Elite Towing, Inc. v. LSI Financial Group

985 S.W.2d 635, 1999 Tex. App. LEXIS 447, 1999 WL 33209
CourtCourt of Appeals of Texas
DecidedJanuary 28, 1999
Docket03-98-00047-CV
StatusPublished
Cited by71 cases

This text of 985 S.W.2d 635 (Elite Towing, Inc. v. LSI Financial Group) 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
Elite Towing, Inc. v. LSI Financial Group, 985 S.W.2d 635, 1999 Tex. App. LEXIS 447, 1999 WL 33209 (Tex. Ct. App. 1999).

Opinion

LEE YEAKEL, Justice.

Appellee LSI Financial Group (“LSI”) sued appellant Elite Towing, Inc. (“Elite”) 1 in district court urging various claims, including conversion, negligence, and violation of section 70.006 of the Texas Property Code, 2 arising out of Elite’s disposing of an automobile in its possession. The district court granted a partial summary judgment in favor of LSI as to liability on its Property Code claim. Later, following a bench trial, the district court rendered a final judgment awarding LSI damages and attorney’s fees. Elite appeals. We will affirm the district court’s judgment.

*638 BACKGROUND

On June 26, 1996, Elite gained possession of a 1994 Mitsubishi Mirage automobile. The vehicle, owned by Keshia L. Eubanks, was subject to a lien created by a security agreement. LSI is the loan servicer and attorney-in-fact for the secured party, First Bank of the Americas. 3 On July 2, Elite sent written notice regarding its possession of the vehicle to Eubanks and the original lienholder, 4 a copy of which was later obtained by LSI. The notice stated, inter alia, that the vehicle would be sold at a public sale on August 1 unless it was redeemed and removed from the premises. It is undisputed that this is the only notice that Elite sent to either the owner or any lienholder of the vehicle.

On August 1, Lissa Ruffin, president of Elite, conducted a sale and disposed of the vehicle. Robert Ruffin was the only bidder present at the sale and bought the vehicle on behalf of Elite Wholesales for $540. Approximately one week later, LSI contacted Elite and was informed of the sale.

LSI sued Elite and later filed a motion for summary judgment asserting that it was entitled to judgment as a matter of law because in selling the vehicle Elite failed to comply with section 70.006 of the Property Code. See Tex. Prop.Code Ann. § 70.006 (West 1995 & Supp.1999). The district court granted the motion as to liability but reserved the issues of damages and attorney’s fees for “determination at a later date.” The order, signed July 30,1997, reflects that the hearing on the motion for summary judgment had been held on June 27.

On July 1, shortly after the hearing but before the signing of the order, LSI served Elite with notice that trial of the remaining issues was set for August 25. The certificate of service attached to the notice reflects that it was sent to Elite’s attorney, James C. Mosser, by certified mail return receipt requested, at the address for Mosser reflected in Elite’s trial pleadings. It is not in dispute that the address shown in the certificate of service is Mosser’s correct office address. On July 3, Gerald Scheff, an attorney officing in the same building as Mosser, signed the receipt for the notice. The receipt was returned to LSI’s attorney. Neither Mosser nor a representative of Elite appeared at the trial. Mosser asserts that he never received the notice. In the absence of Elite, its representative, or attorney, the district court conducted a bench trial and rendered judgment for LSI for damages and attorney’s fees in the amounts of $8,625 and $14,472.09, respectively. Elite filed a motion for new trial alleging lack of notice of the trial setting. Elite did not request a hearing on its motion, and it was overruled by operation of law.

Elite appeals in five issues: the first two attack the partial summary judgment; the third complains that Elite should have been granted a new trial because its attorney did not receive notice of the trial setting; the fourth addresses whether attorney’s fees were appropriate in this case; the final issue asserts that venue was improper.

DISCUSSION

Partial Summary Judgment

The standards for reviewing a summary judgment are well established. The movant for summary judgment has the burden of showing that no genuine issue of material fact exists and it is entitled to judgment as a matter of law. Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548-49 (Tex.1985). In deciding whether there is a disputed material fact issue precluding summary judgment, evidence favorable to the nonmov-ant will be taken as true, and every reasonable inference must be indulged in favor of the nonmovant and any doubts resolved in its favor. Id.

Conversion and Negligence

Elite asserts that the district court erroneously rendered summary judgment against it on LSI’s conversion and negligence *639 claims. LSI’s motion for summary judgment addressed only section 70.006 of the Property Code. It was on this motion that the district court granted partial summary judgment. 5 Courts can only address issues that are expressly presented in a motion for summary judgment. See Mafrige v. Ross, 866 S.W.2d 590, 591 (Tex.1993) (granting motion for summary judgment on cause of action not addressed in motion is reversible error); Chessher v. Southwestern Bell Tel. Co., 658 S.W.2d 563, 564 (Tex.1983) (summary judgment cannot be granted as a matter of law on cause of action not addressed in summary-judgment proceeding). The district court did not grant summary judgment against Elite on LSI’s conversion or negligence claims. We will address only the issue before the district court in LSI’s motion.

Compliance with the Texas Property Code

Section 70.006 of the Texas Property Code provides in pertinent part:

(a) A holder of a lien under this subchap-ter on a motor vehicle ... who retains possession of the vehicle ... for 30 days after the day that the charges accrue shall give written notice to the owner and each holder of a lien recorded on the certificate of title....
(b) If the charges are not paid before the 31st day after the day that the notice is mailed, the lienholder may sell the vehicle ... at a public sale and apply the proceeds to the charges....

Tex. Prop.Code Ann. § 70.006 (West 1995 & Supp.1999).

Elite argues that it could not have violated section 70.006 because it never actually sold the vehicle, as LSI obtained a temporary restraining order preventing Elite from transferring the vehicle’s title. Elite asserts that because title was not transferred, there was no sale and section 70.006 does not apply. We find this argument to be without merit. When title to an automobile is a collateral issue, ie.,

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985 S.W.2d 635, 1999 Tex. App. LEXIS 447, 1999 WL 33209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elite-towing-inc-v-lsi-financial-group-texapp-1999.