Roger Tarrant, Denise Tarrant, Justin Tarrant and the D.A. Tarrant Irrevocable Trust v. Daniel Scarbrough ( 2017 )


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  •                                                                              ACCEPTED
    12-17-00125-CV
    TWELFTH COURT OF APPEALS
    TYLER, TEXAS
    7/31/2017 3:13 PM
    Pam Estes
    CLERK
    No. 12-17-00125-CV
    _____________                        FILED IN
    12th COURT OF APPEALS
    TYLER, TEXAS
    7/31/2017 3:13:07 PM
    In the Twelfth Court of Appeals                PAM ESTES
    Tyler, Texas                             Clerk
    _____________
    Roger Tarrant, et al,
    Appellants
    v.
    Daniel Scarbrough,
    Appellee.
    _____________
    Appellants’ Brief
    _____________
    Gregory D. Smith                      Jim Echols
    Bar No. 18600600                      Bar No. 06391500
    SMITH LEGAL PLLC                      SAUNDERS, SCHMIDT
    110 N. College Ave., Suite 1120              & ECHOLS, P. C.
    Tyler, TX 75702                       202 W. Erwin Street, Suite 200
    Telephone: (903) 630-7165             Tyler, TX 75702
    Facsimile: (903) 609-3077             Telephone: (903) 595-3791
    greg@smithlegaltx.com                 Facsimile: (903) 595-3796
    j.m.echols@att.net
    Attorneys for Appellants
    Identity of Parties
    Appellants:               Roger Tarrant
    Denise Tarrant
    Justin Tarrant
    D. A. Tarrant Irrevocable Trust
    Counsel for Appellants:   Gregory D. Smith
    Bar No. 18600600
    SMITH LEGAL PLLC
    110 N. College Ave., Suite 1120
    Tyler, TX 75702
    Telephone: (903) 630-7165
    Facsimile: (903) 609-3077
    greg@smithlegaltx.com
    Jim Echols
    Bar No. 06391500
    SAUNDERS, SCHMIDT & ECHOLS, P.C.
    202 W. Erwin Street, Suite 200
    Tyler, TX 75702
    Telephone: (903) 595-3791
    Facsimile: (903) 595-3796
    j.m.echols@att.net
    Appellee-Plaintiff:       Daniel Scarbrough
    Counsel for Appellee:     Jeffrey L. Coe
    Bar No. 24001902
    1000 N. Church St.
    P. O. Box 1157
    Palestine, TX 75082-1157
    (903) 723-0331
    (888) 651-6851 (fax)
    jeff@coelawfirm.com
    Contents
    Table of Authorities                                                                 ii
    Statement of the Case                                                                1
    Statement of Facts                                                                   2
    Issues                                                                               5
    Summary of Argument                                                                  6
    Argument:
    I.        Because Scarbrough failed to prove his case, the post-answer
    default judgment should be reversed and the cause remanded
    for a new trial.                                                        7
    A. Scarbrough needed to present legally- and factually-sufficient
    evidence proving the elements of a fraudulent transfer.                 8
    B. Scarbrough failed to prove the fraudulent-transfer elements,
    but instead testified to legal “positions” and speculative “beliefs.”   9
    II.       Because the Tarrants lacked notice of the actual trial, due process     13
    requires a new trial.
    III.      Because the record omits to prove adequate notice of even the
    initial setting, the Tarrants have been deprived of their ability to
    show harm.                                                              17
    Conclusion and Prayer                                                                19
    Certificate of Service                                                               21
    Certificate of Compliance                                                            21
    Appendices:
    A. Judgment
    B. Notice of Setting
    i
    Authorities
    In re $475,001.16, 
    96 S.W.3d 625
    (Tex. App.—Houston [1st Dist.]
    2002, no pet.)                                                      15
    Armstrong v. Manzo, 
    380 U.S. 545
    (1965)                                     17
    Bennett v. McDaniel, 
    295 S.W.3d 644
    (Tex. 2009)                             13
    City of Keller v. Wilson, 
    168 S.W.2d 802
    (Tex. 2005)                        8
    City of San Antonio v. Pollock, 
    284 S.W.3d 809
    (Tex. 2009)                  13
    Continental Coffee Prods. Co. v. Cazarez, 
    937 S.W.2d 444
    (Tex. 1996)        13
    Cox v. Cox, 
    298 S.W.3d 726
    (Tex. App.—Austin 2009, no pet.)                 19
    Davis v. Berger, 2000 Tex. App. LEXIS 448 (Tex. App.—Dallas
    2000, no pet.)                                                       7
    Dolgencorp of Tex., Inc. v. Lerma, 
    288 S.W.3d 922
    (Tex. 2009)               16
    Ed Rachal Found. v. D’Unger, 
    117 S.W.3d 348
          (Tex. App.—Corpus Christi 2003)                                       13
    Green v. McAdams, 
    857 S.W.2d 816
           (Tex. App.—Houston [1st Dist.] 1993, no writ)                        14
    LBL Oil Co. v. Int’l Power Servs., Inc., 
    777 S.W.2d 390
    (Tex. 1989)         13
    Lopez v. Lopez, 
    757 S.W.2d 721
    (Tex. 1988)                                  15
    Maldonado v. Puente, 
    694 S.W.2d 86
          (Tex. App.—San Antonio 1985, no writ)                                 7
    Maritime Overseas Corp. v. Ellis, 
    971 S.W.2d 402
    (Tex. 1998)                8
    Mathis v. Lockwood, 
    166 S.W.3d 743
    (Tex. 2005) (per curiam)                 18
    Naan Props., LLC v. Affordable Power, LP, 2012 Tex. App. LEXIS 271
    (Tex. App.—Houston [1st Dist.] 2012, no pet)                          19
    Paradigm Oil, Inc. v. Retamco Operating, Inc., 
    372 S.W.3d 177
    (Tex. 2012)   7
    Peralta v. Heights Medical Center, Inc., 
    485 U.S. 80
    (1988)                 15
    Roberson v. Robinson, 
    768 S.W.2d 280
    (Tex. 1989)                            7
    ii
    Sammons v. Elder, 
    940 S.W.2d 276
    (Tex. App.—Waco 1997, writ denied)   7
    Tilton v. Marshall, 
    925 S.W.2d 672
    (Tex. 1996)                        
    8 Will. v
    . Houston Plants & Garden World, Inc., 
    508 B.R. 11
           (S. D. Tex. 2014)                                              
    10 Wilson v
    . Indus. Leasing Corp., 
    689 S.W.2d 496
           (Tex. App.—Houston [1st Dist.] 1985, no writ)                  18
    Worthen v. Glatzer, 1999 Tex. App. LEXIS 1913
    (Tex. App.—Dallas 1999, no writ)                                14
    TEX. BUS. & COM. CODE ANN. § 24.005                                   10
    TEX. BUS. & COM. CODE ANN. § 24.005(a)(1)                             9
    TEX. LAWYER’S CREED - A MANDATE FOR PROFESSIONALISM, III (11)         16
    TEX. R. CIV. P. 245                                                   14
    Calvert, “No Evidence” and “Insufficient Evidence” Points of Error,
    38 TEX. L. REV. 361 (1960)                                      12
    iii
    To the Honorable Court of Appeals:
    The judgment below cannot stand because, first, it is not supported by factually
    sufficient proof and, second, the defendants did not have adequate and reasonable
    notice of the trial session, in violation of due process.
