JGM Holdings, L.L.C. v. T-Mobile USA, Incor ( 2014 )


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  •      Case: 13-10678         Document: 00512634510         Page: 1     Date Filed: 05/19/2014
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT      United States Court of Appeals
    Fifth Circuit
    FILED
    May 19, 2014
    No. 13-10678
    Lyle W. Cayce
    Clerk
    JGM HOLDINGS, L.L.C.; JUAN ANTONIO DE JESUS GONZALES
    MORENO,
    Plaintiffs - Appellants
    v.
    T-MOBILE USA, INCORPORATED,
    Defendant - Appellee
    Appeal from the United States District Court
    for the Northern District of Texas
    USDC No. 3:13-CV-1297
    Before DENNIS and PRADO, Circuit Judges, and BROWN, District Judge*
    PER CURIAM:**
    JGM Holdings, LLC (“JGM”) 1 is asking this court to interpret the
    Texas Rules of Civil Procedure and Texas case law to determine whether a
    creditor may garnish a judgment, after entry of judgment but prior to the
    filing of an appeal. The United States District Court for the Northern District
    *    District Judge of the Eastern District of Louisiana, sitting by designation.
    ** Pursuant to 5TH CIR. R. 47.5, the court has determined that this opinion should
    not be published and is not precedent except under the limited circumstances set forth in
    5TH CIR. R. 47.5.4.
    1   JGM and co-appellant Juan Antonio De Jesus Gonzales Moreno will be treated
    collectively since their positions and claims are identical.
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    of Texas (the “district court”) answered in the negative, dismissing JGM’s
    writ of garnishment against T-Mobile USA, Inc. (“T-Mobile”).
    JGM, which is owed money by VICI Racing, LLC (“VICI”), appeals the
    district court’s decision. JGM wants to garnish a judgment that VICI, which
    is not a party in this action, obtained against T-Mobile in the United States
    District Court for the District of Delaware (the “District Court of Delaware”).
    Both VICI and T-Mobile have since appealed the District Court of Delaware’s
    decision to the Third Circuit.
    JGM filed a writ of garnishment in Texas state court that was removed
    to the district court. T-Mobile then filed a Federal Rule of Civil Procedure
    12(b)(6) motion to dismiss the garnishment. The district court ruled that the
    judgment was not final for the purposes of garnishment under Texas Civil
    Remedies and Practice Code section 63.001(3) because T-Mobile disputes that
    it owes any money to VICI and has availed itself of its right to appeal the
    District Court of Delaware’s judgment. This court affirms the district court’s
    decision because it correctly states Texas law on the finality of judgments for
    the purposes of garnishment.
    FACTUAL AND PROCEDURAL BACKGROUND
    In 2011, JGM obtained a judgment against VICI in a Texas state court.
    With interest, that judgment now stands at $841,128 and counting. The
    Texas state-court judgment was never paid by VICI.
    On February 11, 2013, VICI obtained a judgment for $7 million plus
    attorney fees against T-Mobile in the District Court of Delaware (the
    “Delaware judgment”). On February 22, 2013, JGM filed a writ of
    garnishment against T-Mobile in Texas state court, seeking to collect on the
    Delaware judgment. T-Mobile removed the action to the district court on
    diversity grounds.
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    JGM seeks to garnish that portion of the Delaware judgment that VICI
    owes JGM. Before the writ could be executed by the district court, however,
    both VICI and T-Mobile appealed the Delaware judgment to the Third
    Circuit. T-Mobile seeks to have the Delaware judgment set aside in its
    entirety and denies any liability to VICI, and VICI cross-appeals to the Third
    Circuit on grounds that the Delaware judgment is inadequate.
    As a condition of appeal to the Third Circuit, T-Mobile posted a
    supersedeas bond with the District Court of Delaware, staying any execution
    on the judgment while the appeal is before the Third Circuit. At the same
    time, T-Mobile filed a 12(b)(6) motion to dismiss the garnishment in the
    matter pending before the district court. The district court granted T-Mobile’s
    motion and dismissed JGM’s writ of garnishment for failure to state a claim
    for which relief can be granted. The district court found that the Delaware
    judgment was not final for purposes of garnishment under Texas law.
