Dansk Express, LLC v. IPFS Corporation

Court of Appeals of Texas·Decided August 3, 2023·No. 01-22-00621-CV·Published

Opinion

Opinion issued August 3, 2023

In The

Court of Appeals

For The

First District of Texas

Dansk now appeals. In two issues, Dansk contends that the trial court erred in rendering judgment against it because IPFS did not properly serve Dansk with the lawsuit and failed to ensure that a reporter’s record was made of any proceedings.

Because we do not find error on the face of the record, we affirm.

Background

In December 2019, Dansk financed a commercial auto insurance policy through a Premium Finance Agreement (“Agreement”) with IPFS. Pursuant to the Agreement, IPFS paid the annual premium of $196,650.24 to the insurer, and Dansk agreed to pay IPFS in 10 monthly installments of $20,482.00. The Agreement listed the insured as: “Jarrett Justice [“Justice”], Danske Express LLC, 278 Park Road, Glendale, TX 75862.” And Justice executed the Agreement on behalf of Dansk.

In September 2021, IPFS sued Dansk, asserting that Dansk had failed to pay as agreed and that its breach of the Agreement had caused IPFS to incur damages of $26,595.88. In its petition, IPFS directed that Dansk be served through its “Registered Agent, Jarrett B. Justice, at the registered address: 8211 Shoregrove, Humble, Texas 77346” (the “Shoregrove address”).

The process server’s affidavit was filed with the trial court. In her October 20, 2021 “Affidavit of Due Diligence” (“Affidavit”), the process server stated that she attempted to deliver the citation to Justice at the Shoregrove address on October 18, 19, and 20, 2021—but was unsuccessful. On October 20, 2021, the process server returned the citation unexecuted and recommended service upon the Texas Secretary of State (“SOS”).

On November 10, 2021, IPFS filed an amended petition, asserting that, because Dansk’s registered agent could not “with reasonable diligence be found at the registered office,” service through the SOS was authorized under section 5.251 of the Texas Business Organizations Code.1 IPFS directed that Dansk be served by delivering the citation to the SOS for service on Dansk “at the most recent address on file with the [SOS],” which it identified as the Shoregrove address. IPFS attached the process server’s Affidavit to its amended petition.

On February 23, 2022, IPFS filed the SOS’s Whitney Certificate, discussed below. In the Certificate, the SOS certified that it had received a copy of the citation and IPFS’s amended petition, that it forwarded these by certified mail to Dansk at the Shoregrove address, and that “[t]he Process was returned to this office on January 31, 2022, [b]earing the notation Return to Sender, Unable to Forward.”

Dansk did not file an answer.

On March 9, 2022, IPFS moved for a default judgment, asserting that Dansk had been duly served and failed to appear. IPFS filed a “Certificate of Last Known Address,” listing the Shoregrove address. IPFS sought damages in the amount of $26,595.88 and attorney’s fees. It directed the trial court to the exhibits attached to

1 See TEX. BUS. ORGS. CODE § 5.251.

its amended petition, including copies of the Agreement and Dansk’s Customer Account and Transaction History, which it “incorporated [t]herein by reference as though fully recited.” IPFS also attached an affidavit in support of its attorney’s fees.

On March 11, 2022, the trial court signed a Final Default Judgment. It found that Dansk, although duly served with process, had failed to file an answer and that the return had been on file for at least 10 days. It also found that Dansk was in default on the Agreement and that the damages were liquidated. The trial court awarded IPFS $26,595.88 in damages and $8,865.00 in attorney’s fees.

Restricted Appeal

Texas Rule of Appellate Procedure 30 states in pertinent part:

A party who did not participate—either in person or through counsel—

in the hearing that resulted in the judgment complained of and who did not timely file a postjudgment motion or request for findings of fact and conclusions of law, or a notice of appeal within the time permitted by Rule 26.1(a), may file a notice of appeal within the time permitted by Rule 26.1(c).

TEX. R. APP. P. 30. Rule 26.1(c) then provides that “in a restricted appeal, the notice of appeal must be filed within six months after the judgment or order is signed.” Id. 26.1(c).

Accordingly, to prevail in this restricted appeal, Dansk must show that: (1) it filed a notice of restricted appeal within six months after the judgment was signed; (2) it was a party to the underlying suit; (3) it did not participate in the hearing that resulted in the complained-of judgment and did not timely file any post-judgment motions or requests for findings of fact and conclusions of law; and (4) error is apparent on the face of the record. Pike-Grant v. Grant, 447 S.W.3d 884, 886 (Tex. 2014).

The first three requirements “are jurisdictional.” Ex parte E.H., 602 S.W.3d 486, 497 (Tex. 2020); see, e.g., In re S.W., 614 S.W.3d 311, 315–16 (Tex. App.— Fort Worth 2020, no pet.) (dismissing Father’s restricted appeal based on failure to establish second requirement). The fourth requirement, which is derived from case law, goes to the merits of the appeal and is not jurisdictional. Ex parte E.H., 602 S.W.3d at 495, 497; see, e.g., In re S.W., 614 S.W.3d at 315–16 (affirming trial court’s judgment in Mother’s restricted appeal based on fourth requirement).

In our review, we “liberally construe the non-participation requirement for restricted appeals in favor of the right to appeal.” Grant, 447 S.W.3d at 886. And in determining whether error is apparent on the face of the record, we must consider the evidence that was before the trial court at the time that it rendered its final judgment. See In re S.W., 614 S.W.3d at 315.

Discussion Here, the record shows that Dansk was a party to IPFS’s lawsuit. See Grant, 447 S.W.3d at 886. In addition, the record shows that the trial court signed its judgment on March 11, 2022, and that Dansk filed its notice of appeal on August 24, 2022. Thus, Dansk filed its notice of appeal within six months after the date the judgment was signed. See id.; see also TEX. R. APP. P. 26.1(c), 30.

The record further shows that Dansk did not participate “in the hearing that resulted in the judgment complained of,” as the record does not reflect that a hearing took place. See TEX. R. APP. P. 30 (authorizing restricted appeal when party “did not participate—either in person or through counsel—in the hearing that resulted in the judgment complained of”); Schamp v. Mitchell, No. 04-14-00741-CV, 2015 WL 4478150, at *2 (Tex. App.—San Antonio July 22, 2015, no pet.) (mem. op.). The trial court’s judgment recites that it “considered the pleadings, official records, and evidence on file.” And there are no notices of submission or setting and no settings listed on the trial court’s docket sheet. See Schamp, 2015 WL 4478150, at *2.

The record additionally reflects that Dansk did not timely file any post-judgment motions or requests for findings of fact and conclusions of law. See TEX. R. APP. P. 30; Grant, 447 S.W.3d at 886; Schamp, 2015 WL 4478150, at *2.

Accordingly, we conclude that the first three requirements for a restricted appeal are established and that we have jurisdiction to hear Dansk’s restricted appeal. See Ex parte E.H., 602 S.W.3d at 497 (holding first three requirements are jurisdictional); see, e.g., Maan v. First ATM, Inc., No. 03-06-00698-CV, 2008 WL 5210923, at *4 (Tex. App.—Austin Dec. 12, 2008, no pet.) (mem. op.) (concluding that jurisdiction to consider restricted appeal was established and turning to merits).

Next, we consider the fourth requirement—whether error is apparent on the face of the record. See Grant, 447 S.W.3d at 886. This requires us to analyze the merits of Dansk’s grounds for appeal. See Ex parte E.H., 602 S.W.3d at 497.

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