Beltway Green Partnership, Ltd., David Hamilton, JAB Development Corporations and Beltway Green, Inc. v. Mary Beth Clawson, Arbor Capital and Investments Company

CourtCourt of Appeals of Texas
DecidedJuly 12, 2007
Docket01-06-00487-CV
StatusPublished

This text of Beltway Green Partnership, Ltd., David Hamilton, JAB Development Corporations and Beltway Green, Inc. v. Mary Beth Clawson, Arbor Capital and Investments Company (Beltway Green Partnership, Ltd., David Hamilton, JAB Development Corporations and Beltway Green, Inc. v. Mary Beth Clawson, Arbor Capital and Investments Company) 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.

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Beltway Green Partnership, Ltd., David Hamilton, JAB Development Corporations and Beltway Green, Inc. v. Mary Beth Clawson, Arbor Capital and Investments Company, (Tex. Ct. App. 2007).

Opinion

Opinion issued July 12, 2007



In The

Court of Appeals

For The

First District of Texas



NO. 01-06-00487-CV



BELTWAY GREEN PARTNERSHIP, LTD., DAVID HAMILTON, JAB DEVELOPMENT CORPORATION, and BELTWAY GREEN, INC., Appellants



V.



ARBOR CAPITAL AND INVESTMENTS COMPANY, INC., Appellee



On Appeal from the 164th District Court

Harris County, Texas

Trial Court Cause No. 2003-51526



MEMORANDUM OPINION

Appellants, Beltway Green Partnership, Ltd., David Hamilton, JAB Development Corporation, and Beltway Green, Inc. (collectively Beltway Green), bring this restricted appeal from the trial court's orders granting partial summary judgment and final judgment in favor of appellee Arbor Capital and Investments Company, Inc. (1) The trial court granted three motions for partial summary judgment in December 2005. In February 2006, stating that the partial motions for summary judgment had disposed of all issues between the parties, the trial court entered final judgment in excess of $21 million in favor of Arbor. Beltway Green contends that the trial court erred by granting motions for summary judgment because Arbor mailed the motions to the wrong address. Arbor responds that it properly served all summary judgment documents by mailing them to the last known address of all appellants. We conclude that the face of the record before us demonstrates error in service of Arbor's motions for summary judgment. We reverse and remand. We also deny all motions carried with this appeal.

Background

Beltway Green Partnership, Ltd. (the Partnership) was the original plaintiff in this lawsuit. The Partnership filed suit in September 2003 in order to remove a cloud on the title of a 310-acre tract of real property in Harris County that it claimed to own outright. The original defendant was Mary Beth Clawson, trustee of a number of trusts, who filed a document entitled "Declaration of Ownership" in the real property records of Harris County in which she claimed one-third ownership in the property on behalf of the trusts she represented. Clawson answered, filed a counterclaim against the Partnership, and asserted third-party actions against a number of parties including Hamilton, JAB, and Beltway Green, Inc. The Partnership then amended its petition to assert additional causes of action against a new group of defendants that included Arbor, a company owned by Clawson as the trustee.

At some point after the formation of the Partnership, Hamilton hired Barry Goldberg "to represent me in the day-by-day activities dealings [sic] with Beltway Green to act as an emmisary in all phases and negotiations and anything that arised [sic] concerning this property." In October 2003, Beltway Green transferred the property to Pasadena Gateway Ventures, a company formed by Goldberg. The sale price was approximately $7.5 million. Arbor contends that this sale contravened a directive of the trial court not to sell the property.

In November 2004, after several months of pretrial proceedings, Beltway Green's counsel, Bradford Irelan, filed a motion to withdraw in which he asserted that Beltway Green had failed to pay attorney's fees. The motion stated that the "last known address" for all appellants was 316 North John Young Parkway, Kissimmee, Florida, 34747. In an order that granted Irelan's motion to withdraw, the trial court repeated that the last known address for all appellants was 316 North John Young Parkway, Kissimmee, Florida, 34747. After Irelan withdrew, the record indicates that Beltway Green did not respond to Arbor's filings, nor did it file any papers of its own.

In March 2005, Arbor purported to serve identical sets of 253 requests for admission on each appellant. Registered mail documents later offered as summary judgment evidence indicated that some sets of requests for admission were not sent to the "last known address" listed in Irelan's motion to withdraw. Also in March 2005, Arbor filed an "Amended Answer, Counterclaim and Cross Claim and Cross-Plaintiff's Supplemental Cross-Action, Counterclaim, Answer and Application for Relief Under the Fraudulent Transfer Act." This pleading was Arbor's live pleading at the time that the trial court rendered summary judgment. The certificate of service attached to this pleading indicates that it was sent to all of the present appellants at an address that differed from the "last known address" listed in Irelan's motion to withdraw.

On November 17, 2005, Arbor filed three motions for summary judgment:

(1) a no-evidence and traditional motion for summary judgment on Beltway Green's claims of conversion, breach of fiduciary duty, and declaratory relief;



(2) a traditional motion for summary judgment on Arbor's own claims of actual and constructive fraud, conversion, breach of contract, violations of the Uniform Fraudulent Transfer Act (UFTA), breach of fiduciary duty, tortious interference, conspiracy, self-dealing, and unjust enrichment, for which it sought both actual and punitive damages; and



(3) a no-evidence and traditional motion for summary judgment on Beltway Green's affirmative defenses of limitations, failure of consideration, statute of frauds, release, res judicata, estoppel, and unclean hands.



Also on November 17, Arbor filed three notices of submission, one for each motion for summary judgment, that informed Beltway Green that the motions for summary judgment were set for submission on December 12, 2005. The notices of submission indicate that they were sent to Beltway Green's last known address as stated in Irelan's motion to withdraw. The certificates of service accompanying the motions for summary judgment, however, listed a different address.

Beltway Green did not respond to Arbor's motions for summary judgment, nor did it appear in court or participate in the ensuing proceedings in any way. The trial court granted all three motions for partial summary judgment on December 15, 2005. In February 2006, the trial court, without a written motion asking it to do so, entered a final judgment stating that, because it had granted the three motions for summary judgment, "[t]he Court finds that all issues between all parties in this lawsuit are hereby resolved." The final judgment awarded Arbor $7,422,723 in actual damages, $2,654,241 in attorney's fees, and $10,000,000 in punitive damages, as well as pre- and post-judgment interest. The total award including pre-judgment interest was $21,084,660. Beltway Green did not file a motion for new trial. On May 15, 2006, it filed a timely notice of restricted appeal.



Restricted Appeal

A restricted appeal is a direct attack on a judgment. Roventini v. Ocular Scis., Inc.

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