware's absence from the state of Texas. We conclude provisions in
the law for “tolling” because of Ware's absence from the state are inapplicable here.
Therefore, Everest's December 6, 2004 first amended original petition, which sought revival of
the 1992 Dallas County UEFJA judgment, was not timely filed by November 16, 2004, the end
of the period in which a dormant judgment may be revived.
Finally, because Everest's July 23, 2004 original petition was barred by
limitations at the time it was filed, Everest's December 6, 2004 first amended original petition did
not relate back to its original petition for limitations purposes. Accordingly, Everest's claims
respecting revival of the 1992 Dallas County UEFJA judgment are barred because Everest did
not proceed to revive the judgment within two years after it became dormant.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. 1990 New Mexico Judgment and 1992 Dallas County UEFJA Judgment
On August 15, 1990, a default judgment in the amount of $73,673.82 was rendered
against
Ware in cause number CV-88-02494 in a state district court of New Mexico. On November
16, 1992, the owner of the New Mexico judgment at the time, Reed Bart Rutledge
(“Rutledge”), filed the judgment in Dallas County pursuant to the UEFJA. Rutledge's action was
assigned cause number 92-13755-A in the 14th Judicial District Court of Dallas County. Ware
responded by filing a “Motion to Contest Recognition of Foreign Judgment or Motion for New
Trial” on December 16, 1992, in which he raised a number of defenses to the New Mexico
judgment. Ware's motion was overruled by operation of law.
B. Everest's Claim to 1990 New Mexico Judgment and 2004 Suit
On November 30, 2000, Rutledge and Everest executed an “Assignment of
Judgment with Warranty and Request to Change Plaintiff Name.” The heading on the document
signed by Rutledge and Everest read, “STATE OF NEW MEXICO, COUNTY OF
BERNALILLO, SECOND JUDICIAL DISTRICT, No: CV-88-02494.” See
Footnote 1 There was no reference to the 1992 Dallas County UEFJA judgment in the
November 30, 2000 assignment.
On July 23, 2004, Everest filed this suit in Dallas County. Among the exhibits
attached to Everest's original petition was a copy of the August 15, 1990 default judgment
granted by the New Mexico state district court in cause number CV-88-02494, which Everest
referred to as the “Sister- State Judgment.” In Everest's petition, it requested, in part, that the
trial court “grant full faith and credit to the Sister-State Judgment and grant judgment for all
amounts, including pre-judgment and post-judgment interest due under it.” Also, Everest
requested the court appoint a receiver pursuant to section 31.002(b)(3) of the Texas Civil
Practice and Remedies Code “to take possession of Defendant's non-exempt property and
dispose of it to satisfy the Sister-State Judgment.” Everest made no reference in its pleading to
Rutledge's 1992 Dallas County UEFJA judgment and did not seek revival of the 1992 Dallas
County UEFJA judgment. Ware responded with a general denial on September 29, 2004.
On December 6, 2004, Everest filed a first amended original petition that
restated Everest's original claims and added a section titled “Action for Debt,” which read as
follows:
On or about November 16, 1992, Plaintiff's predecessor in interest properly registered the
Sister-State Judgment described above with the Clerk of Dallas County. Pursuant to Tex. Civ.
Prac & Rem. Code § 35.003, this judgment became a valid, enforceable judgment rendered by
a Texas court against Defendant. The judgment is styled Reed Bart Rutledge et al[.] v. Dabney
Development Corp. et al[.] and bears Cause No. 92-13755-A. Pursuant to Tex. Civ. Prac. &
Rem. Code § 31.006, Plaintiff requests that the court enter Judgment in Favor of Plaintiff on the
1992 judgment.
Various motions for summary judgment, amendments, and responses were filed
by the parties over a seven-month period from February 2005 through August 2005. See
Footnote 2 In the course of that process, Everest sought summary judgment “that the
judgment rendered in the 1992 case has been revived and is of full force and effect” against
Ware.
