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Judicial Foreclosure In Texas

John Wilson • July 1, 2018

Texas Judicial Foreclosure Process, Jurisdiction & Venue

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Petitions for judicial foreclosure must be filed in a state district court in: (i) the county where the cause of action accrued, (ii) in the county of the defendant’s residence (if defendant is an individual) or principal place of business (if defendant is a corporation, partnership, unincorporated association, or other legal entity), (iii) in the county of plaintiff’s residence (if plaintiff is an individual) or principal place of business (if plaintiff is a corporation, partnership, unincorporated association, or other legal entity). Tex. Civ. Prac. & Rem. Code §§ 15.001, 15.002, and 15.035 (Vernon 2002).  Attorneys may be led to believe that venue of a judicial foreclosure action must occur in the county in which the property is located, however, the Texas Supreme Court has held that an action to foreclose a lien does not primarily involve title to real property.  See Bennett v. Langdeau, 362 S.W.2d 952, 955 (Tex. 1962)..   Consequently, venue is not mandatory in the county in which the land is located.

Pleading Retirements for Judicial Foreclosure

In order to obtain the relief of judicial foreclosure from a District Court, the lien holder must: (i) allege execution and delivery of a secured debt instrument, (ii) allege ownership of the debt instrument, (iii) provide a description of the property secured by the lien, (iv) allege the execution and delivery of the lien instrument (an exception is an abstract of judgment), (v) allege the amount of the unpaid debt, and (vi) allege a default by the maker of the debt instrument. See generally Graves v. Drane, 1 S.W. 905 (Tex. 1886); and Shaw v. American Life Ins. Co., 60 S.W.2d 1110, 1111 (Tex. Civ. App. – Fort Worth 1933, writ dism’d). The prayer for relief in the petition should pray for the foreclosure of the lien along with a judgment against the debtor for the amount of the debt. The lien holder may recover attorney fees if recovery of attorney fees is: (a) provided for in the lien instrument and/or debt instrument, Tex. Jur. 3d Deeds of Trust and Mortgages § 207 (citing Jeffreys v. McGlamery, 96 S.W.2d 572 (Tex. Civ. App. – Amarillo 1936, no writ). and (b) pled for in the petition.

The Judicial Foreclosure Judgement

A valid judgment foreclosing the lien must be obtained from the District Court, which should include: (i) an award of the debt owed to the lien holder, (ii) court costs and attorney fees (if provided for in the lien or debt instrument), (iii) a decretal paragraph ordering the foreclosure of the lien, (iv) and a decretal paragraph directing a sheriff or constable to seize and sell the collateral of the lien in satisfaction of the debt, and (v) a decretal paragraph instructing the sheriff or constable that if the collateral does not sell for an amount sufficient to satisfy the debt that the sheriff or constable should proceed to execute on other property of the defendant as in ordinary judgment execution. Tex. R. Civ. P. 309.  Once a valid judgment foreclosing the lien has been entered by the District Court, a sale must be held in order to pass the title to a subsequent purchaser. Warnecke v. Broad, 161 S.W.2d 453, 454 (Tex. 1942). The writ of sale should be directed to the sheriff or constable in the county in which the property is located. De Guerra v. De Gonzalez, 232 S.W. 896, 899 (Tex. Civ. App. 1921, no writ).

The Writ And Sale

The clerk of the District Court will issue the writ of sale upon the application of the successful party in a suit thirty (30) days after the judgment is rendered. Tex. R. Civ. P. 627. The writ of sale must particularly describe the property, and shall direct the sheriff to give public notice of the sale. Tex. R. Civ. P. 630. The sale of the real property will be held at the courthouse door of the county, unless the court orders that such sale shall be at the place where the real property is situated. Tex. R. Civ. P. 646.  The sale of the real property shall occur on the first Tuesday of the month, between the hours of ten o’clock, a.m. and four o’clock p.m. The sheriff must give notice of the sale in a newspaper in the county (in English) once a week for three consecutive weeks preceding the sale, the first of said notices must be published not less than twenty (20) days immediately preceding the day of sale. Tex. R. Civ. P. 647. The notice must contain a statement of the authority by virtue of which the sale is to be made, the time of levy, the time and place of sale, a brief description of the property to be sold, the number of acres, the original survey, locality in the county, and the name by which the land is most generally known. Proceeds from the sale are applied first to the sheriff’s/constable’s cost of the sale, then to the indebtedness of the suit, and then to junior lien holders who were parties to the suit, and then the property owner.

Post Sale Matters

While a judicial foreclosure sale will prevent a borrower from asserting a wrongful foreclosure based upon defects in the lien or debt instrument, a sheriff’s sale may be set aside with proof of (i) an irregularity in the sale calculated to affect the sale, (ii) a grossly inadequate sales price, and (iii) a causal connection between the irregularity and the selling price. Apex Financial Corp. v. Brown, 7 S.W.3d 820, 827-28 (Tex. App. – Texarkana 1999, no pet.)(citing McKennon v. McGown, 11 S.W. 532, 533 (Tex. 1889) and Kaufman & Runge v. Morris, 60 Tex. 119 (Tex. 1883). Guarantors and borrowers have a statutory right to have the District Court in the county in which the property is located determine the fair market value of the property within ninety (90) days after the date of the date of the sale or (applicable only to guarantors) ninety (90) days after the guarantor received notice of the sale. Tex. Prop. Code §§ 51.004 and 51.005 (Vernon August 2005). This right is independent of whether the lien holder brings an action for collection of the deficiency amount. Note that a mortgagee must file suit for deficiency within two years after the foreclosure sale. Lighthouse Church of Cloverleaf v. Texas Bank, 889 S.W.2d 595 (Tex. App. – Houston [14th Dist.] 1994, writ denied).
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Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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