Jack R. Dunn v. Brooke Jennings Parker and Ashley Nicole Jennings

Court of Appeals of Texas·Decided September 20, 2019·No. 06-19-00036-CV·Published

Opinion

In The

Court of Appeals

Sixth Appellate District of Texas at Texarkana

No. 06-19-00036-CV

JACK R. DUNN, Appellant

V.

BROOKE JENNINGS PARKER AND ASHLEY NICOLE JENNINGS, Appellees

On Appeal from the County Court at Law Harrison County, Texas

Trial Court No. 2018-10469-CCL

Before Morriss, C.J., Burgess and Stevens, JJ.

Memorandum Opinion by Chief Justice Morriss

MEMORANDUM OPINION

Three months before his mid-2017 death, James A. Jennings purchased a 2004 pickup truck

and a 2004 fifth-wheel travel trailer for $28,000.00. Finding that, one month before Jennings’ death, Jack R. Dunn converted the truck and trailer from Jennings, the trial court first granted a partial default judgment against Dunn in favor of the distributees of Jennings’ estate, Brooke Jennings Parker and Ashley Nicole Jennings (the Appellees), and then granted a complete final judgment. We modify the trial court’s judgment to limit statutory damages under the Texas Theft Liability Act (the Act) to $1,000.00 and otherwise affirm the judgment because (1) refusing to set aside the partial default judgment was within the discretion of the trial court, and (2) sufficient evidence supports the award of actual damages and attorney fees, but (3) the Texas Theft Liability Act limits its statutory damages to $1,000.00.

Two months after Jennings’ death, Dunn applied for titles to the truck and travel trailer and represented that he had purchased them from Roger Bagley. Thereafter, the Appellees filed suit against Dunn seeking damages and equitable relief for conversion, fraudulent transaction, common law fraud, and violation of the Act and a declaratory judgment that they were the lawful owners of the truck and travel trailer. Appellees joined the Texas Department of Motor Vehicles (DMV), seeking to get titles issued in their names.

When Dunn failed to answer the lawsuit, the trial court entered a partial default judgment granting Appellees’ petition for declaratory judgment, decreeing Appellees were the rightful owners of the truck and travel trailer, and ordering the DMV to cancel the titles previously issued to Dunn. Dunn then filed a motion for new trial and asked the trial court to set aside the partial

default judgment. After a hearing, the trial court denied Dunn’s motion and reaffirmed its judgment that Appellees were the rightful owners of the truck and travel trailer. Appellees then filed a motion for final judgment, and the trial court entered a final judgment, based on the pleadings on file and the evidence before the court, against Dunn incorporating its prior default declaratory judgment for conversion and added common law fraud and violation of the Act. In its final judgment, the trial court:

1. declared Appellees to be the rightful owners of the truck and travel trailer;

2. ordered the DMV to cancel the titles to the truck and travel trailer issued to Dunn;

3. ordered the DMV to issue new titles to the truck and travel trailer to Appellees, jointly;

4. ordered that a writ be issued for the seizure of the truck and travel trailer and their contents and delivery of the same to Appellees;

5. awarded Appellees $14,160.00 in attorney fees under the Act; and

6. awarded Appellees $28,000.00 in actual damages and $28,000.00 in additional statutory damages under the Act, payable only if the truck and travel trailer and their contents were not returned to Appellees.

Dunn did not object to the motion for final judgment or file a motion for new trial or other post- judgment motion in the trial court.

On appeal, Dunn complains that the trial court erred in not setting aside the partial default judgment and that insufficient evidence supported the award of damages and attorney fees.

(1) Refusing to Set Aside the Partial Default Judgment Was Within the Discretion of the Trial Court

First, we address Dunn’s contention that the trial court erred by not setting aside the partial default judgment.

We review for an abuse of discretion a trial court’s refusal to set aside a default judgment and grant a new trial. Dolgencorp of Tex., Inc. v. Lerma, 288 S.W.3d 922, 926 (Tex. 2009) (per curiam). A trial court abuses its discretion when the party moving for a new trial after default judgment meets all three elements of the test set forth in Craddock v Sunshine Bus Lines, Inc., 133 S.W.2d 124, 126 (Tex. 1939). Lerma, 288 S.W.3d at 926. Under Craddock, to have a default judgment set aside, the defendant must show that (1) his or her failure to answer was not intentional or the result of conscious indifference, but was due to mistake or accident, (2) his or her motion sets up a meritorious defense, and (3) granting the motion will not cause a delay or otherwise injure the plaintiff. Craddock, 133 S.W.3d at 126. If the defendant fails to meet any prong of the Craddock test, we will not find an abuse of discretion. O’Connell v. O’Connell, 843 S.W.2d 212, 218 (Tex. App.—Texarkana 1992, no writ). When the evidence is controverted, the trial court determines the credibility of the witnesses and the weight to be given their testimony. Munson v. State, 576 S.W.2d 440, 441 (Tex. App.—Austin 1978, writ ref’d n.r.e.) (per curiam).

“[C]onscious indifference” is “something other than an intentioned failure to appear.”

O’Connell, 843 S.W.2d at 217 (quoting Johnson v. Edmonds, 712 S.W.2d 651, 652 (Tex. App— Fort Worth 1986, no writ). Further, a default judgment may be upheld under this prong of the Craddock test when “the defendant failed ‘to take some action which would seem indicated to a

person of reasonable sensibilities under the same circumstances.’” Id. (quoting Johnson, 712 S.W.2d at 652–53).

In this case, Dunn filed his affidavit and the affidavit of his wife, Lisa, in support of his motion to set aside the partial default judgment. The affidavits, which were almost identical, avowed that, after Dunn was sued, Vernard Solomon was hired to defend him, that Solomon told them he would take care of it, that Dunn and Lisa both thought Solomon was going to defend the case, and that they were surprised when they got the letter about the default judgment.

Nevertheless, the evidence at the hearing on Dunn’s motion showed that both Dunn and Lisa knew that Solomon had been in an automobile accident on September 7, 2018, the same day that Lisa had spoken to him about representing Dunn in the lawsuit. 1 They also both knew that Solomon had died from his injuries on September 19, 2018, and that Solomon’s legal assistant, Tiffany Robbins, had secured an agreement to extend the time for Dunn to file an answer until September 24, 2018. Dunn and Lisa also testified at the hearing that, after Solomon’s death, they thought that Solomon’s son, Coke, was handling the paperwork that needed to be filed based on text messages and a Facebook message 2 that Lisa exchanged with Robbins. However, Dunn admitted that they had never talked with Coke, hired him as an attorney, or paid him any money and that no one ever told him that Coke was his attorney. Dunn also admitted to knowing that Coke was the Criminal District Attorney at that time and that Coke did not work for Solomon. In addition, Dunn admitted that, from September 19 until December 21, 2018, when the default

1 Dunn testified that he was a truck driver and was never home, so Lisa handled hiring an attorney.

2 An undated Facebook message purportedly sent from Robbins to Lisa states, “Also, I have [your] papers an answer has been done [although] Coke advised if it went any further [you] would have to get another attorney.”

judgment was entered, he never talked to, or paid any money to, any attorney to represent him. Lisa also testified that she had attempted to contact Coke at the District Attorney’s office, but never got through to him.

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