    Statement of the Case
    Nature of the Case   Suit to set aside a real-property conveyance. Plaintiff Scarbrough
    alleged it was a fraudulent transfer as defined in the Texas Uniform
    Fraudulent Transfer Act.
    Trial Court          Honorable Mark Calhoon, 3rd Judicial District Court
    Course of Proceedings Bench trial. A hearing was set for 11 a.m. on January 6. The
    defendants, who had previously answered, CR 39, did not appear.
    RR 4. Nor did plaintiff’s counsel. 
    Id. The court
    thus reset the case
    for a “prove up” trial, later that day, at which plaintiff’s counsel
    appeared by telephone. 
    Id. After a
    trial spanning all of ten reported
    pages (including testimony on remedies and attorney’s fees), RR 4-
    13, the trial court entered a “default judgment” finding a fraudulent
    transfer and setting aside the challenged conveyance. App. A.
    While the judgment recites that the defendants were “provided due
    notice,” App. A, the trial transcript shows only that the court took
    judicial notice of its file, which reflected no attempt at notifying
    defense counsel of the prove-up hearing or offer to let him attend
    that hearing by telephone.
    Upon learning of the judgment, the defendants (collectively, the
    Tarrants) filed a motion for new trial broadly asserting lack of
    notice and requesting a hearing. CR 65-66. The motion was
    overruled by operation of law, without a hearing.
    1
    Statement of Facts
    General Background. Daniel Scarbrough is an attorney practicing in Anderson
    County. Roger and Denise Tarrant, who live in Anderson County, hired Mr. Scarbrough
    to defend one of their sons against a felony criminal case. Scarbrough was paid a
    substantial sum of money. He won an acquittal. Afterwards, Scarbrough and Mr. and
    Mrs. Tarrant disputed whether Scarbrough was owed additional monies for his legal
    work.
    Scarbrough sued to collect the disputed fees. As that collection suit was
    approaching trial, Roger and Denise, needing funds for their defense, entered a
    transaction wherein their adult son, Justin (not the son whom Scarbrough had defended
    against the criminal charges) would borrow funds from an existing spendthrift family
    trust established by Denise’s parents and would buy Roger’s real property. The sales
    consideration, as recited in the warranty deed, included not only the cash proceeds of
    this loan but Justin’s assumption of two existing loans against the property and his
    agreement to indemnify Roger against any claims made on the assumed loans. CR 43-
    44. The sale closed after the verdict was entered in Scarbrough’s collection suit.
    (Scarbrough recovered about $115,000 in that suit, including the debt and attorney’s
    fees. RR Ex. A.) Scarbrough then sued Roger, Denise, Justin and the family trust (the
    D. A. Tarrant Irrevocable Trust), to set aside the conveyance.
    The Evidence at Trial. The evidence, fairly stated, was that Roger Tarrant
    owned an undivided interest in the tracts of land described in Trial Exhibit B, a warranty
    2
    deed. RR 7. On November 21, 2014, he deeded that land to Justin, who signed a deed
    of trust in favor of the D. A. Tarrant Irrevocable Trust. RR 8. The deed of trust indicates
    that Justin borrowed $52,325 from the trust. RR 8.
    At this point in the trial—page 8 of the transcript—the probative evidence stops
    and surmise take over. The remaining material testimony was as follows:
    Q.    Now, is it your position toda y, that the property described in Plaintiff’s
    Exhibit B, was property that was fraudulently transferred with the intent
    to hinder, delay, or defraud you in the judgment that you obtained
    …previously …?
    A.     Yes, I do. [sic]
    Q.    Do you believe that transfer … would be something that constitutes what
    we typically call, somebody that’s an insider? That their son Justin
    possessed special knowledge or information being their son …?
    A.     Yes, I do.
    Q.    And is it your position that apparently this trust that – the trust
    document isn’t of record , but that this trust was an alter ego of Denise
    A. Tarrant or Roger Tarrant …?
    A.     Yes, I do. [sic]
    Q.    Do you believe that the Defendants had actual knowledge of your claim
    against them prior to the transfer?
    A.     Absolutely.
    ...
    Q.    Do you believe that Justin Tarrant and Denise and Roger Tarrant have
    engaged in a conspiracy among themselves in this attempt to damage you?
    A.     Yes, I do.
    Q.     Are you asking that this transaction be set aside in its entirety …?
    A.     Yes.
    3
    Q.    And did you have to retain me to file this action …?
    A.    Yes.
    Q.    Are you asking for reasonable and necessary attorney’s fees?
    A.    I am. RR 8-11 (emphasis added).
    The only other trial proof was counsel’s testimony as to attorney’s fees and brief
    follow-up testimony about the requested remedies.
    4
    Issues
    The Failure of Proof at Trial
    1.
    Where the defendant has answered, the plaintiff must prove his claims at trial,
    even when the defendant fails to attend. Scarbrough thus needed to prove the elements
    of fraudulent transfer—that the transfer was made either with “actual intent to hinder”
    collection or “without receiving a reasonably equivalent value in exchange.” Did
    Scarbrough present factually-sufficient evidence to support the trial court’s implied
    finding on either such element? Is there even legally-sufficient evidence of this? And is
    there legally and factually-sufficient evidence of Scarbrough’s derivative claim for
    conspiracy?
    The Failure of Due Process: A Lack
    of Proper Notice of the Trial Hearing
    2.
    Due process requires that an answering defendant have reasonable notice of trial.
    Here, a hearing was set for 11 a.m. January 6. The Tarrants failed to appear. But so did
    Scarbrough’s counsel. The district court thus reset the case for “prove up” at a 1:30
    p.m. session of court, which Scarbrough’s counsel attended by telephone. There was
    no notice to the Tarrants of the prove-up trial. Does due process require remand for a
    new trial that all parties are invited to attend?
    3.
    The clerk’s file includes a “notice of setting” (for the initial, aborted 11 a.m.
    hearing) with a hearsay notation “CC: Jeffrey Coe; Jim Echols.” Neither Mr. Coe nor
    Mr. Echols appeared at the 11 a.m. session of court. And neither the district clerk’s file
    nor the trial record contains any indication that the filed notice of setting actually was
    sent. Is a remand required because the record does not prove notice even of the initial,
    aborted setting?
