Briscoe v. Transworld Financial Services Corp.

705 S.W.2d 288, 1986 Tex. App. LEXIS 12415
CourtCourt of Appeals of Texas
DecidedJanuary 29, 1986
Docket04-83-00395-CV
StatusPublished
Cited by8 cases

This text of 705 S.W.2d 288 (Briscoe v. Transworld Financial Services Corp.) 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
Briscoe v. Transworld Financial Services Corp., 705 S.W.2d 288, 1986 Tex. App. LEXIS 12415 (Tex. Ct. App. 1986).

Opinions

ON APPELLEE’S MOTION FOR REHEARING EN BANC

REEVES, Justice.

The motion for rehearing is denied. However, the original opinion delivered and filed February 13, 1985 is withdrawn and the following opinion is substituted in its stead.

This is an appeal from the dismissal of a bill of review brought to set aside a default judgment.

On July 6, 1982, a default judgment was rendered in favor of Transworld Financial Services Corporation (Transworld) against husband and wife, Hugh and Jacqueline Briscoe. Neither the Briscoes nor their counsel appeared at the trial. On February 7, 1983, the Briscoes filed a bill of review, alleging meritorious defenses that they were fraudulently precluded from presenting in the original action, not by their own negligence or by the actions of Transworld, but by their own attorney’s actions. Trans-world specially excepts to the Briscoes’s original petition for the bill of review in that it fails to allege all the essential elements of a bill of review; that is, there is no allegation of some extrinsic fraud on the part of Transworld which prevented the Briscoes’s presentation of their meritorious defenses. The special exception was sustained. The Briscoes chose to stand on their pleadings and on June 3, 1983, the court dismissed the cause with prejudice.

The Briscoes assert one point of error; the district court erred in- holding that an allegation of extrinsic fraud committed by Transworld was an essential element of a bill of review.

The function of a special exception is to inform the opposing party of a defect in the pleading, so that the party may cure it, if possible, by amendment. Cameron v. University of Houston, 598 S.W.2d 344, 345 (Tex.Civ.App.— Houston [14th Dist.] 1980, writ ref’d n.r.e.). When special exceptions are sustained, a party may either amend the pleadings to meet the exceptions, or refuse to amend and test the validity of the ruling by appeal. McCamey v. Kinnear, 484 S.W.2d 150, 152 (Tex.Civ.App.— Beaumont 1972, writ ref’d n.r.e.).

The judgment of dismissal for failure of the pleadings to state grounds for relief can be sustained only if the allegations of the pleadings do not state a cause of action. Pierce v. Terra Mar Consultants, 566 S.W.2d 49, 53-54 (Tex.Civ.App.—Texarkana 1978, no writ).

The pleadings attacked must be liberally construed, as a whole, in such a way as to do substantial justice. For the purpose of ruling upon the exceptions, the court must accept as true all material factual propositions alleged, whether they be evidentiary or in the form of factual conclusions, as well as all factual propositions which, by fair implication, [291]*291reasonably can be inferred from the allegations.

Fazekas v. University of Houston, 565 S.W.2d 299, 302 (Tex.Civ.App.—Houston [1st Dist.] 1978), app. dism’d, 440 U.S. 952, 99 S.Ct. 1487, 59 L.Ed.2d 765 (1979); 3 R. McDonald, texas civil practice IN DISTRICT AND COUNTY COURTS § 10.14.2 (rev. 1983).

The rules applicable to a bill of review were laid down by our Supreme Court in Alexander v. Hagedorn, 148 Tex. 565, 226 S.W.2d 996, 998 (1950). Three matters are to be alleged and proved in order for a losing party to successfully set aside a final judgment by a bill of review; (1) a meritorious claim or defense (2) which the applicant was prevented from making in the prior proceeding by fraud, accident or wrongful conduct of the opposite party, (3) unmixed by any fault or negligence on the part of the applicant.

Hagedorn further instructs that bills seeking relief from final judgments are always watched by courts of equity with extreme jealousy, and the grounds for such bills are narrow and restricted. The fact that injustice has occurred is not sufficient to justify relief. Id.

The second requirement of Hagedorn, however, has been qualified in later cases by the Supreme Court. Exceptions have been created which relieve the applicant of the necessity of proving the second requirement where the applicant has been misled by a court officer, where a court officer failed to send notice of the default judgment, or where there was a failure to serve citation. See Baker v. Goldsmith, 582 S.W.2d 404 (Tex.1979); Texas Industries, Inc. v. Sanchez, 525 S.W.2d 870 (Tex.1975); Petro-Chemical Transport, Inc. v. Carroll, 514 S.W.2d 240 (Tex.1974); Hanks v. Rosser, 378 S.W.2d 31 (Tex.1964). See also, Note, Bill of Review: The Requirement of Extrinsic Fraud, 30 BAYLOR L.REV. 539 (1978).

The exception to the second Hagedorn requirement urged in this cause does not fall within one of the above exceptions tailored by our Supreme Court. Rather, the Briscoes urge extrinsic fraud on the part of their attorney; they allege no fraud by the opposing party, Transworld. The issue before us, then, is whether, in our jurisprudence, such an exception to the Hagedorn requirements exists.

The Briscoes rely upon Pierce v. Terra Mar Consultants, Inc., supra. Procedurally, the case is similar to the one before us. Pierce brought a bill of review alleging his attorney fraudulently non-suited his case. Terra Mar Consultants specially excepted to the pleadings. Pierce stood on his pleadings and the case was dismissed. The Texarkana Court of Civil Appeals found the allegations of the petition sufficient to state a claim for equitable relief to set aside the non-suit and reinstate the case on the docket of the trial court.

The Pierce court sets out the Hagedorn requirements but asserts that Hagedorn “is a narrow statement of the rule as it applies to certain types of fact situations and it is not intended to be an all inclusive categorization of the cases where equitable relief may be obtained from a final judgment.” Id. at 51.

We are in accord with the reasoning of the Pierce court. We are persuaded by the exceptions created by our Supreme Court that the Hagedorn requirement of extrinsic fraud by the opposing party is not an invariable element in a bill of review. Dicta in McEwen v. Harrison, 162 Tex. 125, 345 S.W.2d 706 (1961) support this proposition. There the Supreme Court entirely omitted the second Hagedorn requirement of extrinsic fraud in its discussion of a bill of review. “In a bill of review proceeding, the plaintiff must allege and prove he was not negligent in suffering the default judgment to be rendered against him and that he has a meritorious defense to the suit.” Id., 345 S.W.2d at 710.

The Briscoes have pled they have been betrayed by their attorney and have not had an opportunity to fully litigate the issues.

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Briscoe v. Transworld Financial Services Corp.
705 S.W.2d 288 (Court of Appeals of Texas, 1986)

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705 S.W.2d 288, 1986 Tex. App. LEXIS 12415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/briscoe-v-transworld-financial-services-corp-texapp-1986.