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Vertical Holdings, LLC v. Locatorx, Inc.

Court of Appeals of Texas, Fifth District, Dallas
Dec 9, 2022
No. 05-22-00720-CV (Tex. App. Dec. 9, 2022)

Opinion

05-22-00720-CV

12-09-2022

VERTICAL HOLDINGS, LLC AND VANGUARD FINANCIAL TRUST, Appellants v. LOCATORX, INC., Appellee


On Appeal from the 101st Judicial District Court Dallas County, Texas Trial Court Cause No. DC-20-04237

Before Chief Justice Burns, Justice Molberg, and Justice Goldstein, J.

ORDER

ROBERT D. BURNS, III CHIEF JUSTICE.

Appellants appeal from the trial court's judgment awarding attorney's fees in the amount of $318,101.21 plus contingent attorney's fees for appeal. Appellee filed a motion for a post-judgment injunction. Finding that appellants were likely to evade the judgment by dissipating, transferring, or concealing assets, the trial court granted appellee's motion for a post-judgment injunction by order signed on August 15, 2022. See Tex. Civ. Prac. & Rem. Code Ann. § 52.006(e); Tex.R.App.P. 24.2(d). Appellants seek review of that order by way of a motion to lift the post-judgment injunction. See Tex. R. App. P. 24.4(a). Appellee filed a response opposing the motion.

We review a trial court's ruling on a post-judgment injunction order for an abuse of discretion. See Emeritus Corp. v. Ofczarzak, 198 S.W.3d 222, 225 (Tex. App.-San Antonio 2006, no pet.). The test for abuse of discretion is whether the trial court acted without reference to any guiding rules or principles. See E.I. du Pont de Nemours & Co. v. Robinson, 923 S.W.2d 549, 558 (Tex. 1995). "The trial court abuses its discretion in ordering a post-judgment injunction if the only reasonable decision that could be drawn from the evidence is that the judgment debtor would not dissipate or transfer its assets." Ofczarzak, 198 S.W.3d at 227.

In the trial court, appellants offered multiple times to deposit the full amount of the judgment. That amount, $352,298.57, includes the attorney's fees awarded, costs, and interest for the duration of the appeal. Because a cash deposit covering the full amount of the judgment would render moot the possibility that appellants would dissipate or transfer assets to avoid payment of the judgment, we GRANT appellants' motion to the following extent. We ORDER appellants to deposit with the Dallas County District Clerk Felicia Pitre, on or before December 19, 2022, a cash deposit in the amount of $352,298.57. We ORDER Ms. Pitre to file, on or before December 22, 2022, a supplemental clerk's record with the receipt of the cash deposit or written confirmation that appellants did not make the cash deposit in the required amount.

Should the Court receive the supplemental clerk's record showing the receipt of the required cash deposit, the Court will reverse the trial court's order imposing the post-judgment injunction. Should the Court receive written confirmation that appellants did not pay the required cash deposit on or before December 19, 2022, the Court will affirm the trial court's post-judgment injunction order.


Summaries of

Vertical Holdings, LLC v. Locatorx, Inc.

Court of Appeals of Texas, Fifth District, Dallas
Dec 9, 2022
No. 05-22-00720-CV (Tex. App. Dec. 9, 2022)
Case details for

Vertical Holdings, LLC v. Locatorx, Inc.

Case Details

Full title:VERTICAL HOLDINGS, LLC AND VANGUARD FINANCIAL TRUST, Appellants v…

Court:Court of Appeals of Texas, Fifth District, Dallas

Date published: Dec 9, 2022

Citations

No. 05-22-00720-CV (Tex. App. Dec. 9, 2022)