    5
    Summary of Argument
    Because the Tarrants timely answered Scarbrough’s collection suit with a general
    denial, which remained effective at all times, Scarbrough could not win by “default” but
    had to prove all elements of liability through probative evidence admitted at trial the
    same as if the Tarrants had been present. Scarbrough did not do this. There was a prove-
    up hearing. But the evidence did not prove a fraudulent conveyance. On critical
    elements of his fraudulent-transfer theory, Scarbrough offered only surmise—either an
    asserted conclusory “position” or a subjective and speculative “belief.” Such positions
    and beliefs are non-probative. Consequently, there was factually-insufficient proof on
    the essential elements of a fraudulent transfer, requiring that the judgment below be
    reversed and the cause remanded for a new trial.
    Alternatively, due process requires remand for a new trial, because the record
    lacks the necessary notice to the Tarrants of the prove-up hearing. Here, there are two
    bases for finding such a failure of notice. First, there was no attempt to notify the
    Tarrants of the actual, rescheduled trial. And second, there is no evidence of proper
    notice even of the initial, aborted setting. On motion for new trial, the Tarrants broadly
    challenged notice. The lack of factually sufficient evidence establishing any such notice
    relieved the Tarrants of any burden to prove the other Craddock requirements, and now
    requires reversal and remand for a new trial.
    6
    Argument
    I.     Because Scarbrough failed to prove his case, the post-answer default
    judgment should be reversed and the cause remanded for a new trial.
    This appeal challenges what the courts commonly call a post-answer “default.”
    But that term is something of a misnomer: when a defendant answers suit, he “preserves
    any issues he has properly joined by his answer.” Maldonado v. Puente, 
    694 S.W.2d 86
    , 91
    (Tex. App.—San Antonio 1985, no writ). A general denial thus tasks the plaintiff with
    proving each element of his claim by probative, factually-sufficient evidence—even
    when the defendant is noticed for trial but does not appear. Paradigm Oil, Inc. v. Retamco
    Operating, Inc., 
    372 S.W.3d 177
    , 183 (Tex. 2012).
    Here, trial was to the court, RR 4, which made no formal findings of fact. On
    appeal, this Court infers all factual findings necessary to support the judgment, but only
    insofar as there is factually-sufficient evidence to sustain them. Roberson v. Robinson, 
    768 S.W.2d 280
    , 281 (Tex. 1989). In appeal from a bench trial, legal-sufficiency and factual-
    sufficiency attacks can be raised for the first time on appeal. TEX. R. APP. P. 33.1 (d); see
    Sammons v. Elder, 
    940 S.W.2d 276
    , 279 (Tex. App.—Waco 1997, writ denied); Davis v.
    Berger, 2000 Tex. App. LEXIS 448, *3 (Tex. App.—Dallas 2000, no pet.).
    The Tarrants seek factual- and legal-sufficiency reviews of the evidence
    supporting the elements of Scarbrough’s fraudulent-transfer and conspiracy claims. In
    a factual-sufficiency review, this Court considers all the evidence and may reverse if the
    judgment is so against the great weight of the evidence that it is clearly wrong or
    7
    manifestly unjust. Maritime Overseas Corp. v. Ellis, 
    971 S.W.2d 402
    , 406-07 (Tex. 1998).
    In a legal sufficiency review the court considers the evidence in the light most favorable
    to the finding, crediting favorable evidence if reasonable jurors could and disregarding
    contrary evidence unless reasonable jurors could not. City of Keller v. Wilson, 
    168 S.W.2d 802
    , 822 (Tex. 2005).
    A. Scarbrough needed to present legally- and factually-sufficient
    evidence proving the elements of a fraudulent transfer.
    Scarbrough’s suit raises a claim that the Tarrants made a fraudulent transfer of
    Roger Tarrant’s real property and it seeks to broaden the claim’s reach through the
    allegation of a conspiracy. CR 4, 5-7. The conspiracy allegation, being derivative, will
    not sustain a judgment if the claim for a fraudulent transfer fails. See Tilton v. Marshall,
    
    925 S.W.2d 672
    , 680-81 (Tex. 1996) (liability for conspiracy depends on participation
    in some underlying tort). To succeed on the fraudulent-transfer claim, which invokes
    the Texas Uniform Fraudulent Transfer Act (TUFTA), Scarbrough needed to prove
    that the conveyance was made either
    (a)    “with actual intent to hinder, delay, or defraud” a creditor or
    (b)    “without receiving a reasonably equivalent value in exchange” when the
    debtor:
    (i)    “was engaged or was about to engage in a business or a transaction
    for which the remaining assets of the debtor were unreasonably
    small in relation to the business or transaction” or
    (ii)   “intended to incur, or believed or reasonably should have believed
    that the debtor would incur, debts beyond the debtor’s ability to
    8
    pay as they became due.” TEX. BUS. & COM. CODE ANN. §
    24.005(a)(1) & (2).
    Scarbrough at trial made no adequate showing or either an “actual intent to hinder” his
    judgment’s collection or the absence of “a reasonably equivalent value in exchange.”
    B. Scarbrough failed to prove the fraudulent-transfer elements, but
    instead testified to legal “positions” and speculative “beliefs.”
    Nowhere in the civil jurisprudence is the need of probative evidence greater than
    with matters affecting ownership of Texas real property. Certainly, an otherwise valid
    real-property conveyance should not be invalidated in the absence of probative and
    factually sufficient evidence of some basis for doing so. This is where Scarbrough’s
    judgment fails.
    The entire trial record spans ten pages. Only six transcript pages address liability.
    RR 5-10. The testimony there is probative only of the facts that:
    • Scarbrough obtained a judgment against Roger and Diane Tarrant in a prior
    proceeding. RR 5-6; PX A.
    • At about that time, Roger signed a warranty deed conveying certain items of real
    property to Justin Tarrant. RR 7; PX B.
    • The deed recites that it was given in exchange for no less than five items of
    consideration: (1) “[c]ash,” (2) “a note … in the principal amount of FIFTY
    TWO THOUSAND THREE HUNDRED TWENTY FIVE AND NO/100
    DOLLARS,” secured by a vendor’s lien and a deed of trust, (3) assumption of a
    first-lien note executed by Roger Tarrant in the principal amount of $40,000, (4)
    assumption of a second-lien note, also executed by Roger Tarrant, in the
    principal amount of $15,000, and (5) promises to perform Roger Tarrant’s duties
    under the deeds of trust associated with the first- and second-lien notes being
    9
    assumed and to indemnify Roger Tarrant from any loss associated with a breach
    or default under the first- or second-lien deeds of trust. PX B.
    • The defendants had actual knowledge of Scarbrough’s claim before the
    conveyance. RR 9.
    • The Tarrants’ responses to interrogatories in aid of collection indicated they had
    no substantial assets. 
    Id. This proof
    is legally insufficient to sustain an implied finding either that the
    Tarrants entered the conveyance with actual intent to hinder Scarbrough or that they
    did not exchange reasonably equivalent value. It at most shows an approximate
    correlation in time between the collection suit’s disposition and the conveyance, which
    was itself a legitimate means to finance the costs incurred in defending the collection
    suit—costs made necessary by Scarbrough’s suit. Because it is at least equally consistent
    with the lack of actual intent to hinder as with its converse, this correlation in time is
    no evidence from which to infer intent. It likewise is no evidence of the lack of an
    equivalent-value exchange. Indeed, there is no evidence valuing the land Roger sold.
