Evidence Record
AW Harris Awh 2024 48085 Doc. 121014246
§ § § § Defendant/Judgment Debtors. § § 129TH JUDICIAL DISTRICT
DISTIL analysis
DISTIL Run
Profile
Standard
Version
1
Doc Type
Amended Court Order
Total Nodes
29
Node Legend
Entity (ENT)
Event (EVT)
Claim (CLM)
Anchor (ANC)
Omission (OMI)
Tension (TEN)
Tell (TEL)
Inference (INF)
Hypothesis (HYP)
Stage 1
Index
Orientation · No nodes
Document Classification
Amended Court Order 129th Judicial District Court, Harris County, Texas Post-judgment collection proceedings; receivership termination 2025-06-11
judgment_satisfiedreceivership_terminateddisputed_credits_offsetsstatutory_authority_limits
Analytical Frame
Legal order terminating receivership after judgment satisfaction
Analytical Summary
On June 11, 2025, the 129th Judicial District Court of Harris County issued an amended order granting defendants' motion to stay or suspend a previously appointed receiver in Case No. 2024-48085. The court found that funds sufficient to satisfy the judgment had been tendered to the receiver, and therefore the receiver's statutory authority under Texas Civil Practice & Remedies Code § 31.002(b)(3) to take possession of and sell nonexempt property had been exhausted. The court terminated the receivership, ordered the judgment marked satisfied, and directed the receiver to suspend all collection activities and notify all contacted parties. However, the court acknowledged a dispute over credits and offsets to be applied to the judgment and ordered both parties to submit supporting documentation for determination.
Key Points
- Receivership terminated after funds sufficient to satisfy judgment were tendered
- Court found receiver's statutory authority limited to amount necessary to satisfy judgment
- Judgment marked satisfied; turnover order nullified
- Dispute remains over calculation of credits and offsets to be applied
- Any remaining funds after receiver compensation to go to Judgment Debtors for benefit of Legalist SPV III, LP
Stage 2
Core — Entities, Events, Claims
18 nodes
ENT-001
Entity
Atlantic Wave Holdings, LLC
Atlantic Wave Holdings, LLC is the plaintiff and judgment-creditor in this case.
Page 1 — ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC, Plaintiff/Judgment-Creditor
ENT-002
Entity
Secure Community, LLC
Secure Community, LLC is a co-plaintiff and judgment-creditor alongside Atlantic Wave Holdings.
Page 1 — ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC, Plaintiff/Judgment-Creditor
ENT-003
Entity
Cyberlux Corporation
Cyberlux Corporation is the corporate defendant and judgment-debtor in this receivership case.
Page 1 — CYBERLUX CORPORATION and MARK D. SCHMIDT, Individually, Defendant/Judgment Debtors
ENT-004
Entity
Mark D. Schmidt
Mark D. Schmidt is an individual defendant and judgment-debtor in this case.
Page 1 — CYBERLUX CORPORATION and MARK D. SCHMIDT, Individually, Defendant/Judgment Debtors
ENT-005
Entity
Legalist SPV III, LP
Legalist SPV III, LP is identified as a beneficiary entity to receive remaining funds for the benefit of Judgment Debtors.
Page 2 — any remaining funds be relinquished to Judgment Debtors, for the benefit of Legalist SPV III, LP ("Legalist")
ENT-006
Entity
129th Judicial District Court
The 129th Judicial District Court of Harris County, Texas issued this amended order.
Page 1 — IN THE DISTRICT COURT OF 129TH JUDICIAL DISTRICT HARRIS COUNTY, TEXAS
ENT-007
Entity
The Receiver
An unnamed receiver who was previously appointed by the court to take possession of and sell nonexempt property of the judgment debtors.
Page 1 — The Receiver was appointed pursuant to the Court's authority under Texas Civil Practice & Remedies Code § 31.002(b)(3)
EVT-001
Event
Filing of Amended Order
The amended order granting defendants' motion to stay or suspend the receiver was filed on June 11, 2025 at 7:39:29 AM.
Page 1 — 6/11/2025 7:39:29 AM Marilyn Burgess - District Clerk Harris County Envelope No: 101870179 By: TAYLOR, SHANELLE L Filed: 6/11/2025 7:39:29 AM
EVT-002
Event
Appointment of Receiver
A receiver was previously appointed under a Turnover Order pursuant to Texas Civil Practice & Remedies Code § 31.002(b)(3).
Page 1 — Appointing Receiver ("Turnover Order"). The Receiver was appointed pursuant to the Court's authority under Texas Civil Practice & Remedies Code § 31.002(b)(3).
