American Universal Insurance Co. v. D.B. & B., Inc.

725 S.W.2d 764, 1987 Tex. App. LEXIS 6277
CourtCourt of Appeals of Texas
DecidedJanuary 22, 1987
Docket13-86-293-CV
StatusPublished
Cited by40 cases

This text of 725 S.W.2d 764 (American Universal Insurance Co. v. D.B. & B., Inc.) 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 Universal Insurance Co. v. D.B. & B., Inc., 725 S.W.2d 764, 1987 Tex. App. LEXIS 6277 (Tex. Ct. App. 1987).

Opinions

OPINION

NYE, Chief Justice.

Appellee brought a deceptive trade practices suit and sought a declaratory judgment regarding construction of an insurance policy and a declaration of the coverage pursuant to that policy. Appellee recovered a default judgment against the appellant. Appellant brings eight points of error. We reverse the judgment of the trial court and remand the cause for a new trial.

Appellant, by its first point of error, complains that the trial court erred in rendering a default judgment because service of process was improper. Appellee’s petition alleged that:

Defendant, American Universal Insurance Co., is a corporation out of Providence, Rhode Island, doing business in San Patricio County, Texas, and may be served with citation therein through its registered agent, Mr. Jack Keith, 1903 Hermann Drive, Houston, Harris County, Texas.

The receipt for certified mail was addressed to:

American Universal Ins. Co.
Mr. Jack Keith 1903 Hermann Dr.
Houston, Texas

However, Mr. Jack Keith, the addressee, did not sign the receipt, but instead a “J. Williams” signed in the space labeled “agent.”

Although “J. Williams” signed as agent for Jack Keith and American Universal Insurance Company, there is nothing in the record that is before us which affirmatively shows that “J. Williams” was such an agent. This agency relationship must be affirmatively shown before a default judgment can be proper. Cates v. Pon, 663 S.W.2d 99, 101 (Tex.App.—Houston [14th Dist.] 1983, writ ref’d n.r.e.); White Motor Co. v. Loden, 373 S.W.2d 863, 865 (Tex.Civ.App. — Dallas 1963, no writ); see also Dan Edge Motors, Inc. v. Scott, 657 S.W.2d 822, 824 (Tex.App.—Texarkana 1983, no writ).

The presumptions which are ordinarily made in support of valid service do not apply when a direct attack is made upon a default judgment. The record must affirmatively show strict compliance with the Rules of Civil Procedure. Uvalde Country Club v. Martin Linen Supply Co., 690 S.W.2d 884, 885 (Tex.1985); Gerland’s Food Fair, Inc. v. Hare, 611 S.W.2d 113, 115 (Tex.Civ.App.—Houston [1st Dist.] 1980, writ ref’d n.r.e.); Mega v. Anglo Iron [766]*766& Metal Co., 601 S.W.2d 501, 503 (Tex.Civ.App.—Corpus Christi 1980, no writ). Unless the record affirmatively shows, at the time the default judgment is entered, either an appearance by the defendant, proper service of citation on the defendant, or a written memorandum of waiver, the trial court does not have in personam jurisdiction to enter a default judgment against the defendant. Cates, 663 S.W.2d at 102. Failure to affirmatively show strict compliance with the Rules of Civil Procedure1 renders the attempted service of process invalid and of no force or effect. Uvalde Country Club, 690 S.W.2d at 885.

If a court has not acquired jurisdiction of both the parties and the subject matter of the litigation, the judgment is void and is subject to both direct and collateral attack. Browning v. Placke, 698 S.W.2d 362, 363 (Tex.1985); Martin v. Sheppard, 201 S.W.2d 810, 812 (Tex.1947); Flynt v. City of Kingsville, 82 S.W.2d 934, 934-35 (Tex.Comm’n App.1935, opinion adopted); see also Hanover Modular Homes, Inc. v. Corpus Christi Bank & Trust, 476 S.W.2d 97, 101 (Tex.Civ.App.— Corpus Christi 1972, no writ). “[A] void judgment is one entirely null within itself, and which is not susceptible of ratification or confirmation, and its nullity cannot be waived.” Easterline v. Bean, 121 Tex. 327, 49 S.W.2d 427, 429 (1932); see Holder v. Scott, 396 S.W.2d 906, 910-11 (Tex.Civ.App.—Texarkana 1965, writ ref 'd n.r.e.).

Appellee argues that failure to acquire jurisdiction over the party merely renders the judgment voidable, as held in Tidwell v. Tidwell, 604 S.W.2d 540, 542 (Tex.Civ.App.—Texarkana 1980, no writ), in which that court stated, “A voidable judgment is one in which the trial court has jurisdiction of the subject matter, but fails to gain effective jurisdiction over the defendant.” This statement is wrong. In Browning, the Supreme Court held:

And a judgment is void only when it is shown that the court had no jurisdiction of the parties or property, no jurisdiction of the subject matter, no jurisdiction to enter the particular judgment, or no capacity to act as a court.... All errors other than jurisdictional deficiencies render the judgment merely voidable, and such errors must be corrected on direct attack.

698 S.W.2d at 363. The opinion in Tidwell cites McEwen v. Harrison, 345 S.W.2d 706 (Tex.1961), and Deen v. Kirk, 508 S.W.2d 70 (Tex.1974), as authority for its contention.

However, neither Deen nor McEwen hold that. Instead, Deen and McEwen explain how a defendant may vacate a default judgment pursuant to Tex.R.Civ.P. 329b. In both cases, the trial courts’ actions vacating the judgments were improper because the parties did not bring a bill of review before the trial court. In McEwen, the Supreme Court held that an appeal by writ of error or a bill of review were the exclusive methods by which Texaco (the defaulting party) could vacate the default judgment, since an appeal was no longer timely. 345 S.W.2d at 711. Never did the Supreme Court address the merits of Texaco’s claim that the judgment was void, but simply held that Texaco did not adhere to proper avenues of review. In fact the Supreme Court stated, “Our judgment here is without prejudice to the right of Texaco, Inc. to file an appeal by writ of error or to file a bill of review to set aside the default judgment against it.” 345 S.W.2d at 711. Deen and McEwen axe not applicable here because the appellant timely perfected its appeal.

Appellee contends that appellant waived the right to complain of invalid service by failing to raise the point in its motion for new trial. We disagree. Tex.R. Civ.P.

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Bluebook (online)
725 S.W.2d 764, 1987 Tex. App. LEXIS 6277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-universal-insurance-co-v-db-b-inc-texapp-1987.