There’s a Storey Behind Texas Debt Collector Shawn Grady in His Pursuit of Odin Demolition, et al

LIT UPDATE

May 20, 2023

Storey Mountain, LLC v. JPMORGAN CHASE BANK, N.A.

(4:22-mc-00524)

District Court, S.D. Texas

MAR 24, 2022 | REPUBLISHED BY LIT: MAR 25, 2022

4. Wells Fargo Bank, National Association (“Garnishee”), is a national banking association. Under its articles of incorporation, its main office is located in South Dakota and therefore it is a citizen of South Dakota for diversity purposes.

28 U.S.C. § 1348; Wachovia Bankv. Schmid, 546 U.S. 303, 318 (2006).

To the extent it may be relevant for purposes of diversity, Wells Fargo Bank, N.A.’s principal place of business has been identified in public records as being in California.

See Horton v. Bank One, NA, 387 F.3d 426 (5th Cir. 2004), cert. den., 546 U.S. 1149 (2006).

5. Wells Fargo Bank, National Association, does business in the Southern District of Texas and may be served with process by delivering the writ to its registered agent for service of process in Texas, Corporation Service Company, 211 E. 7th Street, Suite 620, Austin, Texas 78701-3218.

6. USAA Federal Savings Bank (“Garnishee”) is a Texas State financial institution with its principal place of business at 10750 W. IH 10, San Antonio, Texas 78288.

Therefore, it is a citizen of Texas for diversity purposes.

It does business in the Southern District of Texas and may be served with process by delivering the writ to its registered agent for service of process in Texas, Corporation Service Company dba CSC – Lawyers Incorporating Service Company, 211 E. 7th Street, Suite 620, Austin, Texas 78701-3218.

7. E*TRADE Securities LLC (“Garnishee”) is a Delaware limited liability company with its principal place of business at 671 North Glebe Road, Arlington, Virginia 22203.

Therefore, it is a citizen of Virginia for diversity purposes. It does business in the Southern District of Texas and may be served with process by delivering the writ to its registered agent for service of process in Texas, C T Corporation System, 1999 Bryan Street, Suite 900, Dallas, Texas 75201- 3136.

8. Fidelity Brokerage Services LLC (“Garnishee”) is a Delaware limited liability company with its principal place of business at 82 Devonshire Street, V6D, Boston, Massachusetts 02109. Therefore, it is a citizen of Massachusetts for diversity purposes.

It does business in the Southern District of Texas and may be served with process by delivering the writ to its registered agent for service of process in Texas, C T Corporation System, 1999 Bryan Street, Suite 900, Dallas, Texas 75201-3136.

9. TD Bank, NA (“Garnishee”) is a national banking association and has its main office in Cherry Hill, New Jersey. Therefore, it is a citizen of New Jersey for diversity purposes. It does business in the Southern District of Texas and may be served with process by delivering the writ to its registered agent for service of process in Texas, Corporation Service Company dba CSC – Lawyers Incorporating Service Company, 211 E. 7th Street, Suite 620, Austin, Texas 78701-3218.

10. J.S.C. Federal Credit Union d/b/a Wellby (“Garnishee”) is a federally chartered not- for-profit financial cooperative and has its principal place of business at 1330 Gemini Avenue, Houston, Texas, 77058. Therefore, it is a citizen of Texas for diversity purposes.

It does business in the Southern District of Texas and may be served with process by delivering the writ to President Marty Pell, or any bank manager located at 1330 Gemini Avenue, Houston, Texas 77058.

11. Garnishor is a judgment creditor of Odin Alliance, Ltd., Odin Industrial, Inc., Odin Demolition & Asset Recovery, LLC, M. Katherine Weldon-Mitchum, and James M. Mitchum (collectively “Judgement Debtors”), who are jointly and severally liable for the judgment held by Garnishor.

Judgment Debtor Odin Demolition & Asset Recovery, LLC is a Texas limited liability company (FEIN: XX-XXX9109), with the last known address of 203 Ivy Avenue, Deer Park, Texas 77536.

Odin Demolition & Asset Recovery, LLC is a Texas citizen for diversity of citizenship purposes because its sole member is Odin Alliance, Ltd. (FEIN: XX-XX1230), which is a Texas limited partnership whose general and limited partners are Texas citizens.

Odin Alliance, Ltd.’s last known address is 2500 Wilcrest Drive, Suite 201, Houston, Texas 77042.

Judgment Debtor Odin Industrial, Inc. is a Texas corporation, whose last known address is PO Box 99, Deer Park, Texas 77536.

Judgment Debtor M. Katherine Weldon-Mitchum is an individual whose last known address and residence is 3802 WINDSOR DR DEER PARK, TX 77536-6182 and identifiable by SSN: XXX-XX-9390.

Judgment Debtor James M. Mitchum is an individual whose last known address and residence is 3802 WINDSOR DR DEER PARK, TX 77536-6182 and identifiable by SSN: XXX-XX-4946.

Upon issuance and service of the writs upon the Garnishees, the Garnishor will serve the writs upon the Judgment Debtors at their last known addresses listed in this paragraph.