On October 25, 2005, the trial court granted summary judgment in favor of Everest. The
judgment stated, “[T]he court is of the opinion that Plaintiff's Motion should be granted, that the
judgment rendered in Cause No. 92-13755; Reed Bart Rutledge d/b/a Royalty Homes vs.
Dabney Development Corp. et al[.], in the 14th Judicial District Court, Dallas County, Texas,
has been revived, and that The Everest Group, LLC, should recover from Defendant Samuel
Dabney Ware the amounts awarded in the judgment rendered in Cause No. 92-13755.” This
appeal followed.
II. REVIVAL OF THE 1992 DALLAS COUNTY UEFJA JUDGMENT
In
his first issue, Ware argues the trial court erred in entering final
judgment granting Everest's second amended motion for summary judgment. Because the trial court
granted summary judgment in favor of Everest on the specific ground that “the judgment
rendered in Cause No. 92- 13755; Reed Bart Rutledge d/b/a Royalty Homes v. Dabney
Development Corp. et al[.], in the 14th Judicial District Court, Dallas County, Texas, has been
revived,” we must expressly consider whether the dormant 1992 Dallas County UEFJA
judgment was timely revived pursuant to section 31.006 of the Texas Civil Practice and
Remedies Code. However, to do so, we must decide the following preliminary issues: (1)
whether the 1990 New Mexico judgment and the 1992 Dallas County UEFJA judgment are
separate judgments or are one, and the same; (2) the date when the 1992 Dallas County
UEFJA judgment became dormant; (3) whether Everest's July 23, 2004 original petition
asserted an “action of debt” sufficient to revive the 1992 Dallas County UEFJA judgment, or
whether it was barred by limitations; (4) whether the “action of debt” asserted in Everest's
December 6, 2004 first amended original petition was timely filed due to tolling of the limitations
period or whether it was not filed within the two-year period within which a dormant judgment
may be revived; and (5) whether Everest's December 6, 2004 first amended original petition
related back to Everest's July 23, 2004 original petition for limitations purposes.
A. Standard of Review
A movant for summary judgment has the burden of showing that there is no
genuine issue of material fact and that it is entitled to judgment as a matter of law. Nixon v. Mr.
Prop. Mgmt. Co., Inc., 690 S.W.2d 546, 548 (Tex. 1985). When reviewing a summary
judgment, we take as true all evidence favorable to the nonmovant. Rhone-Poulenc, Inc. v.
Steel, 997 S.W.2d 217, 223 (Tex. 1999). We indulge every reasonable inference and resolve
any doubts in the nonmovant's favor. Id. After the movant has established a right to summary
judgment, the burden shifts to the nonmovant to present evidence creating a fact issue. Phan
Son Van v. Pena, 990 S.W.2d 751, 753 (Tex. 1999); Troxel v. Bishop, 201 S.W.3d 290,
296 (Tex. App.-Dallas 2006, no pet.). The summary judgment will be affirmed only if the record
establishes that the movant has conclusively proved all essential elements of the movant's cause
of action or defense as a matter of law. City of Houston v. Clear Creek Basin Auth., 589
S.W.2d 671, 678 (Tex. 1979).
When reviewing a summary judgment granted on specific grounds, the
summary judgment can only be affirmed if the ground on which the trial court granted relief is
meritorious. Cincinnati Life Ins. Co. v. Cates, 927 S.W.2d 623, 625 (Tex. 1996). Because
the propriety of a summary judgment is a question of law, we review the trial court's decision de
novo. Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 661 (Tex. 2005); Dickey v. Club
Corp. of Am., 12 S.W.3d 172, 175 (Tex. App.-Dallas 2000, pet. denied).
B. Applicable Law
1. Enforcement of Judgments of Other States
Under section 35.003 of the UEFJA, “[a] copy of a foreign judgment
authenticated in accordance with an act of congress or a statute of this state may be filed
in the office of the clerk of any court of competent jurisdiction of this state.” Tex. Civ.