    The only evidence probative of value is evidence of the positive value Justin gave in
    exchange.
    Here, it could be tempting to infer intent to hinder from the fact the land was
    conveyed to an apparent insider, which is a factor the courts may consider when
    evaluating a conveyance for intent to defraud. TEX. BUS. & COM. CODE ANN. § 24.005.
    But the law is clear that this factor standing alone is never enough to justify judgment
    that a conveyance is fraudulent. Williams v. Houston Plants & Garden World, Inc., 
    508 Barb. 10
    R. 11, 18 (S. D. Tex. 2014) (“Williams has shown that a single badge of fraud is
    present—that the transfers were made to insiders. ‘As a matter of law, a finding of
    fraudulent intent cannot properly be inferred from the existence of just one badge of
    fraud.’”). This is doubly true in our case, given that the deed recites substantial
    consideration from Justin and is otherwise silent on the value of the real property. The
    only probative inference in such a situation is that the consideration given is reasonable
    equivalent to that received.
    The evidence discussed above is of course also factually insufficient to sustain
    any implied finding of an actual intent to hinder or of the lack of a reasonably equivalent
    value given in exchange. These facts, which do not sustain a probative inference of
    intent to hinder or lack of equivalent value even when considered in isolation, fall
    absolutely flat in the face of Justin’s substantial consideration—including cash, a
    $52,000 note, and assumption of two prior liens in a total principal amount of
    $55,000—which strongly tends to negate any actual intent to hinder and lack of
    reasonably equivalent consideration. Absent further probative evidence, the correlation
    in time of the property’s sale to an apparent insider is thus legally and factually
    insufficient. And there is no other probative evidence.
    The remainder of the record respecting liability is non-probative and thus
    amounts to nothing. It consists only in Scarbrough’s self-serving surmise and bare
    conclusions. As stated earlier, he asserted that:
    11
    • It was his “position” that the property “was fraudulently transferred with the
    intent to hinder, delay, or defraud” him. RR 8-9.
    • He “believe[d]” the transfer was “an attempt to prevent” him from seeking to
    collect on his judgment from the transferred property. 
    Id. at 9.
    • He “believe[d]” Justin Tarrant would be “an insider” and would have had some
    unidentified “special knowledge or information … relating to the existence of
    the property.” 
    Id. • It
    was his “position that apparently” the trust that loaned Justin a portion of the
    purchase money—the D. A. Tarrant Irrevocable Trust—“was an alter ego of
    Denise A. Tarrant or Roger Tarrant.” 
    Id. • He
    “believe[d]” the transfer caused him harm because the transferred property
    “was one of the few … tangible assets that were available to collect.” 
    Id. at 10.
    • He “believe[d]” the Tarrants had conspired in an attempt to damage him. 
    Id. To qualify
    as probative of a fact, an item of evidence must support an inference
    that the questioned fact is more likely true than not. See Calvert, 38 TEX. L. REV. “No
    Evidence” and “Insufficient Evidence” Points of Error, 38 TEX. L. REV. 361, 362-63 (1960).
    Scarbrough’s “positions” and interspersed speculative personal “beliefs” will sustain no
    such inference of fact, either of actual intent to hinder or transferring an asset without
    receiving a reasonably equivalent value in exchange. TEX. BUS. & COM. CODE ANN. §
    24.005(a). They are as a matter of law simply not probative as evidence.
    A party’s “positions” are not evidence but are mere assertions or conclusions—
    items to be proved by other facts. So it is with a person’s beliefs: they, too are not factual
    but are mere conclusory assertions of what the party wishes or surmises the facts to be.
    12
    They have zero probative value and thus will not support a judgment—even when
    admitted at trial without objection. City of San Antonio v. Pollock, 
    284 S.W.3d 809
    , 816
    (Tex. 2009) (conclusory allegations have no probative value); Continental Coffee Prods. Co.
    v. Cazarez, 
    937 S.W.2d 444
    , 452 (Tex. 1996) (employee’s subjective beliefs “’are no more
    than conclusions’ and do not raise a fact issue”); accord Ed Rachal Found. v. D’Unger, 
    117 S.W.3d 348
    , 355 (Tex. App.—Corpus Christi 2003), rev’d in part on other grounds, 
    203 S.W.3d 330
    (Tex. 2006); see generally Calvert, 38 TEX. L. REV. at 362-63.
    Any belief that the transfer was intended to hinder the collectability of
    Scarbrough’s judgment is speculative, pure and simple. It would be equally speculative
    to conclude that the property was not given in exchange for consideration of
    “reasonably equivalent value.”
    Because there is factually insufficient evidence (and likely legally insufficient
    evidence) to sustain implied findings of the fraudulent-transfer elements, the judgment
    below should be reversed and the cause remanded for a new trial. Bennett v. McDaniel,
    
    295 S.W.3d 644
    , 645 (Tex. 2009) (when the evidence at trial is legally insufficient to
    sustain post-answer default judgment, the proper remedy is to remand for a new trial,
    not to render).
    II.    Because the Tarrants lacked notice of the actual trial, due process
    requires a new trial.
    Due process requires that every party that has appeared in the case receive notice
    of the trial. See LBL Oil Co. v. Int’l Power Servs., Inc., 
    777 S.W.2d 390
    , 390-91 (Tex. 1989).
    13
    That did not happen here. A trial was scheduled for 11 a.m. on January 6. But when the
    case was called that morning, the trial could not proceed, because neither side was ready.
    Neither Scarbrough’s counsel nor anyone representing the defendants was present. RR
    4-5. So the trial court reset trial for a time when Scarbrough’s counsel could
    participate—a 1:30 p.m. session of court, which Scarbrough’s counsel could attend by
    telephone. RR 4. The Tarrants were not present at this trial—they were given no chance
    to participate. As the trial record indicates, no one told them or their counsel of the
    rescheduled trial or of the opportunity to appear by telephone. 
    Id. Only Scarbrough
    and
    his counsel received that privilege and accommodation. This failure of notice and one-
    way accommodation of only Scarbrough’s counsel, with no notice to the Tarrants’
    counsel, obviously violated the Tarrants’ due-process rights.
    The clear rule is that all parties who have answered are entitled to 45 days’ notice
    of an initial trial setting, and are entitled to reasonable notice of any further or
    rescheduled trial setting or merits hearing thereafter, both as a matter of Texas
    procedure, TEX. R. CIV. P. 245, and of due process under the U. S. Constitution’s
    Fourteenth Amendment. See LBL Oil 
    Co., 777 S.W.2d at 390-91
    . Notice merely of an
    initial setting does not suffice—not even when the party has failed to appear at the prior
    setting. See Green v. McAdams, 
    857 S.W.2d 816
    , 819 (Tex. App.—Houston [1st Dist.]
