Evidence Record

Exhibit C

2/7/2025 9:29 AM Marilyn Burgess - District Clerk Harris County Envelope No. 97103416 By: Maegan McGuire Filed: 2/7/2025 9:29 AM

Type
exhibit
Pages
6
Lines
317
SHA-256
f80f2b6ec8e7

DISTIL analysis

DISTIL Run
Profile
Standard
Version
1
Doc Type
court_transcript_excerpt
Total Nodes
27
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
court_transcript_excerpt 129th District Court, Harris County, Texas civil_litigation_receiver_appointment 2024-01-16 to 2025-02-07
judicial_rulingstatutory_objectionprocedural_dispute
Analytical Frame
legal_dispute_over_receiver_powers
Analytical Summary
This court transcript excerpt documents a hearing on January 16, 2024, in cause no. 2024-48085 before Judge Michael Gomez in Harris County's 129th Judicial District Court. The case involves Cyberlux Corporation and Mark D. Schmidt against Atlantic Wave Holdings, LLC and Secure Community, LLC. The central dispute centers on the appointment of a receiver and objections to the scope of the receiver's powers under Texas statutory authority. Defense counsel Ms. Clark objects that the proposed receiver order exceeds statutory limits, which authorize receivers to take possession of nonexempt property, sell it, and pay proceeds to judgment creditors, while the proposed order grants broader investigative powers. Judge Gomez grants the application to appoint a receiver but acknowledges concerns about the order's form, indicating amendments are needed before entry.
Key Points
  • Judge Gomez grants application to appoint a receiver in case 2024-48085
  • Defense counsel objects to receiver order exceeding statutory authority
  • Receiver statute permits taking possession of nonexempt property, selling it, and paying judgment creditor
  • Proposed order allegedly grants receiver broad investigative powers beyond statutory scope
  • Court acknowledges order needs amendment before entry
Stage 2
Core — Entities, Events, Claims
14 nodes
ENT-001
Entity
Cyberlux Corporation
Plaintiff entity in the lawsuit, appearing as party to the proceedings
Page 2 — CYBERLUX CORPORATION AND
ENT-002
Entity
Mark D. Schmidt
Individual plaintiff appearing alongside Cyberlux Corporation
Page 2 — MARK D. SCHMIDT, INDIVIDUALLY
ENT-003
Entity
Atlantic Wave Holdings, LLC
Defendant entity in the lawsuit
Page 2 — ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
ENT-004
Entity
Secure Community, LLC
Defendant entity in the lawsuit alongside Atlantic Wave Holdings
Page 2 — ATLANTIC WAVE HOLDINGS, LLC AND SECURE COMMUNITY, LLC
ENT-005
Entity
Judge Michael Gomez
Presiding judge in the 129th Judicial District Court hearing the case
Page 2 — Honorable Michael Gomez, Judge Presiding
ENT-006
Entity
Ms. Clark
Defense counsel presenting objections to the receiver order
Page 3 — MS. CLARK: Yes, I would, Your Honor.
ENT-007
Entity
Katherine Clark
Attorney of record, represented by Frankie Huff in the efiling certificate
Page 6 — Frankie Huff on behalf of Katherine Clark
ENT-008
Entity
Jennifer Gajevsky
Official Court Reporter for the 129th District Court certifying the transcript
Page 5 — I, Jennifer Gajevsky, Official Court Reporter in and for the 129th District Court of Harris, State of Texas
ENT-009
Entity
129th District Court
Harris County judicial district court with jurisdiction over the case
Page 2 — IN THE DISTRICT COURT HARRIS COUNTY, TEXAS 129TH JUDICIAL DISTRICT
EVT-001
Event
Receiver Appointment Hearing
Hearing held on January 16, 2024, concerning the appointment of a receiver in case 2024-48085
Page 2 — HEARING On the 16TH day Of January, 2025, the following proceedings came on to be held in the above-titled and numbered cause
EVT-002
Event
Court Grants Receiver Application
Judge Gomez grants the application to appoint a receiver, while indicating the order requires amendment
Page 3 — THE COURT : Okay. So before you do that, the Court is going to grant the application and appoint a receiver. We need to -- we talked about fixing the order and amending it to address the concerns that were raised before. And so what the Court currently has is not what I'm going to enter.
EVT-003
Event
Filing of Defense Response
Defense files response to plaintiff's request for emergency hearing on February 7, 2025
Page 6 — Filing Description: Defs Response to Plfs Request for Emergency Hearing Status as of 2/7/2025 3:22 PM CST
CLM-001
Claim
Statutory Authority for Receiver
Defense counsel asserts that the receiver statute authorizes a receiver to take possession of nonexempt property, sell it, and pay proceeds to judgment creditor to satisfy the judgment
Page 3 — receiver statute states that the Court may appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment. That's what the statute says.
CLM-002
Claim
Receiver Order Exceeds Statutory Scope
Defense counsel claims the proposed receiver order does not comply with statutory limitations and grants excessive investigative powers