Prac. & Rem. Code Ann. § 35.003(a) (Vernon 1997). “The clerk shall treat the foreign
judgment in the same manner as a judgment of the court in which the foreign judgment is
filed.” Id. § 35.003(b). “A filed foreign judgment has the
same effect and is subject to the same procedures, defenses, and proceedings for reopening,
vacating, staying, enforcing, or satisfying a judgment as a judgment of the court in which it is
filed.” Id. § 35.003(c). Section 16.066(b) of the Texas Civil Practice and Remedies Code
provides, “An action against a person who has resided in this state for 10 years prior to the
action may not be brought on a foreign judgment rendered more than 10 years before the
commencement of the action in this state.” Id. § 16.066(b).
When a judgment creditor chooses to proceed under section 35.003, “the
filing of a foreign judgment partakes of the nature of both a plaintiff's original petition and a final
judgment: the filing initiates the enforcement proceeding, but it also instantly creates a Texas
judgment that is enforceable.” Moncrief v. Harvey, 805 S.W.2d 20, 22 (Tex. App.-Dallas
1991, no writ); see also Walnut Equip. Leasing v. Wu, 920 S.W.2d 285, 286 (Tex. 1996)
(filing of foreign judgment under
UEFJA comprises both a plaintiff's original petition and a final judgment) (citing Lawrence
Sys., Inc. v. Superior Feeders, Inc., 880 S.W.2d 203, 208 (Tex. App.-Amarillo 1994, writ
denied) (filing of foreign judgment under UEFJA has effect of initiating enforcement proceeding
and rendering final Texas judgment simultaneously)); Dear v. Russo, 973 S.W.2d 445, 448
(Tex. App.-Dallas 1998, no pet.) (challenges to foreign judgments filed under UEFJA are
post-judgment proceedings because filing of foreign judgment instantly creates judgment
enforceable in Texas); cf. Goodier v. Duncan, 651 S.W.2d 25, 27 (Tex. App.-Dallas 1983,
writ ref'd n.r.e.) (cause of action on judgment “stands separate and apart with an identity all its
own from the cause of action out of which it arose”) (citing Milwaukee County v. M.E. White
Co., 296 U.S. 268, 275 (1935)).
2. Dormancy and Revival of Judgments
Under section 34.001(a) of the Texas Civil Practice and Remedies Code, if a
writ of execution is not issued within ten years after the rendition of a judgment of a court of
record or a justice court, the judgment is dormant and execution may not be issued on the
judgment unless it is revived. Tex. Civ. Prac. & Rem. Code Ann. § 34.001(a) (Vernon 1997).
“A dormant judgment may be revived by scire facias or by an action of debt brought not later
than the second anniversary of the date that the judgment becomes dormant.” Id. § 31.006.
3. Relation Back of Pleadings
“If
a filed pleading relates to a cause of action, cross action,
counterclaim, or defense that is not subject to a plea of limitation when the pleading is filed, a subsequent
amendment or supplement to the pleading that changes the facts or grounds of liability or defense
is not subject to a plea of limitation unless the amendment or supplement is wholly based on a
new, distinct, or different transaction or occurrence.” Id. § 16.068; see also Lathem v.
Richey, 772 S.W.2d 249, 255 (Tex. App.-Dallas 1989, writ denied); Shivers v. Texaco
Exploration & Prod., Inc., 965 S.W.2d 727, 736 (Tex. App.-Texarkana 1998, pet. denied).
4. Collection of Judgments
With respect to collection of judgments through court proceedings, section
31.002 of the Texas Civil Practice and Remedies Code provides in relevant part:
(a) A judgment creditor is entitled to aid from a court of appropriate jurisdiction through
injunction or other means in order to reach property to obtain satisfaction on the judgment if the
judgment debtor owns property, including present or future rights to property, that:
(1) cannot be readily attached or levied on by ordinary legal process; and
(2) is not exempt from attachment, execution, or seizure for the satisfaction of liabilities.
(b) The court may:
. . . .
