identity of parties and counsel
Transcription
identity of parties and counsel
FIFTH DISTRICT OF TEXAS AT DALLAS, TEXAS ___________________ NO. 05-11-00593-CV ___________________ STEVE KING, TIMM BAUMANN AND DAVID WILLIAMS Defendants-Appellants v. PARK CITIES BANK Plaintiff-Appellee ___________________________________________ APPEAL FROM THE 193RD JUDICIAL DISTRICT COURT DALLAS COUNTY, TEXAS ___________________________________________ BRIEF OF APPELLANTS, STEVE KING, TIMM BAUMANN AND DAVID WILLIAMS James H. Baumgartner, Jr. BAUMGARTNER, BILLINGS & BLOOM, L.L.P. 14901 Quorum Drive, Suite 740, LB 156 Dallas, TX 75254-7524 Telephone: 972-364-1151 Facsimile: 972-387-0096 jhbpclaw@airband.net Attorney for Steve King, Timm Baumann and David Williams, Defendants-Appellants 5th Court of Appeals FILED: 7/20/11 14:00 Lisa Matz, Clerk IN THE COURT OF APPEALS FOR THE IDENTITY OF PARTIES AND COUNSEL THE PARTIES’ DEFENDANTS-APPELLANTS Steve King Timm Baumann David Williams Savannah Homes, LP (Dismissed) Steve King Custom Homes, Inc. (Dismissed) THE PARTIES’ PLAINTIFF-APPELLEE Park Cities Bank Final Judgment Entered by the 193rd Judicial District Court, Dallas, Texas COUNSEL James H. Baumgartner, Jr. Texas Bar No. 01933000 Baumgartner, Billings & Bloom, L.L.P. 14901 Quorum Drive, Suite 740, LB 156 Dallas, TX 75254-7524 Telephone: 972-364-1151 Facsimile: 972-387-0096 Email: jhbpclaw@airband.net Jennifer L. Owen Texas Bar No. 15369050 Higier Allen & Lautin, P.C. 5057 Keller Springs Road, Suite 600 Addison, TX 75001 Telephone: 972-716-1888 Facsimile: 972-716-1899 Email: jowen@higierallen.com Attorney for Defendants-Appellant Attorney for Plaintiff-Appellee /s/ James H. Baumgartner, Jr. JAMES H. BAUMGARTNER, JR. -i- TABLE OF CONTENTS Page IDENTITY OF PARTIES AND COUNSEL ................................................................................ i TABLE OF CONTENTS.............................................................................................................. ii INDEX OF AUTHORITIES........................................................................................................ iii STATEMENT OF THE CASE......................................................................................................2 ORAL ARGUMENT .....................................................................................................................2 ISSUES PRESENTED...................................................................................................................2 Issue One............................................................................................................................2 Issue Two ...........................................................................................................................2 STATEMENT OF FACTS ............................................................................................................3 SUMMARY OF THE ARGUMENT ............................................................................................3 ARGUMENT.................................................................................................................................4 Issue One - Restated...........................................................................................................4 Issue Two – Restated .........................................................................................................7 PRAYER......................................................................................................................................10 CERTIFICATE OF SERVICE ....................................................................................................11 APPENDIX..................................................................................................................................12 -ii- INDEX OF AUTHORITIES Page Acker v. Tex. Water Comm’n, 790 S.W.2d 299, 301 (Tex. 1990) ...................................................5 Cameron v. Terrell & Garrett, Inc., 618 S.W.2d 535 (Tex. 1981)..................................................7 Clark v. Walker, 689 S.W.2d 275, 278 (Tex. App.—Houston [1st Dist.] 1985, writ ref’d n.r.e.)......................................................................................................................8 City of San Antonio v. City of Boerne, 111, S.W.3d 22, 25 (Tex. 2003) .........................................4 DLB Architects, P.C. and David Boeck v. Blair Weaver, Weaver Construction Co., Inc. and Cool Water Development, 305 S.W.3d 407, 409 (Tex. App.—Dallas 2010, pet. denied) .........................................................6 FDIC v. Attayi, 745 S.W.2d 939, 944 (Tex. App.