EVT-003
Event
Tender of Funds to Receiver
Funds sufficient to satisfy the judgment were tendered to the receiver, triggering the basis for terminating the receivership.
Page 1 — The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
EVT-004
Event
Termination of Receivership
The court ordered the termination of the receivership and directed the receiver to file accounting and expenses.
Page 2 — IT IS ORDERED that the receivership is terminated. The Receiver is ordered to file his accounting and expenses.
EVT-005
Event
Judgment Marked Satisfied
The court ordered that the judgment be marked satisfied following the tender of sufficient funds.
Page 2 — IT IS ORDERED that the judgment be marked satisfied.
CLM-001
Claim
Sufficient Funds Tendered
The court found that funds sufficient to satisfy the judgment have been tendered to the receiver.
Page 1 — The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
CLM-002
Claim
Judgment Satisfied
The court found that the judgment has been satisfied.
Page 2 — The Court finds that the judgment has been satisfied.
CLM-003
Claim
Receivership Purpose Accomplished
The court found that the purpose of the receivership has been accomplished, warranting dissolution.
Page 2 — The Court finds that the purpose of the receivership has been accomplished. As a result, the Court finds that the receivership should be dissolved.
CLM-004
Claim
Receiver Authority Limited to Judgment Amount
The court found that the receiver's authority to take possession of and sell nonexempt property is limited to the extent required to satisfy the judgment, and the receiver lacks authority to exceed that amount.
Page 1 — The Court finds that the Receiver's authority to take possession of and sell nonexempt property, as expressly stated in § 31.002(b)(3), is limited to the extent required to satisfy the judgment. Further, the Court finds that the Receiver lacks authority to take possession of and sell nonexempt property in excess of the amount of the judgment.
CLM-005
Claim
Further Receiver Activity Would Exceed Statutory Authority
The court found that any further activity by the receiver to take possession or sell judgment debtors' nonexempt property would exceed the statutory authority conferred under Texas Civil Practice & Remedies Code § 31.002(b)(3).
Page 1, 2 — The Court finds that, because funds sufficient to satisfy the judgment have been tendered to the Receiver, any further activity by the Receiver to take possession or sell Judgment Debtors nonexempt property would exceed the statutory authority conferred upon the Receiver under Texas Civil Practice & Remedies Code § 31.002(b)(3).
CLM-006
Claim
Turnover Order Nullified
The court found that the turnover order appointing the receiver is nullified.
Page 2 — The Court finds that the Turnover Order is nullified.
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
4 nodes
TEN-001
Tension
Judgment Satisfied vs. Disputed Credits/Offsets
The court found the judgment satisfied and ordered it marked as such, yet simultaneously acknowledged an ongoing dispute over the amount of credits and offsets to be applied to the judgment, creating uncertainty about the final accounting.
Page 2 — IT IS ORDERED that the judgment be marked satisfied. The Court finds that there is a dispute over the amount of credits and offsets to be applied to the judgment, The parties are ordered to submit documentation reflecting the credits and offsets they contend should be applied.
QST-001
Question
What Credits and Offsets Apply?
What is the correct amount of credits and offsets to be applied to the judgment, and how will this affect the final distribution of remaining funds?
Page 2 — The Court finds that there is a dispute over the amount of credits and offsets to be applied to the judgment, The parties are ordered to submit documentation reflecting the credits and offsets they contend should be applied.
QST-002
Question
What is Receiver's Final Compensation?
What will be the receiver's final compensation and expenses, and how much will remain for distribution to judgment debtors for the benefit of Legalist?
Page 2 — IT IS ORDERED that, after the Court's determination of the credits and offsets to be applied, and the determination of the Receiver's compensation, that any remaining funds be relinquished to Judgment Debtors, for the benefit of Legalist SPV III, LP ("Legalist").
QST-003
Question
What Was Original Judgment Amount?
What was the original judgment amount that formed the basis for the receivership and how does it relate to the funds tendered?
Page 1 — The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
Stage 4
Interpretive — Inferences, Omissions, Patterns
7 nodes
INF-001
Inference
Defendants Successfully Challenged Receiver Overreach
The defendants' motion to stay or suspend the receiver appears to have been premised on an argument that the receiver was exceeding statutory authority by continuing collection efforts after sufficient funds were provided, which the court accepted.
Page 1 — After reviewing the Motion, the record, the related responses and documents, and arguments of counsel, the Court finds that the Motion is well-taken and should be GRANTED. The Court finds that the Receiver's authority to take possession of and sell nonexempt property, as expressly stated in § 31.002(b)(3), is limited to the extent required to satisfy the judgment.