    1993, no writ) (rejecting argument that notice of initial setting was “constructive notice”
    of the reset trial session); accord Worthen v. Glatzer, 1999 Tex. App. LEXIS 1913, *8 (Tex.
    App.—Dallas 1999, no writ). A party who has answered merits reasonable notice of the
    14
    actual default-judgment hearing. In re $475,001.16, 
    96 S.W.3d 625
    , 627 (Tex. App.—
    Houston [1st Dist.] 2002, no pet.); 
    Green, 857 S.W.2d at 819
    (reversing post-answer
    default judgment because defendants, who failed to appear at initial setting after
    receiving dismissal notice, were entitled to reasonable notice of rescheduled trial date);
    Worthen, 1999 Tex. App. LEXIS 1913 at *8 (where plaintiff requested a default
    judgment at the noticed September 9 setting but there was no notice given of the
    September 13 setting at which the default judgment was rendered, there was a fatal lack
    of notice); 
    Maldonado, 694 S.W.2d at 87
    (defendant’s failure to appear at noticed jury
    selection time was not a failure to appear for trial, did not dispense with requirement
    that defendant be given notice of the merits trial, and did not support entry of post-
    answer default judgment). The absence of such notice requires the grant of a new trial—
    without necessity of any further showing: to additionally require proof of the Craddock
    elements “would violate due process.” Id.; see Lopez v. Lopez, 
    757 S.W.2d 721
    , 723 (Tex.
    1988) (defendant who lacks notice of a trial setting is not required to establish a
    meritorious defense under Craddock in order to obtain a new trial following a post-
    answer default); see also Peralta v. Heights Medical Center, Inc., 
    485 U.S. 80
    , 85-87 (1988).
    The Tarrants’ failure to appear at the 1:30 trial was not due to inadvertence, to
    misunderstanding, or to any reason but the lack of notice. The Tarrants broadly
    challenged this lack of notice below, in their motion for new trial. CR 65 (“Defendants’
    attorney, Jim Echols, did not receive notice of hearing for the January 6, 2017 final
    hearing”; “Defendants’ attorney, Jim Echols’ non-appearance at this hearing was due
    15
    to not knowing the hearing was taking place, rather than due to an intentional act or
    the result of conscious indifference.”). The failure to grant the requested new trial was
    error.
    What is more, fundamental fairness and professional courtesy should have
    required that when the accommodation was afforded to Scarbrough’s counsel, notifying
    him by phone and permitting him to appear at the “prove up” by telephone, an
    equivalent accommodation should have been extended to the Tarrants. See Dolgencorp of
    Tex., Inc. v. Lerma, 
    288 S.W.3d 922
    , 929 (Tex. 2009) (noting that “judges and lawyers
    should, and in most instances do, extend common and professional courtesies to other
    judges and lawyers”). The Texas Lawyer’s Creed, cited in Dolgencorp, certainly takes this
    view, stating that “I will not take advantage, by causing any default or dismissal to be
    rendered, when I know the identity of an opposing counsel, without first inquiring
    about that counsel’s intention to proceed.” TEX. LAWYER’S CREED - A MANDATE FOR
    PROFESSIONALISM, III (11). Adherence to the Creed would have required at least a
    phone call to Mr. Echols to notify him of the prove up and offer to let him participate
    in the hearing by telephone. Here, the record is silent on any such notice or
    accommodation. As a result, the trial and judgment violated fundamental notions of
    fairness and professional courtesy.
    16
    III.    Because the record omits to prove adequate notice of even the initial
    setting, the Tarrants have been deprived of their ability to show
    harm.
    The record fails to prove proper notice of even the initially scheduled, morning
    setting, at which even Scarbrough was not ready to proceed. The court’s file contains a
    “notice of setting” respecting the 11 a.m. proceeding.1 But that hearsay notice does not
    prove it was sent to the Tarrants’ counsel over the challenge, in the Tarrants’ motion
    for new trial, CR 65, stating that no such notice was received. The document includes
    a notation “CC: Jeffrey Coe, Jim Echols.” Supp. CR __ (attached). But this is not
    evidence that the document was actually mailed to Mr. Echols. And here, an inference
    that notice was not sent is raised by the fact that Scarbrough’s own counsel did not
    appear at the appointed setting, RR 4, and the record does not indicate he knew of it in
    advance.
    A failure of notice “deprives a party of his constitutional right to be present at
    the hearing, to voice his objections in an appropriate manner, and results in a violation
    of fundamental due process. Armstrong v. Manzo, 
    380 U.S. 545
    , 550 (1965); 
    Green, 857 S.W.2d at 819
    . Thus, when a party disputes that notice was properly sent, it falls to the
    plaintiff to actually prove the matter.
    It is true that notice properly sent pursuant to Rule 21a raises a
    presumption that notice was received. [citation omitted] But we cannot
    presume that notice was properly sent; when that is challenged, it must be
    1
    The Tarrants have requested that the district clerk prepare a supplemental clerk’s record consisting
    of this notice. A copy of the notice of setting is attached.
    17
    proved according to the rule. Mathis v. Lockwood, 
    166 S.W.3d 743
    , 745
    (Tex. 2005) (per curiam).
    So Scarbrough was put to the task of proving the asserted notice was sent to counsel.
    He failed to do so. The record reflects only that the trial court took judicial notice of its
    file. RR 4. But that was insufficient.
    “A certificate by a party or an attorney of record, or the return of the officer, or
    the affidavit of any person showing service of a notice shall be prima facie evidence of
    the fact of service.” TEX. R. CIV. P. 21a. In this case, the record contains no such
    certificate, return receipt, affidavit, or other testimony purporting to certify any actual
    sending of notice. This was fatal to the post-answer default judgment in Mathis v.
    Lockwood—even though counsel in that case gave his oral assurance that he had served
    the trial notice (an assurance that is lacking 
    here). 166 S.W.3d at 745
    . 2 And without
    proper evidence the notice was actually sent, there can be no presumption that counsel
    received any such notice. 
    Id. So it
    is here. The record contains no evidence, or even
    unsworn assertion, from which to infer that the clerk actually mailed the notice of
    hearing to Mr. Echols.
    Moreover, the notice was ineffectual in yet a final respect: it did not identify that
    the case was set for the merits trial. It said only that the case had “been set for FINAL.”
    2
    Here, as stated, the judgment contains a pro forma allegation that “due notice” was provided. CR
    41; App. A. But that notice was effectively rebutted when Scarbrough’s counsel also failed to appear
    at the appointed setting. See, e.g., Wilson v. Indus. Leasing Corp., 
    689 S.W.2d 496
    , 497 (Tex. App.—
    Houston [1st Dist.] 1985, no writ) (“Where a judgment recitation [of notice] is effectively rebutted by
    other evidence in the record, it is no longer taken to be true.”).
    18
    Supp. CR. __ (attached). In Maldonado v. Puente, a notice of setting for “jury selection”
    was held insufficient notice consistent with due process to allow trial to proceed after
    the defendant did not show up for jury selection. 