—Houston [1st Dist.] 1988, no writ) ..................9 Fireman’s Fund Cnty. Mut. Ins. Co. v. Hidi, 13 S.W.3d 767, 769 (Tex. 2000) ..............................5 Fitzgerald v. Advance Spine Fixation System, Inc., 996 S.W.2d 864, 865 (Tex. 1999)..................6 Garth National Bank v. Burge, 29 S.W.3d 580 (Tex. App.—Houston [14th Dist.] 2000) ..............9 Hunter v. Fort Worth Capital Corp. 620 S.W.2d 547, 552 (Tex. 1981) .....................................6, 7 In re: Will Clay Perry, 425 B.R. 323 (S.D. Tex. Houston—2010) .................................................8 Jones v. Fowler, 969 S.W.2d 429, 432 (Tex. 1998) ........................................................................4 Laidlaw Waste Sys. (Dallas), Inc. v. City of Wilmer, 904 S.W.2d 656, 659 (Tex. 1995)...........4, 6 LaSalle Bank National Association v. Sleutel, 289 F.3d 837 (5th Cir. Tex. 2002) ..................3, 6, 8 Leland v. Brandal, 257 S.W.3d 204, 208 (Tex. 2008).....................................................................5 McKnight v. Virginia Mirror Co., Inc., 463 S.W.2d 428, 430 (Tex. 1971).....................................8 Noland Casualty Co. v. Turner Construction Co., 335 S.W.3d 698 (Tex. App.—Houston [14th Dist.] 2011)..........................................................................................9 Old Colony Ins. Co. v. City of Quitman, 163 Tex. 144, 325 S.W.2d 452, 455 (Tex. 1961)............9 Railroad Commission of Texas v. Texas Citizens for a Safe Future and Clean Water, 2011 Tex. LEXIS 192; 54 Tex. Supp. J. 642 (Tex. March 11, 2011)..............................................4 Segal v. Emmes Capital, LLC, 155 S.W.3d at 278 ..........................................................................8 -iii- Smith v. Baldwin, 611 S.W.2d 611, 616 (Tex. 1980) ......................................................................7 State v. Shumake, 199 S.W.3d 279, 287; 2006 Tex. LEXIS 577; 49 Tex. Supp. J. 769 (Tex. 2006)................................................................................................................................5 Strauss-Frank Co. v. Hughes, 138 Tex. 50, 156 S.W.2d 519, 521 (Tex. Comm’n at 1941, opinion adopted)........................................................................................9 U.S. Bank, N.A. v. Tracey D. Suttles, 2008 U.S. Dist. LEXIS 60914..............................................8 Vastine v. Bank of Dallas, 808 S.W.2d 463, 464-465 (Tex. 1991) .............................................8, 9 STATUTES Texas Property Code § 51.003 Texas Finance Code (2011) § 34.307 -iv- IN THE COURT OF APPEALS FOR THE FIFTH DISTRICT OF TEXAS AT DALLAS, TEXAS ___________________ NO. 05-11-00593-CV ___________________ STEVE KING, TIMM BAUMANN AND DAVID WILLIAMS Defendants-Appellants v. PARK CITIES BANK Plaintiff-Appellee ___________________________________________ BRIEF OF APPELLANTS STEVE KING, TIMM BAUMANN AND DAVID WILLIAMS ___________________________________________ TO THE HONORABLE JUSTICES OF THE COURT OF APPEALS FOR THE FIFTH DISTRICT OF TEXAS AT DALLAS, TEXAS: For the purpose of clarity, the parties will be referred to as they appear in the Trial Court: Steve King, Timm Baumann and David Williams ......................................................“Defendants” Appellant, Steve King, an individual..................................................................................... “King” Appellant, Timm Baumann, an individual......................................................................“Baumann” Appellant, David Williams, an individual ...................................................................... “Williams” Appellee, Park Cities Bank .......................................................................................... “Park Cities” -1- The following stipulated exhibits are attached hereto as an Appendix to this Brief for the convenience of the Court: Final Judgment [C.R. 152-154] .......................................................... Appendix Exh. No. 1 Text of § 51.003 of the Texas Property Code..................................... Appendix Exh. No. 2 STATEMENT OF THE CASE This is a suit for a deficiency judgment by Park Cities against the guarantors [Defendants] on four promissory notes [C.R. 32-45; Plaintiff’s First Amended Original Petition]. The trial court granted Park Cities’ Motion for Summary Judgment [C.R. 46-76; Park Cities’ Amended Traditional Motion for Summary Judgment] on February 22, 2011 when it entered Final Judgment [C.R. 152-154; Appendix Exh. No. 1]. It is from the summary judgment that Defendants have prosecuted this appeal [C.R. 159-160; Notice of Appeal]. ORAL ARGUMENT This