    JGM appeals that decision. JGM argues that the Texas Supreme Court
    opinion relied upon by the district court, Waples-Platter Grocer Co. v. Texas &
    Pacific Railway Co., 
    68 S.W. 265
    (Tex. 1902), is no longer good law.
    Additionally, JGM argues that even if Waples is good law, that case does not
    control here because it only applies to judgments for unliquidated damages,
    unlike the judgment here, which, JGM contends, is a judgment for liquidated
    damages. Accordingly, JGM asks that this court reverse and remand to the
    district court. Alternatively, JGM requests that this court certify the question
    to the Texas Supreme Court.
    STANDARD OF REVIEW
    This court reviews de novo motions for dismissal pursuant to Rule
    12(b)(6). See Gines v. D.R. Horton, Inc., 
    699 F.3d 812
    , 816 (5th Cir. 2012).
    This court may “affirm a district court’s Rule 12(b)(6) dismissal on any
    grounds supported by the record.” Hosein v. Gonzales, 
    452 F.3d 401
    , 403 (5th
    3
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    Cir. 2006). When reviewing a dismissal for failure to state a claim, all well
    pleaded facts are accepted as true and are viewed in the light most favorable
    to the plaintiff. In re Katrina Canal Breaches Litig., 
    495 F.3d 191
    , 205 (5th
    Cir. 2007). “To survive a motion to dismiss, a complaint must contain
    sufficient factual matter, accepted as true, to state a claim to relief that is
    plausible on its face.” Ashcroft v. Iqbal, 
    556 U.S. 662
    , 678 (2009) (internal
    quotation marks omitted).
    As for certification, this court has explained that certification is
    “discretionary both by our court in certifying and the Texas Supreme Court in
    accepting the question.” Cerda v. 2004-EQR1 L.L.C., 
    612 F.3d 781
    , 798 (5th
    Cir. 2010). Texas Rule of Appellate Procedure 58.1 provides for certification
    to the Texas Supreme Court of “determinative questions of Texas law having
    no controlling Supreme Court precedent.” Certification, however, is not
    proper as an avenue by which to change binding precedent. Jefferson v. Lead
    Indus. Ass’n, 
    106 F.3d 1245
    , 1247 (5th Cir. 1997).
    DISCUSSION
    I.
    “Garnishment is a statutory proceeding brought by a judgment creditor
    (the garnishor) whereby the property, money, or credits of the judgment
    debtor (the debtor) in the possession of another (the garnishee) may be
    applied to payment of the final judgment against the debtor.” Zeecon Wireless
    Internet, LLC v. Am. Bank of Tex., N.A., 
    305 S.W.3d 813
    , 816 (Tex. App.—
    Austin, 2010, no pet.). It necessarily involves three parties: the judgment
    creditor (garnishor), the debtor, and a third person who has some obligation
    to the debtor (the garnishee). 17 Tex. Jur. 3d Creditors’ Rights and Remedies
    § 350. “Garnishment enables a garnishing creditor to collect the debt in cases
    where ordinary remedies are insufficient, since by garnishment proceedings a
    garnishee may be compelled to pay one other than the garnishee’s creditor,
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    and the right of the garnishee’s creditor is, against that creditor’s will,
    transferred to another. Garnishment is, in effect, a suit to subrogate a
    creditor to the rights of its debtor who, in turn, is a creditor of another.” 
