Filed - Supreme Court of Texas
Filed - Supreme Court of Texas
Filed - Supreme Court of Texas
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TO THE HONORABLE JUSTICES OF THE TEXAS SUPREME COURT:<br />
Real Parties in Interest Scarbrough, Medlin & Associates, Inc. and Scarbrough,<br />
Medlin & Associates Financial Services, Inc. (collectively “SMA”) oppose Relators'<br />
Amended Emergency Motion for Temporary Relief (the “Amended Motion”), and in<br />
support <strong>of</strong> their opposition show as follows:<br />
I. SUMMARY OF RESPONSE<br />
The McCulloughs did not show that temporary relief is necessary to preserve<br />
their rights or is just under the circumstances, the standard by which this <strong>Court</strong> must<br />
evaluate their request. The McCulloughs did not show that they cannot preserve their<br />
right to supersede the judgment by posting the additional $209,000.00 in security<br />
required by the trial court. The trial court and the Fifth <strong>Court</strong> <strong>of</strong> Appeals both already<br />
concluded that the McCulloughs would not suffer substantial economic harm if<br />
required to post the additional security. The <strong>Court</strong> should deny the Amended Motion.<br />
II. FACTUAL BACKGROUND 1<br />
A. Proceedings in the Trial <strong>Court</strong><br />
On August 16, 2011, the McCulloughs filed affidavits <strong>of</strong> net worth with the trial<br />
court. The affidavits showed a net worth <strong>of</strong> $325,600.00. In arriving at their net worth,<br />
the McCulloughs included $365,000.00 <strong>of</strong> the $1.2 million judgment liability and two<br />
amounts for taxes, $35,000.00 and $18,000.00. The McCulloughs deposited $162,800.00<br />
with the clerk <strong>of</strong> the court in lieu <strong>of</strong> a supersedeas bond, representing 50% <strong>of</strong> the<br />
McCulloughs’ claimed net worth.<br />
1 The facts stated in this Factual Background section and elsewhere are supported by the attachments<br />
hereto and the verification <strong>of</strong> SMA’s counsel at the end <strong>of</strong> this Response.<br />
1