(3) appoint a receiver with the authority to take possession of the nonexempt property, sell
it, and pay the proceeds to the judgment creditor to the extent required to satisfy the
judgment.
Tex. Civ. Prac. & Rem. Code Ann. § 31.002 (Vernon Supp. 2006); see also Burns v.
Miller, Hiersche, Martens & Hayward, P.C., 948 S.W.2d 317, 321 (Tex. App.-Dallas
1997, writ denied).
C. Application of Law to Facts
1. 1990 New Mexico Judgment and 1992 Dallas County UEFJA Judgment:
Two Separate Judgments?
Ware asserts that “[t]his suit is about two judgments,” the 1990 New Mexico
judgment and the 1992 Dallas County UEFJA judgment. Everest argues that “what Ware
refers to as the '1992 judgment' is nothing more than the New Mexico judgment filed with the
Dallas County District Clerk.” Further, Everest asserts the “1992 judgment” is not a separate
judgment that could be collected upon separately, but is “merely a mechanism for enforcing the
New Mexico Judgment in Texas.” In support of its argument, Everest provides a general
reference to Lawrence for the proposition that “the UEFJA is an 'enforcement statute.'” The
resolution of this dispute will bear on whether Everest's claim, wherein it seeks to revive the
1992 Dallas County UEFJA judgment, is barred by limitations. However, we do not agree with
Everest's position. The two judgments are not one, and the same, on this record, as it relates to
the issues in this case.
Lawrence involved a question of first impression concerning the application of
section 16.066(b) of the Texas Civil Practice and Remedies Code, a ten-year statute of
limitations on “actions” to enforce foreign judgments, to a UEFJA enforcement proceeding.
Lawrence, 880 S.W.2d at 206. The court in Lawrence concluded that section 16.066(b)
applies equally to proceedings to enforce a foreign judgment under the UEFJA as it does to
common law actions for the enforcement of foreign judgments because “enforcing a foreign
judgment under the [UEFJA] constitutes an 'action' as that word is used in section 16.066(b).”
Id. at 208. In reaching its conclusion, the Lawrence court reasoned:
[T]he word “action” is defined as “a judicial proceeding which, if prosecuted effectively,
results in a judgment.” Filing a foreign judgment under the [UEFJA] has the effect of initiating
an enforcement proceeding and rendering a final Texas judgment simultaneously.
Id. (citations omitted). In addition, as part of its analysis, the Lawrence court noted, “The
[UEFJA] is an enforcement statute rather than a mere registration statute.” Id. Here, Everest
does not explain how the partial quote cited from Lawrence, that “the UEFJA is an
'enforcement statute,'” supports its argument. Everest provides no other support for its
contentions.
In accordance with Moncrief, we determine that the November 16, 1992 filing
of the 1990 New Mexico judgment pursuant to the UEFJA created a Texas judgment, on that
day, in cause number 92-13755-A in Dallas County. See Moncrief, 805 S.W.2d at 22.
Therefore, on this record, we conclude the 1990 New Mexico judgment and the 1992 Dallas
County UEFJA judgment are distinct and are not one, and the same. See Footnote 3
Id.
2. When Did the 1992 Dallas County UEFJA Judgment Become Dormant?
Section 34.001(a) of the Texas Civil Practice and Remedies Code provides
that “[i]f a writ of execution is not issued within 10 years after the rendition of a judgment of a
court of record or a justice court, the judgment is dormant and execution may not be issued on
the judgment unless it is revived.” Tex. Civ. Prac. & Rem. Code Ann. § 34.001(a). Ware
argues the 1992 Dallas County UEFJA judgment was “rendered” on November 16, 1992, the
date Rutledge filed the 1990 New Mexico judgment in Dallas County. Ware asserts that under
section 34.001(a), the 1992 Dallas County UEFJA judgment became dormant ten years later,
on November 16, 2002.