JURISDICTION AND VENUE

12. Federal jurisdiction is proper pursuant to 28 U.S.C. § 1332(a) because Garnishor is a citizen of a foreign state and Garnishees are citizens of different states, and the amount in controversy exceeds the sum of $75,000, exclusive of interests and costs.

13. Venue is proper pursuant to 28 U.S.C. § 1391(a) and 28 U.S.C. § 1391(b)(1) and 28 U.S.C. § 1391(b)(2).

Garnishees reside in the Southern District of Texas and a substantial part of the events or omissions giving rise to the claim occurred in the Southern District of Texas.

14. Specifically, the proceeding in which the judgment was entered in favor of Garnishor and against Judgment Debtors, joint and severally, was docketed in this Court. See IberiaBank v. James M. Mitchum, et al., Civil Action No. 4:16-cv-01933 (S.D. Tex. Houston Div.) (“the Underlying Proceeding”).

THE DEBT

15. In the Underlying Proceeding, on August 22, 2017, the Court entered its Agreed Final Judgment that Garnishor recover from Judgment Debtors, joint and severally, the principal sum of $331,603.68;

plus pre-judgment interest on the principal sum at the rate of 5.75% per annum from May 9, 2017 until August 21, 2017 (which corresponds to $5,537.33 in pre-judgment interest);

plus post-judgment interest on the principal sum at the rate of 0.27% per annum, from August 23, 2017 until the judgment is paid (which correspond to $4,121.52 in post-judgment interest as of March 22, 2022);

plus costs of court.

A true and correct copy of the Agreed Final Judgment is attached hereto as Exhibit A and incorporated herein by reference. For ease of reference, the total outstanding balance owed on the Judgment, as of March 22, 2022, is $341,262.53, plus costs of court.

16. On March 24, 2021, First Horizon Bank, a Tennessee state-chartered banking association, as successor by merger to IberiaBank, formerly a division of First Horizon Bank, assigned the Agreed Final Judgment dated August 22, 2017, attached hereto as Exhibit A, to Plaintiff Storey Mountain, LLC. A true and correct copy of the Assignment of Judgment is attached hereto as Exhibit B and incorporated herein by reference.

GARNISHMENT IS PROPER

17. Pursuant to Federal Rule of Civil Procedure Rule 64, the remedies available under the laws of the State of Texas for the seizure of Property, including garnishment, are available to secure satisfaction of the Court’s judgment.

The applicable rules for issuance of a writ of garnishment under Texas law are set forth in Section 63.001 et seq. of Texas Civil Practice and Remedies Code, and Rule 657 et seq. of the Texas Rules of Civil Procedure.

18. The Agreed Final Judgment in the Underlying Proceeding is valid and subsisting and remains unpaid.

No supersedeas bond has been filed by Judgment Debtors and approved to suspend execution of the Agreed Final Judgment.

See Fed. R. Civ. P. 62; Tex. Civ. Prac. & Rem. Code § 63.001(3); Tex. R. Civ. P. Rule 657.

19. Garnishor has reason to believe, and does believe, that each Garnishee is indebted to the Judgment Debtors because one or more of each Garnishee’s accounts are in the names of Judgment Debtors. Garnishor’s belief is based upon prior business dealings with the Judgment Debtors and upon discovery obtained in the Underlying Proceeding.

20. Within Garnishor’s knowledge, the Judgment Debtors do not possess property in Texas subject to execution sufficient to satisfy the above described Judgment.

Garnishor’s knowledge and belief is based on discovery obtained in the Underlying Proceeding and Garnishor’s own investigation of public records pertaining to the Judgment Debtors.

21. Garnishor is not seeking to injury or harass Garnishees or Judgment Debtors by seeking writs of garnishment.

22. Garnishor is not required to post a bond in a post-judgment application for writ of garnishment.

See Simulis, L.L.C. v. G.E. Capital Corp., 276 S.W.3d 109, 115 (Tex. App.— Houston [1st Dist.] 2008, no pet.).

RELIEF REQUESTED

WHEREFORE, Garnishor requests that:

A. The Court order the District Clerk to issue a writ of garnishment for each Garnishee;

B. The District Clerk to issue said writs and serve them upon the respective Garnishees, as prescribed by law;

C. Garnishor have judgment against each Garnishee to the extent necessary to satisfy Garnishor’s Agreed Final Judgment against Judgment Debtors, as provided by law, together with all costs or court incurred in this proceeding, with a total not to exceed the amount admitted or found to be due the Judgment Debtors from each Garnishee;

D. Garnishor be granted judgment against each Garnishee for post-judgment interest on the judgment in this garnishment proceeding at the maximum legal rate from the date of judgment until paid; and

E. Garnishor be granted such other and further relief, special or general, legal or equitable, to which the Garnishor may be justly entitled.

Respectfully submitted,

LAW FIRM OF SHAWN M. GRADY, PLLC

By: /s/ Shawn M. Grady

Shawn M. Grady, Attorney-in-Charge
Texas State Bar No. 24076411
shawn@gradycollectionlaw.com
2100 West Loop South, Suite 805
Houston, Texas 77027
832-692-4542 Telephone
903-416-8218 Facsimile

ATTORNEY FOR PLAINTIFF