American Services U.S. LLC v. Identity Built, LLC

CourtCourt of Appeals of Texas
DecidedMay 1, 2025
Docket01-23-00540-CV
StatusPublished

This text of American Services U.S. LLC v. Identity Built, LLC (American Services U.S. LLC v. Identity Built, LLC) 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
American Services U.S. LLC v. Identity Built, LLC, (Tex. Ct. App. 2025).

Opinion

Opinion issued May 1, 2025

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-23-00540-CV ——————————— AMERICAN SERVICES U.S., LLC, Appellant V. IDENTITY BUILT, LLC, Appellee

On Appeal from the 151st District Court Harris County, Texas Trial Court Case No. 2022-74836

MEMORANDUM OPINION

This restricted appeal presents the question whether “strict compliance” with

the rules governing service of citation means literal compliance with the rules.

Appellee Identity Built, LLC sued appellant American Services U.S., LLC for breach of contract and foreclosure of a mechanic’s and materialmen’s lien. Identity

Built attempted to serve American Services with citation through substituted service

on the Texas Secretary of State (“the Secretary”). American Services did not answer

or otherwise appear. The trial court rendered a default judgment that foreclosed on

Identity Built’s lien and ordered American Services to pay $554,022.45 in actual

damages and $13,874.80 in attorney’s fees.

American Services argues that the trial court erroneously granted a default

judgment because the record fails to include a Whitney certificate1 showing that the

Secretary forwarded the citation to American Services, and thus the record does not

show strict compliance with the rules governing service of citation.

Because we hold that error exists on the face of the record, we reverse and

remand.

Background

In October 2021, American Services contracted with Identity Built to

construct a commercial retail project located in Humble, Texas. The parties

contemplated that the remainder of 2021 would be spent obtaining permits, and

construction would begin in January 2022 and end in July 2022.

1 See Whitney v. L&L Realty Corp., 500 S.W.2d 94, 96–97 (Tex. 1973) (requiring, in case involving substituted service on Texas Secretary of State under prior version of long-arm statute, record to include proof that Secretary forwarded process to defendant in compliance with statute for default judgment to survive restricted appeal). 2 Identity Built alleged that delays in the platting process prevented

construction from starting on time. During the ongoing platting process, Identity

Built allegedly hired a subcontractor to manage construction, and this subcontractor

hired other subcontractors and “obtained specially fabricated materials for the

Project.” In July 2022, one month after all permits and plans were finally approved,

American Services allegedly terminated the contract.

Identity Built sought payment of $554,022.45 from American Services “for

services and materials rendered for the Project.” Identity Built also filed an affidavit

claiming a mechanic’s and materialman’s lien on the property.

After American Services failed to respond to the demand for payment,

Identity Built filed suit, asserting claims for breach of contract, foreclosure of its lien

on the property, and attorney’s fees. Identity Built attached the contract and the

affidavit claiming a lien as exhibits to its original petition.

Identity Built requested that the Harris County District Clerk issue citation to

American Services:

3 The district clerk issued the following “Citation Corporate” addressed to:

Following issuance of citation, Identity Built’s private process server

completed a declaration of due diligence. The process server declared that he went

to the address listed in the citation, but American Services’ agent no longer lived at

that address:

A different private process server filed a return of service stating that she had

delivered citation and Identity Built’s petition to the Secretary:

It is undisputed that the record does not contain a Whitney certificate or any other

filings or documents from the Secretary indicating that after it received process, it 4 forwarded the citation and petition to American Services. American Services did not

file an answer.

Identity Built moved for a no-answer default judgment, arguing that the return

of service had been on file for ten days and the time to answer had passed, but

American Services had not answered or appeared. Identity Built argued that it was

“entitled to liquidated damages for Defendant’s breach of contract in the amount of

$554,022.45”; “entitled to foreclose upon its lien in the amount of $531,944.00”;

and “entitled to its reasonable and necessary attorneys’ fees in the amount of

$13,874.80.” As exhibits, Identity Built attached an affidavit from its counsel in

support of attorney’s fees; a certificate of last known address for American Services;

its original petition and the accompanying exhibits; the return of service; and an

affidavit in support of the requested damages.

The trial court signed a final default judgment on February 6, 2023. The

default judgment included several findings, including a finding that “citation was

served on Defendant according to law and returned to the clerk where it remained

on file for the time required by law.” The court ordered that Identity Built should

recover from American Services $554,022.45 in actual damages and $13,874.80 in

attorney’s fees. The court also ordered that Identity Built was entitled to foreclose

its lien.

