Monday, January 6, 2014

Gerdes v. Kennamer case brief

Gerdes v. Kennamer case brief summary155 S.W.3d 541

CASE SYNOPSIS
Appellants, a judgment debtor and his wife, challenged a decision of the 23rd District Court of Matagorda County (Texas), which issued a third turnover order in favor of appellee creditor pursuant to Tex. Civ. Prac. & Rem. Code Ann. § 31.002 (1997).

PROCEDURAL HISTORY
The trial court had issued turnover orders that effected a turnover in a Mexican entity in which both the debtor and the wife had an interest. They appealed from the third turnover order, arguing that it went beyond the scope of Tex. Civ. Prac. & Rem. Code Ann. § 31.002 (1997).

DISCUSSION

  • The court affirmed. 
  • The trial court did not abuse its discretion by compelling the debtor's wife, a non-debtor, to turn over documents. 
  • The debtor did not claim that her interest was not subject to the debtor's control, nor did he tender the documents with his signature only. 
  • Thus, the turnover order was not beyond the scope of § 31.002(b)(1). 
  • The creditor established that a debtor and his wife had an interest that could not have been readily attached by ordinary legal process. 
  • The documents ordered turned over were specific corporate resolutions that effected a transfer of the interest in the entity, and accordingly, consents in writing would be signed by the holders of all the shares, which made Tex. Bus. Corp. Act Ann. art. 9.10 applicable and dispensed with the requirement of a meeting in the entity's domicile. 
  • Thus, the order did not require the violation of the entity's articles of incorporation.

CONCLUSION
The court affirmed.

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