Burford Perry is pleased to announce a significant win for client WC4th and Rio Grande, LP in a complex property rights case. Texas’ Eighth Court of Appeals reversed a lower court decision that threatened to strip Rio Grande of its valuable downtown Austin property valued at over $30 million.
The dispute centered around a $4.25 million loan to Rio Grande secured by the property. Rio Grande sued to enforce its right to pay off the loan. The suit was pending when a receiver, appointed to collect a judgment against a separate entity, took unauthorized actions, dismissing Rio Grande’s lawsuit attempting to deed the property to the loan holder.
Burford Perry’s legal team argued that the receiver lacked the authority to act on behalf of Rio Grande. The appellate court agreed, reversing the lower court’s judgment and clarifying the limitations on judgment creditors' remedies against third parties. The case is now remanded to the trial court, allowing Rio Grande to assert its right to pay off the loan and retain ownership of the property.
This ruling sets a critical precedent for Texas property rights. It reinforces the limitations of the Texas Turnover Statute and protects third parties from overreach by judgment creditors and receivers. Additionally, the court's decision recognizes Rio Grande's right to challenge the unlawful terms of the receivership order, a key legal point successfully argued by Burford Perry.
"This is a tremendous victory for Rio Grande," said name partner and lead counsel Brent Perry. "The Court's decision upholds property rights and reverses a serious injustice. We are proud to have secured this outcome for our client."
In addition to Perry, WC4th and Rio Grande, LP, was represented by Burford Perry partner Matt Parks and associate Zachary Carlson.
The case is WC 4th and Rio Grande, LP, v. La Zona Rio, LLC, No. 08-22-00073-CV.
