Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust

CourtCourt of Appeals of Texas
DecidedJune 21, 2000
Docket10-99-00004-CV
StatusPublished

This text of Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust (Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust) 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
Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust, (Tex. Ct. App. 2000).

Opinion

Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust


IN THE

TENTH COURT OF APPEALS


No. 10-99-004-CV


     JERRY BAYNE TRUETT

                                                                         Appellant

     v.


     IBAT BOND TRUST,

                                                                         Appellee


From the 87th District Court

Limestone County, Texas

Trial Court # 25,335-B

O P I N I O N

     IBAT Bond Trust (IBAT) sued Jerry Bayne Truett and his wife Dava Beth Truett on theories of conversion, theft and breach of contract. Upon the defendants’ failure to answer, IBAT obtained a default judgment against the Truetts for $734,564.36 plus attorney’s fees. Jerry Bayne Truett (hereinafter “Truett”) filed a timely motion for new trial which the trial court subsequently overruled. Truett then brought this appeal. We will affirm.


FACTUAL AND PROCEDURAL HISTORY

      IBAT, a fidelity bond insurer, issued a bond to the First State Bank of Kosse, Texas insuring the Bank against certain losses caused by the conduct of its employees. On August 18, 1998, the Bank submitted a sworn proof of loss to IBAT seeking recovery for losses allegedly resulting from the conduct of the Truetts. IBAT paid the claim, and the Bank assigned to IBAT its right to all causes of action then owned against the Truetts.

      IBAT subsequently sued the Truetts for $734,564.36 plus attorney’s fees, representing the amount IBAT paid to the Bank under the bond agreement. The original petition was filed on September 4, 1998 and the return of service was dated September 9. On October 20, there being no answer on file, the District Court rendered default judgment against the Truetts for $734,564.36 plus $6,804.27 in attorney’s fees.

      On November 20, Truett filed a timely motion for new trial asserting that he satisfied the elements necessary to set aside a default judgment enunciated by the Supreme Court in Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388, 133 S.W.2d 124 (1939). Truett attached an affidavit to his motion, which recited the following operative facts:

I was served with a citation and Plaintiff’s original Petition in cause number 25,335-B on the docket of the District Court of Limestone County, Texas, which is styled IBAT Bond Trust v. Dava Beth Truett and Jerry Bayne Truett. I was served with these papers while I was confined in jail in McLennan County, Texas. I did not think that I had to do anything to defend this civil suit since I was confined in jail. I did not think that any deadlines would run until I was released from jail . . . . I am not knowledgeable about the law. I have never been involved in a court proceeding of this nature before: I simply made a mistake and did not hire an attorney to defend this case. It was not my intention to ignore this lawsuit, but it was due to an accident or mistake on my part.

I have never worked for a bank. I have never embezzled money from any bank or any other business.

My defense to the lawsuit would be that I have never taken any money from the bank in question, nor had [sic] I ever participated in any way in taking money from that bank.

      On December 21, the District Court held a hearing on Truett’s motion for new trial. In an attempt to controvert the facts asserted in Truett’s affidavit, IBAT introduced certified copies of United States District Court records consisting of two arrest warrants, two orders setting conditions for release, and two appearance bonds. The records indicate that Truett was initially arrested on September 8, released from jail on September 9 (the day he was served with citation), and not reconfined until October 13, eight days after his answer was due. At the conclusion of the hearing, the trial court denied Truett’s motion for new trial. By four points of error, Truett contends the trial court erred in so doing.

STANDARD OF REVIEW

      A default judgment should be set aside in any case in which: (1) the failure of the defendant to answer before judgment was not intentional or the result of conscious indifference on his part, but was due to a mistake or accident; (2) provided that the motion for a new trial sets up a meritorious defense and (3) is filed at a time when the granting thereof will occasion no delay or otherwise work an injury to the plaintiff. Director, State Employees Worker’s Compensation Div. v. Evans, 889 S.W.2d 266, 268 (Tex. 1994); Strackbein v. Pruett, 671 S.W. 2d 37, 38 (Tex. 1984); Craddock, 133 S.W.2d at 126. The grant or denial of a motion for new trial rests with the sound discretion of the trial court and the court’s ruling will not be disturbed on appeal absent an abuse of that discretion. Cliff v. Huggins, 724 S.W.2d 778, 778-79 (Tex. 1987). The proper inquiry is whether the trial court acted “without reference to any guiding rules or principles.” Downer v. Aquamarine Operators, Inc., 701 S.W.2d 238, 241-42 (Tex. 1985), cert. denied, 476 U.S. 1159, 106 S.Ct. 2279, 90 L.Ed.2d 721 (1986), citing Craddock, 133 S.W.2d at 126. However, when all elements of the Craddock test are met, a trial court abuses its discretion in denying the motion for new trial. Director, 889 S.W.2d at 268.

ADMISSIBILITY OF THE DISTRICT COURT RECORDS

      In his first issue, Truett contends the trial court erred in considering the United States District Court records offered by IBAT to contradict the factual assertions contained in Truett’s affidavit. At the hearing on Truett’s motion for new trial, Truett objected to the admission of the court records on relevance grounds. IBAT responded that the documents were offered to controvert the statements in Truett’s affidavit that he was confined for the entire period during which he could have filed an answer, rendering them relevant to the issue of whether the failure to answer was intentional or the result of conscious indifference. The court overruled Truett’s objection and admitted the records. On appeal, Truett argues that the records could not have been relevant to controvert such a statement because such a statement does not appear in the affidavit.

      

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Jerry Bayne Truett and Dava Beth Truett v. IBAT Bond Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerry-bayne-truett-and-dava-beth-truett-v-ibat-bon-texapp-2000.