5 On July 25, 2023, American Services filed a notice of restricted appeal and

posted a deposit in lieu of supersedeas bond. This appeal followed.

Service of Process

In its first issue, American Services argues that the trial court erroneously

granted a default judgment in favor of Identity Built because the face of the record

does not show strict compliance with the rules governing service of process.

Specifically, the record does not contain a Whitney certificate or any other indication

that the Secretary forwarded citation and the petition to American Services. This

issue is dispositive of this appeal.

A. Standard of Review for Restricted Appeals

Generally, a party who desires to appeal a trial court’s judgment must file a

notice of appeal within thirty days after the judgment is signed, although the filing

of certain post-judgment motions extends that deadline to ninety days. See TEX. R.

APP. P. 26.1(a); Ex parte E.H., 602 S.W.3d 486, 495 (Tex. 2020). A restricted

appeal—formerly known as a writ of error—is available to a party who did not

participate, either in person or through counsel, in a proceeding that resulted in a

judgment against the party. See TEX. R. APP. P. 30; Gonzalez v. Gonzalez, 679

S.W.3d 221, 225 (Tex. App.—Houston [1st Dist.] 2023, no pet.) (en banc); see also

Ex parte E.H., 602 S.W.3d at 495 (“Restricted appeals under rule 30 replaced the

former writ-of-error practice.”). The restricted appeal procedure allows a party to

6 pursue an appeal outside the usual appellate deadlines if certain requirements are

met. See Ex parte E.H., 602 S.W.3d at 495. A restricted appeal is a direct attack on

a trial court’s default judgment. Goss v. Sillmon, 570 S.W.3d 319, 322 (Tex. App.—

Houston [1st Dist.] 2018, no pet.).

To prevail on a restricted appeal, the appealing party must prove:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Campus Investments, Inc. v. Cullever
144 S.W.3d 464 (Texas Supreme Court, 2004)
Wachovia Bank of Delaware, National Ass'n v. Gilliam
215 S.W.3d 848 (Texas Supreme Court, 2007)
Zuyus v. No'Mis Communications, Inc.
930 S.W.2d 743 (Court of Appeals of Texas, 1996)
Txxn, Inc. v. D/FW STEEL CO.
632 S.W.2d 706 (Court of Appeals of Texas, 1982)
Marrot Communications, Inc. v. Town & Country Partnership
227 S.W.3d 372 (Court of Appeals of Texas, 2007)
Harvestons Securities, Inc. v. Narnia Investments, Ltd.
218 S.W.3d 126 (Court of Appeals of Texas, 2007)
Primate Construction, Inc. v. Silver
884 S.W.2d 151 (Texas Supreme Court, 1994)
Wilson v. Dunn
800 S.W.2d 833 (Texas Supreme Court, 1991)
Whitney v. L & L REALTY CORPORATION
500 S.W.2d 94 (Texas Supreme Court, 1973)
Norman Communications v. Texas Eastman Co.
955 S.W.2d 269 (Texas Supreme Court, 1997)
BLS Limousine Service, Inc. v. Buslease, Inc.
680 S.W.2d 543 (Court of Appeals of Texas, 1984)
Dakota Pike-Grant v. Jeffrey Alan Grant
447 S.W.3d 884 (Texas Supreme Court, 2014)
in the Interest of K.M., a Child
401 S.W.3d 864 (Court of Appeals of Texas, 2013)
John L. Dole, III & Celia E. Dole v. Lsref2 Apex 2, Llc
425 S.W.3d 617 (Court of Appeals of Texas, 2014)
Paramount Credit Inc., D/B/A 5 Star Autoplex v. Kimberly Montgomery
420 S.W.3d 226 (Court of Appeals of Texas, 2013)
Mabon Ltd. v. Afri-Carib Enterprises, Inc.
369 S.W.3d 809 (Texas Supreme Court, 2012)
MC Phase II Owner, LLC v. TI Shopping Center, LLC
477 S.W.3d 489 (Court of Appeals of Texas, 2016)
Goss v. Sillmon
570 S.W.3d 319 (Court of Appeals of Texas, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
American Services U.S. LLC v. Identity Built, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-services-us-llc-v-identity-built-llc-texapp-2025.