    Id. § 349
    (footnotes omitted). ‘“[T]he writ of garnishment applies to debt
    obligations the garnishee owes to the debtor and property belonging to the
    debtor but in the garnishee’s possession, from the time the garnishee is
    served with the writ of garnishment to the time the garnishee must answer
    the writ.’” FG Hemisphere Assocs. v. Republique du Congo, 
    455 F.3d 575
    , 589
    (5th Cir. 2006) (citing Tex. R. Civ. P. 659). Thus, “[t]he primary issue in a
    garnishment suit is whether the garnishee is indebted to, or has in its
    possession effects belonging to the debtor.” Buckeye Retirement Co. v. Bank of
    Am., N.A., 
    239 S.W.3d 394
    , 399 (Tex. App.—Dallas 2007, no pet.).
    “Garnishment actions in Texas are ‘purely statutory’ and courts have
    no power to extend the benefits of garnishment beyond the relief available
    under statute.” Af-Cap, Inc. v. Republic of Congo, 
    462 F.3d 417
    , 423 (5th Cir.
    2006); see also Tex. Civ. Prac. & Rem. Code Ann. § 63.001 (listing the
    scenarios in which garnishment is available). Under Texas Rule of Civil
    Procedure 658, “[n]o writ shall issue before final judgment except upon
    written order of the court after a hearing, which may be ex parte.” Tex. R.
    Civ. P. 658. For the purposes of garnishment, a judgment “whether based
    upon a liquidated demand or an unliquidated demand, shall be deemed final
    and subsisting for the purpose of garnishment from and after the date it is
    signed, unless a supersedeas bond shall have been approved and filed in
    accordance with Texas Rule of Appellate Procedure 47.” Tex. R. Civ. P. 657
    (emphasis added).
    II.
    At the heart of the dispute in this case is the meaning of the Texas
    Supreme Court case of Waples-Platter Grocer Co. v. Texas & Pacific Railway
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    Co., 
    68 S.W. 265
    (Tex. 1902). Waples involved two questions certified from the
    Texas Court of Civil Appeals to the Texas Supreme Court: (1) whether,
    pending appeal, a judgment against a third party in an earlier lawsuit was
    subject to writs of garnishment, and (2) whether that judgment was subject
    to garnishment even before the trial court’s entry of judgment. 
    Id. at 266.
          Waples revolved around a lawsuit that third party and judgment debtor
    L. C. Downtain had won against garnishee Texas & Pacific Railway Company
    in March of 1899. 
    Id. at 265.
    Texas & Pacific Railway appealed that judgment
    and filed a supersedeas bond two months later, on May 20, 1899. 
    Id. Between April
    28, 1898, when Downtain first filed suit against Texas & Pacific
    Railway, and March 28, 1899, when Downtain won his suit, Waples-Platter
    filed and won a lawsuit against Downtain. 
    Id. Upon winning
    its suit against
    Downtain in August of 1898, Waples-Platter immediately filed a writ of
    garnishment against Texas & Pacific Railway for any judgment recovered by
    Downtain in the first action. 
    Id. Waples-Platter later
    filed a second writ of
    garnishment against Texas & Pacific Railway in April of 1899, between entry
    of judgment in Downtain’s suit against Texas & Pacific Railway on March 28,
    1899 and Texas & Pacific Railway’s appeal of that judgment on May 20, 1899.
    
    Id. After the
    Texas Court of Civil Appeals affirmed Downtain’s judgment
    against Texas & Pacific Railway, Waples-Platter filed yet a third writ of
    garnishment on February 5, 1900. 
    Id. After losing
    its appeal, Texas & Pacific Railway asked the trial court to
    determine to whom it owed the sum due. 
    Id. The trial
    court held that Waples-
    Platter’s first two writs of garnishment had no effect because they had been
    filed prematurely. Waples-Platter appealed that ruling to the Texas Court of
    Civil Appeals, which certified the two issues mentioned above to the Texas
    Supreme Court. 
    Id. at 265–66.
    The Texas Supreme Court held that neither a
    pre-judgment garnishment nor a garnishment while a judgment was on
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    appeal was valid because under Texas law a judgment is not final for the
    purposes of garnishment until “it can neither be set aside nor reversed upon
    appeal.” 
    Id. at 266.