cause is a case of first impression before this Court, and oral argument should be granted as the Court’s decision will construe the terms of § 51.003 of the Texas Property Code [Appendix Exh. No. 2] which deals directly with the rights of the citizens of the State of Texas. ISSUES PRESENTED ISSUE ONE Section 51.003 of the Texas Property Code cannot be waived. ISSUE TWO Should § 51.003 be construed to be subject to waiver, the waiver provision must specifically provide that the “right of offset” is waiver. -2- STATEMENTS OF FACT Park Cities brought suit for a deficiency judgment against the makers and guarantors of four separate promissory notes and guaranty agreements, all of which had the identical terms [C.R. 32-45; Plaintiff’s First Amended Original Petition]. Defendants contended § 51.003 could not be waived, or alternatively that if § 51.003 were subject to waiver, that the waiver language had to specifically address the “right of offset” as the statute specifically provides for “an offset” against the deficiency [C.R. 26-31; Defendants’ First Amended Original Answer]. Park Cities filed a Motion for Summary Judgment [C.R. 46-76], and ultimately the Court granted the summary judgment on February 22, 2011 [C.R. 152-154; Final Judgment; Appendix Exh. No. 1]. It is from this Final Judgment that Defendants have prosecuted this appeal [C.R. 159-160; Notice of Appeal]. SUMMARY OF ARGUMENT The case before the Court is one requiring this Court’s statutory interpretation of § 51.003 of the Texas Property Code. The section contains no provision which provides that it can be waived. Defendants maintain that the language of § 51.003 is clear and there exists no reason or basis to read the waiver provision into the section, or as the Fifth Circuit undertook to do in LaSalle Bank N.A. as Trustee v. Sleutel, 289 F.3d 837 (5th Cir. 2002), when the court literally read a waiver provision into the statute that did not otherwise exist. Defendants respectfully submit there is nothing in § 51.003 of the Texas Property Code that is confusing or requires any interpretation other than the words themselves. Under these circumstances, the Texas courts have consistently held that no additional words shall be read into the statute unless it is necessary to fulfill the legislature’s intent. The intent is clear in § 51.003 of the Texas Property Code, and there is no legitimate basis or justification for the courts to add words where the words are already clear and unequivocal. -3- Alternatively, if for any reason the Court should find a basis for determining that § 51.003 has or could have been subject to waiver, Defendants respectfully submit that in this case, as they are before the Court as guarantors, the absence of language in the guaranty agreements that would provide for the guarantors’ “waiver” of the “right of offset,” the guarantors cannot be held liable for the reason that “offset” was never included in their guaranty at all. The guarantors’ liability cannot be extended beyond that which they contracted for, and the guaranty does not include “offset.” For the reasons set forth, Defendants respectfully submit the judgment of the trial court should be reversed and rendered; and the trial court instructed to provide for Defendants attorneys’ fees in connection with their successful defense to liability. ARGUMENT ISSUE ONE (Restated) Section 51.003 of the Texas Property Code cannot be waived. The Texas Supreme Court in the recent case of Railroad Commission of Texas v. Texas Citizens for a Safe Future and Clean Water, 2011 Tex. LEXIS 192; 54 Tex. Sup. J. 642 (Tex. March 11, 2011), wrote an extensive opinion explaining the proper method of undertaking statutory interpretation, stating: . . . We generally avoid construing individual provisions of a statute in isolation from the statute as a whole. See City of San Antonio v. City of Boerne, 111, S.W.3d 22, 25 (Tex. 2003). We therefore ‘read the statute as a whole and interpret it to give effect to every part.’ Id. (quoting Jones v. Fowler, 969 S.W.2d 429, 432 (Tex. 1998) (per curriam)). When the legislature uses a word or phrase in a portion of a statute but excludes it from another, the term should not be implied where it has been excluded. Laidlaw Sys. (Dallas), Inc. v. City of Wilmer, 904 S.W.2d 656, 659 (Tex. 1995). Had the legislature intended for the Commission and the TCEQ to entertain traffic-related evidence in their public interest inquiries, it would not have needed to amend the statute to -4- expressly require the TCEQ to consider a well’s impact on traffic in certain situations. See Acker v. Tex. Water Comm’n, 790 S.W.2d 299, 301 (Tex. 1990) (‘a statute is presumed to have been enacted by the legislature with complete knowledge of the existing law and with reference to it.’) See also Leland v. Brandal, 257 S.W.3d 204, 208 (Tex. 2008). [emphasis added] Accord Fireman’s Fund Cnty. Mut. Ins. Co. v. Hidi, 13 S.W.3d 767, 769 (Tex. 2000) (per curriam) (‘when the legislature has employed a term in one section of a statute and excluded it in another, we presume that the legislature had a reason for excluding it.’); State v. Shumake, 199 S.W.3d 279, 287; 2006 Tex. LEXIS 577; 49 Tex. Supp. J. 769 (Tex. 2006) (observing the statutory construction rule of giving effect to all words and not treating any statutory language as surplusage). Without regard to whether or not the legislature may have used the word “waiver” or “waived” in one portion of the Texas Property Code, it clearly excluded the issue of waiver from § 51.001 through § 51.005 of the Texas Property Code. A careful review of § 51.003 of the Texas Property Code [Appendix Exh. No. 2] reveals that in subparagraph (a) that if the price at which property is sold at foreclosure was less than the unpaid balance, the foreclosure sale “is governed by this section.” In subsection (b) the legislature specifically provided that any person against whom a deficiency judgment is sought may by motion request that the court in which the action is pending determine the fair market value shall determined by the finder of fact. The use of “shall be” is historically mandatory in judicial construction and is mandatory in subsection (b). In subsection (c) the legislature unequivocally provides that if the court were to determine that the fair market value is greater than the sales price of the real property at foreclosure, the person against whom the recovery of a deficiency is sought is “entitled to an offset” against the deficiency. Finally in subsection (d) the legislature specifically provides that any money received by a lender from a private mortgage guaranty insurer is to be credited to the -5- account of the borrower prior to the lender bringing any action for any deficiency allegedly owed by the borrower. The legislature did not provide for any waiver of § 51.003 of the Texas Property Code [Appendix Exh. No. 2]. As the above review discloses, the language of the statute is clear and unequivocal. The Texas Supreme Court has, on numerous occasions, specifically noted and held that: Courts should not insert words in a statute except to give effect to clear legislative intent. Hunter v. Fort Worth Capital Corp., 620 S.W.2d 547, 552 (Tex. 1981); accord Laidlaw Waste Sys., Inc. v. City of Wilmer, Texas, 904 S.W.2d 656, 659 (Tex. 1995); DLB Architects, P.C. and David Boeck v. Blair Weaver, Weaver Construction Co., Inc. and Cool Water Development, 305 S.W.3d 407, 409 (Tex. App.—Dallas 2010, pet. denied). [emphasis added] At page 409 of the DLB Architects P.C. opinion, supra, the court succinctly restates the rules of statutory construction stating: When construing the statute we attempt to give effect to the legislature’s intent. See Fitzgerald v. Advance Spine Fixation System, Inc., 996 S.W.2d 864, 865 (Tex. 1999). To determine legislative intent, we look to the plain and common meaning of the words the legislature used. Id. Every word of a statute must be presumed to have been used for a purpose, and every excluded word from a statute must also be presumed to be excluded for a purpose. See Laidlaw Waste Sys., Inc. v. City of Wilmer, 904 S.W.2d 656, 659 (Tex. 1995). Only when it is necessary to give effect to the clear legislative intent may we insert additional words into a statutory provision. See Hunter v. Fort Worth Capital Corp., 620 S.W.2d 547, 552 (Tex. 1981). There is no necessity to insert any words with regard to ‘wavier’ because the legislative intent is clear, and every word excluded from the statute, including ‘waiver’ must also be presumed to be excluded for a purpose. [emphasis added] Defendants respectfully submit the Fifth Circuit erred when it rendered its decision in LaSalle Bank National Association v. Sleutel, 289 F.3d 837 (5th Cir. Tex. 2002) when it held: Although § 51.003 does not address waiver, other provisions of the Texas Property Code do address waiver and specifically prevent waiver of those provisions, in all or in some situations. Under the -6- principal of inclusion umus est exclusion alterius, we considered this as evidence that the Texas legislature knows how to preclude waiver of a statutory provision when it so desires, and the fact that it did not do so in this case indicates that it intended to allow this provision to be waived. . . . [citations omitted] The Fifth Circuit’s construction