Dream Realty and Construction Corp. v. the Lin Family Revocable Trust Dated May 9, 2013

CourtCourt of Appeals of Texas
DecidedJanuary 24, 2025
Docket03-23-00447-CV
StatusPublished

This text of Dream Realty and Construction Corp. v. the Lin Family Revocable Trust Dated May 9, 2013 (Dream Realty and Construction Corp. v. the Lin Family Revocable Trust Dated May 9, 2013) 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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Dream Realty and Construction Corp. v. the Lin Family Revocable Trust Dated May 9, 2013, (Tex. Ct. App. 2025).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-23-00447-CV

Dream Realty and Construction Corp., Appellant

v.

The Lin Family Revocable Trust Dated May 9, 2013, Appellee

FROM THE 200TH DISTRICT COURT OF TRAVIS COUNTY NO. D-1-GN-22-006247, THE HONORABLE LAURIE EISERLOH, JUDGE PRESIDING

ME MO RAN DU M O PI N I O N

Dream Realty and Construction Corp. brings a restricted appeal from a no-answer

default judgment rendered in favor of The Lin Family Revocable Trust Dated May 9, 2013 (the

Trust). In one issue, Dream Realty asserts that there is error on the face of the record that requires

reversal of the trial court’s judgment. For the following reasons, we reverse the judgment and

remand the case to the trial court for further proceedings.

BACKGROUND

The Trust filed an original petition against Dream Realty and Dustin Dinh, the

registered agent for Dream Realty, alleging that in 2022 the parties executed a purchase contract

wherein defendants agreed to sell certain real property in Austin (the Property) to the Trust for $1.2

million and that the defendants breached the contract by releasing the Trust’s earnest money and

failing to close on the sale of the Property. After Dream Realty failed to answer, the Trust moved for default judgment. In its Final Order and Judgment, the trial court granted the Trust’s motion

for default judgment and ordered that Dream Realty specifically perform the contract by

transferring title to the Property within seven days’ notice by the Trust that it had paid the

contractual purchase price less any amounts awarded in the final judgment.1

DISCUSSION

A restricted appeal is a direct attack on a judgment. Kemp v. Kemp, No. 03-22-

00666-CV, 2023 WL 5535657, at *1 (Tex. App.—Austin Aug. 29, 2023, no pet.) (mem. op.). To

prevail on its restricted appeal, Dream Realty must establish that (1) it filed notice of the restricted

appeal within six months after the judgment was signed, (2) it was a party to the underlying

lawsuit, (3) it did not participate in the hearing that resulted in the judgment complained of and

did not timely file a post-judgment motion or request for findings of fact and conclusions of law,

and (4) error is apparent on the face of the record. See Tex. R. App. P. 30; Ex parte E.H.,

602 S.W.3d 486, 495 (Tex. 2020). Only the fourth element is at issue here.

The face of the record, for purposes of a restricted appeal, consists of all the papers

that were before the trial court when it rendered its judgment. See Alexander v. Lynda’s Boutique,

134 S.W.3d 845, 848–49 (Tex. 2004). Review by restricted appeal “affords an appellant the same

scope of review as an ordinary appeal,” E.H., 602 S.W.3d at 495, with the restriction that “[e]rror

must be apparent from the face of the record, not inferred from the record,” Schoendienst v. Haug,

399 S.W.3d 313, 316 (Tex. App.—Austin 2013, no pet.). The “error apparent from the face of the

record must be reversible error, that is, error that resulted in an erroneous judgment.” Carbajal v.

1 The Trust admitted in its motion for default judgment that Dinh was never served with citation, and on the Trust’s oral motion, the trial court’s judgment dismissed without prejudice the Trust’s claims against Dinh.

2 Albiter-Carbajal, No. 03-19-00852-CV, 2021 WL 2371357, at *2 (Tex. App.—Austin June 10,

2021, pet. denied) (mem. op.).

Dream Realty argues that error is apparent on the face of the record because the

Trust’s attempted service of process on it did not strictly comply with the Texas Rules of Civil

Procedure and therefore was invalid and ineffective. See Spanton v. Bellah, 612 S.W.3d 314, 316

(Tex. 2020) (“[A] no-answer default judgment cannot stand when the defendant ‘was not served

in strict compliance with applicable requirements.’”). “Because no-answer default judgments are

disfavored, and because trial courts lack jurisdiction over a defendant who was not properly served

with process, [the Texas Supreme Court] has construed ‘strict compliance’ to mean just that.” Id.

(citations omitted) (finding error on face of record where trial court’s order authorized substitute

service at house number on “Heathers Hill Drive” but return stated that it was executed at same

house number on “Heather Hills Drive”).

Proof of actual notice of a pending lawsuit cannot substitute for proper service of

process and is insufficient to confer on a district court jurisdiction to render a default judgment.

See McCready v. Mayor, No. 03-22-00322-CV, 2023 WL 4495222, at *4 n.1 (Tex. App.—Austin

Jul. 13, 2023, no pet.) (mem. op.). If the record does not demonstrate strict compliance with the

rules relating to issuance, service, and return of citation, then error is apparent on the face of the

record. Primate Constr., Inc. v. Silver, 884 S.W.2d 151, 152–53 (Tex. 1994) (per curiam). There

are no presumptions in favor of valid issuance, service, and return of citation in restricted appeals.

Fidelity & Guar. Ins. v. Drewery Constr. Co., 186 S.W.3d 571, 573–74 (Tex. 2006). Furthermore,

it is the responsibility of the one requesting service to see that service is properly accomplished

and that service is properly reflected in the record, and the Rules of Civil Procedure allow for

3 liberal amendment of the return of service to show the true facts of service. See Tex. R. Civ.

P. 99(a), 118; Primate Constr., 884 S.W.2d at 153.

Dream Realty contends that the face of the record demonstrates that the Trust did

not strictly comply with Rule 107(c), which states,

When the citation was served by registered or certified mail as authorized by Rule 106, the return by the officer or authorized person must also contain the return receipt with the addressee’s signature.

Tex. R. Civ. P. 107(c) (emphasis added). The record contains a letter from the Trust’s attorney

requesting of the Travis County District Clerk “issuance of citation along with service by certified

mail to each” of the two defendants, Dream Realty (through its registered agent, Dinh) and Dinh,

both with the same mailing address. The letter request was filed with the clerk a few weeks

after the Trust filed its original petition, and thereafter—as reflected in the clerk’s record—

the clerk issued a citation to each defendant. Underneath the bottom “Return” portion of the

citation the cause number and the words “Constable Certified Mail” are typed, and the “Return”

portion of the citation is otherwise blank except for an official stamp above the line reading

“Sheriff/Constable/Authorized Person” and depicting the name and title “Carlos B. Lopez,

Constable Pct. 5, Travis County, Texas.”

In addition to this stamped but unsigned “Return” portion of the original citation,

the record contains a separate, typewritten and signed “Officer’s Return,” which reads,

Came to hand November 22, 2022 at 4:30 P.M. and executed in WILLIAMSON County, Texas, on November 29, 2022 at 5:00 P.M.

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Related

Fidelity & Guaranty Insurance Co. v. Drewery Construction Co.
186 S.W.3d 571 (Texas Supreme Court, 2006)
Primate Construction, Inc. v. Silver
884 S.W.2d 151 (Texas Supreme Court, 1994)

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