          In holding as it did, the Texas Supreme Court in Waples cited to its
    earlier decision in Texas Trunk Railway Co. v. Jackson, 
    22 S.W. 1030
    (Tex.
    1893). Jackson involved an action in which the Texas Court of Civil Appeals
    certified four questions to the Texas Supreme Court. See 
    id. at 1030–31.
    The
    important question for the purposes of Waples was whether an appeal
    deprives a judgment of its character of finality for the purposes of res
    judicata. 
    Id. at 1031.
    The Texas Supreme Court answered that question in
    the affirmative, holding that an appeal, “whether prosecuted under cost or
    supersedeas bond, during pendency, deprives a judgment of that finality of
    character necessary” for the judgment to be final for the purposes of res
    judicata. 
    Id. at 1032.
          The Texas Supreme Court years later overruled Jackson, a case on
    which Waples relied, in Scurlock Oil Co. v. Smithwick, 
    724 S.W.2d 1
    (Tex.
    1986). Scurlock Oil held that a judgment is final for the purposes of res
    judicata and claim preclusion despite the taking of an appeal. 
    Id. at 6.
    In
    Scurlock Oil, the Texas Supreme Court opined that “the values served by res
    judicata are threatened by [the Jackson] rule [which] often requires
    relitigation of the same issues between parties, with the opportunity, as here,
    for conflicting results.” 
    Id. III. JGM
    argues that Scurlock Oil implicitly overruled Waples because
    Waples rested on Jackson. JGM bases its argument on a reading of Waples
    that maintains that the court there held that judgments pending appeal are
    not final for the purposes of garnishment because Jackson had held that
    judgments pending appeal are not final for the purposes of res judicata. On
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    JGM’s reading, the Texas Supreme Court’s later rejection of Jackson’s rule on
    res judicata necessarily abandoned Waples’s rule that garnishments are not
    final pending appeal since Waples rested on Jackson’s authority.
    Moreover, JGM argues that Waples’s holding creates the same policy
    issues that led the Texas Supreme Court in Scurlock Oil to overturn Jackson,
    namely, (1) inconsistent results, as JGM argues that the district court’s
    “decision effectively ignores that debt and is inconsistent with the Delaware
    court’s judgment,” and (2) the waste of judicial resources, since creditors such
    as JGM will be forced to apply for and serve numerous writs of garnishment
    to recover an outstanding judgment. Additionally, according to JGM, Waples,
    like Jackson, is unfair because a diligent judgment creditor is at risk of losing
    priority to a judgment in favor of the judgment debtor despite first serving a
    writ of garnishment if, by chance, the judgment debtor settles or assigns the
    judgment before it ever becomes final on appeal. Finally, JGM argues that an
    amendment to Texas Rule of Civil Procedure 661 also overruled Waples.
    Even if Waples remains good law, JGM argues that Waples is still
    inapplicable to this case because the writ of garnishment was filed before T-
    Mobile appealed or posted bond. JGM goes on to argue that, because the writ
    of garnishment here was served before any supersedeas bond was filed, JGM
    stepped into the shoes of VICI at a time when the judgment debtor had full
    rights to execute on the judgment against the garnishee. While JGM concedes
    that the judgment does not become subject to execution (i.e. payable) until
    after appeal, JGM contends that the judgment may still be garnished under
    Texas law to protect JGM’s rights as a creditor.
    JGM further contends that Waples is irrelevant here because that case
    concerned a judgment for unliquidated damages, unlike the judgment at
    issue here, which is for liquidated damages. JGM argues that in Waples the
    Texas Supreme Court expressly limited itself to the question of “whether a
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    cause of action for unliquidated damages resulting from a breach of contract
    is” subject to garnishment. See 
    Waples, 68 S.W. at 266
    . JGM claims that
    VICI’s Delaware judgment against T-Mobile is for a liquidated claim because
    it is based on T-Mobile’s breach of a sponsorship agreement with VICI. Thus,
    JGM contends that damages were determined from the face of that
    sponsorship agreement.
