Under a forbearance agreement, a company assigned its ownership of this litigation. The trial court found that the company had standing and the court had subject matter jurisdiction. The company assigned all of its interests in the causes of action to the bank, parting with both legal and equitable title and lacks the justiciable interest that is necessary to maintain an action. Moreover, under §§9.622, 9.623 and 9.607 of the Texas Business and Commerce Code, the company, as debtor, lost all right to redeem the collateral as well as all ownership of the claims asserted in the litigation. The trial court's judgment is vacated and the case is dismissed.
Nelson v. Vernco Construction, Inc.
Tex. App. Dist. 8
July 22, 2013