is diametrically opposed to the construction mandated by the Texas Supreme Court. “The issue of waiver” should be excluded from any statutory construction of § 51.003 of the Texas Property Code [Appendix Exh. No. 2], and the courts should not interject language in the statute that is not clearly intended by the legislature. Accordingly, this Court should find that § 51.003 of the Texas Property Code does not provide for waiver and no waiver provision should be interpreted as if set forth in the statute. In Cameron v. Terrell & Garrett, Inc., 618 S.W.2d 535 (Tex. 1981), the court held: It is a rule of statutory construction that every word of a statute must be presumed to have been used for a purpose. Likewise we believe every one excluded from a statute must also be presumed to have been excluded for a purpose. *** When the legislature employs a term in one section of a statute and excludes it in another section, the term should not be implied where excluded. Smith v. Baldwin, 611 S.W.2d 611, 616 (Tex. 1980). This principal is related to a more general rule that courts should not insert words in a statute except to give effect to clear legislative intent. Hunter v. Fort Worth Capital Corp. 620 S.W.2d 547, 552 (Tex. 1981). The guarantees in this case provide that guarantor’s obligation . . . shall not be reduced because of any existing or future offset . . . [emphasis added] ISSUE TWO (Restated) Should § 51.003 be construed to be subject to waiver, the waiver provision must specifically provide that the “right of offset” is waived The language of Park Cities’ guaranty agreement addresses the right of setoff, but does not address the right of offset. Typically the right of setoff deals with a bank’s right to setoff -7- against an existing account, to satisfy a default upon an existing debt [see: § 34.307 Tex. Finance Code (2011). However, the equitable right of offset occurs after the total debt is determined, and offset is then exercised by the debtor, not the creditor. Should § 51.003 be construed to be subject to waiver, the waiver provision must specifically provide that the “right of offset” is waived. Should the Court, for any reason, be of the opinion that § 51.003 can be waived, Defendants respectfully submit the language “right of offset” must be contained to create any effective waiver. Section (c) of § 51.003 provides that persons against whom recovery of the deficiency is sought are entitled “to an offset against the deficiency.” Of significant import is the fact that the guarantees provided for a waiver offset in the LaSalle Bank case, 289 F.3d 840; [. . . any defense, right of offset, or other claim]; in Segal v. Emmes Capital, LLC, 155 S.W.3d at 278 [guarantor hereby waives all rights, remedies, claims and defenses based upon or related to §§ 51.003, 51.004 and 51.005 of the Texas Property Code] and U.S. Bank, N.A. v. Tracey D. Suttles, 2008 U.S. Dist. LEXIS 60914, p. 5 [“defendant waives his right of an offset under § 51.003(c). The guarantees in this case provide that guarantor’s obligation . . . shall not be reduced because of any existing or future setoff . . .”]. The only case of record known to Defendants that does not contain the language of right of offset is the bankruptcy case of In re: Will Clay Perry, 425 B.R. 323 (S.D. Tex. Houston— 2010). However, in the Clay case the Bankruptcy Court relies upon LaSalle, but failed to appreciate the significance of the language regarding the right of offset. In this cause, Defendants were guarantors, and Texas law is unequivocally clear regarding the rights of all guarantors. In Vastine v. Bank of Dallas, 808 S.W.2d 463, 464-465 (Tex. 1991) the court stated: Texas courts apply the rule of strictissimi juris in interpreting guaranty agreements to refrain from extending the guarantor’s -8- obligation by implication beyond the written terms of the agreement. Clark v. Walker, 689 S.W.2d 275, 278 (Tex. App.— Houston [1st Dist.] 1985, writ ref’d n.r.e.). It is well settled in Texas that a guarantor may rely and insist upon the terms and conditions of the guaranty being strictly followed, and if the creditor and principal debtor vary in any material degree from the terms of their contract, then a new contract has been formed and the guarantor is not bound to it. McKnight v. Virginia Mirror Co., Inc., 463 S.W.2d 428, 430 (Tex. 1971). The guaranty agreement signed by Vastine does not provide that the creditor and principal debtor may alter the contract without Vastine’s consent, thus we cannot imply that Vastine has waived his suretyship defense of material alteration. Guarantors and sureties are bound by only the precise terms of the contract they have secured and are not obligated to watch over the contracting parties to see if performance conforms to the terms of the contract. Old Colony Ins. Co. v. City of Quitman, 163 Tex. 144, 325 S.W.2d 452, 455 (Tex. 1961). In Old Colony this court held that sureties are released from liability when there is a material alteration in and deviation from the terms of the contract without the surety’s consent and to its prejudice. Id. The same rules that applies to sureties applies to guarantors. Strauss-Frank Co. v. Hughes, 138 Tex. 50, 156 S.W.2d 519, 521 (Tex. Comm’n at 1941, opinion adopted); see FDIC v. Attayi, 745 S.W.2d 939, 944 (Tex. App.