    In the alternative, JGM maintains that the question at issue in this
    case—whether a judgment is subject to garnishment pending appeal—is
    unsettled and appropriate for certification to the Texas Supreme Court under
    Texas Rule of Appellate Procedure 58.1. First, JGM urges this court to certify
    the question of whether Waples still reflects Texas law. Second, JGM argues
    that even if Waples remains good law, certification is still appropriate
    because it is unclear whether Waples’s holding applies to liquidated claims.
    IV.
    T-Mobile responds that (1) Waples is still controlling; (2) the damages
    in question here are unliquidated; and (3) under Texas Rule of Civil
    Procedure 657, a judgment may not be garnished when a supersedeas bond
    has been filed. 2
    2 T-Mobile also asserts that JGM’s writ of garnishment should be dismissed on the
    technicality that the judgment against T-Mobile was never domesticated in Texas. That
    argument appears to be misplaced. Texas law requires the judgment creditor to domesticate
    a judgment; no such requirement is placed on one seeking to garnish the judgment. See Tex.
    Civ. Prac. & Rem. Code Ann. § 35.004(a)–(c) (listing documents that judgment creditor must
    file with court). Without a Texas statute imposing a requirement to domesticate judgments
    on garnishors, a garnishee is subject to garnishment wherever he is subject to a court’s in
    personam jurisdiction. See FG 
    Hemisphere, 455 F.3d at 585
    (“To say that ‘a debt follows the
    debtor’ is simply to say that intangible property has no actual situs, and a debt may be sued
    on wherever there is jurisdiction over the debtor.”) (citation and internal quotation marks
    omitted); Steele v. G.D. Searle & Co., 
    483 F.2d 339
    , 345 (5th Cir. 1973) (noting that Harris
    v. Balk, 
    198 U.S. 215
    (1905), held that state court had jurisdiction in garnishment
    proceeding based on in personam jurisdiction over garnishee).
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    T-Mobile argues that Waples relied on authority in addition to Jackson
    for its proposition that judgments may not be garnished while pending
    appeal. According to T-Mobile, Waples relied on, among other cases,
    Hochstadler v. Sam, 
    11 S.W. 408
    (Tex. 1889), which is still good law in Texas.
    See 21 Turtle Creek Square, Ltd. v. N.Y. State Teachers’ Ret. Sys., 
    425 F.2d 1366
    , 1369 (5th Cir. 1970) (discussing with approval Hochstadler’s rule that
    attachment of judgment will not lie when damages are uncertain).
    T-Mobile further argues that courts have continued to apply Waples
    long after Scurlock Oil overruled Jackson. See, e.g., 
    Af-Cap, 462 F.3d at 424
    ;
    Palandjoglou v. United Nat’l Ins. Co., 
    821 F. Supp. 1179
    , 1186 n.6 (S.D. Tex.
    1993); In re Tex. Am. Express, Inc., 
    190 S.W.3d 720
    , 725 (Tex. App.—Dallas
    2005, no pet.); Mun. Valve & Equip. Co. v. John T. Jones Constr. Co., No. 05-
    98-01863-CV, 2002 Tex. App. LEXIS 4303, at *9 (Tex. App.—Dallas June 17,
    2002, no pet.) (not designated for publication); Fogel v. White, 
    745 S.W.2d 444
    , 446 (Tex. App.—Houston [14th Dist.] 1988, orig. proceeding [leave
    denied]). According to T-Mobile, in Palandjoglou v. United National
    Insurance Co., the United States District Court for the Southern District of
    Texas rejected the argument JGM makes here, specifically noting that
    Waples continues to 
    apply. 821 F. Supp. at 1186
    n.6.
    Additionally,   T-Mobile   argues     that    a   claim    is   liquidated   for
    garnishment purposes under Texas law only if it (1) is not contingent, (2) is
    capable of being definitively ascertained by the usual means of evidence, and
    (3) does not rest in the discretion of the finder of fact. T-Mobile characterizes
    the judgment against it as unliquidated because it was determined by the aid
    of the finder of fact and not merely from the sponsorship agreement alone.
