Fairmont Homes, Inc. v. Upchurch

704 S.W.2d 517
CourtCourt of Appeals of Texas
DecidedJanuary 23, 1986
DocketNo. A14-85-393-CV
StatusPublished

This text of 704 S.W.2d 517 (Fairmont Homes, Inc. v. Upchurch) 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
Fairmont Homes, Inc. v. Upchurch, 704 S.W.2d 517 (Tex. Ct. App. 1986).

Opinion

OPINION

ELLIS, Justice.

The previous opinion rendered in this cause on January 2,1986, is withdrawn and the following opinion is substituted.

Appellant, Fairmont Homes, Inc., of Indiana, a foreign corporation, appeals from a default judgment by writ of error. Appel-lees, Roy and Margie Upchurch, sued Mobile America Sales Corporation and Fair-mont Homes, Inc., under the Deceptive Trade Practices Act for alleged defects to [523]*523their mobile home. The mobile home was manufactured by Fairmont Homes, Ine., and sold to appellees through Mobile America Sales Corporation. On October 12, 1984, the court severed Fairmont Homes, Inc., from Mobile America Sales Corporation and assigned a separate cause number to Fairmont Homes, this being cause no. 14,394-A, leaving Mobile America, who had answered appellees’ suit, in the 14,394 cause number. This severance of cause 14,394 was necessary so the default judgment rendered against Fairmont Homes, Inc., on the same day, would become final. We affirm in part, reverse and remand in part.

Appellant states five points of error in which it alleges the trial court erred: (1) in granting the default judgment because plaintiffs did not give proper notice and/or proper service to defendant corporation; (2) in awarding attorney’s fees because there was insufficient evidence or no evidence of any reasonable and necessary attorney’s fees; (3) in awarding $15,600.00 in attorney’s fees because the amount was excessive as a matter of law; (4) by abusing its discretion in not granting the motion for new trial because the statement of facts was not prepared by the court reporter; and (5) by rendering default judgment in cause number 14,394-A, because it was signed prior to the order of severance and assignment of cause number 14,394-A. Therefore, the judgment of the court is void as a matter of law.

In the first point of error, appellant alleges the trial court erred in granting the default judgment because plaintiffs did not give proper notice and/or proper service to defendant corporation.

Section 3 of Article 2031b, the Texas Long Arm Statute Tex.Rev.Civ.Stat.Ann. (Vernon 1964), in pertinent part reads as follows:

Sec. 3. Any foreign corporation ... that engages in business in this State, irrespective of any Statute or law respecting designation or maintenance of resident agents, and does not maintain a place of regular business in this State or a designated agent upon whom service may be made upon causes of action arising out of such business done in this State, the act or acts of engaging in such business within this State shall be deemed equivalent to an appointment by such foreign corporation, ... of the Secretary of State of Texas as agent upon whom service of process may be made in any action, suit or proceedings arising out of such business done in this State, wherein such corporation, ... is a party or is to be made a party.

Appellant appeals by way of writ of error which constitutes a direct attack on the default judgment. Therefore, the question to be decided is whether there is a lack of jurisdiction apparent on the face of the record which would vitiate the trial court’s judgment. McKanna v. Edgar, 388 S.W.2d 927, 928 (Tex.1965).

A record showing of jurisdiction necessary to support a default judgment upon substituted service must meet two major requirements: (1) the pleadings must allege facts which, if true, would make the defendant responsible to answer, or in the language of rule 120a, T.R.C.P., contain allegations making the defendant “amenable to process” by use of the longarm statute; and (2) there must be proof in the record that the defendant was, in fact, served in the manner required by statute. Whitney v. L & L Realty Corporation, 500 S.W.2d 94 (Tex.1973).

The plaintiff has the burden of making sufficient allegations to bring the defendant within the provisions of the substituted service statute. McKanna v. Edgar, 388 S.W.2d 927 (Tex.1965). Additionally, “the intent is to permit resort to Section 3 only if Section 2 is not available.” McKanna, supra.

Appellee, Upchurch, made the following allegations in his first amended petition which was the petition served on the appellant:

Defendant Mobile America Sales Corporation is a corporation whose registered agent for service of process is Robert L. [524]*524Levine, and who may be served with process at 1120 Nasa Road One Suite 666, Houston, Texas 77058, Defendant’s registered address. Defendant Fairmont Homes, Inc., at all times material herein was engaged in business in Texas. Fair-mont does not maintain a place of regular business in Texas and has no designated agent on whom service of citation may be made in this cause. The cause of action asserted arose from or was connected with the sale by Fairmont through Mobile America of mobile homes in the State of Texas. The causes of action below alleged were, in part, committed in Walker County, Texas. Accordingly, Fairmont may be cited by serving the Secretary of State of Texas to be forwarded to Defendant’s registered agent for service of process in its home state of Indiana, by forwarding, the citation to James Shea, P.O. Box 27, Nap-panee, Indiana.” (emphasis ours).

In the instant case, appellant specifically alleges that appellees fail to differentiate between Fairmont Homes, Inc., a Texas corporation, and Fairmont Homes, Inc., an Indiana Corporation, appellant in this case. They further argue that service of process was improperly made upon the Texas Secretary of State pursuant to the Texas Long Arm Statute 2031b Sec. 3, supra and that appellees did not allege in their first amended petition that appellant was a foreign corporation.

Appellees served Fairmont Homes, Inc., a Texas corporation, with their original petition and an answer was filed on their behalf. Thereafter, appellees’ First Amended Petition was served on appellant on its registered agent in its home state of Indiana through the Texas Secretary of State under the Texas Long Arm Statute art. 2031b, supra. Its registered agent, James Shea, P.O. Box 27, Nappanee, Indiana, was served by the Secretary of State by certified mail and the returned receipt was received in their office dated August 18, 1984. This information is shown on the certificate of service from the Secretary of the State of Texas filed with the Clerk of the Court on September 24, 1984.

Neither of appellees’ two petitions specifically allege the State of incorporation. We find that the allegations in appellees’ First Amended Petition gave appellant adequate notice that the pending suit was against Fairmont Homes, Inc., the Indiana Corporation. We also find the allegations in appellees’ First Amended Petition were sufficient to put the appellant on notice that it was a foreign corporation. It is not imperative to allege in the petition that appellant is a foreign corporation as long as it is apparent from the allegations in the petition that it is a foreign corporation.

With regard to the two-prong test cited from the Whitney case, supra, we find that the pleadings do allege sufficient facts which, if true, make the defendant responsible to answer.

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Related

Womack v. Berry
291 S.W.2d 677 (Texas Supreme Court, 1956)
Blumenthal v. Ameritex Computer Corp.
646 S.W.2d 283 (Court of Appeals of Texas, 1983)
McKanna v. Edgar
388 S.W.2d 927 (Texas Supreme Court, 1965)
Burrows v. Bowden
564 S.W.2d 474 (Court of Appeals of Texas, 1978)
Whitney v. L & L REALTY CORPORATION
500 S.W.2d 94 (Texas Supreme Court, 1973)
Gourmet, Inc. v. Hurley
552 S.W.2d 509 (Court of Appeals of Texas, 1977)

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Bluebook (online)
704 S.W.2d 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairmont-homes-inc-v-upchurch-texapp-1986.