JAJWK, LLC v. Primeway Federal Credit Union (2026)
Court: Texas Court of Appeals, Houston [1st District] · Docket: 01-23-00657-CV · Decided: March 12, 2026 · Opinion: David Gunn, J.
The full 16-page court opinion was retrieved at the source_url on 2026-10-17. The Justia HTML
delivery returned 403 to an ordinary terminal request; the public opinion PDF was available.
Facts
After a judgment against a car dealership and its owner, a turnover receiver sought luxury cars possessed by JAJWK entities that were not judgment parties. The trial court voided their claimed UCC/title liens and directed sale. The receiver sold a Rolls Royce; a later order distributed the proceeds and directed title transfer free of liens and interests. The entities objected and appealed.
Holding
Reversed and rendered judgment vacating the June 26 and August 15, 2023 turnover orders. They violated due process and were void as to JAJWK. The timely substantive objection extended the appeal deadline; the dispute was not moot given the remaining cars and liens.
Reasoning
CPRC § 31.002 provides a procedural collection device, not a mechanism to adjudicate a nonparty’s substantive property rights. A disputed third-party lien requires the ordinary process of a proper proceeding. Appearing to object to the turnover proceeding does not cure that limitation. The court did not decide whether the asserted liens were substantively valid or released (pp. 13–16).
Practical impact
An execution/turnover buyer should not equate a receiver’s title order with valid elimination of a nonparty lender’s rights. The opinion resolves that turnover limitation; it does not decide all free-and-clear sales after a proper plenary adjudication, or every sold purchaser’s remedy.
Good-law status
The opinion and current official CPRC § 31.002
were read on 2026-10-17. The opinion describes an abated related Supreme Court mandamus,
No. 23-1046; its final disposition, any rehearing/replacement opinion, subsequent review and
complete later-treatment clearance remain needs_verification.
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Legal information, not legal advice. Verify the applicable current law before acting.