Gulf Insurance Co. v. Dunlop Tire & Rubber Corp.

584 S.W.2d 886
CourtCourt of Appeals of Texas
DecidedJune 18, 1979
DocketNo. 19741
StatusPublished
Cited by4 cases

This text of 584 S.W.2d 886 (Gulf Insurance Co. v. Dunlop Tire & Rubber Corp.) 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
Gulf Insurance Co. v. Dunlop Tire & Rubber Corp., 584 S.W.2d 886 (Tex. Ct. App. 1979).

Opinions

GUITTARD, Chief Justice.

In this appeal from a judgment allowing recovery on two fire insurance policies, the insurance companies contend that they should have a new trial because their counsel, through excusable inadvertence, was not prepared for trial, and therefore, was unable to present a meritorious defense.

When the case was called for trial on the day set, appellants’ counsel failed to appear, but came to the court on a telephone call from opposing counsel. Appellants moved for a continuance, demanded a jury, and sought leave to file two trial amendments. These requests were denied. Counsel participated in the trial, and, after the adverse judgment was rendered, filed a motion for new trial seeking to excuse his unpreparedness and setting up a meritorious defense that he was unable to present at the trial. In this motion, for the first time, he offered to try the case at any time fixed by the court and to reimburse the opposing parties for their expenses resulting from the delay. We hold that this offer came too late. Accordingly, we overrule appellants’ points complaining that the judge erred in denying their motion for continuance and their motion for new trial. We also overrule their contentions that the judge abused his discretion in denying their demand for a jury trial and their requested leave to file the trial amendments.

1. Denial of Continuance and Motion for New Trial

Appellants admit that they had notice of the trial setting, but they assert that their counsel’s failure to prepare for trial was the result of an error of his secretary in striking the notation of the trial setting from his office calendar. They alleged in their motion for continuance that they had witnesses that they were unable to produce on short notice who would have raised the defense of arson, and, in support of their motion for new trial, they presented the affidavits of such witnesses to set up a meritorious defense. Thus appellants assert that their failure to prepare for trial was not intentional or the result of conscious indifference, and they contend that we should apply the rules announced in Ivy v. Carrell, 407 S.W.2d 212 (Tex.1966), Craddock v. Sunshine Bus Lines, 134 Tex. 388, 133 S.W.2d 124, 126 (1939), and other cases governing the trial court’s discretion in granting a new trial in cases tried in the defendants’ absence, on the theory that this case is tantamount to one in which they failed to appear and defend.

[888]*888We do not regard this case as tantamount to one tried in appellants’ absence. Of course, counsel’s participation in the trial cannot be taken as prejudicial to appellants’ rights. After the telephone call from opposing counsel, failure to appear could only have worsened appellants’ position. The crucial ruling of the trial judge was not in overruling the motion for new trial, but in denying appellants’ motion for continuance.

We cannot agree with appellants’ contention that even if the judge had discretion to overrule the motion for continuance, he abused his discretion in overruling the motion for new trial. To permit an attorney who has overlooked a trial setting to set up as grounds for new trial a “meritorious defense” consisting of evidence not presented at the trial would ignore the requirement of diligence and the other requirements of a motion for new trial for newly discovered evidence. See New Amsterdam Casualty Co. v. Jordan, 359 S.W.2d 864, 866 (Tex.1962). We hold that if denial of the continuance was within the court’s discretion, then overruling the motion for new trial was not reversible error, so far as the court’s failure to postpone the trial is concerned.

This result follows even though it appears that the sworn allegations in the motion for new trial might have required a new trial if the court had proceeded to trial without any attempt to notify counsel further. If counsel had not discovered the judgment until after it was rendered, then appellants’ motion for new trial, showing that their failure to appear was not intentional or the result of conscious indifference, and setting up a meritorious defense, may well have been sufficient, coupled as it was with their offer to go to trial on any date fixed and pay the expenses of the adverse parties occasioned by the delay. As the case comes to us, however, counsel does not seek to excuse his failure to appear, but rather his failure to prepare for trial and have his witnesses available. A motion for continuance on such grounds must show diligence to procure the testimony of the absent witnesses. Fritsch v. J. M. English Truck Line, 151 Tex. 168, 246 S.W.2d 856 (1952). Such diligence, of course, appellants were not in a position to show.

Perhaps such lack of diligence would be excused by a showing of the same kind of circumstances that would excuse a failure to appear under Ivy and Craddock. Perhaps also, the circumstances presented in the motion for continuance would have excused their failure to set up in their motion all the elements of a meritorious defense. Yet a continuance is within the trial court’s discretion. Hernandez v. Heldenfels, 374 S.W.2d 196, 202 (Tex.1963). If the Ivy-Craddock standard is to be applied to a motion for continuance, that standard requires an offer to do equity, namely, to try the case at the earliest practicable date and to pay the expenses of the opposing parties resulting from the delay. Cf. United Beef Producers, Inc. v. Lookingbill, 532 S.W.2d 958 (Tex.1976). This requirement was not met. Appellants’ motion asks that the court continue the case for a reasonable time so that they would have an opportunity to subpoena witnesses from other counties. Before presenting the motion, however, counsel had advised the judge and opposing counsel that appellants could not be ready for trial for several months. The record also shows that the judge inquired whether appellants were willing to pay the expenses of parties and witnesses who had come that morning from Palestine, Texas, but counsel for appellants made no response.

Appellants argue that any such offer to do equity would have been futile because appellees had indicated their unwillingness to agree to a postponement on any terms, and the judge had stated that his docket was full for several months ahead. These circumstances do not excuse appellants’ failure to make the offer. Appellants were seeking to delay the trial because of their own lack of diligence. Consequently, they had the burden to offer equity if the Ivy-Craddock rule is to be applied in this situation. Any unwillingness of appellees to agree to a postponement was immaterial. The judge expressly [889]*889invited appellants to make such an offer, and they made no response. In these circumstances the judge did not abuse his discretion in overruling the motion for continuance.

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Bluebook (online)
584 S.W.2d 886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-insurance-co-v-dunlop-tire-rubber-corp-texapp-1979.