Cannon v. ICO Tubular Services, Inc.

905 S.W.2d 380, 1995 WL 473004
CourtCourt of Appeals of Texas
DecidedSeptember 7, 1995
Docket01-94-00361-CV
StatusPublished
Cited by40 cases

This text of 905 S.W.2d 380 (Cannon v. ICO Tubular Services, 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
Cannon v. ICO Tubular Services, Inc., 905 S.W.2d 380, 1995 WL 473004 (Tex. Ct. App. 1995).

Opinion

OPINION ON MOTION FOR REHEARING

HUTSON-DUNN, Justice.

We withdraw our prior opinion and substitute the following in its place.

This is an appeal of a judgment notwithstanding the verdict entered by the trial court in favor of the appellee, ICO Tubular Services, Inc., (“ICO”), following a jury trial on a petition for bill of review filed by the appellant, Bill Cannon. After Cannon’s employment with Baker Hughes Tubular Services, Inc. (now known as ICO), was terminated, he asserted a breach of contract action against Baker Hughes Tubular (“BHT”). Cannon’s case against BHT was dismissed for want of prosecution. After ICO purchased BHT, Cannon filed a petition for bill of review against ICO claiming that neither he nor his attorneys had notice of either the trial court’s intent to dismiss the case or the order of dismissal. Following a jury trial on Cannon’s petition for bill of review in which a jury entered a verdict in his favor, Judge David West of the 269th District Court entered judgment notwithstanding the verdict in favor of ICO.

In two points of error, Cannon asserts that the trial court erred in granting ICO’s motion for judgment notwithstanding the verdict because the evidence is legally sufficient to support the jury’s verdict. In his first point, Cannon contends that the evidence is sufficient to support the jury’s finding that his case met bill of review criteria, thereby entitling him to a trial on the merits of his breach of contract suit. In his second point, Cannon argues that he proved his breach of contract claim on the merits. ICO responds that the trial court properly granted judgment notwithstanding the verdict because there was no evidence to support the jury’s verdict that Cannon satisfied bill of review criteria and proved his breach of contract claim on the merits. Alternatively, in three cross-points of error, ICO argues the following: (1) the evidence is factually insufficient to support the jury’s verdict on Cannon’s *384 petition for bill of review; (2) the evidence is factually insufficient to support a jury finding awarding Cannon severance pay; and (3) there is factually insufficient evidence that ICO was hable under the jury verdict. We reverse the judgment of the trial court and render judgment for Cannon on the jury’s verdict; however, we reduce the amount of attorney’s fees awarded to Cannon and remand this case to the trial court to determine the amount of interest to which Cannon is entitled.

I. The Bill of Review Criteria

A. Requirements to Obtain a Bill of Review

A bill of review is an equitable action brought by a party to a former action seeking to set aside a judgment that is not appealable or subject to a motion for new trial. State v. 1985 Chevrolet Pickup Truck, 778 S.W.2d 463, 464 (Tex.1989). Relief by equitable bill of review is available only if a party exercises due diligence to pursue all adequate legal remedies against a former judgment, and by no fault of his own, no adequate legal remedy is available. Tice v. City of Pasadena, 767 S.W.2d 700, 702 (Tex.1989); Hesser v. Hesser, 842 S.W.2d 759, 765 (Tex.App.—Houston [1st Dist.] 1992, writ denied). If legal remedies were available but ignored, the equitable remedy of a bill of review is not available. McEwen v. Harrison, 162 Tex. 125, 345 S.W.2d 706, 711 (1961); Hesser, 842 S.W.2d at 765.

Rule 329b(f) of the Texas Rules of Civil Procedure states that, upon the expiration of the time within which the trial court has plenary power, the court cannot set aside its judgment except by a bill of review for sufficient cause filed within the time allowed by law. Chevrolet Pickup Truck, 778 S.W.2d at 464; Tex.R.Civ.P. 329b(f). The rule does not define “sufficient cause,” but the Texas Supreme Court has judicially declared the steps required to obtain a bill of review proceeding. Chevrolet Pickup Truck, 778 S.W.2d at 464.

To obtain a reinstatement of the former action and a trial on the merits, the petitioner must file a petition that alleges factually and with particularity that: (1) the prior judgment was rendered because of fraud, accident or wrongful act of the opposite party, or official mistake; (2) unmixed with his own negligence. 1 Id.; Baker v. Goldsmith, 582 S.W.2d 404, 408 (Tex.1979). The petitioner must further state sworn facts sufficient to constitute a meritorious claim and present prima facie proof to support his contention. Id. 2 ,

If a prima facie case is shown, the court will conduct a trial at which the petitioner must open and prove by a preponder- *385 anee of the evidence that the order or judgment was rendered as the result of fraud, accident or wrongful act of the opposite party, or official mistake, unmixed with any negligence of his own. Chevrolet Pickup Truck, 778 S.W.2d at 464-65; Baker, 582 S.W.2d at 409. If the petitioner meets his burden, the fact finder must determine whether the party with the burden of proof on the merits of the case has proved the elements of his cause of action. Id. Once it is determined that the petitioner is suffering under a wrongfully obtained judgment that is unsupported by the weight of the evidence, the court should grant the requested relief. Id.

B. Summary of Facts

On July 31, 1987, Cannon sued BHT for breach of contract, claiming that the company faded to pay him severance pay, bonuses, and vacation pay that he was owed when his employment was terminated. Cannon’s attorney upon filing suit was Mark Davidson, whose office address was listed at 723 Main Street. Davidson’s name and address appeared on Cannon’s original petition and on the court’s docket sheet. Davidson was elected to the position of district judge in November of 1988, and his new place of employment was at the 11th District Court, located at 301 Fannin.

Cannon hired George Bishop in 1990 to take over his case from Davidson. Davidson testified during the bill of review proceeding that someone from Bishop’s office came to Davidson’s chambers and got him to sign a motion substituting Bishop as counsel. However, Davidson testified that, after signing the motion, he made no effort to ensure that it was in fact filed with the trial court. Further, Bishop testified that, although he instructed one of the attorneys in his office to take the motion to Judge Davidson’s chambers to be signed and filed, he neither saw the motion after it was signed nor ensured that it was in fact filed with the trial court. The court took judicial notice of the fact that its file did not show whether the motion was ever filed with the court.

On October 28, 1991, the trial court issued an order referring Cannon’s case to mediation that stated that it was carbon copied to the mediator, BHT’s counsel, and Davidson. However, Bishop testified that he received a copy of the order from the court.

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Bluebook (online)
905 S.W.2d 380, 1995 WL 473004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cannon-v-ico-tubular-services-inc-texapp-1995.