Everest contends that “[t]he ten year limitations period for a judgment to
become dormant does not begin to run until the judgment becomes final or until the clerk can
issue execution on the judgment.” Everest asserts that the 1992 Dallas County UEFJA
judgment did not become final until February 25, 1993, thirty days after Ware's December 16,
1992 motion for new trial was overruled by operation of law. Therefore, Everest asserts, the
ten-year period referenced in section 34.001(a) did not expire until after February 25, 2003,
and, pursuant to section 31.006, Everest had “until February of 2005” to revive the 1992
Dallas County UEFJA judgment.
The two cases cited by Everest in support of its argument, McDonald v.
Ayres, 242 S.W. 192, 195-96 (Tex. Comm'n App. 1922, holding approved), and John F.
Grant Lumber Co. v. Bell, 302 S.W.2d 714, 715-16 (Tex. Civ. App.-Eastland 1957, writ
ref'd), are not instructive. Both cases were decided prior to the 1985 enactment of the current
version of section 34.001 and involve facts distinguishable from the case before us. Under the
plain language of the statute now in effect regarding when a judgment becomes dormant, the
ten-year limitations period begins to run from “rendition” of the judgment. See Tex. Civ. Prac.
& Rem. Code Ann. § 34.001(a). Further, this Court has specifically stated that “[w]hen a final
foreign judgment is properly filed under the [UEFJA], the filing has the effect of initiating an
enforcement proceeding and instantly rendering a final judgment in Texas.” Russo, 973 S.W.2d
at 446 (citing Moncrief, 805 S.W.2d at 23); see also Lawrence, 880 S.W.2d at 208 (“Filing
a foreign judgment under the [UEFJA] has the effect of initiating an enforcement proceeding and
rendering a final Texas judgment simultaneously.”). Accordingly, we conclude the 1992 Dallas
County UEFJA judgment was rendered on November 16, 1992, and became dormant ten years
later, on November 16, 2002.
3. Were Everest's Original and Amended Petitions Sufficient to Revive
the 1992 Dallas County UEFJA Judgment?
Everest asserts its July 23, 2004 original petition and its December 6, 2004
first amended original petition each constituted timely filed actions of debt sufficient to revive the
dormant 1992 Dallas County UEFJA judgment pursuant to section 31.006. Moreover, Everest
contends that under section 16.068 of the Texas Civil Practice and Remedies Code, its first
amended original petition related back to its original petition for limitations purposes.
a. Everest's July 23, 2004 Original Petition-Barred by Limitations When Filed
Under section 16.066(b) of the Texas Civil Practice and Remedies Code,
“[a]n action against a person who has resided in this state for 10 years prior to the action may
not be brought on a foreign judgment rendered more than 10 years before the commencement
of the action in this state.” Tex. Civ. Prac. & Rem. Code Ann. § 16.066(b). We note that
Everest concedes in its appellate brief that the claim in its July 23, 2004 original petition to
domesticate the 1990 New Mexico judgment “was arguably barred by limitations.” Further,
Everest asserts it “did not address this issue in its response to Ware's Motions for Summary
Judgment and does not now urge the common law action to domesticate the New Mexico
judgment as a basis for affirming the trial court's judgment.”
However, the thrust of Everest's argument is that because the 1992 Dallas
County UEFJA judgment is “nothing more than the New Mexico judgment itself filed under the
UEFJA,” Everest's request in its original petition, which was filed within two years of the date
the 1992 Dallas County UEFJA judgment became dormant and asserted a receivership action
under section 31.002(b)(3) of the Texas Civil Practice and Remedies Code, constituted an
“action of debt” for purposes of reviving the 1992 Dallas County UEFJA judgment. Ware
argues Everest's original petition was solely a common law action to domesticate and enforce
the 1990 New Mexico judgment and was barred by limitations pursuant to section 16.066(b).
Under section 31.002, a judgment creditor is entitled to aid from the court,
including appointment of a receiver, to obtain satisfaction on a judgment. See id. §
31.002(a)-(b). Such a pleading can also revive a dormant judgment. See id. § 31.006; In re
Brints, 227 B.R. 94, 96 (Bankr. N.D. Tex. 1998) (new suit based on original judgment brought
against judgment debtor is “action of debt”). However, rule 47 of the Texas Rules of Civil
Procedure provides that an original petition which sets forth a claim for relief shall contain “a
short statement of the cause of action sufficient to give fair notice of the claim involved,” as well
as a demand for judgment for all “relief to which the party deems himself entitled.” Tex. R.
