Charles Gallagher and Mary Gallagher v. Mira Vista Homeowners Association, Inc.

CourtCourt of Appeals of Texas
DecidedApril 29, 2022
Docket14-20-00297-CV
StatusPublished

This text of Charles Gallagher and Mary Gallagher v. Mira Vista Homeowners Association, Inc. (Charles Gallagher and Mary Gallagher v. Mira Vista Homeowners Association, 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
Charles Gallagher and Mary Gallagher v. Mira Vista Homeowners Association, Inc., (Tex. Ct. App. 2022).

Opinion

Affirmed and Memorandum Opinion filed April 29, 2022.

In The

Fourteenth Court of Appeals

NO. 14-20-00297-CV

CHARLES GALLAGHER AND MARY GALLAGHER, Appellants

V. MIRA VISTA HOMEOWNERS ASSOCIATION, INC., Appellee

On Appeal from the 348th District Court Tarrant County, Texas Trial Court Cause No. 348-310601-19

MEMORANDUM OPINION Two homeowners appeal the trial court’s judgment following a bench trial, in which the trial court denied the homeowners’ request for bill-of-review or collateral-attack relief from a default judgment rendered against them in favor of their homeowners’ association. Concluding that the homeowners have not shown that the trial court erred in denying their requested relief, we affirm the trial court’s judgment. I. FACTUAL AND PROCEDURAL BACKGROUND

On August 9, 2011, in Mira Vista Homeowners Association, Inc. v. Charles Gallagher and Mary Gallagher, Cause No. 348-250975-11 in the 348th District Court, Tarrant County, Texas (the “Underlying Case”), the trial court signed a default judgment, ordering that appellee/defendant Mira Vista Homeowners Association, Inc. recover from appellants/plaintiffs Charles and Mary Gallagher $14,334.32, reasonable attorney’s fees of $2,500, court costs and interest (the “Default Judgment”). The trial court also ordered that Mira Vista was entitled to foreclosure of its assessment lien against the real property located at 6705 Medinah Drive in Fort Worth, Texas (the “Property”). The Property is the Gallaghers’ homestead. In two affidavits of service filed in the Underlying Case, a process server testified that she personally served Charles Gallagher with the citation and petition on February 22, 2011, at 4:55 p.m. and that she personally served Mary Gallagher with the citation and petition on February 19, 2011, at 12:30 p.m.

After receiving notice that the Property was set to be sold at an execution sale in September 2019, the Gallaghers filed a petition in this case seeking an equitable bill of review or in the alternative asserting a collateral attack. The Gallaghers asked the trial court to set aside and vacate the Default Judgment, asserting that that judgment is void for lack of service of process in the Underlying Case. The Gallaghers asserted that neither of them had been served by the process server in February 2011 nor at any time prior to the date of the Default Judgment. The Gallaghers alleged that at no time prior to the date of the Default Judgment had either of them served with any other document from the Underlying Case. The Gallaghers alleged that their subdivision has a gated entry with a guard to screen non-residents and that the guard determines whether a non-resident may enter by contacting the homeowner. The Gallaghers suggested that because they never

2 received any such call from the guard, the process server could not have entered the subdivision to serve them. The Gallaghers asserted that because they were never served with process in the Underlying Case, they were denied notice of the Underlying Case. The Gallaghers claimed that they did not learn of the Default Judgment until August 2019.

The Gallaghers alleged that the certificate of last known address filed by Mira Vista under Texas Rule of Civil Procedure 239a in the Underlying Case stated that the zip code for the Gallaghers’ last known address was “76122,” when the correct zip code was “76132.” The Gallaghers asserted a direct attack against the Default Judgment seeking bill-of-review relief and alleging extrinsic fraud. In the alternative, the Gallagher asserted a collateral attack against the Default Judgment. The Gallaghers sought a temporary restraining order, a temporary injunction, and a permanent injunction preventing the execution upon, foreclosure upon, or interference with the Gallaghers’ access to and use of the Property.

The trial court signed a temporary restraining order and an agreed order extending the temporary restraining order. Mira Vista filed a brief in the trial court in which it asserted that the Gallaghers were not entitled to bill-of-review relief because they could not meet their burden of proving extrinsic fraud and because the four-year statute of limitations bars them from obtaining this relief. Mira Vista contended that the Gallaghers were properly served with process. Mira Vista attached to this brief a declaration from its representative and property manager, Lea Crow, in which she stated that she made arrangements for the process server to enter the subdivision to serve the Gallaghers. Crow also asserted that the process server was allowed in on the dates listed on the affidavits of service.

