Donald E. Spencer v. GC Services Limited Partnership and Ross, Banks, May, Cron & Cavin, P.C.

CourtCourt of Appeals of Texas
DecidedMay 7, 2013
Docket01-12-00159-CV
StatusPublished

This text of Donald E. Spencer v. GC Services Limited Partnership and Ross, Banks, May, Cron & Cavin, P.C. (Donald E. Spencer v. GC Services Limited Partnership and Ross, Banks, May, Cron & Cavin, P.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.

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Donald E. Spencer v. GC Services Limited Partnership and Ross, Banks, May, Cron & Cavin, P.C., (Tex. Ct. App. 2013).

Opinion

Opinion issued May 7, 2013

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-12-00159-CV ——————————— DONALD E. SPENCER, Appellant V. GC SERVICES LIMITED PARTNERSHIP AND ROSS, BANKS, MAY, CRON & CAVIN, P.C., Appellees

On Appeal from the 270th District Court Harris County, Texas Trial Court Case No. 2010-83448

MEMORANDUM OPINION

Donald Spencer sued Ross, Banks, May, Cron & Cavin, P.C. (“Ross

Banks”) and GC Services Limited Partnership (“GC Services”) after the United States Department of Education (“the Department”) denied Spencer’s hardship

application concerning repayment of his federal student loans and issued a writ of

garnishment directed to Ross Banks, his former employer. Spencer asserted causes

of action for negligence, gross negligence, fraud, negligent misrepresentation,

retaliation, discrimination, and intentional infliction of emotional distress against

Ross Banks and a cause of action for fraud against GC Services. Both Ross Banks

and GC Services moved for summary judgment, and the trial court rendered

summary judgment in favor of both defendants. In two issues, Spencer contends

that the trial court erred (1) in granting Ross Banks’s no-evidence motion for

summary judgment because Ross Banks filed its motion before an adequate time

for discovery had passed and (2) in granting GC Services’ motion for summary

judgment because he presented evidence raising material fact issues on his fraud

claim.

We affirm.

Background

Spencer worked as a legal assistant at Ross Banks from March 2002 until

July 2009. Spencer had approximately $21,000 in outstanding federal student loan

debt, but the Department had granted him a financial hardship deferment for 2004

through 2006. On January 10, 2008, the Department issued a wage garnishment

order to Ross Banks, directing it to withhold 15% of Spencer’s disposable income

2 and pay that amount to the Department to satisfy Spencer’s student loan debt.

Spencer requested a hearing on this decision, arguing that he qualified for the

hardship deferment, but the Department hearing officer upheld the original

determination.

Spencer then sued both Ross Banks and GC Services, a company that

contracts with the Department to assist in the collection of student-loan debt, on

December 28, 2010.1 Spencer alleged that Ross Banks, “knowing that Spencer

disputed the garnishment and had qualified for hardship on two previous attempts

to garnish, continued to take disciplinary action in the form of garnishing wrong

amounts beginning in February 2008 through July 2009.” Spencer also alleged

that GC Services “intentionally failed to put Spencer’s proof of income before the

hearing officer of [the Department] and therefore received the Wage Garnishment

Order that was given and wrongly implemented by Ross Banks” and “continued to

fraudulently sabotage Spencer’s appeal process in not directing proof of income

and expenses to the appeal officer as required in a hardship application.”

Spencer asserted causes of action for negligence, gross negligence, fraud,

retaliation, discrimination, negligent misrepresentation, and intentional infliction of

emotional distress. With respect to his fraud claim, Spencer alleged that “[t]he

1 Spencer later amended his petition to add the Department as a defendant, but there is no indication in the record that citation was ever issued and served upon the Department. 3 misrepresentations that Spencer relied upon involve believing that a hardship

would not involve the employer and therein the employer would not be burdened

with implementing a garnishment.” Spencer also alleged, with respect to his

negligent misrepresentation claim, that “GC [Services] represented to Spencer that

it would assist in Spencer’s hardship application on the garnishment issue.”

Ross Banks answered on May 16, 2011. Ross Banks subsequently moved

for no-evidence summary judgment on August 30, 2011. In its summary judgment

motion, Ross Banks stated, “A Court may grant a no-evidence motion for summary

judgment if the Movants can show that adequate time for discovery had passed and

the Non-Movant has no evidence to support one or more essential elements of its

claim or defense. An adequate time for discovery has passed.” (Internal citations

omitted.) Ross Banks specifically identified each element of each of Spencer’s

asserted causes of action and stated that Spencer could not provide any evidence to

support any of these elements.

Less than a month later, on September 21, 2011, Ross Banks moved for

protection from discovery, arguing that Spencer’s discovery requests were

harassing, overbroad, and not reasonably tailored to “include only relevant

matters.” Ross Banks requested that the trial court order Spencer to redraft his

discovery requests such that “only issues pertinent to this lawsuit are included in

the discovery requests.”

4 On September 29, 2011, Spencer filed a verified motion for continuance.

Spencer pointed out that the discovery period was scheduled to end on January 6,

2012, and Ross Banks had moved for no-evidence summary judgment on August

30, 2011, less than four months after it had answered. He stated that he “needs

time to conduct discovery” and that Ross Banks would not be prejudiced by a

continuance. He further stated, “With no discovery produced from the Defendant,

Plaintiff has requested discovery from the Defendant and Plaintiff needs additional

time to secure it.” Spencer requested that the trial court allow the discovery period

to continue and that it postpone a hearing on Ross Banks’s summary judgment

motion until the completion of discovery.

The next day, on September 30, 2011, the trial court granted Ross Banks’s

motion for no-evidence summary judgment. The trial court subsequently granted

Ross Banks’s motion for protection on October 11, 2011.

Spencer moved for a new trial and argued that the trial court erred in

granting summary judgment because the discovery period was still open when

Ross Banks filed its summary judgment motion, and Spencer had not yet served

his first set of discovery requests upon Ross Banks. He argued that Ross Banks

made no showing that the trial court should shorten the discovery period, nor did it

“show anything involving discovery time and adequacy.” The trial court denied

this motion.

5 On December 15, 2011, GC Services moved for both traditional and no-

evidence summary judgment. GC Services’ summary judgment evidence included

excerpts from Spencer’s deposition, the Department’s 2008 wage garnishment

order, the August 12, 2008 garnishment hearing decision, and an affidavit from

Denise Bolton, GC Services’ Area Manager of Garnishment.

With respect to Spencer’s fraud claim, GC Services noted that this claim

“involves an allegation that GC Services promised [Spencer that] GC Services

would do something in the future.” Specifically, Spencer claimed in his deposition

that GC Services “made him believe” that it was going to “handle” his 2008

hardship application, and then GC Services “didn’t submit documents to the

Department of Education.” Thus, because this claim involved a promise to do a

future act, to be entitled to relief, Spencer had to prove that at the time GC Services

allegedly made this representation, it had no intention of “handling” Spencer’s

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