—Houston [1st Dist.] 1988, no writ). In Noland Casualty Co. v. Turner Construction Co., 335 S.W.3d 698 (Tex. App.— Houston [14th Dist.] 2011), the court again reaffirms and restates the limits of a guarantor’s liability in Texas. Accord Garth National Bank v. Burge, 29 S.W.3d 580 (Tex. App.—Houston [14th Dist.] 2000). In this cause, the subject guaranty agreements contain no provisions with regard to the “right of offset.” Rather, the guaranty provisions stop well short and while they do include the right of setoff, the guaranties no where address the issue of the right of offset. Defendants respectfully submit that as the “right of offset” was not specifically set forth and contained in the guaranty agreements of this suit, the guarantors, Defendants herein, submit the guaranty agreements before the Court are materially deficient. No Defendant is liable under his guaranty, as the “right of offset” is not addressed by Park Cities in the guaranty agreements used in this cause which provided: -9- . . . Guarantor waives any right to require “Lender . . . (C) to resort for payment or to proceed directly or at once against any person, including borrower or any other guarantor . . . *** Guarantor . . . waives any and all rights or defenses arising by reason of (A) any ‘one action’ or ‘anti-deficiency’ law or any other law which may prevent Lender from bringing any action, including a claim for deficiency against guarantor before or after Lender’s commencement or completion of any foreclosure action, either judicially or by exercise of a power of sale . . . or (F) any defenses given to guarantors at law or in equity other than actual payment and performance of the Indebtedness . . . Guarantor further waives and agrees not to assert or claim at any time any deductions to the amount guaranteed under this guaranty for any claim of setoff, counterclaim, counter demand, recoupment or similar right . . . [C.R. 36; Plaintiff’s First Amended Original Petition] The use of the phrase “right of offset” is not contained within the four corners of the guaranty agreements, and therefore, under the law of applicable to guarantors within the state of Texas, guarantors have no liability to Park Cities on the subject guarantees. PRAYER - CONCLUSION WHEREFORE, PREMISES CONSIDERED, Defendants-Appellants, STEVE KING, TIM BAUMANN and DAVID WILLIAMS, respectfully request that based upon the foregoing authorities the Court immediately and forthwith reverse and render the judgment of the trial court, determining that no alleged guarantor is liable for any sum to Park Cities Bank, that all costs of Court be taxed against Park Cities Bank, and that the cause be remanded for the trial court to determine the appropriate attorneys’ fees recoverable by the Defendants, and for such other and further relief, both at law and in equity, to which your Defendants may show themselves justly entitled and for which they will ever pray. -10- Respectfully submitted, /s/ James H. Baumgartner, Jr. JAMES H. BAUMGARTNER, JR. State Bar No. 01933000 BAUMGARTNER, BILLINGS & BLOOM, L.L.P. 14901 Quorum Drive, Suite 740, LB 156 Dallas, TX 75254-7524 Telephone: 972-364-1151 Facsimile: 972-387-0096 jhbpclaw@airband.net ATTORNEYS FOR APPELLANTS CERTIFICATE OF SERVICE A copy of the foregoing document has been forwarded on this the 20th day of July, 2011 via certified mail, return receipt requested, and email to: Jennifer L. Owen Higier Allen & Lautin, P.C. 5057 Keller Springs Road, Suite 600 Addison, TX 75001 /s/ James H. Baumgartner, Jr. JAMES H. BAUMGARTNER, JR. -11- APPENDIX IN THE COURT OF APPEALS FOR THE FIFTH DISTRICT OF TEXAS AT DALLAS, TEXAS ___________________ NO. 05-11-00593-CV ___________________ STEVE KING, TIMM BAUMANN AND DAVID WILLIAMS Defendants-Appellants v. PARK CITIES BANK Plaintiff-Appellee Final Judgment [C.R. 152-154] .......................................................... Appendix Exh. No. 1 Text of § 51.003 of the Texas Property Code..................................... Appendix Exh. No. 2 -12-