Gifford v. Old Republic Insurance Co.

613 S.W.2d 43, 1981 Tex. App. LEXIS 3311
CourtCourt of Appeals of Texas
DecidedFebruary 18, 1981
DocketB2515
StatusPublished
Cited by16 cases

This text of 613 S.W.2d 43 (Gifford v. Old Republic Insurance Co.) 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
Gifford v. Old Republic Insurance Co., 613 S.W.2d 43, 1981 Tex. App. LEXIS 3311 (Tex. Ct. App. 1981).

Opinion

MURPHY, Justice.

William R. Gifford and Harold Gunn appeal from a summary judgment entered in favor of Old Republic Insurance Company and Reagan Commerce Bank. The suit was for recovery of the balance due on a promissory note.

Appellants, William R. Gifford and Harold Gunn, the defendants below, executed the note and a security agreement for a loan received from Reagan Commerce Bank (Reagan), one of the appellees herein. Reagan assigned the note and security agreement to appellee Old Republic Insurance Co. (Republic). Appellants defaulted on the note, resulting in this suit being instituted.

The Appellees, as plaintiffs below, filed their petition December 12, 1979 alleging $5,393.76 to be the balance due and also prayed for reasonable attorney’s fees of no less than two thousand dollars ($2,000.00). A copy of the note and security agreement were attached to the petition. Defendants on February 4, 1980, answered with a general denial (Tex.R.Civ.P. 92 (1978)).

Thereafter, on February 14, the plaintiffs filed a motion for summary judgment, claiming the same relief prayed for in their petition. In support of the motion, the plaintiffs’ attorney filed an affidavit stating that it was his opinion the fee of two thousand dollars ($2,000.00) was a reasonable attorney’s fee for this suit. Other supporting evidence was the verified motion with copies of the promissory note and security agreement attached thereto.

Defendants filed their first amended original answer March 24, alleging the defense of estoppel, and also set up a counterclaim claiming that prior to recovering any judgment on the note, the plaintiffs should be required to establish and foreclose its lien on the collateral pledged in the security agreement. Defendants’ attorney, on the same day, filed a controverting affidavit stating in his opinion the sum of three hundred dollars ($300.00) was a reasonable attorney’s fee for the plaintiffs’ attorney. The trial judge, after a hearing on the motion, granted the summary judgment by order signed and dated May 8, 1980.

Appellants’ first and second points of error contend the trial court erred in granting the summary judgment because the pleadings and affidavits on file presented a genuine issue of material fact relating to defendants’ defenses. Defendants base their contention on the ground the defenses set out in their first amended original answer raised a material fact issue. We disagree. The defendants failed to properly present these allegations as admissible summary judgment evidence.

Tex.R.Civ.P. 166-A(c) (1978), states in relevant part, “Issues not expressly present *45 ed to the trial court by written motion, answer or other response shall not be considered on appeal as grounds for reversal.” The Texas Supreme Court interprets the literal meaning of this rule in City of Houston v. Clear Creek Basin Authority, 589 S.W.2d 671, 677 (Tex.1979):

“The word ‘written’ modifies not only the word ‘motion’, but also the words ‘answer’ and ‘other response’. The ‘issues’ required by the rule to be ‘expressly presented’ are those pointed out to the trial court in written motions, written answers or written responses to the motion. The term ‘answer’ in the context of the rule refers to an answer to the motion, not an answer generally filed in response to a petition.”

The Court further pointed out “pleadings are not to be considered in determining whether fact issues are expressly presented in summary judgment motions.” (Id. at 678). This latter rule comes directly from the leading case of Hidalgo v. Surety Savings and Loan Association, 462 S.W.2d 540 (Tex.1971). In that case the Court stated:

“Pleadings simply outline the issues; they are not evidence, even for summary judgment purposes.” (Id. at 543).

The Court pointed out the purpose for this rule:

“On balance, we are convinced that orderly judicial administration will be better served in the long run if we refuse to regard pleadings, even if sworn, as summary judgment evidence. Taking this course will make for more orderly trials with fewer problems for courts and attorneys.
* * *

The trial process includes both the pleading and the trial stages, whether the trial stage be in summary or conventional trial proceedings. If trial judges will be diligent in requiring in summary judgment proceedings that trial be on independently produced proofs, such as admissions, affidavits and depositions, the rule we have here approved should present no problems.” (Id. at 545). It should be noted the rule that the pleadings do not constitute summary judgment proof is not an absolute statement of the law. For example, in Hidalgo at page 543 in footnote 1 the Court states:

“We are not to be understood as holding that summary judgment may not be rendered, when authorized, on the pleadings, as, for example, when suit is on a sworn account under Rule 85, Texas Rules of Civil Procedure, and the account is not denied under oath as there provided, or when the plaintiff’s petition fails to state a legal claim or cause of action. In such cases summary judgment does not rest on proof supplied by pleading, sworn or un-sworn, but on deficiencies in the opposing pleading.”

The Court in City of Houston, id., at page 678 points out the following predicate to the rule that pleadings do not constitute summary judgment proof:

“The trial court may not grant summary judgment by default for lack of an answer or response to the motion by the non-movant when the movant’s summary judgment is legally insufficient. The movant still must establish his entitlement to a summary judgment on the issues expressly presented to the trial court by conclusively proving all essential elements of his cause of action or defense as a matter of law. See Swilley v. Hughes, 488 S.W.2d 64, 67 (Tex.1972). Summary judgments must stand on their own merits, and the non movant’s failure to answer or respond cannot supply by default the summary proof necessary to establish the movant’s right.”

In the case at bar, the Appellants plead the defense of estoppel only in their first amended original answer. We do not construe this pleading as a response to the summary judgment, but merely an answer generally filed by the defendants in response to a petition. Hidalgo v. Surety Savings and Loan Association, 462 S.W.2d 540; City of Houston v. Clear Creek Basin Authority, 589 S.W.2d 671; Feller v. Southwestern Bell Telephone Co., 581 S.W.2d 775, 776 (Tex.Civ.App.—Houston *46 [14th Dist.] 1979, no writ).

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Bluebook (online)
613 S.W.2d 43, 1981 Tex. App. LEXIS 3311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gifford-v-old-republic-insurance-co-texapp-1981.