RECEIVERSHIP AND PROPERTY ENFORCEMENT [As a part of: Unanswered and Unique Receivership/Bankruptcy Questions]
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1 RECEIVERSHIP AND PROPERTY ENFORCEMENT [As a part of: Unanswered and Unique Receivership/Bankruptcy Questions] Written by: JOHN T. ECK Law Offices of Robert T. Stites, P.C. 933 West Weatherford Street Fort Worth, Texas (817) Facsimile (817) john@stitesattorney.com Moderator: DIANA S. FRIEDMAN, Dallas Diana S. Friedman, PC Panelists: HEATHER L. KING, Southlake Koons Fuller JIM LOVELESS, Fort Worth Loveless Naylor LOUIS M. PHILLIPS, Baton Rouge, LA Gordon Arata McCollam DuPlantis & Eagan MICHAEL R ROCHELLE, Dallas Rochelle McCullough State Bar of Texas 18 TH ANNUAL NEW FRONTIERS IN MARITAL PROPERTY LAW October 3-4, 2013 Napa, CA CHAPTER 3.1
2 TABLE OF CONTENTS I. INTRODUCTION...! II. INTRODUCTION TO RECEIVERSHIPS...! III. POWER TO APPOINT A RECEIVER... I A. Texas Family Code...! B. Receivership Predicate in a Pending Divorce... 1 I. Cases Not Requiring a Predicate...! 2. Cases Requiring a Predicate...! 3. Alter Ego Problems... 2 C. Texas Civil Practice and Remedies Code The General Receivership Statnte The Turnover Statute... 2 IV. DO YOU NEED A RECEIVERSHIP?... 2 A. Costs and Benefits of Receivership... 3 B. Selling the House of Horrors... 3 C. Running the Business... 3 D. I Don't Like the Receiver... 3 V. THE MECHANICS OF THE REQUEST... 3 A. The Application Process--Spouscs... 3 B. The Application Process as to Third Parties... 3 C. Sua Sponte Receivership... 4 D. Notice of Receivership... 4 I. General Notice Requirements Notice Required by Texas Family Code Ex parte Applications... 4 E. Bankruptcy... 4 F. Applicant's Bond... 4 G. Qualifications ofreceiver... 4 H. Helping the Receiver Sell the Horne... 5 VI. POWERS AND DUTIES OF THE RECEIVER... 5 A. Receiver's Oath... 5 B. Receiver's Bond... 5 C. Lis Pendens... 5 D. Custodia Legis... 6 E. Inventory... 6 F. Activities In General Administration Tips Taking Possession of Property Corporate Shareholder Duties Selling Homestead Property Final Report and Discharge... 8 G. Priority and Application of Funds... 8 H. Compensating the Receiver Priority of Court Costs No Jury Trial Payment-Basis of Calculation... 8
3 4. Allocating Costs... 9 VIT. CHALLENGING THE APPOINTMENT OF THE RECEIVER... 9 A. Immunity and Irregularities... 9 B. Jury Trial... I 0 C. Motion to Vacate the Receivership D. Parties Terminate E. Appeal of the Appointment or Denial of a Receivership F. Appeal of the Other Receivership Matters G. Mandamus... II VIII. ENFORCEMENT... II A. Drafting Considerations... II I. Sale of Residence Transfer of Residence... II 3. Transfer of Vehicle Residuary Property Clauses Order the Dclivety of Property Monetary Judgments Marital Liabilities IX. CHAPTER 9 ENFORCEMENT A. The Texas Family Code... l2 B. Jurisdiction for Post Divorce Enforcement C. Filing Deadlines Tangible Property Rights to Property in the Future Money Judgment Pattition QDROs... l3 6. Real Property D. Pleading E. Modification Impermissible F. No Affect on Finality of Judgment G. Due Process H. Jury I. Right to Counsel J. Fifth Amendment Rights X. CHAPTER 9 ENFORCEMENT REMEDIES--NON CONTEMPT A. Clarification Order Joined with Suit to Enforce Legal Standard Examples of Impermissible Modifications Examples of Permissible Clarifications B. Award of Specific Property C. Money Judgment XI. CHAPTER 9 ENFORCEMENT REMEDIES--CONTEMPT A. The Underlying Order Should be in Writing B. The Underlying Order is Valid C. Contempt Requires Specifics ii
4 I. Injunctions Money What is Immediately? Impossible Performance D. The Petition E Civil Contempt v. Criminal Contempt F. Conducting the Enforcement Hearing G. The Contempt Order H. Challenging the Contempt Order XII. ATTORNEY'S FEES AND COSTS XIII. ENFORCEMENT OF TEMPORARY ORDERS A. Spousal Support B. Interim Fees C. Temporary Restraining Orders and Injunctions XIV. BREACHOFCONTRACT A. Limitations B. Judgmentv. Contract C. Additional Considerations XV. ENFORCING SPOUSAL MAINTENANCE XVI. ENFORCING SETTLEMENT AGREEMENTS A. Rule 11 Agreements B. Mediated Settlement Agreements C. Collaborative Law Agreement D. Informal Settlement Conference XVII. LIENS A. Judicial Lien B. Equitable Liens I. Reimbursement..., Homestead..,,,...,.,...,,,,,.,.,,,,...,...,...,,,,,,,,,...,,,,,,., Owelty...,,,.,, 24 XVIII. TURNOVERRELIEF A. Use of Turnover Relief in Family Law Cases...,..., B. Cumulative Remedy C. Application Process D. Parties Subject to Turnover Order,,.,,,.,,,.,,,...,..,...,...,,.,,,,,,,...,,,,,,,..., E. Burden of Proof...,.,..,,..,,,.,,,...,.,...,,.,,..,,..,...,,,..,,,...,,...,..,., 26 I. Discretion of Court Who Has the Burden of Proof? Affirmative Defenses F. Property Subject to Turnover I. Propertv Affected by Turnover Relief Conditions and Exceptions on the Propmty Affected by Tumover Relief G. Judicial Aid H. Attorney's Fees and Costs I. Enforcement...,,,...,,, J. Appellate Review, iii
5 XIX. PARTITION XX. CIVIL PRACTICE AND REMEDIES CODE A. Writ of Attachment B. Writ of Sequestration C. Garnishment XXI. DISCOVERY IN AID OF EXECUTION XXII. CONCLUSION APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F iv
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