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Merced Aguilera, Individually and D/B/A DMB Concrete Ready Mix, LLC v. IPFS Corporation

Citation: Not availableDocket: 14-21-00673-CV

Court: Court of Appeals of Texas; July 21, 2022; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves an appeal by Merced Aguilera, who, individually and doing business as DMB Concrete Ready Mix, LLC, was sued by IPFS Corporation over a note. The original lawsuit was filed after Aguilera's LLC forfeited its right to operate in Texas due to unpaid franchise taxes. The trial court ruled in favor of IPFS, and Aguilera appealed the judgment, arguing that it improperly included his LLC, which was not a party to the suit, and that only one citation was directed at him personally. Aguilera's appeal also challenged the clarity of the judgment, which mentioned 'joint and severally liable.' However, the court noted that the judgment language was singular, indicating personal liability for Aguilera alone. Additionally, the court found that an assumed name does not constitute a separate legal entity and can be used in legal proceedings. Furthermore, Aguilera failed to file a verified pleading to contest his legal capacity in the proceedings. The appellate court affirmed the trial court's judgment, validating the decision against Aguilera and confirming the legal principles regarding post-dissolution liability and assumed names in business transactions.

Legal Issues Addressed

Interpretation of Judgment Language in Civil Procedure

Application: The judgment's language, although mentioning 'joint and severally,' was interpreted as directed solely at Aguilera, clarifying that the judgment held him personally liable.

Reasoning: The judgment's language, while mentioning 'joint and severally,' referred to the defendant in the singular, indicating it was directed solely at Aguilera.

Liability in Assumed Name (DBA) Transactions

Application: The court clarified that an assumed name does not create a separate legal entity and can still be used for legal proceedings against the individual operating under that name.

Reasoning: The court noted that an assumed name (DBA) has no separate legal existence and can be used for legal proceedings.

Post-Dissolution Liability of LLCs

Application: The court confirmed that an LLC can still face legal actions even after its dissolution if obligations existed before the dissolution.

Reasoning: The court highlighted that an LLC can be sued post-dissolution.

Requirements for Challenging Legal Capacity

Application: Aguilera failed to file a verified pleading to contest his capacity, which weakened his defense against personal liability.

Reasoning: Aguilera did not file a verified pleading to challenge his capacity in the case.