Cash Register Sales & Services of Houston, Inc. v. Copelco Capital, Inc.

62 S.W.3d 278, 2001 Tex. App. LEXIS 7834, 2001 WL 1475057
CourtCourt of Appeals of Texas
DecidedNovember 21, 2001
Docket01-99-01167-CV
StatusPublished
Cited by26 cases

This text of 62 S.W.3d 278 (Cash Register Sales & Services of Houston, Inc. v. Copelco Capital, 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
Cash Register Sales & Services of Houston, Inc. v. Copelco Capital, Inc., 62 S.W.3d 278, 2001 Tex. App. LEXIS 7834, 2001 WL 1475057 (Tex. Ct. App. 2001).

Opinions

OPINION

DAVIE L. WILSON, Justice.

The issue for this Court is whether a collateral attack on the enforcement of a foreign judgment in Texas will succeed based on the argument that the sister state lacked jurisdiction to render judgment on the executed contract because the person signing the contract had no authority to sign the contract. The trial court impliedly held that it will not. We affirm.

The parties agree that on May 27, 1999, a New Jersey trial court1 rendered a default judgment2 awarding $3,557.28 debt and $131.15 costs of suit in favor of appel-lee Copelco Capital, Inc. (Copelco) and against appellant Cash Register Sales and Services Houston, Inc. (CRS). On July 26, 1999, Copelco filed a notice of domestication of a foreign judgment in the County Civil Court at Law No. 2 of Harris County, Texas, trial court cause no. 720010. See Tex. Civ. PRac. & Rem.Code Ann. § 35.003(a), (b) (Vernon 1997). CRS timely filed a motion to vacate. See Tex. Civ. PRac. & Rem.Code Ann. § 35.003(c) (Vernon 1997); Walnut Equip. Leasing Co. v. Wu, 920 S.W.2d 285, 286 (Tex.1996). The motion was supported by the affidavits of Brian Smith, president of CRS, and Sue Domicolo, a bookkeeper for CRS who had signed the contract that is the subject of the dispute. Copelco filed a response supported by the affidavit of its records keeper, Bonny Zajac. '

The trial court denied the motion to vacate on September 13, 1999. On October 12, 1999, the trial court denied CRS’s motion to reconsider its denial of the motion to vacate. CRS timely filed its notice of appeal on October 13,1999.

Under the “full faith and credit” clause of the United States Constitution, a state must give the same force and effect to a judgment of a sister state that it' would give to its own judgments. See U.S. Const, art, IV, § 1. When a judgment creditor files an authenticated copy of a foreign judgment, a prima facie case for enforcement of the judgment is presented. Reading & Bates Constr. Co. v. Baker Energy Res. Corp., 976 S.W.2d 702, 712 (Tex.App.—Houston [1st Dist.] 1998, pet. denied); Minuteman Press Int’l, Inc. v. Sparks, 782 S.W.2d 339, 340 (Tex.App.—Fort Worth 1989, no writ); Schwartz v. F.M.I. Props. Corp., 714 S.W.2d 97, 99 (Tex.App.—Houston [14th Dist.] 1986, writ ref'd n.r.e.); Escalona v. Combs, 712 S.W.2d 822, 824 (Tex.App.—Houston [1st Dist.] 1986, no writ); First Nat’l Bank v. Rector, 710 S.W.2d 100, 103 (Tex.App.—Austin 1986, writ ref'd n.r.e.). This is true even if the foreign judgment is by default. Markham v. Diversified Land & Exploration Co., 973 S.W.2d 437, 439 (Tex.App.—Austin 1998, pet. denied); Hill Country Spring Water v. Krug, 773 S.W.2d 637, 639 (Tex.App.—San Antonio 1989, writ denied).

The burden then shifts to the judgment debtor to prove why the sister state’s [281]*281judgment should not be given full faith and credit. Markham, 973 S.W.2d at 439; Minuteman, 782 S.W.2d at 340-41; Esca-lona, 712 S.W.2d at 824. The presumption of validity can only be overcome by clear and convincing evidence to the contrary. Escalona, 712 S.W.2d at 824.

A defense interposed in a Texas court against the enforcement of a foreign judgment is a collateral attack. See Corporate Leasing Int’l, Inc. v. Bridewell, 896 S.W.2d 419, 422 (Tex.App.—Waco 1995, orig. proceeding); Roark v. Sweigart, 848 S.W.2d 387, 389 (Tex.App.—Amarillo 1993, no writ); First Nat’l Bank, 710 S.W.2d at 103. In a collateral attack on a sister state’s judgment, no defense may be set up that goes to the merits of the original controversy. See Strick Lease, Inc. v. Cutler, 759 S.W.2d 776, 777 (Tex.App.—El Paso 1988, no writ); Schwartz, 714 S.W.2d at 99; Colson v. Thunderbird Bldg. Materials, 589 S.W.2d 836, 839 (Tex.Civ.App.—Amarillo 1979, writ ref'd n.r.e.); Shaps v. Union Commerce Bank, 476 S.W.2d 466, 468 (Tex.Civ.App.—Beaumont 1972, writ ref'd n.r.e.); Krummen v. Still, 146 S.W.2d 288, 290 (Tex.Civ.App.—Beaumont 1940, writ dism’d, judgm’t correct); see also Corning Truck & Radiator Serv. v. J.W.M., Inc., 542 S.W.2d 520, 526 (Mo.Ct.App.1976) (appellant’s complaint that person agreeing to have repairs made was agent who could bind appellant not jurisdictional issue).

A judgment debtor may challenge the jurisdiction of a sister state to render a foreign judgment on two grounds. Minuteman, 782 S.W.2d at 340; Hill Country Spring Water, 773 S.W.2d at 639. First, the debtor may try to demonstrate that service of process was inadequate under the service of process rules of the sister state. Minuteman, 782 S.W.2d at 340; Hill Country Spring Water, 773 S.W.2d at 639.3 Second, the debtor may assert that the sister state’s exercise of personal jurisdiction over it offends due process because it does not have minimum contacts with the sister state. Minuteman, 782 S.W.2d at 340; Hill Country Spring Water, 773 S.W.2d at 639; First Nat’l Bank, 710 S.W.2d at 104.

CRS challenges the New Jersey judgment on the second ground, its absence of minimum contacts with the state of New Jersey. It repeats in its brief what the Smith affidavit stated in support of the CRS motion to vacate the New Jersey judgment filed below: that CRS is a Texas corporation with only three offices, all in Texas; that none of its directors, officers, employees, agents, or representatives are in New Jersey or have traveled there; that it has never conducted business in New Jersey, advertised there, or solicited business there; that it has never had a bank account in New Jersey; that it has never owned or maintained any insurance policy, pension fund, annuity account, stock portfolio, or bond through any company in New Jersey; that it has never paid taxes to New Jersey; and that it has never had a telephone fisting in New Jersey.

In anticipation of the arguments Copelco was sure to make (and did in its response), the affidavit also stated:

[282]*2825.

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Cite This Page — Counsel Stack

Bluebook (online)
62 S.W.3d 278, 2001 Tex. App. LEXIS 7834, 2001 WL 1475057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cash-register-sales-services-of-houston-inc-v-copelco-capital-inc-texapp-2001.