Civ. P. 47. As we concluded above, the 1990 New Mexico judgment and the 1992 Dallas
County UEFJA judgment are two separate judgments. Everest's original petition referred only to
the 1990 New Mexico judgment and made no reference to the 1992 Dallas County UEFJA
judgment. Thus, on its face, Everest's original petition did not provide “fair notice” of any
claim, or demand any relief, respecting the 1992 Dallas County UEFJA judgment.
We conclude that
Everest's July 23, 2004 original petition constituted solely a common law action to domesticate and enforce the 1990 New Mexico judgment. Because that
action was filed more than ten years after the 1990 New Mexico judgment was rendered, that
action was barred by limitations pursuant to section 16.066(b) of the Texas Civil Practice and
Remedies Code on the date
it was filed.
b. Everest's December 6, 2004 First Amended Original Petition
i.
Time to Revive Dormant Judgment and Tolling
As concluded above, the 1992 Dallas County UEFJA judgment became
dormant on November 16, 2002. The parties do not dispute that under section 31.006 of the
Texas Civil Practice and Remedies Code, the judgment could be revived by an “action of
debt” filed by November 16, 2004. In addition, Everest argues the two-year time period, within
which the dormant judgment may be revived as stated in section 31.006, was tolled, pursuant to
section 16.063 of the Texas Civil Practice and Remedies Code, “for at least nineteen days” as
a result of Ware's absence from the state. See Tex. Civ. Prac. & Rem. Code Ann. § 16.063
(Vernon 1997) (“The absence from this state of a person against whom a cause of action may
be maintained suspends the running of the applicable statute of limitations for the period of the
person's absence.”). Thus, Everest contends, its December 6, 2004 first amended petition,
which expressly referred to the 1992 Dallas County UEFJA judgment, was filed within the
applicable limitations period for reviving the 1992 Dallas County UEFJA judgment. See
Footnote 4 In response, Ware argues section 31.006 is a statute of repose and therefore is
not subject to the tolling provision of section 16.063. In addition, Ware asserts section 16.063
does not apply to an action to revive a judgment under section 31.006.
We need not reach the issue of whether section 31.006 is a statute of
limitations or a statute of repose. Rather, we conclude section 16.063 does not apply here. We,
like Ware, are unable to find any cases applying the tolling provision of section 16.063 to the
limitations period set forth in section 31.006. “Section 16.063 was written and intended to
protect domestic creditors from individuals who enter Texas, contract a debt, depart, and then
default on the debt.” Howard v. Fiesta Tex. Show Park, Inc., 980 S.W.2d 716, 722 (Tex.
App.-San Antonio 1998, pet. denied) (citing Wyatt v. Lowrance, 900 S.W.2d 360, 362 (Tex.
App.-Houston [14th Dist.] 1995, writ denied)). The statute “should be construed to effect its
purpose and applied as written.” Id. See also Ahrenhold v. Sanchez, 229 S.W.3d 541, 544
(Tex. App.-Dallas 2007, no pet.) (four-year statute of limitations was tolled under section
16.063 where defendant was “precisely the type of defendant to which the statute applies”).
The case before us involves an enforcement action against Ware based on
domestication of a foreign judgment. The record does not show Ware contracted a debt in
Texas and then left the state. See Fiesta Tex., 980 S.W.2d at 722. Therefore, because the
facts of this case differ from the fact situation section 16.063 was intended to address, we
conclude application of section 16.063 to this case is not warranted. See id.; Ahrenhold, 229
S.W.3d at 544. Because an action of debt to revive the 1992 Dallas County UEFJA judgment,
which became dormant on November 16, 2002, could be filed no later than November 16,
2004, Everest's December 6, 2004 first amended original petition did not timely raise an action
of debt to revive that judgment.
ii.