The trial court signed a temporary injunction and set the case for trial. Mira Vista filed an answer asserting the affirmative defense of the statute of limitations.

3 After conducting a bench trial,1 the trial court signed a judgment in which the trial court effectively denied the Gallaghers’ petition for bill of review. The trial court later filed findings of fact and conclusions of law in which the court stated:

• In making the findings of fact and conclusions of law the trial court took into consideration the evidence presented at trial, including the credibility of the witnesses. • On or about August 9, 2011, the Default Judgment was entered. • The return of service for Charles Gallagher in the Underlying Case states he was personally served on February 22, 2011, at 4:55 p.m. • The return of service for Mary Gallagher in the Underlying Case states she was personally served on February 19, 2011, at 12:30 p.m. • The Gallaghers filed their Original Petition for Bill of Review over eight years after the Default Judgment was entered. • The Gallaghers failed to file their Original Petition for Bill of Review within four years after the Default Judgment was entered against them. • The Gallaghers failed to establish extrinsic fraud to extend the limitations period for the Original Petition for Bill of Review. • The Gallaghers failed to carry their burden of proving, with corroborating evidence, that they were not served with process.

The Gallaghers timely appealed the trial court’s judgment. The Supreme Court of Texas transferred this appeal from the Second Court of Appeals to this court.2

II. ISSUES AND ANALYSIS

A bill of review is an independent, equitable proceeding brought by a party

1 No party requested a jury trial or paid the jury fee. 2 In transfer cases, the transferee court must decide the appeal in accordance with the precedent of the transferor court under principles of stare decisis if the transferee court’s decision otherwise would have been inconsistent with the precedent of the transferor court. Tex. R. App. P. 41.3.

4 to a prior action seeking to set aside a judgment in that action that is no longer subject to challenge by a motion for new trial or a direct appeal. Baker v. Goldsmith, 582 S.W.2d 404, 406 (Tex. 1979). Courts of equity always watch bills of review “with extreme jealousy,” and the grounds on which bill-of-review relief will be allowed are “narrow and restricted” because the procedure conflicts with the fundamental policy that judgments must become final at some point. Alexander v. Hagedorn, 226 S.W.2d 996, 998 (Tex. 1950) (internal quotations omitted); Vandervlist v. Samara Portfolio Management, LLC, No. 14-16-00044-CV, 2017 WL 3194062, at *4 (Tex. App.—Houston [14th Dist.] Jul. 27, 2017, pet. denied) (mem. op.). Although a bill of review is an equitable proceeding, the fact that an injustice may have occurred is not sufficient to justify relief by bill of review. Vandervlist, 2017 WL 3194062, at *4.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Caldwell v. Barnes
154 S.W.3d 93 (Texas Supreme Court, 2004)
Baker v. Goldsmith
582 S.W.2d 404 (Texas Supreme Court, 1979)
Pool v. Ford Motor Co.
715 S.W.2d 629 (Texas Supreme Court, 1986)
Maritime Overseas Corp. v. Ellis
971 S.W.2d 402 (Texas Supreme Court, 1998)
Armentor v. Kern
178 S.W.3d 147 (Court of Appeals of Texas, 2005)
Young v. Snowcon, Inc.
463 S.W.2d 225 (Court of Appeals of Texas, 1971)
Alexander v. Hagedorn
226 S.W.2d 996 (Texas Supreme Court, 1950)
City of Keller v. Wilson
168 S.W.3d 802 (Texas Supreme Court, 2005)
Teel v. Shifflett
309 S.W.3d 597 (Court of Appeals of Texas, 2010)
King Ranch, Inc. v. Chapman
118 S.W.3d 742 (Texas Supreme Court, 2003)
Ward v. Nava
488 S.W.2d 736 (Texas Supreme Court, 1972)
Cain v. Bain
709 S.W.2d 175 (Texas Supreme Court, 1986)
Alderson v. Alderson
352 S.W.3d 875 (Court of Appeals of Texas, 2011)
Mandel v. Lewisville Independent School District
445 S.W.3d 469 (Court of Appeals of Texas, 2014)
Valdez v. Hollenbeck
465 S.W.3d 217 (Texas Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Charles Gallagher and Mary Gallagher v. Mira Vista Homeowners Association, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-gallagher-and-mary-gallagher-v-mira-vista-homeowners-association-texapp-2022.