    3 694 S.W.2d at 91
    . Here, notice of a
    setting for “FINAL” is similarly inadequate to allow a prove-up trial to proceed at a
    later court session in the Tarrants’ absence. The plaintiff has the burden of proving the
    defendant was served in strict compliance with the rules. Cox v. Cox, 
    298 S.W.3d 726
    ,
    733 (Tex. App.—Austin 2009, no pet.); Naan Props., LLC v. Affordable Power, LP, 2012
    Tex. App. LEXIS 271, *5 (Tex. App.—Houston [1st Dist.] 2012, no pet).
    Conclusion and Prayer
    Because there is factually insufficient evidence of the required elements of a
    fraudulent transfer and also because there was a lack of proper notice to the Tarrants,
    the judgment below should be reversed and the cause remanded for trial.
    Respectfully submitted,
    __/s/ Gregory D. Smith________
    Gregory D. Smith
    Bar No. 18600600
    SMITH LEGAL PLLC
    110 N. College Ave., Suite 1120
    3
    What the notice of the 11 a.m. setting actually stated matters. In Maldonado v. Puente, the
    parties were notified by letter to appear for jury selection “on that date” and further notified in the
    same letter that their case “will be tried at a subsequent 
    date.” 694 S.W.2d at 87
    . The defendants and
    their counsel arrived at court 40 minutes after the appointed setting. The plaintiff had been granted a
    post-answer default judgment in the meantime. On appeal, because the notice of setting was for jury
    selection, and stated that trial would occur “at a subsequent date,” the failure to appear at the
    appointed time for jury selection could not support a post-answer default on the merits. 
    Id. 19 Tyler
    , TX 75702
    Telephone: (903) 630-7165
    Facsimile: (903) 609-3077
    greg@smithlegaltx.com
    __/s/ Jim Echols______________
    Jim Echols
    Bar No. 06391500
    SAUNDERS, SCHMIDT & ECHOLS, P.C.
    202 W. Erwin Street, Suite 200
    Tyler, TX 75702
    Telephone: (903) 595-3791
    Facsimile: (903) 595-3796
    j.m.echols@att.net
    Attorneys for Appellants
    20
    Certificate of Service
    This brief has been served on all counsel of record via e-filing on this 31st day
    of July 2017.
    ____/s/ Gregory D. Smith________
    Gregory D. Smith
    Certificate of Compliance
    1. This brief complies with the type-volume limitation of TEX. R. APP. P. 9.4
    because it contains 4628 words, excluding the parts of the brief exempted by
    TEX. R. APP. P. 9.4(i)(2)(B).
    2. This brief complies with the typeface requirements of TEX. R. APP. P. 9.4(e)
    because it has been prepared in a proportionally spaced typeface using Microsoft
    Word in 14-point Garamond font.
    Dated: July 31, 2017.
    ____/s/ Gregory D. Smith________
    Gregory D. Smith
    21
    NO. OCCV16--017-3
    DANIEL R. SCARBROUGH,                                  IN THE DISTIUCT COURT
    Plaintiff
    v.                                                     3RD JUDICIAL DISTRICT ...         ~
    ,
    ROGER TARRANT,
    ET AL.
    Defendants                                              OF ANDERSON COUNTY, TEXAS . -
    DEFAULT JUQGME!:!T
    On   January 6. 2017. ca~ on tg belbeacd Plaintiffs. DANIEL R. SCAR~UGH,.
    req""t for relief. Plainti!I appeared~ and by att~- r - .~y L Coe.
    Oefenn, TX 75763
    Consideration:
    Cash and a note of   "°" date executed by Grantw and payable to the omet or
    The 0 . A. Tarrant Irrevocable Trust in tile pri~I amount of FIFTY TWO THOUSAND
    THREE HUNDRED 1WENTY FIVE AND N0/100 DOLLARS ($52,325.00). The note is
    eecure<:t by a vendOt"s Hen end •uperior tit1e retained in lht. dMd in fevor of The 0. A.
    Tarrant Irrevocable Tru•t and by a deed of rtust or even date lrom Grantee to Terry M.
    fhorn. trustee: and Grantee's assumption and agreement to pay, according to their
    terms a first-lien note and a second llen noll!, the flf!rt lien note is executed by Grantor.
    and payable to 1118 Older of Sandra J. Elis, Denise A. Tarrant, Judy K. Hyde, Janet S.
    v.llson. tndependenl  ex-        of !he Estate of CaMn Ellgene ~. Deceased in
    the principal amount of $40.000.00. The firsHien nore is secuted by deed of !rust daled
    11/27/2012 and~ in t11e realprope1tyrecord$olHendenonCounty, Texas. As
    further consideration Granl88 pn>mioes to keep and perform au t11e OOYenanlS and
    obligations al the ll"'nlor named in that deed al trust and to indemnify, defend. and hold
    Grantor harmless from any loss, ottorney's fees. expenses, or claims attributable to
    breach or dera\lll of any provlslon or this assumplion by Grantee. The second-lien note
    43
    '                                       2014-00015702        11/24/201!.   J:08:18 AM      Page 3 0(9
    •
    is payable lo the Or's lien ag1inst. and superior
    title lo. Ille Prcpeis
    deed as being either assumed or subject to which tide is laken: validly "'"'1ing
    easemenb, rights-<11-way, and prescriplive rights. whether of reeog Instruments. othet !ho<> corweyanc:u of the sur1a<:e fee
    estate, Iha! .tied 1he Pr-rv; and taxes tor 2014, which Grantee essumes and agrees
    to pay, bUt not ...osequent auossments tor lhat and prior    ve-  ciue to change in land
    usage. ownership, or boCh. the payment ct which Grantor assumes.
    Grantor. for the Consk!eratlon and subject to rhe Reservations ftom Conveyanoe
    and the Exceptions to Conveyance and Warranry, grants. sells, and convoys to Grantee
    the Property, together will> aa end singulat the rights and appurtenances thereto in any
    way belonging. to haw and to hold~ to Grameo and Granlee's hod, aua:essora, and
    assigns lore...r. Gianto< binds Grantor and Grantor's ~ and ~ to wanant
    and foreVet defend all and singular the Pn:>perty to G~ -              Grantee's ters.
    successors. and assigns against tNery person whomsoever lawfulty daiming or to claim
    the samo 0< any part thereof, ~lle Trust and "' transferred to The 0 . A.
    Tarrant lnevoeable Trust willlou( recou.... against Granto<.
    When lite context roqui1es. singula1 nouns and p1onouns indude the plural.
    ~R2~
    STATE OF TEXAS                              )
    COUNTY OF ANDERSON                          )
    This instrum"nt was aclcnowtedged befote me on       '//~./ .Ji.~ 2014 by
    RoGER TARRANT
    AnER 1tf00ftOINO Rln'\.IRN TQ;
    T...,,.
    --
    LM- Otilc. ol    Ill. Tbom
    totL~$1Ni1t
    .,........._TX7901
    "°".,,..,...