No Relation Back to Everest's July 23, 2004 Original Petition
Next, we address Everest's contention that the claims in its December 6, 2004
first amended original petition were not barred by limitations because they related back, under
section 16.068 of the Texas Civil Practice and Remedies Code, to its July 23, 2004 original
petition.
Under section 16.068, a two-part test must be satisfied in order that an
amended pleading relates back to an original pleading to avoid limitations applicable to when that
amended pleading is filed. See Tex. Civ. Prac. & Rem. Code Ann. § 16.068. First, the cause of
action asserted in the original pleading must not have been barred by limitations when the original
pleading was filed. See Lathem, 772 S.W.2d at 255. Second, the amended pleading which
changes the facts or grounds of liability or defense must not be wholly based on a new, distinct
or different transaction or occurrence. Id. The intent of section 16.068 is “to protect existing
rights, not to create or revive a right or cause of action that had terminated prior to the claim
being asserted.” Almazan v. United Servs. Auto. Ass'n, Inc., 840 S.W.2d 776, 779 (Tex.
App.-San Antonio 1992, writ denied) (emphasis original); see also Church v. Ortho
Diagnostic Sys., Inc., 694 S.W.2d 552, 556 (Tex. App.-Corpus Christi 1985, writ ref'd n.r.e.)
(for statement of new cause of action in amended pleading to come within provisions of
predecessor to section 16.068, original claim must have had some validity).
We concluded above that Everest's July 23, 2004 original petition constituted
solely a common law action to domesticate and enforce the 1990 New Mexico judgment, and,
as decided above, that action was barred by limitations pursuant to section 16.066(b) of the
Texas Civil Practice and Remedies Code on the date it was filed. Accordingly, Everest's
December 6, 2004 first amended original petition, irrespective of whether that petition was
wholly based upon and grew out of new, distinct or different transactions or occurrences, cannot
relate back to Everest's limitations- barred July 23, 2004 original petition for limitations
purposes. See Tex. Civ. Prac. & Rem. Code Ann. § 16.068; see also Lathem, 772 S.W.2d
at 255.
Considering our conclusions described above, we decide Ware's first issue in
his favor.
D. Appropriate Disposition of this Appeal: Reversal and Remand or Reversal and Render on Ware's
Motion for Summary Judgment?
When the trial court granted Everest's motion for summary judgment, it did not
reference Ware's motion for summary judgment. However, the trial court's final judgment
declared that the judgment was “revived,” all costs were taxed against Ware, “[a]ll relief not
expressly granted herein is denied,” and the “judgment finally disposes of all parties and all
claims and is appealable.” Everest asserts that Ware, in his appellate brief, “assigns error only
to the trial court's granting of [Everest's] Motion for Summary Judgment.” Accordingly, Everest
argues that because Ware did not assign error to the denial of his own summary judgment, this
Court may not render judgment in favor of Ware, but may only remand the case to the trial court
for further proceedings. We agree. When both parties file motions for summary
judgment seeking final judgment relief and one such motion is granted, the appellate court should
determine all questions presented and may reverse the trial court judgment and render such
judgment as the trial court should have rendered, including rendering judgment for the other
movant. See Jones v. Strauss, 745 S.W.2d 898, 900 (Tex. 1988) (orig. proceeding) (per
curiam); see also Cotton v. Deasey, 766 S.W.2d 874, 879 (Tex. App.-Dallas 1989, writ
denied) (citing Tobin v. Garcia, 159 Tex. 58, 316 S.W.2d 396, 400 (1958)); Runyan v.
Mullins, 864 S.W.2d 785, 790 (Tex. App.-Fort Worth 1993, writ denied). However, where
there is no assignment of error that the trial court erred in failing to grant an appellant's own
motion for summary judgment, this Court may not render judgment, but may only remand the
cause to the trial court. Cotton, 766 S.W.2d at 879.
