Here's a detailed analysis of the case Piney Point Homes, LLC v. District Clerk Marilyn Burgess, decided by the Fourteenth Court of Appeals, Texas, in April 2025. You can read the text of the opinion by clicking here.
The core dispute centers around over $1 million in court registry funds that were supposed to be disbursed by the district clerk, Marilyn Burgess, to a specific bank account as ordered by the trial court. Instead, due to fraudulent wire instructions allegedly caused by hackers, the funds were wired to an unauthorized account, and ultimately lost after being converted into cryptocurrency. Piney Point Homes, the appellant, sued Burgess in her official capacity for negligence and an ultra vires act (an act beyond legal authority).
The legal questions addressed:
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Sovereign Immunity
Burgess asserted sovereign immunity, arguing that she cannot be sued for this loss because the state and its officials enjoy immunity unless the legislature clearly waives it. The court examined Texas statutes that address loss of registry funds (Texas Local Government Code §§ 117.083, 117.124) but found these statutes do not explicitly waive immunity from suit against the clerk. The court held that immunity remains intact unless waived by clear legislative language, which was absent here. -
Ultra Vires Act Exception
Piney Point claimed Burgess acted ultra vires by disbursing funds to an account not identified in the court’s order, thus waiving immunity. The court explained that an ultra vires claim requires showing the official acted without legal authority or failed to perform a purely ministerial duty—something prescribed by law with no room for discretion.The trial court’s order required the district clerk to disburse funds to Robert Berleth’s IOLTA account at Frost Bank, with Berleth providing specific wiring instructions. Berleth provided two subsequent wiring instructions to different accounts, both signed and notarized by him. Burgess followed those instructions after county auditor approval. The court held this complied with the order and statutes. Therefore, Burgess did not act without legal authority, nor did she fail to perform a ministerial act. The court rejected the ultra vires claim.
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Outcome
The trial court’s dismissal of Piney Point’s claims against Burgess for lack of jurisdiction was affirmed. Sovereign immunity was not waived by the statutes, and Burgess’s actions did not qualify as ultra vires.
In essence, the court protected the district clerk from liability for the loss of registry funds resulting from the fraudulent wire instructions because she acted within the legal framework and authority as dictated by the trial court’s order and the Texas Local Government Code.
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