Aerobic Maintenance & Service, Inc. v. First United Bank & Trust Co.

CourtCourt of Appeals of Texas
DecidedMay 21, 2009
Docket02-08-00232-CV
StatusPublished

This text of Aerobic Maintenance & Service, Inc. v. First United Bank & Trust Co. (Aerobic Maintenance & Service, Inc. v. First United Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aerobic Maintenance & Service, Inc. v. First United Bank & Trust Co., (Tex. Ct. App. 2009).

Opinion

COURT OF APPEALS

SECOND DISTRICT OF TEXAS

FORT WORTH

NO. 2-08-232-CV

AEROBIC MAINTENANCE & SERVICE, INC. APPELLANT

V.

FIRST UNITED BANK & TRUST CO. APPELLEE

------------

FROM THE 393RD DISTRICT COURT OF DENTON COUNTY

MEMORANDUM OPINION (footnote: 1)

This is an appeal from a summary judgment in a suit against a bank for failing to promptly return a check in accordance with section 4.302 of the Texas Business and Commerce Code.  Tex. Bus. & Com. Code Ann. § 4.302 (Vernon 2002).  In six issues, appellant Aerobic Maintenance & Service, Inc. contends that (1) the trial court has unpublished, unapproved “private local rules of procedure” that conflict with the rules of civil procedure, (2) the trial court violated appellant’s due process rights by permitting counsel for appellee First United Bank & Trust Co. to communicate ex parte with the court without allowing appellant the opportunity to respond, (3) notice of a submission date is not notice that a summary judgment motion is set for a hearing, (4) the trial court failed to comply with rule 166a by failing to hold a hearing, (5) the trial court erred by denying a motion for continuance before ruling on the motion for summary judgment, and (6) the trial court erred by granting summary judgment based on objected-to evidence.  Because the trial court’s procedure is proper under the rules of civil procedure and the Denton County local rules, and because summary judgment was proper under the applicable standard of review, we affirm.

Background Facts

Appellant installed two septic systems for Interstate Construction, a business owned by Mike McEvers.  Interstate Construction issued a check dated September 21, 2005, which appellant deposited on October 7, 2005.  On October 14, 2007, appellant’s bank told appellant that the check was being returned unpaid.  After investigating, appellant discovered that Linda McEvers had reported the check to her bank, appellee, as lost or stolen.  The check never cleared.

Appellant sued appellee, Interstate Construction, the McEverses, and others on October 5, 2007.  Appellant alleged the following causes of action against appellee:  failing to timely act upon a check when presented for payment (Texas Business and Commerce Code section 4.302(a)) and retaining a check beyond midnight of the day after receiving it without settling or sending a notice of dishonor or return (section 4.302(b)).   Id . § 4.302(a), (b).

On December 6, 2007, just over two months later, appellee filed a traditional motion for summary judgment, contending that it could prove as a matter of law that even though appellant deposited the check on Friday, October 7, 2005, appellee did not actually receive the check until Tuesday, October 11, 2005 because it was closed on Columbus Day—Monday, October 10, 2005—a federal holiday on which banks were required to close.  Appellee attached as summary judgment evidence a copy of the proclamation signed by President Bush requiring the banks to close for Columbus Day and a copy of its records showing that the check had been returned at 10:50 p.m. on Wednesday, October 12, 2005.  These copies were sworn to by Lisa Harris, an officer of appellee and supervisor of the Bookkeeping Department.  In her affidavit, Harris avers that she is familiar with the check in question, that Monday, October 10, 2005 was a federal holiday, that the endorsement on the check shows that it was deposited with appellant’s bank on October 7, 2005, a Friday, that appellee did not receive the check until Tuesday because of the holiday, and that appellee returned it at 10:50 p.m. the next Wednesday as evidenced by the attached return log.

On the last page of the summary judgment motion is the following Notice of Hearing:

A hearing submission date on the above and foregoing Defendant First United Bank & Trust Co.’s Motion for Summary Judgment is set for the 7 day of January , 200 8 at _ o’clock _.m. in this Court .

SIGNED this 6 day of December, 2007.

The strikeouts and the underlined words were handwritten on the document.  The trial judge’s signature appears immediately below the Notice.

On January 4, 2008, three days before the scheduled submission date of the motion for summary judgment, appellant filed objections to the Harris affidavit, claiming that (1) there is an irreconcilable difference between the affidavit and the return log attached as an exhibit because the exhibit shows only the date the check was received, not the date of return, (2) the affidavit contains hearsay and is not based on personal knowledge, and (3) the attached exhibits are hearsay.  The same day, appellant also filed a verified motion for continuance, alleging that there had not been an adequate time for discovery and that appellant had agreed to voluntarily dismiss appellee if it provided business records explaining the notations on the back of the check but that appellee had not done so, instead filing the motion for summary judgment.  Appellant never filed a response to the motion for summary judgment.

The clerk’s record also contains a letter dated January 7, 2008, addressed to the trial judge and copied to appellant’s counsel, objecting to appellant’s motion for continuance and response as untimely under both the rules of civil procedure and the Denton County local rules.  The letter also attached case law holding that the trial court’s setting a submission date rather than a hearing date on the motion for summary judgment is proper.

The trial court did not expressly rule on appellant’s objections or motion for continuance.  Instead, on February 7, 2008, the court signed a Final Summary Judgment in favor of appellee.  The judgment begins,

On the 7th day of January, 2008 came on for submission to the Court the Motion for Summary Judgment filed by FIRST UNITED BANK & TRUST CO. . . . .  The Court, examining the motions and affidavits on file finds that Defendant’s Motion for Summary Judgment as a matter of law should be granted. . . .

The trial court later severed the summary judgment on appellee’s motion, making it final and appealable.

Did Trial Court Properly Submit Summary Judgment

Motion Without Oral Argument?

Appellant’s first four issues challenge the procedure by which the trial court submitted appellee’s motion for summary judgment.  Specifically, appellant contends that submission of the motion without oral argument is not authorized by rule of civil procedure 166a(c) and Denton County Local Rule 1.11.5, that appellee’s alleged ex parte communication to the trial court violated appellant’s due process rights, and that notice that the motion would be “submitted” on January 7, 2008 was not notice of the required “hearing” under rule 166a(c).

Rule 166a(c) refers to the trial court holding a “hearing” on a motion for summary judgment:

Except on leave of court, with notice to opposing counsel, the motion and any supporting affidavits shall be filed and served at least twenty-one days before the time specified for hearing .  Except on leave of court, the adverse party, not later than seven days

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Aerobic Maintenance & Service, Inc. v. First United Bank & Trust Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/aerobic-maintenance-service-inc-v-first-united-ban-texapp-2009.