Boyes v. Morris Polich & Purdy, LLP

169 S.W.3d 448, 2005 Tex. App. LEXIS 5669, 2005 WL 1705240
CourtCourt of Appeals of Texas
DecidedJuly 21, 2005
Docket08-04-00157-CV
StatusPublished
Cited by25 cases

This text of 169 S.W.3d 448 (Boyes v. Morris Polich & Purdy, LLP) 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
Boyes v. Morris Polich & Purdy, LLP, 169 S.W.3d 448, 2005 Tex. App. LEXIS 5669, 2005 WL 1705240 (Tex. Ct. App. 2005).

Opinion

OPINION

RICHARD BARAJAS, Chief Justice.

This is an appeal from the trial court’s denial of Appellant’s motion for new trial and to stay execution of a foreign judgment. For the reasons stated herein, we affirm the trial court’s denial of the motion for new trial and the stay of execution.

I.FACTUAL AND PROCEDURAL BACKGROUND

Appellee, Morris Polich & Purdy, LLP filed suit in Nevada state court against various corporate defendants and Irving D. Boyes, individually to recover attorney’s fees incurred by Appellee in representing the defendants in an unrelated lawsuit. A copy of the answer filed by Appellant in the Nevada action was included in the appellate record. The Nevada trial court entered a post-appearance and answer, default judgment against all the defendants after striking defendants’ answers. The record does not contain any evidence of the reason for the Nevada court’s striking of the defendants’ answers. No notice of appeal of the Nevada judgment appears in the appellate record and we assume that none was filed. Appellee then filed a notice of filing of foreign judgment in district court in Dallas County, Texas for the purpose of domestication of the judgment in compliance with Chapter 35 of the Texas Civil Practice and Remedies Code. Appellant filed a motion for new trial and motion to stay execution of the judgment solely on the grounds that the Nevada court lacked jurisdiction over Appellant on the basis of insufficient minimum contacts. Appellant does not address the striking of his answer or the entry of the post-answer default judgment. The motion for new trial was denied by the trial court without specifying the grounds. Appellant filed a notice of appeal of the Texas court’s decision, and asserts one issue with three sub-issues.

II.ISSUES ON APPEAL

In one issue with three sub-issues, Appellant challenges the trial court’s denial of his motion for new trial on the grounds that the foreign trial court lacked in per-sonam jurisdiction over Appellant for the reason that “(A) Nevada lacked sufficient minimum contacts to exercise jurisdiction over the non-resident Appellant; (B) Ap-pellee failed to present sufficient evidence at trial [emphasis Appellant’s] to establish sufficient minimum contacts over the nonresident appellee [sic]; and (C) it was error for the Court to consider the affidavit of Lynn Levitan and the documents attached thereto as evidence to establish the sufficient minimum contacts over the non resident [sic] appellant.” His brief does not address the striking of his answer or the entry of the post-answer default judgment. His appeal only challenges the underlying jurisdictional basis of the case. We read these three sub-issues together as a challenge to the Dallas trial court’s failure to grant a motion for new trial for the reason that the Nevada court lacked jurisdiction over Appellant.

III.STANDARD OF REVIEW

The standard of review of the denial of a motion for new trial is abuse of discretion. Champion Int’l Corp. v. Twelfth Court of Appeals, 762 S.W.2d 898, 899 (Tex.1988) (orig.proceeding); Dugan v. Compass Bank, 129 S.W.3d 579, 582 (Tex.App.-Dallas 2003, no pet .). A trial court *453 abuses its discretion when it acts in an arbitrary or unreasonable manner, or in other wording, if it acts without reference to any guiding rules or principles. Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex.1985); Dugan, 129 S.W.3d at 582. Similarly, the standard of review for a trial court’s imposition of sanctions is also an abuse of discretion. Koslow’s v. Mackie, 796 S.W.2d 700, 704 (Tex.1990); Masterson v. Cox, 886 S.W.2d 436, 437 (Tex.App.-Houston [1st Dist.] 1994, no writ).

The requisites for setting aside a post-answer default judgment are the same as those essential to set aside a no-answer default judgment. Director, State Employees Workers’ Comp. Div. v. Evans, 889 S.W.2d 266, 268 (Tex.1994). The three requirements that must be shown by the movant in order to obtain a new trial are found in the venerable case of Craddock v. Sunshine Bus Lines, 134 Tex. 388, 133 S.W.2d 124, 126 (1939): (1) the failure of the defendant to answer before judgment was not intentional, or the result of conscious indifference on his part, but was due to a mistake or an accident, (2) provided the motion for new trial sets up a meritorious defense, and (3) is filed at a time when the granting thereof will occasion no delay or otherwise work an injury to the plaintiff. The Craddock test applies to post-answer default judgments and to defaults resulting from trial court sanctions that strike pleadings. See Evans, 889 S.W.2d at 268 (holding Craddock applies to post-answer default judgments); Equinox Enters., Inc. v. Associated Media, Inc., 730 S.W.2d 872, 874 (Tex.App.-Dallas 1987, no writ) (holding Craddock applies to default judgments issued after court strikes pleadings in sanction hearing). As stated above, we review a trial court’s determination of a motion for new trial under an abuse of discretion standard. Sharpe v. Kilcoyne, 962 S.W.2d 697, 701 (Tex.App.-Fort Worth 1998, no pet.).

Because we do not know the basis for the trial court’s striking of the pleadings below, we can only assume it was a sanction imposed by the court for some action or inaction by Appellant. Appellant does not challenge the striking of the answer, but rather presents a motion for new trial attacking the merits of the original jurisdictional determination of the trial court. Craddock and its progeny limit our review of the denial of a motion for new trial, but because Appellant has not addressed the basis for the striking of his answer and the entry of the default, we look to the second prong to determine whether he has presented a meritorious defense to the judgment. Initially, we note Appellant’s motion for new trial only attacks the trial court’s judgment on the grounds that Appellant lacks sufficient minimum contacts to be subjected to the Nevada court’s jurisdiction. He makes no mention of the procedural process that led to his being haled into the Nevada court and has not preserved any challenge to that process.

A meritorious defense is one which, if proved, would cause a different result upon a retrial of the case, although it need not be a totally opposite result. Jackson v. Mares, 802 S.W.2d 48, 51 (Tex.App.-Corpus Christi 1990, writ denied). In Ivy v. Carrell, 407 S.W.2d 212 (Tex.1966), the supreme court explained what is required to “set up” a meritorious defense:

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Bluebook (online)
169 S.W.3d 448, 2005 Tex. App. LEXIS 5669, 2005 WL 1705240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyes-v-morris-polich-purdy-llp-texapp-2005.