    According to T-Mobile, other indications of the judgment’s unliquidated
    nature include the fact that VICI itself has cross-appealed the judgment on
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    grounds that the District Court of Delaware incorrectly calculated the
    damages.
    Finally, T-Mobile contends that the Delaware judgment may not be
    garnished regardless of whether the claims are for liquidated or unliquidated
    damages. Citing Texas Rule of Civil Procedure 657, which provides that a
    judgment “shall be deemed final and subsisting for the purpose of
    garnishment from and after the date it is signed, unless a supersedeas bond
    shall have been approved and filed,” T-Mobile argues that the Delaware
    judgment is not final because T-Mobile has posted a supersedeas bond.
    V.
    As a preliminary matter, it appears that this court should apply Texas
    law to determine whether the judgment may be garnished. 28 U.S.C. § 1936
    and Federal Rules of Civil Procedure 62 and 69 all address execution of out-
    of-state judgments in United States district courts. There is no clear
    precedent in this circuit on whether state law or federal law controls the
    procedure of executing a judgment or garnishment in a diversity case on
    appeal. However, this court applied Texas state law in a garnishment
    proceeding in Af-Cap, Inc. v. Republic of Congo, a case that had been removed
    from Texas state court to federal court. In Af-Cap, this court noted, “[g]iven
    that this is a diversity case, this Court must apply the law of 
    Texas.” 462 F.3d at 423
    . 3 When resolving issues of state law in diversity cases, such as
    this case, final decisions of that state’s supreme court control. Westlake
    Petrochems., L.L.C. v. United Polychem, Inc., 
    688 F.3d 232
    , 238 n.5 (5th Cir.
    2012).
    While JGM contends that Waples’s rule that a judgment is final for
    garnishment purposes only when “it can neither be set aside nor reversed
    3   Moreover, the court notes that the parties do not dispute that Texas law applies.
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    upon appeal” does not apply here because it filed its writ of garnishment
    prior to T-Mobile’s perfection of an appeal, that does not make a difference.
    First, this was the exact scenario in Waples, in which Waples-Platter filed its
    second writ of garnishment after Downtain secured judgment against Texas
    & Pacific Railway but before Texas & Pacific Railway had taken an appeal.
    See 
    Waples, 68 S.W. at 265
    .
    Moreover, a survey of the case law indicates that Waples remains good
    law despite JGM’s arguments to the contrary. The Texas appellate courts, by
    and large, continue to follow Waples. 4 See, e.g., In re Tex. Am. 
    Express, 190 S.W.3d at 725
    ; 
    Fogel, 745 S.W.2d at 446
    . This court, for its part, appears to
    accept the continuing validity of Waples. Although this court has not
    addressed the question at issue here, as recently as 2006—well after Scurlock
    Oil was decided in 1986—this court noted in a parenthetical that under
    Waples, “an unliquidated claim for breach of contract cannot be garnished.”
    
    Af-Cap, 462 F.3d at 424
    . 5
    4 The one court that has held Waples to be overturned is Industrial Indemnity Co. v.
    Texas American Bank-Riverside, 
    784 S.W.2d 114
    (Tex. App.—Fort Worth 1990, no writ). It
    did not rely on Scurlock Oil Co. v. Smithwick for that holding, which is the primary
    authority JGM cites for its proposition that Waples is no longer good law. Rather the court
    in Industrial Indemnity concluded that Waples had been overturned because of the 1978
    amendment to Texas Rule of Civil Procedure 661, which reads, “[The garnishee is] further
    commanded NOT to pay to defendant any debt or to deliver to him any effects, pending
    further order of this court.” Tex. R. Civ. P. 661. However, as explained in Palandjoglou, a
    case decided by the United States District Court for the Southern District of Texas, if Rule
    661 was intended to “eradicate nearly one hundred years of settled garnishment
    jurisprudence,” then that intent would have been noted or at least met with greater fanfare
    than a single sentence added to the end of the 
    text. 821 F. Supp. at 1186
    n.6. In amending
    Rule 661, the Texas Supreme Court likely sought to do no more than incorporate into that
    Rule the longstanding principle that “a garnishee may not prejudice the rights of the
    garnishor by transferring any of the indebtedness belonging to the defendant after service
    of process and during the pendency of the suit.” 
