Texas Business and Commerce Code 9.5185 – Fraudulent Filing
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(a) A person may not intentionally or knowingly present for filing or cause to be presented for filing a financing statement that the person knows:
(1) is forged;
(2) contains a material false statement; or
(3) is groundless.
(b) A person who violates Subsection (a) is liable to the owner of property covered by the financing statement for:
(1) the greater of $5,000 or the owner’s actual damages;
(2) court costs; and
(3) reasonable attorney’s fees.
Terms Used In Texas Business and Commerce Code 9.5185
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Plaintiff: The person who files the complaint in a civil lawsuit.
- Property: means real and personal property. See Texas Government Code 311.005
(c) A person who violates Subsection (a) also may be prosecuted under § 37.101, Penal Code.
(d) An owner of property covered by a fraudulent financing statement described in Subsection (a) also may file suit in a court of suitable jurisdiction requesting specific relief, including, but not limited to, release of the fraudulent financing statement. A successful plaintiff is entitled to reasonable attorney’s fees and costs of court assessed against the person who filed the fraudulent financing statement. If the person who filed the fraudulent financing statement cannot be located or is a fictitious person, the owner of the property may serve the known or unknown defendant through publication in a newspaper of general circulation in the county in which the suit is brought.