Jerry Spence D/B/A Big Country Irrigation v. Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Revocable Living Trust

Court of Appeals of Texas·Decided October 28, 2021·No. 11-19-00389-CV·Published

Opinion

Opinion filed October 28, 2021

In The

Eleventh Court of Appeals __________

No. 11-19-00389-CV __________

JERRY SPENCE D/B/A BIG COUNTRY IRRIGATION, Appellant V. MARK HADLEY AND VIRGINIA REGER MORTON, TRUSTEE OF THE VIRGINIA REGER MORTON REVOCABLE LIVING TRUST, Appellees

On Appeal from the 259th District Court Jones County, Texas Trial Court Cause No. 024543

MEMORANDUM OPINION This is a restricted appeal from an “Order Granting Summary Motion to Remove Invalid Lien.” The motion upon which this order was based was limited in scope—it simply sought to remove a lien that had been filed in the Jones County property records. The hearing on the motion only addressed the limited relief that had been requested in the motion. But the order granting the motion, that was prepared by Appellees’ attorney, granted much more relief than simply removing the lien—it also provided that Appellant take nothing on all of his claims seeking payment from Appellees. Counsel for Appellant did not become aware of the “take nothing” component of the judgment until more than thirty days after it was entered. We conclude that Appellant may challenge the judgment by way of restricted appeal. We affirm in part, and reverse and remand in part.

Factual and Procedural History Appellant, Jerry Spence d/b/a Big Country Irrigation, entered into an oral agreement with Appellees, Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Trust, in which Appellant agreed to repair two water wells for Appellees in exchange for payment. On October 23, 2018, Appellant filed a petition in District Court in Jones County, Texas, alleging breach of contract and seeking damages, attorney’s fees, a decree recognizing Appellant’s mechanic’s lien, and foreclosure upon said lien. On November 19, 2018, Appellees answered and asserted an affirmative defense as to the mechanic’s lien on the grounds that the property on which the water wells are situated is Morton’s designated homestead and that the contract was not in writing. On January 30, 2019, Appellees filed a summary motion to remove the invalid lien from the homestead. On April 8, 2019, Appellees’ counsel e-mailed Appellant’s counsel to confirm that he received notice that the hearing on Appellees’ motion had been set for May 10, 2019. Appellant’s counsel explained that he would be out of the country on that day and requested that Appellees reschedule the hearing. Appellees’s counsel responded, “Yes, I’ll agree to a continuance.” However, the hearing was never rescheduled. At the May 10 hearing, the trial court asked Appellees whether anyone entitled to notice of the hearing was absent; Appellees responded that Appellant “has received notice and has not appeared.” The hearing proceeded without

2 Appellant’s counsel, but the trial court revisited the matter of the absence of Appellant’s counsel, resulting in the following exchange: THE COURT: [H]ow did you serve Mr. Boone [Appellant’s Counsel] with notice of today’s hearing? [APPELLEES’ COUNSEL]: Electronic service and then I followed up with an e-mail directly to him. He did respond to my e- mail. THE COURT: And did he say he wouldn’t be here today? [APPELLEES’ COUNSEL]: He indicated that he was going to file for a continuance -- or he actually requested that I file a continuance; however, I cannot do that, sir, because my -- that would be indirect [sic] violation of the interest of my client. I did tell him that if he were to seek a continuance that I would not oppose him. (Brief pause. Court on the phone.) THE COURT: Mr. Campbell, Mr. Boone, he practices up here. The reason I called is he -- I don’t know that he’s ever missed a hearing or even been late for a hearing. He’s out of the country. His paralegal said she didn’t have it on the calendar. Are you wanting to proceed forward with your relief today? [APPELLEES’ COUNSEL]: Yes, sir. Appellees then submitted a proposed order to the trial court, granting Appellees’ summary motion for removal of the invalid lien. The trial court instructed Appellees to e-file the proposed order and it would be entered. There was no discussion at the hearing, nothing in the title of the order, and nothing in the record, other than the fact that it had been e-filed, indicating that the trial court or Appellant’s counsel was actually aware that the proposed order, in addition to removing the lien, also included an inserted paragraph with the following language: IT IS ORDERED that [Appellant] . . . take nothing against [Appellees] . . . [and] that all claims asserted by [Appellant] are denied. . . . 3 .... . . . This judgment finally disposes of all parties and claims and is appealable. Although there was no discussion of it during the hearing or evidence of same submitted, the order also summarily ordered that Appellant “pay reasonable attorney’s fees in the amount of $5,000.00 to [Appellees].”1 The trial court signed this order on June 20, 2019. On November 21, 2019, Appellant moved for summary judgment on his breach of contract claim. Four days later, Appellees submitted a plea to the jurisdiction, arguing that the trial court lacked jurisdiction over Appellant’s breach of contract claim because the order it had signed five months earlier, drafted by Appellees’ counsel, “explicitly states that, ‘all claims asserted by [Appellant] are denied.’” Appellant’s counsel responded that “[d]espite no grounds for that relief and no notice to me of the proposed judgment, [Appellees’ counsel] attempted to defeat [Appellant’s] claims by trickery and deceit.” Appellant then filed a notice of

1 We are mindful of the following provisions of THE TEXAS LAWYER’S CREED—A MANDATE FOR PROFESSIONALISM:

I know that Professionalism requires more than merely avoiding the violation of laws and rules. ....

III. . . . A lawyer owes to opposing counsel, in the conduct of legal transactions and the pursuit of litigation, courtesy, candor, cooperation, and scrupulous observance of all agreements and mutual understandings. ....

11. I will not take advantage, by causing any default or dismissal to be rendered, when I know the identity of an opposing counsel, without first inquiring about that counsel’s intention to proceed.

12. I will promptly submit orders to the Court. I will deliver copies to opposing counsel before or contemporaneously with submission to the Court.

4 restricted appeal on December 12, 2019, eight days before the six-month deadline to do so. See TEX. R. APP. P. 26.1(c). On restricted appeal, Appellant advances two issues: (1) that, while the trial court correctly removed Appellant’s mechanic’s lien from Appellees’ homestead property, it reversibly erred when it also dismissed Appellant’s entire breach of contract claim and (2) that the trial court abused its discretion in awarding attorney’s fees in the amount of $5,000 to Appellees because it had no evidence or basis upon which to conclude that such an amount was necessary, just, and equitable. Appellees counter that we have no jurisdiction to consider this case on restricted appeal because Appellant participated in the decision-making process that resulted in the dismissal of all of his claims and only failed to timely appeal through the ordinary channels because of his own negligence. Appellees also argue that Appellant cannot prevail on his first issue because he failed to plead breach of contract alongside his foreclosure of mechanic’s lien claim and that Appellant cannot contest the sufficiency of the evidence to support the trial court’s award of attorney’s fees because the scope of a restricted appeal is confined to the face of the record. I. Jurisdiction – Appellant is entitled to a restricted appeal, under Tex. R. App. P.

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Jerry Spence D/B/A Big Country Irrigation v. Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Revocable Living Trust, (Tex. Ct. App. 2021).

Jerry Spence D/B/A Big Country Irrigation v. Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Revocable Living Trust (Jerry Spence D/B/A Big Country Irrigation v. Mark Hadley and Virginia Reger Morton, Trustee of the Virginia Reger Morton Revocable Living Trust) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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