Ware's
first point on appeal reads, “Did the trial court err in entering the
Final Judgment granting Plaintiff's Second Amended Motion for Summary Judgment?” We conclude
we may not construe Ware's point on appeal to be expanded to include the denial of Ware's
motion for summary judgment. Id. Accordingly, although we reverse the trial court's granting of
Everest's motion for summary judgment, we remand for further proceedings consistent with this
opinion.
III. CONCLUSION
We conclude that Everest's claims were not timely filed in order to revive the
1992 Dallas County UEFJA judgment under Texas law. Ware's first issue is decided in his
favor. We need not address Ware's second issue. See Tex. R. App. P. 47.1. The judgment of
the trial court granting Everest's motion for summary judgment is reversed, and we hereby
remand this case to the trial court for further proceedings consistent with this opinion.
------------------------
DOUGLAS S. LANG
JUSTICE
051575f.p05
Footnote 1 The document executed on November 30, 2000, stated as follows:
I, REED BART RUTLEDGE, plaintiff and judgment creditor in the above captioned cause
filed for in the county of Bernalillo, in the District Court, state of New Mexico, do hereby
transfer, and assign all title, right and interest in the judgment entered at above court against
DABNEY DEVELOPMENT CORP., et al[.], to assignee, The Everest Group, LLC and further
warrant the entire amount of $ 73,673.82, is unpaid, due and owing.
I hereby authorize assignee, The Everest Group, LLC, whose address is 1101 Cardenas Dr.
NE Suite 202 Albuquerque, NM 87110, to collect, compromise, settle and enforce said
judgment and I withdraw all right and claim to same. I request the Court to change the plaintiff
name to: THE EVERAST [sic] GROUP, LLC.
Footnote 2 In addition, the record contains an “Assignment of Judgment and Judgment
Lien” executed by Rutledge on February 16, 2005. That document states in relevant part:
Reed Bart Rutledge d/b/a Royalty Homes, Assignor, transfers and assigns to the Everest
Group, LLC, Assignee, all of Assignor's right, title, and interest in the hereinafter described
judgment and any judgment liens created thereby:
Court and County: 14th Judicial District Court, Dallas County, Texas
Cause No. 92-13755-A; Reed Bart Rutledge d/b/a Royalty Homes v. Dabney
Development Corp., et al[.]
Date and Amount of Judgment: November 16, 1992, in the amount of $73,673.82, plus
interest thereon at the rate of one and one half percent (1 ½ %) per month computed from the
date of judgment until paid.
Assignor makes no representation, warranty, or guaranty as to the collectability or validity of
the judgment assigned, and in the case of nonpayment or non-collectability of the assigned
judgment, no recourse shall be had against the Assignor, except, however, that Assignor
expressly warrants that it is the owner and holder of the Judgment and Lien assigned herein.
Footnote 3 We emphasize the conclusion we reach here is applicable on this record before
the Court. We do not address any issue of satisfaction of the judgments at issue. See generally
Graco Robotics, Inc. v. Oaklawn Bank, 914 S.W.2d 633, 645 (Tex. App.-Texarkana 1995,
writ dism'd) (where Michigan judgment resulted from suit dealing with same funds as separate
Texas suit, judgment debtor was entitled to set-off on Texas judgment) (citing Stewart Title
Guar. Co. v. Sterling, 822 S.W.2d 1, 7 (Tex. 1991) (plaintiff may obtain only one recovery
for same injury)).
Footnote 4 Although the record shows that Everest's first amended original petition was
stamped with the filing date of December 6, 2004, Everest states that it placed its first amended
original petition in the mail on December 3, 2004. Therefore, Everest asserts, under rule 5 of the
Texas Rules of Civil Procedure, the first amended original petition is deemed to have been filed
on December 3, 2004, which is within nineteen days of November 16, 2004. Ware does not
dispute Everest's assertion the filing date of its first amended original petition was December 3,
2004.
File Date[10/19/2007]
File Name[051575F]
File Locator[10/19/2007-051575F]