    45
    2014-00015702        1112412014 , :08: 18 AM          Page 5of9
    .
    County Oeed ~; WITNESS:.             18' Fotl:ed Elm SOWi SO cfesM• Eal 8.0 reel;
    THENCE Norlli 0 ~ 3S - 3 7 seCOo SoullnWSI comet of !ht Eva
    M.m. ~ ~07 ..... Wt\ •Uf'j8yed .,... -                 and being South 0 oc1 o..i. SouO> -'5 <1ogrees
    Wost ~.2 faet. It Post OokSc..al 85 degroos w..t 39.0 feet;
    THENCE SOUltt0~41 rrirutes30<
    -&uoinglhe EM\ ~OOloc>I
    ollhe 55.<1!19 aa.  lood"'""'"
    lo ll..J. Tanani b)l IWold James Snllh ancl ...tfe l\laJla
    1f"'Wsailibby4"c1~=.2$.L1~9ridreooidedlnVOllJma 1284,f'eg0633ollhe
    ~ Ccar\11' Dejlcj ·       . "'lol lt8cl. orperool of land belog fT'°'8 ~
    dH<:rlbOdl>ymotes--.. -               :
    ~a at• 1.12'konrod b.rd atlle Nonr 111tcomerdC. 55A99 acre trm
    -       Iha NoaO •Ill eoa,., Of "
    8 Cow. l
    . 0-.. 51.ney. In !he Wnl h o1 u.i £\ta -
    --.ze.w--~                            ..-
    lHENCESOtmfo~ 35"*"-37- Ea&t. a1 so.oo root paso lho
    So"-lOomor"' Ilia 2&.07oao1ncllOll In all 3990.13footloa112' Iron rod fouod al
    "' S.UU-11Cornenroclsel ln
    -.,-4244;
    ~NORTH 0 ~ 3S "*'"'as7...,00.,s W•sl 3990.73 feYacl ·    2aae~                 asThitdTmtln.-
    -•-o1011>aaa1tae1
    THENCE:           S89 ~ 43'!1b'W. 1442.63 root with the c:ent..-llno ol a _.;it
    \llllllic IOad ond ~ 1n fllO Nolthoall 111\e or •       2.164   acre lt1ICI
    -          In   v..... S81   Poge   119()   of   a..   Dood - . of
    -~-Wlneq:A                        112' t. R. bearsNa9c!A>gRes
    .a'5S'E18.38 feet
    tlOllUIT "A" CONTINVl:D
    47
    2014-00015702          11/24/2014      ; :08:18 AM       Page 7 of 9
    ..
    THBICE:        N88 "E !133.18 feel'"'"'-     Nortll h ol -    2 "10
    rnict loo 1IT ~ II. set •• Ille Easl fne or 111e· f. C.tenovo 5mo)I
    .;nd lhe Weot ine al Ulo C. l. Owuns SUtvey
    H3rold J . SmlU>,SS.499 AC•• H"'1detso!!Co, OWeMA-1182. C8ZenOVaA-129, Parks A.-
    647
    a2aaolalclor_.ollW'd,a~olllleC. L OMrtoSUNey ,...129.
    T-.elsoapatQflhal14~KThfnl'no01..-dodfnV~_!`` ...
    Hendencn=
    ol lbe Deed di~ of Hendinon COdllY. T - and belrQ rrcwe -• .....criied ..,
    ---1bwitfnE>dil>ll"A"- ~andcna&oapmlhoteof.
    l?'IACT THREE
    ~lholww~·~".!,dor-dland,•lllPtadlllHondmonCounlY.Si.&eolTexa1.1<1
    ::.,~ • ~""" ~ Absfnc:I No. 3-47: rowevei, In .omo fnslnilT160la tiled 1or
    ·``Ille C<>t.n,Clarlt .. -            ~. Taassald !rad b in41C!ed mu>. c.
    L ~-&owy, Ali$hct No. 1152. llw em>r. Said trac1 or porool ol land b moto
    pa._.,  y met.. ""......,• •• follool!s; -
    . BEGrtaoaNG ala 1121n.l!uodel8"'-comctoflhe C. l. Owen• SOMY.
    A.bsllael No. 1 ISZ -    • 2>I fl). Post Oak Bts. - 73 Deg. 63 Mh East 38.30 r..~
    orod In. 16 In. Elm h-      75 dog. 29 ..... Ea1' 3U fut
    1l!ENCE NOR"lll 00 0111- 35 Mio. 3 7Sec. Wal, and ol~ a feooe. a 41sta:ice ol
    &3l.23tectlb • 112n Iran llodott. l b -""*"'111111tac1; Aid IJ(llnl belnil rn lhe
    -In.-
    Soulh 8olJndory UleolllleX.rlaMllotTroct or parcol of land;
    1liEHCE Horii 119 !l!oll. 43 Mil. $5 Soc. ~. aiOl'O • · fooce .and Ille Sovth
    Boundacy Una ol Ille ..id XelP l.1lllo( lrllle-c.ir-olllltnct.onda-On!y On payment of
    the Obligation and all other amounts secured by this deed of trust. this deed of trust will
    have no further effect and Lender will release it at Granto(s e.>ns, lender is subnc:e
    policies covering the PIOpel1y ei11>er to reduce 1ha Ob!t!alion or to repair or replace
    da~ or destroyed im_,,ts covered by ll1o poUcy. If the Property i• Gn>ntofs
    primary resf8ie Code, the Benefklary hereby notifies Ille Grantor as follows:
    (A)    the Gr.antor i. required to:
    (i)     kffp the collateral lnaured •g.ainst damage I n the
    amount the len.der apeciftea;
    (iJ)    purchase the insurance from an insurer that Is
    authortzed to do bus.lness In the ~:ta1e of Texas or an
    eligible surplus Hnn in.urw; and
    (iii)   name the Lender a• the P6raon to be paid under the
    pollcy in the event of a loaa;
    (B)    th• Grantor must, if requl...S by the Lender, deliver to the
    Lander• copy of the policy and proof of lhe payment of premiuma; and
    52
    ...                                    2014-00015703
    - - ·   - ·
    11/24/2014 ; :08:18 AM         Page 6 ot 16
    (C)    if the Grantor 11111s to ,,_t any requirement lisbld In Penigraph
    (A) ot (B), the Lender may obtain collateral pro-n Insurance on behalf of Ille
    Grantor at the Granto(• expense.
    c. 7. It e delaull 8'Cists In payment of the Obligation or ~ of Grantor
    obligations and the delaoll oontinoes aftet" ltr'/ requRd notice of the delaul and the
    time allowed to cure, Lender may·
    a.     declare the unpaid principal balance and eamed interesr on the
    ObligaOOn Immediately due;
    b.     exen:iso Lender's rights with respec1 to rent under the Texas
    Property Code as lflen in effect;
    c.     direct Trustee to foreclose this lien. in which case lender or
    Lendel's agent will cause notice of the foredosure sale to be given
    as prtMded by the Texas Property Code as then in ellect; and
    d.     purchase the Property at any foreclosure eale by offering the
    h;ghesl bid and then have the bid credited on the Obligation.
