Bank of New York Mellon v. Soniavou Books, LLC

403 S.W.3d 900, 2013 WL 2659590, 2013 Tex. App. LEXIS 7228
CourtCourt of Appeals of Texas
DecidedJune 13, 2013
DocketNo. 14-11-01113-CV
StatusPublished
Cited by17 cases

This text of 403 S.W.3d 900 (Bank of New York Mellon v. Soniavou Books, 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
Bank of New York Mellon v. Soniavou Books, LLC, 403 S.W.3d 900, 2013 WL 2659590, 2013 Tex. App. LEXIS 7228 (Tex. Ct. App. 2013).

Opinion

OPINION

KEM THOMPSON FROST, Justice.

A bank and a mortgage servicer bring this restricted appeal from a trial court’s order granting final default judgment. The bank challenges service of process as being improper and the mortgage servicer challenges whether a live controversy exists between the parties, whether the pleadings support the judgment, and whether the trial court’s award of attorney’s fees to the plaintiff was proper. We conclude that service of process on the bank was improper. Regarding the mortgage servicer, we conclude that a live controversy exists and that the trial court erred in granting relief not requested in the petition. Accordingly, we reverse the trial court’s default judgment as to both defendants and remand for further proceedings.

I. Factual and ProcedüRal Background

Appellee/plaintiff Soniavou Books, LLC (hereinafter “Books”) filed suit on January 26, 2011, against appellants/defendants The Bank of New York Mellon f/k/a The Bank of New York as Trustee for the Certificate Holders of the CWALT, Inc. Alternative Loan Trust 2006-OA17, Mortgage Pass-Through Certificates, Series 2006-OA17 (hereinafter, the “Bank”) and BAC Home Loans Servicing, LP (hereinafter the “Mortgage Servicer”). Books alleged it was the owner of a condominium unit that Books acquired in November 2010 (the “Property”). Books asserted that the Bank and its Mortgage Servicer were attempting to conduct a foreclosure sale on the Property based upon a deed of trust executed in July 2006 (the “Deed of Trust”) and that the foreclosure sale was scheduled for February 1, 2011. In its petition, Books sought injunctive relief against the foreclosure sale, money damages based upon various claims, declaratory relief, and attorney’s fees. In its petition Books did not ask the trial court to order or declare that the Deed of Trust is void and of no force or effect. Nor did Books ask the trial court to order or declare the Deed of Trust “removed from the title to [the Property].”

On the same day it filed suit, Books obtained a temporary restraining order in which the court ordered the Bank and the Mortgage Servicer (collectively, the “Bank Parties”) not to conduct a foreclosure sale on the Property. The Bank Parties did not answer or make an appearance. After filing returns of service, Books filed a motion for default judgment and asked the trial court to render a final default judgment declaring that the Deed of Trust is void and of no force or effect and ordering [903]*903the Deed of Trust “removed from the title to [the Property].” Books also sought reasonable attorney’s fees but did not seek any money damages. The motion was submitted to the trial court without oral argument, and the trial court granted Books the relief requested. The Bank Parties have filed restricted appeals from this final default judgment.

II. Issues and Analysis

To prevail on a restricted appeal, a party must establish that (1) it filed a notice of restricted appeal within six months after the judgment was signed; (2) it was a party to the underlying suit; (3) the party did not participate in the hearing that resulted in the challenged judgment and did not file timely any postjudgment motions or requests for findings of fact and conclusions of law; and (4) error is apparent on the face of the record. Alexander v. Lynda’s Boutique, 134 S.W.3d 845, 848 (Tex.2004). The record reflects that the first three elements are satisfied as to the Bank Parties. Thus, we address whether error is apparent on the face of the record.

A. Was the Bank properly served with citation?

In its first appellate issue, the Bank asserts that it was not properly served with citation. In a restricted appeal, there are no presumptions in favor of valid issuance, service, and return of citation. Primate Const., Inc. v. Silver, 884 S.W.2d 151, 152 (Tex.1994). The Bank asserts that the citation directed to the Bank was not served on its registered agent. See Tex. Civ. Prac. & Rem.Code Ann. § 17.028(b) (West 2008) (stating that, with an exception not applicable in the case under review, “in an action against a financial institution, citation may be served by ... serving the registered agent of the financial institution ... or ... if the financial institution does not have a registered agent, serving the president or a branch manager at any office located in this state”). On appeal, Books concedes that citation was not served on the Bank’s registered agent and that the Bank was not properly served. It is apparent from the face of the record that the trial court erred in granting a default judgment against the Bank because the Bank had not been properly served with citation. See Primate Const. Inc., 884 S.W.2d at 152. Accordingly, we sustain the Bank’s first issue, reverse the trial court’s judgment against the Bank, and remand for further proceedings.1

B. Does a live controversy exist between Books and the Mortgage Ser-vicer?

In its first appellate issue, the Mortgage Servicer asserts that no live controversy exists between the Mortgage Ser-vicer and Books that would provide the basis for declaratory relief. The Supreme Court of Texas has held that a request for declaratory judgment is moot if the claim presents no live controversy. See Tex. A & M Univ.-Kingsville v. Yarbrough, 347 S.W.3d 289, 290 (Tex.2011). In its petition Books asserted that the Mortgage Servicer was trying to conduct a nonjudicial foreclosure sale on the Property, and Books requested that the trial court declare that such a nonjudicial foreclosure sale is not proper unless the Bank has possession of the original note with the proper endorsements. The Mortgage Servicer asserts that it has no controversy with Books as to whether the Deed of Trust is void because the Mortgage Servicer owns no interest in the Property or the Deed of Trust. As [904]*904discussed in more detail below, in its petition, Books did not request the declarations made by the trial court in the judgment. As to the relief requested in the petition, we conclude there is a live controversy between Books and the Servicer. See Rodarte v. Investeco Group, L.L.C., 299 S.W.3d 400, 408-09 (Tex.App.-Houston [14th Dist.] 2009, no pet.). Accordingly, we overrule the Mortgage Servicer’s first issue.

C. Do the pleadings support the trial court’s judgment against the Mortgage Servicer?

In its second issue, the Mortgage Servicer asserts that error is apparent on the face of the record because the trial court’s judgment is not supported by Books’s pleadings. A default judgment must be supported by the pleadings. See Stoner v. Thompson, 578 S.W.2d 679, 682 (Tex.1979). Likewise, the defendant must have fair notice of the plaintiffs claims and the relief sought by the plaintiff. See id. at 683. Error is apparent on the face of the record if the trial court grants relief in the default judgment that was not requested in the pleadings. See Mullen v. Roberts,

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Bluebook (online)
403 S.W.3d 900, 2013 WL 2659590, 2013 Tex. App. LEXIS 7228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-new-york-mellon-v-soniavou-books-llc-texapp-2013.