Page 3 — This order does not do that. This order allows the receiver lots of powers. And, basically, he can go on a wild goose chase, look at everything. What's the point of the
Stage 3
In Situ — Quotations, Tells, Tensions, Questions
8 nodes
QUO-001
Quotation
Court Grants Application with Order Revision
Judge Gomez explicitly states intent to grant receiver application while acknowledging need for order amendments
Page 3 — THE COURT : Okay. So before you do that, the Court is going to grant the application and appoint a receiver. We need to -- we talked about fixing the order and amending it to address the concerns that were raised before. And so what the Court currently has is not what I'm going to enter.
QUO-002
Quotation
Defense Counsel's Statutory Interpretation
Ms. Clark articulates the statutory limits on receiver authority
Page 3 — receiver statute states that the Court may appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment. That's what the statute says.
QUO-003
Quotation
Objection to Receiver Powers
Ms. Clark characterizes the proposed order as allowing excessive discretion beyond statutory scope
Page 3 — This order does not do that. This order allows the receiver lots of powers. And, basically, he can go on a wild goose chase, look at everything.
TLL-001
Tell
Defense Request for Record
Defense counsel explicitly requests to make a record of objections before the ruling is finalized
Page 3 — a record with respect to objecting to this form of order? Because I was not done, and I really want a record on this.
TLL-002
Tell
Court Inquires About Additional Objections
Judge invites defense counsel to elaborate on objections beyond those already discussed
Page 3 — I don't know specifically what your objection -- if you have additional objections than we've already discussed. MS. CLARK: Yes . THE COURT. Yes, you want to go ahead and elaborate on those? MS CLARK: Yes, I would, Your Honor.
TEN-001
Tension
Statutory Scope vs. Proposed Order Powers
Core tension between defense counsel's interpretation of limited statutory receiver authority and the broader powers contained in the proposed order
Page 3 — receiver statute states that the Court may appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment. That's what the statute says. This order does not do that. This order allows the receiver lots of powers.
TEN-002
Tension
Granting Application While Deferring Order Entry
Court grants the receiver application but acknowledges the current order is not acceptable for entry, creating procedural tension
Page 3 — the Court is going to grant the application and appoint a receiver. We need to -- we talked about fixing the order and amending it to address the concerns that were raised before. And so what the Court currently has is not what I'm going to enter.
QST-001
Question
Purpose of Excessive Receiver Powers
Defense counsel raises rhetorical question about the purpose of granting investigative powers beyond statutory judgment satisfaction
Page 3 — What's the point of the
Stage 4
Interpretive — Inferences, Omissions, Patterns
5 nodes
INF-001
Inference
Court Balancing Substantive Grant with Procedural Concerns
The court's decision to grant the application while withholding entry of the current order suggests judicial balancing between substantive merit of receiver appointment and procedural concerns about order scope
Page 3 — the Court is going to grant the application and appoint a receiver. We need to -- we talked about fixing the order and amending it to address the concerns that were raised before. And so what the Court currently has is not what I'm going to enter.
INF-002
Inference
Defense Strategy: Statutory Textualism
Defense counsel employs textualist statutory interpretation to constrain receiver powers to explicit statutory language
Page 3 — receiver statute states that the Court may appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment. That's what the statute says. This order does not do that.
OMI-001
Omission
Missing: Specific Receiver Powers in Proposed Order
The transcript excerpt does not contain the specific language of the proposed receiver order that defense counsel objects to, only characterizations
Page 3 — This order allows the receiver lots of powers. And, basically, he can go on a wild goose chase, look at everything.
OMI-002
Omission
Missing: Plaintiff's Legal Arguments
The excerpt does not include plaintiff's arguments supporting the broader receiver powers or responding to defense objections
Page 3 — Cross-Examination by Ms. Clark
OMI-003
Omission
Missing: Underlying Judgment Basis
The document does not explain the underlying judgment that forms the basis for the receiver appointment
Page 3 — pay the proceeds to the judgment creditor to the extent required to satisfy the judgment.