    Id. The court
    in Af-Cap neither faced nor addressed the question of garnishing a
    5
    judgment on appeal and did not touch on Waples beyond this oblique reference to it in
    expounding Texas law.
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    JGM is misguided in its belief that Jackson was indispensable to
    Waples. While JGM is correct that Jackson was the only authority cited by
    the Texas Supreme Court in the portion of the opinion addressing the
    question of whether judgments may be garnished pending appeal, the Waples
    court incorporated reasoning from an earlier portion of its opinion addressing
    attachments when resolving the garnishment issue. The court saw the
    analyses of attachment and garnishment as intertwined given that both deal
    with a creditor reaching property—property in the possession of the
    garnishee in the case of garnishment and property in the possession of the
    judgment debtor in the case of attachment. See 
    Waples, 68 S.W. at 266
    (“If
    the plaintiff in such a case is not permitted to make oath to the amount of his
    demand and to sue out an attachment, for a stronger reason, we think, a
    garnishee should not be required to answer as to an indebtedness, when it is
    impossible for him to ascertain the amount thereof from the terms of the
    contract and the fact of the breach.”).
    Furthermore, contrary to what JGM would have this court believe,
    Waples’s holding on garnishment stems not so much from Jackson as from
    the Waples court’s view on attachment and fairness. The court found it
    “unreasonable that [a defendant] should be compelled to swear to the amount
    of a demand which is not capable of being ascertained by a calculation made
    from data furnished by the contract.” 
    Waples, 68 S.W. at 266
    . Waples’s
    holding had little to do with Jackson except as providing one further reason
    why it made sense to hold that judgments were not subject to garnishment
    until after appeal.
    It does not follow that the Texas Supreme Court’s subsequent rejection
    of its ruling on res judicata in Jackson—that judgments were not final for the
    purposes of res judicata pending appeal—implied abandonment of Waples. An
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    examination of Scurlock Oil, the case cited as overruling Jackson, fails to
    reveal any intent by the Texas Supreme Court to overturn Waples.
    In Scurlock Oil, the Texas Supreme Court overruled Jackson’s rule
    regarding res judicata because “relitigating already decided issues” creates
    the possibility of inconsistent results and wastes judicial 
    resources. 724 S.W. at 6
    . The policy concerns animating Scurlock Oil—inconsistency and
    inefficiency—are particularly salient in the context of res judicata. While
    JGM claims that allowing judgments to go ungarnished presents the same
    issues of inconsistency and inefficiency, the risk of inconsistency and
    inefficiency in the garnishment context is not as high as JGM suggests.
    Multiple garnishment filings are far less wasteful than multiple trials.
    Moreover, it would seem that premature garnishment proceedings would not
    spark the needless litigation which, in large part, motivated the Texas
    Supreme Court’s holding in Scurlock Oil. On the other hand, premature
    garnishment, in which property or money passes to a party before legal
    proceedings have terminated, could very well fan additional disputes. JGM
    offers no cogent explanation of how Waples cuts against either Scurlock Oil or
    the policy goals it articulated.
    As the preceding discussion explains, Waples is controlling law.
    Moreover, Waples resolves the central question in this case; in fact, Waples is
    directly on point. Thus, there is no need for this court to certify to the Texas
    Supreme Court the question of whether Waples applies to liquidated claims
    or whether Waples remains good law. Accordingly, under Rule 58.1,
    certification of the question in this case, whether a judgment on appeal is
    subject to garnishment, is not warranted.
    CONCLUSION
    For the foregoing reasons, the court affirms the decision of the district
    court.
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