Reported / Citable
Background
This case involves a family dispute between Danny Johnston and Patricia Ann Johnston over assets of East Texas Oil Field Construction, LLC and associated personal property. Patricia Johnston, acting individually and as independent executor of the estate of Thomas William Johnston, sold the business assets and personal property to East Texas Oil Field Construction, LLC on December 15, 2020, in exchange for a promissory note of $191,500 secured by a vendor’s lien. The assets included substantial construction equipment (dozers, backhoes, tractors, trailers) and personal property (a 1983 Mack truck, coin collection, arrowhead collection, and other items).
The parties became involved in litigation and jointly stipulated to the entry of a temporary injunction to preserve the disputed assets pending resolution of their claims. The magistrate judge issued a report and recommendation approving the agreed temporary restraining order.
The Court’s Holding
The magistrate judge recommended granting the agreed temporary injunction effective through trial. The injunction prohibits Danny Johnston, Patricia Johnston, East Texas Oil Field Construction, LLC, and any person acting on their behalf from directly or indirectly selling, liquidating, transferring, conveying, encumbering, or otherwise disposing of the business property (including equipment listed in the December 15, 2020 Bill of Sale) and personal property (including vehicles, equipment, and collectibles listed in Exhibit B).
The injunction further prohibits destruction, modification, or alteration of any internet website or social media postings used to advertise, market, or offer for sale the business or personal property. The court found the injunction binding on all parties, their agents, servants, employees, and any persons acting in concert with them. No bond was required, as both parties waived this condition.
Key Takeaways
- Asset freezes in family disputes require agreed temporary injunctions to prevent dissipation of property pending litigation resolution.
- Modern injunctive relief extends beyond tangible property to include digital assets and internet-based marketing and advertising channels.
- Magistrate judges’ recommendations regarding agreed stipulations are subject to district court review and objection procedures under 28 U.S.C. § 636(b)(1)(C).
- Waiver of bond by both parties is permissible in agreed temporary injunctions when parties stipulate to preservation measures.
Why It Matters
This case illustrates the practical mechanisms courts use to protect contested assets during family litigation, particularly when business and personal property interests are commingled. The injunction preserves the status quo and prevents either party from unilaterally disposing of assets while disputes over ownership, control, and division remain unresolved.
The inclusion of provisions restricting social media and internet advertising reflects modern litigation realities, where digital marketing can facilitate rapid asset dissipation or transfer. The agreement between parties demonstrates that in many disputes involving substantial assets, both sides recognize the mutual benefit of asset preservation orders pending final adjudication.