Celeste Grynberg and Jack J. Grynberg D/B/A Grynberg Petroleum v. M-I L.L.C.

398 S.W.3d 864, 2012 WL 7849182, 2012 Tex. App. LEXIS 10747
CourtCourt of Appeals of Texas
DecidedDecember 28, 2012
Docket13-11-00195-CV
StatusPublished
Cited by17 cases

This text of 398 S.W.3d 864 (Celeste Grynberg and Jack J. Grynberg D/B/A Grynberg Petroleum v. M-I L.L.C.) 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
Celeste Grynberg and Jack J. Grynberg D/B/A Grynberg Petroleum v. M-I L.L.C., 398 S.W.3d 864, 2012 WL 7849182, 2012 Tex. App. LEXIS 10747 (Tex. Ct. App. 2012).

Opinion

OPINION 1

Opinion by

Justice RODRIGUEZ.

This is an appeal from a summary judgment entered in a bill of review proceeding. Appellants Celeste Grynberg and Jack J. Grynberg d/b/a Grynberg Petroleum appeal the denial of their petition for bill of review, which sought to overturn a no-answer default judgment rendered against them and in favor of appellee M-I L.L.C. By nine issues, which we reorganize as seven, the Grynbergs contend that (1) the trial court lacked jurisdiction because they are nonresident individual defendants and were not served at their home; (2) if service was proper at their home office address, the trial court erred in granting summary judgment in favor of appellee M-I and against Celeste because the evidence established that Celeste was never properly served at her home office; (3) the trial court erred in granting M-I summary judgment because the filing of a motion for new trial was a special appearance that challenged personal jurisdiction and not a general appearance; (4) the trial court erred in granting M-I summary judgment because there was prima facie evidence of a meritorious defense (no minimum contacts in Texas); (5) neither res *868 judicata nor estoppel barred the minimum-contacts defense; (6) M-I offered no argument or evidence that conclusively established that there are no fact issues as to the second and third elements of the bill of review; and (7) the trial court erred in awarding M-I attorneys’ fees. We affirm in part, and we reverse and remand in part.

I. Factual and Procedural Background

During 2006 and 2008, Grynberg Petroleum worked on a drilling project in Colorado. Grynberg Petroleum is a d/b/a for Celeste and Jack; Jack acts as its manager, and Celeste owns all Grynberg Petroleum properties. M-I provided services and drilling fluids on the Colorado drilling project and extended credit for the services and drilling fluids. M-I sent invoices for this work to 5299 DTC Boulevard, Suite 500, Greenwood Village, Colorado 80111.

On January 27, 2009, M-I filed a lawsuit in Texas against Jack and Celeste on an unpaid account. Pursuant to the long-arm statute, M-I attempted service on Jack and Celeste at the 5299 DTC Boulevard address. In its petition, M-I described this address as Jack’s and Celeste’s “home address or home office.” The Texas Secretary of State mailed the process documents to the address M-I provided and received a return receipt. Neither Jack nor Celeste answered. M-I filed a motion for default judgment. On July 17, 2009, the district court granted M-I’s motion and awarded M-I $677,432.24.

On August 7, 2009, following the entry of the no-answer default judgment against them, the Grynbergs filed a timely motion for new trial, urging that (1) their failure to answer was not intentional or the result of conscious indifference; (2) they had a meritorious defense; and (3) setting aside the judgment would not cause delay or injure M-I. See Tex.R. Civ. P. 329b; Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388, 133 S.W.2d 124, 126 (Tex.1939). Without a hearing, the motion was overruled by operation of law on September 30, 2009. See id. at R. 329b(c). The Grynbergs did not appeal.

The Grynbergs filed a collateral attack in a Colorado court, challenging personal jurisdiction in Texas. On October 5, 2010, after a Colorado court denied them relief, the Grynbergs filed a bill of review in Texas. In their petition, they asserted the following: (1) Celeste “was not served with citation as required by law” because “[t]he address identified as Ms. Grynberg’s ‘home address or home office’ in M-I L.L.C.’s Original Petition — 5299 DTC Boulevard, Suite 500, Greenwood Village, Colorado 80111 — does not identify a location where Ms. Grynberg resides or maintains any type of office”; and (2) M-I “failed to include any allegations in its pleading sufficient to invoke personal jurisdiction over either Celeste C. Grynberg or Jack J. Grynberg” because none of the alleged facts “establish that either [Celeste or Jack] have contacts with Texas sufficient to create personal jurisdiction.” The Grynbergs filed a motion and then an amended motion for summary judgment, expanding the arguments made in their motion for new trial and attaching Jack’s affidavit and Celeste’s affidavit, business invoices and statements, and pleadings in support of their motion.

M-I filed a counter-motion for summary judgment asserting, among other things, that (1) the trial court had jurisdiction over Celeste because the 5299 DTC Boulevard address was her home office address; (2) the Grynbergs had minimum contacts in Texas and the Grynbergs made a general appearance when they filed their motion for new trial; (3) the Grynbergs made no allegations of fraud, accident, or wrongful *869 act by M-I, or of any official mistake, which are necessary elements to show a right to a bill of review; and (4) the Gryn-bergs failed to pursue their remedy at law, by either setting their motion for new trial for hearing or appealing the grant of the default judgment, and are therefore barred from asserting the equitable remedy of bill of review. 2 M-I attached thirty-three exhibits and a thirty-fourth supplemental exhibit. The exhibits included, among other things, business documents filed in Colorado, pleadings filed in other litigation, and invoices and statements sent to Grynberg Petroleum. The Grynbergs responded to M-I’s counter-motion, again urging arguments made in their amended summary-judgment motion and also asserting that they were not barred from seeking equitable relief in this bill of review by the motion for new trial they had previously filed.

On February 14, 2011, the trial court in Texas denied the Grynbergs’ petition for bill of review and their amended motion for summary judgment. Without stating the grounds upon which it made its ruling, the trial court granted M-I’s counter-motion for summary judgment and awarded M-I attorneys’ fees. 3 The Grynbergs appeal from this judgment.

II. Long-Arm Service of Process on Nonresident Individual at “Home or Home Office”

By their first issue, the Grynbergs argue that service under the long-arm statute is proper only at the home address of a nonresident individual. See Tex. Civ. Prac. & Rem.Code Ann. § 17.045(a) (West 2008). They claim that because they were not served at home, the trial court did not have personal jurisdiction over them. 4 MI challenges this interpretation and asserts that section 17.045(a) provides two equal alternatives to serve a nonresident — at the defendant’s “home” or at the defendant’s “home office.” See id. We agree with MI.

*870 A. Applicable Law and Standard of Review

“When a defendant has not answered, a trial court acquires jurisdiction over that defendant solely on proof of proper service.” Jarvis v. Feild, 327 S.W.3d 918, 926 (Tex.App.-Corpus Christi 2010, no pet.) (citing Furst v. Smith,

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Bluebook (online)
398 S.W.3d 864, 2012 WL 7849182, 2012 Tex. App. LEXIS 10747, Counsel Stack Legal Research, https://law.counselstack.com/opinion/celeste-grynberg-and-jack-j-grynberg-dba-grynberg-petroleum-v-m-i-texapp-2012.