You are viewing a free summary from Descrybe.ai. For citation checking, legal issue analysis, and other advanced tools, explore our Legal Research Toolkit — not free, but close.

Pharus Funding, LLC as Assignee of LHR, Inc. v. Jerry Solley and Lola M. Solley

Citation: Not availableDocket: 10-21-00173-CV

Court: Court of Appeals of Texas; March 15, 2023; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves Pharus Funding, LLC's attempt to revive a dormant judgment against Jerry and Lola Solley. Pharus asserts ownership of the judgment and seeks a writ of scire facias to reactivate the judgment. The trial court denied this request, leading Pharus to appeal. However, the appeal was dismissed by the Sixth Court of Appeals due to the absence of a final judgment, leaving the issue unresolved. The majority opinion held that Pharus lacked standing to pursue the revival, as it did not adequately prove ownership at this stage, resulting in dismissal for lack of jurisdiction. In contrast, the dissenting opinion strongly disputes this decision, advocating that at the preliminary stage, Pharus simply needed to allege ownership to proceed. The dissent criticizes the court's requirement for Pharus to prove ownership upfront, suggesting that the process should allow the debtor to be served and contest the revival, thereby safeguarding due process rights. The dissent further argues that the procedural framework established by prior case law supports Pharus's position, implying a potential due process violation by the courts in their current handling of the creditor's rights.

Legal Issues Addressed

Due Process in Judgment Revival Proceedings

Application: The dissent warns that the courts may be violating due process by prioritizing debtor protection over creditor rights, highlighting the need for a fair opportunity for the creditor to assert standing and for the debtor to contest the revival.

Reasoning: Both courts may be committing a due process violation by prioritizing the protection of the absent debtor over the rights of the creditor.

Procedure for Revival of Dormant Judgment

Application: The dissent argues that Pharus only needs to allege ownership of the judgment to initiate the revival process, and that requiring proof of ownership at this stage is inappropriate.

Reasoning: The dissent argues that the revival of a dormant judgment should be straightforward and emphasizes that at this preliminary stage, Pharus only needs to allege ownership of the judgment, which was not properly challenged in the proceedings.

Role of Writ of Scire Facias in Dormant Judgment Revival

Application: The dissenting opinion contends that the writ of scire facias should be issued based on Pharus's allegations, allowing service to the Solleys and providing them an opportunity to contest the revival.

Reasoning: The dissent posits that even if the trial court lacked jurisdiction, the Tenth Court should still have jurisdiction to review the denial of the revival motion.

Standing to Pursue Revival of Dormant Judgment

Application: The court determined that Pharus Funding, LLC lacks standing to seek the revival of a dormant judgment against the Solleys, resulting in the dismissal for lack of jurisdiction.

Reasoning: The court determined that Pharus lacks standing to pursue this revival, leading to the vacating of the trial court’s denial of the revival application and dismissal for lack of jurisdiction.