    C.8. I.ender may rernedY any default wilhooJt waiving h and may waive any
    defaUlt without wat.Ong any prior or subsequent OOfaul .
    0.    Trus...,·s Rights and Duties
    It dOected by lender to foteclose this lien, Trustee w;a.
    D. f . either personally or by agent give notice ol lhe foreclosure sate as
    required by Ille Te>eas Property Code as IN>n In effect;
    D.2     sell and convey all or part of Ille Property "AS IS" to the highest bidder for
    cash with a general watranly binding G"'"". subj@ct to the Prior Lien and to the Othef
    Exceptions to Conveyance and Warranly and wi1hout rep
    Truslefe payment to Granto<:
    and
    d     to Gtanror, any balance; and
    0 .4. be ;nc1emnlflod, held harmless. and defended by l ender against all costs.
    °'
    expenses. and eabiities incl.rrred by Trustee for acting in 1he e>aecution enforcement
    of lhe llUst Ctea1ed by !his deed of IJuSI. wtrid1 inCludes al court and other costs,
    including attorney's fees, inCUTed by Tl\l5lee in defense of any action or proceeding
    taken agalns1 Trustee in that capacity.
    E.       Gject to an action for fon:i>le
    detainer.
    E.2.     Recitals in any trusteo'• deed conveying lhe Propetty will be pre&umed to
    be tl'l.le.
    E.3. Proceeding under this deed of trust llling suit for foreclosure. Of pursuing
    any OUie< remedy wil noi constilule an election of "1'ledies.
    E. 4.
    This lien will remain superior to lien& leter created even if the time of
    payment of au or paal o1 the debt or, if the principal al the debt has been paid. relmded. Tm
    ptoYislon oveited by
    law.
    E.10.   When the context requinn. singular nouns and pde(s prior written
    consent lender may declare the Ob!Ogalion immediately payable and invoke arry
    remedies pnMded in lllis deed at trust lot default. If tile Properly is racidential real
    piopeny conlairmg !ewe< than five dweling unils °'a rHidential rnanul:lcl\lred home,
    this pn>visioo does not apply to (a) a subordinate lien or encumbrance that does not
    transfer rights of occupancy of the "'-1Y: (b) cn:iotion ol a purel'lG&e-ieh the spouse of G!her costs of enforcing lenders rights under this deed of trust if this deed of b\1$1
    Is placed in the hands of an attorney for enforcement
    E21. If any Per d ocuments. or any
    combination ol tllo>e actions or doeurnents that bom>wet may NIYe signod « receMod
    with rGSpe<;t to the loan fttJm the financial 0 . - . evidence by the Noto; but the tenn
    "Loan AgrMments" e.pressly excludes      -r    pr Charge card; (b) an <>pen-end
    &eoount (as defined in Article 5069-1.0 1. Vemon's Texas Civil Sbotues) intended 0<
    used primariy for per.;onal. family oc household U$$.
    57
    '.
    2014-00015703    11124/2014 ,:08: 18 AM       Page 11 of 16
    STATE OF TEXAS                       )
    COUNTY OF ANDERSON                   )
    This instnlment was adcnowlen expires: - - --     -    -
    An!ll`` n)"
    &,.,.. OllD of Terry Ill. TIIClnl
    SOIC~ Sl•MI
    .._.....,..,.,TX ~ I
    · lO-
    58
    2014-00015703         11124/2014 .:08:18 AM           Page 12 of 16
    .
    Oot#11y Deed Rec:onlo: WllllESS: 111' Fctted 6m SWUI 50 ~cees Eat 6.0 feel:
    THEltCE NOl come< of tho Eva
    MMio RictJaldson 28.87 aae ltacl •llWl'Od !NS dale and belnll Sout> 0 deg'"' 35
    -.Sailif87 tlOOOl1Cls fatSO.oorwfiomfltNOlfhNslOOla llodlwsl Comer;  , S(fl'Os\ oak South 45 ~
    Wosl,2~8" Po! 1942.SS fool to tl>o place of
    ~ and containing 80:92 acres of land.
    lnclldlng a 1s-..icro road •asomant-dtsaibOd         ••-=
    Ml>alcertaillot,ltlc(.«OOIC8iol-•
    -~. ~hC. L                         °""   r1dlll-Coully.Tem.onlho Fei>c
    SU!'fty, .t.118211nd be1no Iha East 1!i.OOIOo\
    of 0..55.49$...,..hd~ bD..l T""'byHorold .-Smllh~wlre Mllla
    K9y Smllb by-._~2S, 1GeQ end tt<0rdod InVolllma 12&4, Pogo 8118olllie
    ~ Co<.;i, Deocl ReiUt!J_ lrd lol lnlel or ptwel ofland being men pai1lctiartf
    clesatb9dbymolo10ftdboundsasfolcMs:
    "'°  ~-• 112'Rnlodbr.:latbe--oflho5$Jl~t1Ct·lla:t
    b Nc"ho 1t cioad 424'4;
    nENce HOfUH o -               35 -       37 ...,.;,.,. w..13llll0.73 ,.., •• • 112"
    - "'.etIn 111SHoct\ llno oil!» SS.4911 ocn tract;
    l\lENCE NORni 89 degrses 44 mltYJl.. ea.i 15.00 - to !ho ploce bOQ1nninCI.                                  ·
    lAACT Tv,:O
    AllthatClftalnlol, ln>Clor poroelof- S1"1otod In fheC. LOW.no Surv.y Absltad
    1182,the``~-129and.,_FolxPatb$U!W)'Abs...Cl647,
    Hencl....,.;~, T·Ml~aporblda'*-d•carfaf>12.18Cl9!nld-.. Seg ...... par1lc;ulai1yd....ibedbyn>eles
    ...,., bounds .. rot""                            .
    'THENCE:
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    ANOERSOH COUNTY OISTRICT COUttT
    SCIO 14, Church Stfffi. ?-.)k.-rurie. 1X /$801
    JUDGE Mark C3Ihoon
    NOIJCE Of SETTING
    Fill: CO?Y
    IN RE: CAUSf NO: OCCV16-017·J                                                                  OATE: NOVf'tnbe'f 07. 201~
    OJ\NfCL SCAR3ROUCH
    ROGER TAR.RANT.DENIS!: I ARRA.NT.JUSTIN lARRANT,O.A. TAAAl\NT IR.REVOCABU. TRUST
    TAt:f NOTICE that the AboV(< style and numbe1<.-d cause has b~ set for FINAL on rhe Glh day of .tanua1y, 2017 at l l:OOAM, IN THE
    ANDERS<>t.J COUNTY COURTI IOUSE. PAl.E$11NE, Tr)(AS,
    Janlet Slaples
    01$tti('l Clerk. Anders.on County
    CC; Jeffr.!')'Coe; Jim Echols