INF-002
Inference
Legalist Likely Provided Satisfaction Funds
The specification that remaining funds should be relinquished to judgment debtors for the benefit of Legalist SPV III, LP suggests that Legalist may have been the source of funds tendered to satisfy the judgment, establishing a priority interest in any surplus.
Page 2 — IT IS ORDERED that, after the Court's determination of the credits and offsets to be applied, and the determination of the Receiver's compensation, that any remaining funds be relinquished to Judgment Debtors, for the benefit of Legalist SPV III, LP ("Legalist").
INF-003
Inference
Receiver Had Initiated Broad Collection Actions
The court's order requiring the receiver to contact all parties and third parties previously contacted suggests the receiver had initiated a broad collection campaign that now must be reversed.
Page 2 — The Receiver is ORDERED to contact all parties and third parties contacted by the Receiver or his agents or representatives and to provide notice of this order.
OMI-001
Omission
No Specific Judgment Amount Stated
The order does not specify the actual judgment amount that was to be satisfied, only that sufficient funds were tendered.
Page 1 — The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
OMI-002
Omission
No Details on Funds Tendered
The order does not specify the amount of funds tendered, the form of payment, or the timing of the tender.
Page 1 — The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
OMI-003
Omission
Receiver Identity Not Disclosed
The order does not identify the receiver by name, only referring to 'the Receiver' throughout.
Page 1 — The Receiver was appointed pursuant to the Court's authority under Texas Civil Practice & Remedies Code § 31.002(b)(3).
OMI-004
Omission
Nature of Credits/Offsets Dispute Unclear
The order acknowledges a dispute over credits and offsets but provides no detail about the nature or substance of the disagreement between the parties.
Page 2 — The Court finds that there is a dispute over the amount of credits and offsets to be applied to the judgment, The parties are ordered to submit documentation reflecting the credits and offsets they contend should be applied.
Extracted text
2 pages · 3042 charactersFiling Header
Filed: 6/11/2025 7:39:29 AM
CAUSE NO. 2024-48085
ATLANTIC WAVE HOLDINGS, LLC and SECURE COMMUNITY, LLC,
§ IN THE DISTRICT COURT OF
§
§ Plaintiff/Judgment-Creditor
§
§
V.
CYBERLUX CORPORATION and MARK D. SCHMIDT, Individually,
§ § § § Defendant/Judgment Debtors. § § 129TH JUDICIAL DISTRICT
HARRIS COUNTY, TEXAS
AMENDED ORDER GRANTING DEFENDANTS' MOTION TO STAY OR OTHERWISE SUSPEND ORDER APPOINTING RECEIVER
Appointing Receiver ("Turnover Order"). After reviewing the Motion, the record, the related responses and documents, and arguments of counsel, the Court finds that the Motion is well- taken and should be GRANTED.
The Receiver was appointed pursuant to the Court's authority under Texas Civil Practice & Remedies Code § 31.002(b)(3).
The Court finds that the Receiver's authority to take possession of and sell nonexempt property, as expressly stated in § 31.002(b)(3), is limited to the extent required to satisfy the judgment. Further, the Court finds that the Receiver lacks authority to take possession of and sell nonexempt property in excess of the amount of the judgment.
The Court finds that funds sufficient to satisfy the judgment have been tendered to the Receiver.
The Court finds that, because funds sufficient to satisfy the judgment have been tendered to the Receiver, any further activity by the Receiver to take possession or sell
Judgment Debtors nonexempt property would exceed the statutory authority conferred upon the Receiver under Texas Civil Practice & Remedies Code § 31.002(b)(3).
The Court finds that the judgment has been satisfied.
The Court finds that the purpose of the receivership has been accomplished. As a result, the Court finds that the receivership should be dissolved.
The Court finds that the Turnover Order is nullified.
The Receiver is ORDERED to suspend all activities to take possession of and sell nonexempt property of Judgment Debtors.
The Receiver is ORDERED to contact all parties and third parties contacted by the Receiver or his agents or representatives and to provide notice of this order.
IT IS ORDERED that Judgment Debtors may carry out the business operations of Cyberlux Corporation without consent or approval of the Receiver.
IT IS ORDERED that the receivership is terminated. The Receiver is ordered to file his accounting and expenses.
IT IS ORDERED that the judgment be marked satisfied.
The Court finds that there is a dispute over the amount of credits and offsets to be applied to the judgment, The parties are ordered to submit documentation reflecting the credits and offsets they contend should be applied.
IT IS ORDERED that, after the Court's determination of the credits and offsets to be applied, and the determination of the Receiver's compensation, that any remaining funds be relinquished to Judgment Debtors, for the benefit of Legalist SPV III, LP ("Legalist").
SO ORDERED.
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