J.D. Auto Corp. v. Michael H. Bell

CourtCourt of Appeals of Texas
DecidedOctober 13, 2023
Docket08-22-00187-CV
StatusPublished

This text of J.D. Auto Corp. v. Michael H. Bell (J.D. Auto Corp. v. Michael H. Bell) 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
J.D. Auto Corp. v. Michael H. Bell, (Tex. Ct. App. 2023).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

JD AUTO CORP., § No. 08-22-00187-CV

Appellant, § Appeal from the

v. § 384th Judicial District Court

MICHAEL H. BELL, § of El Paso County, Texas

Appellee. § (TC# 2021DCV0743)

OPINION

This is an appeal from a summary judgment entered in a bill of review proceeding. By

direct and collateral attack, Appellant JD Auto Corp. sought to overturn a no-answer default

judgment rendered in favor of Appellee Michael H. Bell in his employment discrimination suit.

On cross-motions for summary judgment, the trial court denied JD Auto’s motion while

simultaneously granting Bell’s motion. On appeal, JD Auto contends it conclusively established a

violation of procedural due process as a matter of law, rendering void the default judgment entered

against it; alternatively, it contends it otherwise conclusively established the required elements of

a bill of review and the default judgment was voidable. For the reasons that follow, we reverse the

trial court’s summary judgment, and render judgment in favor of JD Auto on its due process claim. FACTUAL AND PROCEDURAL BACKGROUND

From March to June 2013, Bell worked for JD Auto at its Viva Power Sports location in

El Paso. After JD Auto terminated his employment, Bell filed a complaint with the Equal

Employment Opportunity Commission alleging employment discrimination and other claims

against the auto dealership. On January 7, 2015, after he received his notice of right to file a civil

action regarding his complaint, he filed an employment discrimination lawsuit in the 384th Judicial

District Court of El Paso County, Texas. The original petition described JD Auto as a Texas

corporation “whom may be served with process by serving its registered agent, James A. Dick, IV,

5800 Montana, El Paso, Texas 79925 or wherever he/she may be found.”

To effect personal service on JD Auto’s registered agent, Bell retained Raymond Holt-

Shirley, a process server qualified to serve civil process in El Paso County. On March 25, 2015,

Holt-Shirley signed and filed a citation return that included a handwritten note indicating that

delivery was not executed as to “defendant James Dick IV” (Dick). In the blank line intended to

describe the diligence used in finding “said defendant,” Holt-Shirley wrote on the return’s form:

“going to office, house, brother James Dick III.” Completing the blank line for the cause of the

failure to execute process, he noted: “never seems to be in office or home.” Lastly, for the

information received as to whereabouts of the defendant, he added, “out of town/office.” Last, at

the bottom of the return, Holt-Shirley’s signature was notarized.

On the same date, the process server also filed an affidavit in support of a motion for

substitute service, although no motion was included or filed at the time. In his affidavit, Holt-

Shirley averred that he “attempted to make personal service” on “Defendant J. D. Auto

Corporation,” whose residence or office was believed to be at 5800 Montana, between January 14,

2015, and February 12, 2015, on the following occasions:

2 • January 14, 2015: He called the car dealership at 5800 Montana to speak with Dick. He spoke with “Melanie Sue, Kristi, or Ali Cherry,” or one of the secretaries, who told him Dick was not in town and she did not know when he would return but that she would pass on the information to Dick when he called to check in.

• January 16, 2015: He visited 5800 Montana and spoke with a receptionist on the car dealership’s top floor. He said he was there to deliver a set of legal documents to Dick but was told Dick was not there and would be back in about a week.

• January 23, 2015: He again called the car dealership to speak with Dick. A secretary told him Dick was not yet back in town.

• January 30, 2015: He spoke with Dick’s brother. Dick’s brother told him that Dick did not live at the address in question but gave him an alternate address in New Mexico and said “he was unsure if he was into[,] [sic]” that Dick had been traveling and should have returned by then.

• January 30, 2015: He visited the New Mexico address Dick’s brother gave him. Finding no one home, he left a business card on the door and told a man he met on the property (who did not speak English) to tell Dick to call him.

• February 4, 2015: He again called the car dealership to speak with Dick. A secretary told him Dick was not there and he “comes and goes as he pleases.” She declined to give him another phone number to reach Dick but said she would give Dick his message.

• February 12, 2015: He called the dealership to speak with Dick. He spoke with “Melanie Sue, Kristi, or Ali Cherry,” or one of the secretaries, who told him Dick was not in town and she had no date for a return.

Following the list of dates, the affidavit further averred as follows:

IV.

For the reasons set forth above, it is impractical to secure personal service on Defendant, Jessica Torres [sic] and I will be unable to do so despite due diligence. Therefore, substituted service is necessary and I believe J.D. Auto Corporation– AGENT: James Dick IV, will receive effective notice of this suit by posting copies of the citation and the attached petition in the El Paso County Court House[.]”

3 More than seven months later, on November 6, 2015, Bell filed a motion for substitute

service. Although an affidavit of Holt-Shirley is referenced in the body of the motion, no affidavit

was attached to the pleading.

On November 24, 2015, the trial court entered an order on motion for substitute service.

The order authorized service on JD Auto either by posting a copy of the citation and petition at

defendant’s business address or by posting copies of the citation and the attached petition in the El

Paso County Courthouse. Days later, on December 2, 2015, Holt-Shirley signed and filed a second

return certifying that citation was posted on that date on the “County Courthouse door in El Paso

County, Texas,” in accordance with the law.

On August 10, 2016, the trial court called the case for hearing. By and through his attorney

of record, Bell appeared while JD Auto neither answered nor appeared. Bell’s counsel introduced

the process server’s filed affidavit and requested that the trial court take judicial notice of the

court’s record of the case. After Bell testified to damages, the trial court awarded Bell over

$303,415 in lost wages, and past economic losses; and $300,000 in past compensatory damages.

On the same date, the trial court rendered a final judgment noting that JD Auto failed to file an

answer and appear within the time allowed by law, and the return of service was on file for ten or

more days before the default judgment was rendered. Specifically, the judgment ordered that Bell

recover from JD Auto $303,415 in past economic losses and $300,000 in past compensatory

damages.

After more than four years elapsed, Bell applied for issuance of a writ of execution in

December 2020. JD Auto was served with the writ of execution on March 1, 2021, by service on

Dick, who remained its registered agent. Days later, the auto dealership filed a petition for bill of

review, a request to vacate default judgment, and a request for injunctive relief. Among its claims,

4 it asserted it was not effectively or validly served with Bell’s employment discrimination suit filed

in the 384th Judicial District Court, which resulted in the 2016 default judgment. Moreover, it

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