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In re Sensitive Care Inc.

6/8/2000

oreover, even if dismissal of Credit General's claim for declaratory relief were given preclusive effect, only the bankruptcy court could have validated the March 1999 judgment. See Audio Data Corp., 789 S.W.2d at 287 (holding that only bankruptcy court can validate a voidable judgment); see also Sikes, 881 F.2d at 178-79 & n.2 (holding that bankruptcy court's power to annul automatic stay authorizes court to validate actions taken in violation of automatic stay); Paine, 956 S.W.2d at 806 (noting that Fifth Circuit's determination that actions taken in violation of automatic stay are "voidable" does not mean a disputed action is valid unless invalidated, but void unless validated by bankruptcy court). As we have discussed, the bankruptcy court did not validate the March 1999 judgment, and the state court had no authority to do so.


Propriety of Mandamus Relief From Judgment and Turnover Order


Mandamus is the proper method by which to attack a void judgment. See Gem Vending, 918 S.W.2d at 658; see also Buttery v. Betts, 422 S.W.2d 149, 151 (Tex. 1967) (orig. proceeding); J.A. Bitter & Assocs. v. Haberman, 834 S.W.2d 383, 384 (Tex. App.-San Antonio 1992, orig. proceeding). Consequently, relators are entitled to a writ of mandamus directing the trial court to vacate the March 1999 judgment.


The January 2000 turnover order is also improper because it is based on a void judgment. As a general rule turnover orders are final, appealable orders. See Burns v. Miller, Hiersche, Martens & Hayward, P.C., 909 S.W.2d 505, 506 (Tex. 1995). Mandamus relief is usually not available if the order complained of is appealable, because an appeal is almost always an adequate remedy at law. See Republican Party v. Dietz, 940 S.W.2d 86, 88 (Tex. 1997) (orig. proceeding). "But on rare occasions an appellate remedy, generally adequate, may become inadequate because the circumstances are exceptional." In re Masonite Corp., 997 S.W.2d 194, 197 (Tex. 1999) (orig. proceeding) (holding that mandamus relief is appropriate where trial court's actions show such disregard for guiding principles of law that resulting harm is irreparable). We believe the exceptional circumstances of this case warrant mandamus relief from the turnover order despite the availability of an appeal.


Relators' Remaining Issues


Relators also complain that the trial court did not apply the punitive damages cap of chapter 41 of the Texas Civil Practice and Remedies Code in the March 1999 judgment and failed to enforce the parties' high-low settlement agreement. These complaints are premature and should not be addressed until after the trial court has an opportunity to vacate the March 1999 judgment and render a new one. Accordingly, we deny relators' petition for a writ of mandamus as to these issues.


Conclusion


We vacate our January 25, 2000 order staying the trial court's turnover order. Relators are entitled to a writ of mandamus directing the trial court to vacate the March 1999 judgment and the January 2000 turnover order. We are confident that the trial court will vacate its judgment and order, and our writ will issue only if the trial court refuses to do so.


PUBLISH






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