The Court-appointed Receiver, Mr. Kretzer, filed a series of adversary suits and proofs-of claims-against debtor-controlled entities in Bankruptcy Courts in Dallas and Austin. Less than a year after Mr. Kretzer’s appointment (on September 2, 2022), the debtors agreed to pay $11.37 million. This cash was then transferred to Princeton, which declared in an SEC filing (known as an 8K) its intent to pay a special dividend with this recovery of even more than the face value of the judgment.
In September 2021, the 165th Judicial District of Harris County, Texas appointed Mr. Kretzer to collect a $10 million-plus judgment that had gone unpaid. A copy of this turnover order is available here:
Turnover Order Appointing Seth Kretzer
Here is the underlying judgment (issued March 4, 2021), which Princeton had obtained against the two judgment debtors:
Underlying Judgment Princeton Obtained
In April 2022, Judge Ursula Hall denied a written motion by the Paul Entities to stop Mr. Kretzer’s collection efforts. (See Michelle Casady, Law360: “Texas Judge Won’t Halt Receiver’s Work In $9.9M Judgment,” April 22, 2022):
Texas Judge Won’t Halt Receivers Work In 9.9M Judgment
After Princeton was paid in full, Mr. Kretzer filed his final report and accounting with the appointing state district judge on October 31, 2022:
Receiver’s Report Documenting Defendants Non-compliance
Throughout early 2022, judgment debtors challenged the turnover order in the Texas First Court of Appeals. Mr. Kretzer’s successful response in opposition brief can be accessed here:
Brief of Receiver and Response to Appellants Rule 293 Motion
In addition, Princeton’s successful opposition brief filed in the Texas First Court of Appeals can be accessed here:
Princeton’s Successful Opposition Brief
In late 2021, the judgment debtors made unsuccessful attempts to avoid posting an appeals bond (known as a “supersedeas bond”). The initial order (entered November 18, 2021) of the Texas First Court of Appeals reinstating the receivership can be accessed here:
Court of Appeals for First District Texas Houston Order
The second order [entered December 23, 2021] by the Texas First Court of Appeals reinstating the receivership is available here:
Court of Appeals for First District Texas Houston Second Order
Appellate Court Rulings Affirming Receiverships in Related Cases
Collateral Attacks In Other Courts On Actions Involving Receivers
Austin-based state appeals court affirmed district court’s judgment confirming the arbitrator’s award and its order directing the receiver to liquidate the entities under receivership:
Paul v. Roy F. & Joann Cole Mitte Found., No. 03-21-00502-CV, 2023 Tex. App. LEXIS 772 (Tex. App.—Austin Feb. 8, 2023)
Austin-based appeals court affirms trial court’s appointment of a receiver:
WC 1st & Trinity, LP v. Roy F. & JoAnn Cole Mitte Found., Nos. 03-19-00799-CV, 03-19-00905-CV, 2021 Tex. App. LEXIS 8016 (Tex. App.—Austin Sep. 30, 2021, pet. denied)
El Paso appeals court affirmed trial court’s dismissal of all claims against Receiver and creditors under Texas Citizens Participation Act (the TCPA) and Rule 91a of the Texas Rules of Civil Procedure:
1st & Trinity Super Majority, LLC v. Milligan, No. 08-20-00230-CV, 2022 Tex. App. LEXIS 4842 (Tex. App.—El Paso July 14, 2022, no pet. h.)
Third Court of Appeals affirmed the default judgment against Nate paul for his guaranty on 900 Cesar Chavez, 905 Cesar Chavez, 5th & Red River, and 7400 South Congress:
2023-2-15 Memorandum Opinion
Status Updates in Texas First Court of Appeals
Justice Kelly’s July 27, 2023 Order Denying Appellants’ Motion for Rehearing
Status Report Filed with 1st Court of Appeals – 12/14/2022
Status Report Filed with 1st Court of Appeals – 03/10/2023
Receiver Position Paper on Standing In Texas’ First Court of Appeals
Receiver’s Reply Brief on Standing to Texas’ First Court of Appeals
Receiver’s Response to Motion for Rehearing in Texas First Court of Appeals
Motion to Dismiss Successor Case Filed in Texas’ First Court of Appeals:
Receiver’s Motion to Dismiss for Want of Jurisdiction
Receiver’s Response to Paul Entities’ Request To Delay Jurisdictional Determination
Receiver’s Response to Appeals Court’s October 24, 2023 Order regarding supersedeas bond
Justice Kelly’s December 12, 2023 order dismissing mandamus as moot
Appellants’ opening brief by A Dozen ‘Intervening’ Paul-Controlled Entities
Appellants’ opening brief by Two Named Judgment Debtors
Receiver Kretzer’s Opposition Brief to Motion to Substitute in Texas Supreme Court
Texas’ First Court of Appeals Affirms The Turnover Order In Its Entirety
Receiver’s Opposition to Extension of Briefing Deadlines
Court’s January 4, 2024 Order Denying Additional Extensions
Receiver’s Response Brief to Intervenors’ Appeal [filed March 25, 2024]
Receiver’s Response Brief to Judgment Debtors’ Appeal [filed March 25, 2024]
Texas Supreme Court
Order From Texas Supreme Court Denying Paul Parties’ Petition For Review As Moot
Mandate from Texas Supreme Court
ADDITIONAL DOCUMENTS
JUDGE URSULA HALL’S ORDER GRANTING RECEIVER FEES [AUGUST 2, 2023]
ORDERS FROM STATE COURT JUDGES DENYING MOTIONS TO UNDO RECEIVERSHIP
BRIEF OF THE RECEIVER AND RESPONSE TO APPELLANTS’ RULE 29.3 MOTION
RECEIVER’S RESPONSE TO NATE PAUL ENTITIES’ FEBRUARY 28, 2022 LETTER MOTION
PRINCETON’S MOTION FOR RECEIVER
PRINCETON’S AUGUST 6 LETTER TO JUDGE HALL ASKING FOR RECEIVER