H3 Cattle, LLC v. Western Livestock Commission Co. Inc.

Court of Appeals of Texas·Decided August 4, 2025·No. 06-24-00083-CV·Published

Opinion

In the

Court of Appeals

Sixth Appellate District of Texas at Texarkana

No. 06-24-00083-CV

H3 CATTLE, LLC, Appellant V.

WESTERN LIVESTOCK COMMISSION CO. INC., Appellee

On Appeal from the 336th District Court Fannin County, Texas

Trial Court No. CV-22-46063

Before Stevens, C.J., van Cleef and Rambin, JJ.

Memorandum Opinion by Justice van Cleef

MEMORANDUM OPINION

H3 Cattle, LLC (H3), appeals from a summary judgment in favor of Western Livestock Commission Co., Inc. (WLCC), in which the trial court awarded WLCC $74,842.19 in attorney fees and expenses. H3 argues that (1) the trial court violated H3’s due process rights by failing to provide adequate notice before calling the case to trial; (2) the trial court violated Texas Rule of Civil Procedure 165a “because dismissal was not effected, and no notice of intention to dismiss, along with the date and place of the dismissal hearing, was sent by the clerk to the parties, including [H3], and due to the trial court issuing an improper default judgment as opposed to a dismissal order, the proper procedure, the trial court committed error and [H3] was deprived of its due process rights, including the right to file a motion to reinstate if dismissal had been granted by the trial court”; (3) the trial court erred by granting WLCC’s traditional and no- evidence summary judgment motions; (4) the trial court erred by failing to provide H3 with notice of the hearing on the summary judgment motions; (5) the trial court erred in denying H3 a jury trial; and (6) the final judgment is “infirm and remains interlocutory because it fails to address defenses by [H3] and any claims of HHH [Cattle, LLC] and Cloudfund[, LLC d/b/a Hybrid Capital Partners], rendering the Final Judgment incomplete, interlocutory, defective, and not final, except for purposes of an appeal.” I. Procedural History H3 filed its original petition in December 2022, stating causes of action for conversion and tortious interference with contract, alleging that WLCC held an auction for the sale of H3’s cattle and misappropriated some of the funds from said sale. WLCC filed its counterclaim for

petition in interpleader against H3, HHH Cattle, and Cloudfund. HHH Cattle filed an original answer to WLCC’s counterclaim, denying all allegations by WLCC and “reassert[ing] as a counterclaim against WLCC” H3’s claims and causes of action against WLCC. WLCC filed its answer and general denial as to HHH Cattle’s counterclaim.

H3 moved for summary judgment against WLCC, attaching an unsworn declaration of Scott Hartwell, member and manager of H3, to which WLCC filed a response. H3 amended its original petition, reasserting its original causes of action and adding a claim for breach of contract. H3 also filed an amended motion for summary judgment to which WLCC responded. The trial court entered an amended scheduling order that, among other things, set trial for August 5, 2024.

A hearing on H3’s motion for summary judgment was held on June 7, 2024. After the hearing, the trial court granted WLCC’s motion to interplead funds, ordering WLCC to deposit the disputed funds into the registry of the court. That same day, the trial court entered an order denying H3’s motion for summary judgment. WLCC complied with the trial court’s order, placing the disputed funds into the registry of the court via a check dated June 12, 2024.

H3 filed its second amended petition, which maintained the same causes of action but also included “[a]ffirmative and [o]ther [d]efenses.” WLCC moved for traditional and no evidence summary judgment, arguing that WLCC should be dismissed from the lawsuit. A hearing was set on WLCC’s summary judgment motion for “July 11th, 2023,” at 9:00 a.m. H3 filed a request for findings of fact and conclusions of law related to the trial court’s order granting WLCC’s motion to interplead funds and then filed a jury demand. H3 moved to reset

the hearing, arguing among other things, that the hearing date of “July 11, 2023,” was a fatal defect as the year was incorrect and reflected the date of a year prior. The trial court rescheduled the summary judgment hearing for August 1, 2024, via Zoom.

On August 1, 2024, the trial court held the scheduled pre-trial hearing, but H3 did not appear. The trial court chose to carry the motion for summary judgment to August 5, 2024, the day trial was scheduled to begin. On the morning of August 5, 2024, the case was called, the venire panel was present, but H3 was not present. The venire panel was qualified in the absence of H3, and the trial court then took a break. Before the venire panel returned, the trial court attempted to locate H3 and its counsel. The trial court was able to contact counsel for H3 by telephone, and counsel informed the trial court that, even though he was aware the scheduling order stated trial would begin on August 5, 2024, he assumed that it would not go forward because there had been additional filings and because of his internet connectivity issue that prevented him from joining the pre-trial hearing on August 1, 2024. The trial court advised H3’s counsel that he was on notice, via the scheduling order and the pre-trial hearing, that trial was set to begin on August 5, 2024. H3’s counsel stated that he would be present within an hour and was on his way to the courthouse. WLCC moved the trial court for default judgment as to H3’s claims and because of H3’s “no show and no call and especially with a trial setting,” and the trial court granted the default. The trial court informed H3’s counsel that a 1:00 p.m. hearing was still on the docket for “anything that need[ed] to potentially be taken up for the jury on the . . . Counter-Petitioner’s case.” WLCC informed the trial court that it would waive a jury trial on the remaining issues, and the trial court released the jury. The court called WLCC’s counter-

petition, and WLCC indicated that it sought to have its summary judgment motion granted and would be seeking attorney fees. H3’s counsel first apologized to the trial court for misunderstanding the trial setting and then explained that H3 had a jury demand on record and did not wish to have the jury dismissed, specifically arguing that the issues still before the trial court were for the jury to decide. In response, WLCC argued that the jury demand made by H3 “would be waived once they defaulted and did not appear for” trial. The trial court proceeded on WLCC’s counter-petition, attorney fees request, and summary judgment motion.

After hearing testimony from both parties who were subject to cross-examination, the trial court granted WLCC’s motion for traditional and no-evidence summary judgment. The trial court also granted WLCC’s request for attorney fees. After the trial court denied H3’s motion for new trial, this appeal followed. II. H3 Had Adequate Notice of the August 5, 2024, Trial Date By its first issue, H3 argues that the trial court erred in proceeding to trial on August 5, 2024, because the trial court failed to give adequate notice, resulting in an improper default notice. H3 cites to Texas Rule of Civil Procedure 247, which states,

Every suit shall be tried when it is called, unless continued or postponed to a future day or placed at the end of the docket to be called again for trial in its regular order. No cause which has been set upon the trial docket of the court shall be taken from the trial docket for the date set except by agreement of the parties or for good cause upon motion and notice to the opposing party.

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