Old Judgment Leads to Loss of Claims in Current Litigation

For over a decade, Sun Tec Computer has been tied up in litigation with its officers and shareholders in Tarrant County. At least one of those former officers formed Tax Debt Acquisition Company and used it to purchase an unpaid judgment against Sun Tec, then filed an application for a turnover order in Dallas County to enforce the judgment. The turnover order was not appealed, and the receiver auctioned off Sun Tec’s claims against the Tarrant County litigants to TDAC. That act of legal jujitsu meant that Sun Tec could no longer proceed with its claims against the shareholders and officers. Sun Tec filed a new suit for a declaratory judgment that the turnover order and the sale of its claims were invalid, but the trial court granted summary judgment for the defendants. The Court of Appeals affirmed, holding that the declaratory judgment was an invalid collateral attack on the turnover order, and that the order itself was not void.

Sun Tec Computer, Inc. v. Recovar Group, LLC, No. 05-14-00257-CV