Extracted text

6 pages · 5451 characters

Exhibit C — Formatted Extract

Type: exhibit
Filing Header

2/7/2025 9:29 AM Marilyn Burgess - District Clerk Harris County Envelope No. 97103416 By: Maegan McGuire Filed: 2/7/2025 9:29 AM

Unofficial Copy Office of Marim Burgess District Clerk

EXHIBIT C

Hearing January 16, 2024

1
2

REPORTER'S RECORD VOLUME 1 OF 1 VOLUMES TRIAL COURT CAUSE NO. 2024-48085

3
4 5 6 VS.

ATLANTIC WAVE HOLDINGS, ) IN THE DISTRICT COURT

LLC AND SECURE COMMUNITY,

LLC

) )

) ) HARRIS COUNTY, TEXAS

CYBERLUX CORPORATION AND )

) 7

MARK D. ) 8 SCHMIDT, INDIVIDUALLY ) 129TH JUDICIAL DISTRICT

HEARING

On the 16TH day Of January, 2025, the following proceedings came on to be held in the above-titled and numbered cause before the Honorable Michael Gomez, Judge Presiding, held in Houston, Harris Counter Texas.

Proceedings reported by computerized stenotype

machine.

Unofficial Copy office of Martyn Burgess District Clerk

1
2 3

a record with respect to objecting to this form of order? Because I was not done, and I really want a record on this.

THE COURT : Okay. So before you do that,

the Court is going to grant the application and appoint

a receiver. We need to -- we talked about fixing the

order and amending it to address the concerns that were raised before. And so what the Court currently has is not what I'm going to enter.

I don't know specifically what your objection -- if you have additional objections than we've already discussed.

MS. CLARK: Yes .

THE COURT. Yes, you want to go ahead and elaborate on those? MS CLARK: Yes, I would, Your Honor.

receiver statute states that the Court may appoint a receiver with the authority to take possession of the nonexempt property, sell it, and pay the proceeds to the judgment creditor to the extent required to satisfy the judgment.

anofficial Copy Office of Marilyn Burgess District Clerk

That's what the statute says. This order does not do that. This order allows the receiver lots of powers. And, basically, he can go on a wild goose chase, look at everything. What's the point of the

Hearing January 16, 2024

THE COURT : Sounds good. Have a good day.

(END OF TODAY'S PROCEEDINGS)

Unofficial Copy Office of Marilyn Burgess District Clerk

Hearing January 16, 2024

1
STATE OF TEXAS
2
COUNTY OF HARRIS
3
4 5
6
7

I, Jennifer Gajevsky, Official Court Reporter in and for the 129th District Court of Harris, State of Texas, do hereby certify that the above and foregoing contains a true and correct transcription

8
of all portions of evidence and other proceedings
9
requested in writing by counsel for the parties to be included in this volume of Reporter's Record

in the above-styled and numbered cause, all of which occurred in open court in chambers and were reported by me.

I further certify that this Reporter's Record of the proceedings truly, and correctly reflects the exhibits, if any, offered by the respective parties.

Unofficial Copy Office & Marilyn Burgess District Clark

/s/ Jennifer Gajevsky

Jennifer Gajevsky, CSR Texas CSR 9250

Official Court Reporter

129th District Court Harris County, Texas 201 Caroline Houston, Texas 77002 Expiration: 2/2026

Automated Certificate of eService

This automated certificate of service was created by the efiling system. The filer served this document via email generated by the efiling system on the date and to the persons listed below. The rules governing certificates of service have not changed. Filers must still provide a certificate of service that complies with all applicable rules.

Frankie Huff on behalf of Katherine Clark Bar No. 24046712 fhuff@thompsoncoburn.com Envelope ID: 97103416 Filing Code Description: No Fee Documents Filing Description: Defs Response to Plfs Request for Emergency Hearing Status as of 2/7/2025 3:22 PM CST

Case Contacts

Name

BarNumber

Email

TimestampSubmitted

Status

Sandra Meiners

smeiners@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Travis Vargo

tvargo@vargolawfirm.com

2/7/2025 9:29:07 AM

SENT

Micah Jackson

mjackson@berlethlaw.com

2/7/2025 9:29:07 AM

SENT

Laurie DeBardeleben

Idebardeleben@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Roxanna Lock

rlock@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Shawn Grady

shawn@gradycollectionlaw.com

2/7/2025 9:29:07 AM

SENT

Shawn Grady

shawn@gradycollectionlaw.com

2/7/2025 9:29:07 AM

SENT

Jeff Brown

jbrown@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Bernadette Martin

bernadette@gradycollectionlaw.com

2/7/2025 9:29:07 AM

SENT

Lena Brasher

Ibrasher@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Sheli Davis

sdavis@berlethlaw.com

2/7/2025 9:29:07 AM

SENT

Tristian Harris

Cop

tharris@berlethlaw.com

2/7/2025 9:29:07 AM

SENT

Corinne Martin

cmartin@berlethlaw.com

2/7/2025 9:29:07 AM

SENT

Frankie Huff

fhuff@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Michael Poynter

mpoynter@vargolawfirm.com

2/7/2025 9:29:07 AM

SENT

Hannah Fischer Enokicial

hfischer@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Bernadette Martin

bernadette@gradycollectionlaw.com

2/7/2025 9:29:07 AM

SENT

Jocelin A. Tapia

jtapia@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Katharine Clark

kclark@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Alex Pennetti

apennetti@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Edward W.Gray, Jr.

EGray@thompsoncoburn.com

2/7/2025 9:29:07 AM

SENT

Original source file

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File
aw-harris-awh-2024-48085-doc-118855060.pdf
Source UID
source:f80f2b6ec8e7ea91176430390c31ff89f5267341a73b8ffd551edd860ba91ba1
Full SHA-256
f80f2b6ec8e7ea91176430390c31ff89f5267341a73b8ffd551edd860ba91ba1