Johnny Peevy v. Roy Gene Butler

Court of Appeals of Texas·Decided September 17, 2015·No. 12-15-00134-CV·Published

Opinion

ACCEPTED

12-15-00134-CV

TWELFTH COURT OF APPEALS

TYLER, TEXAS

9/17/2015 2:24:57 PM

Pam Estes

CLERK

NO. 12-15-00134-CV

RECEIVED IN

IN THE COURT OF APPEALS 12th COURT OF APPEALS TYLER, TEXAS

12TH DISTRICT 9/17/2015 2:24:57 PM PAM ESTES

TYLER, TEXAS Clerk

JOHNNY PEEVY

Appellant

VS. 9/17/2015 ROY GENE BUTLER

Appellee

ON APPEAL FROM THE 241ST JUDICIAL DISTRICT COURT OF SMITH COUNTY, TEXAS, TRIAL COURT NO. 14-1354-C

BRIEF OF APPELLANT

JOHN F. BERRY

State Bar No. 02236650

BRIAN E. RICHARDSON

State Bar No. 24068651

JOHN F. BERRY, P.C.

100 Independence Place, Suite 400 Tyler, Texas 75703-1384

(903) 561-4200

(903) 561-8922 (Fax)

jfberry@suddenlinkmail.com

ORAL ARGUMENT WAIVED

IDENTITY OF PARTIES AND COUNSEL The following is a complete list of all parties to the trial court’s final judgment, as well as the names and addresses of all trial and appellate counsel. PARTIES: COUNSEL:

Plaintiff: Roy Gene Butler Ronnie Horsley 1909 N. 24th West Ave. 231 South College Tulsa, Oklahoma 74127 Tyler, Texas 75702 Stephen Hubbard

605 S. Broadway

Tyler, Texas 75701

Defendant: Johnny Peevy John F. Berry 11669 E. Montana Place 100 Independence Place Aurora, Colorado 80012 Suite 400 Tyler, Texas 75703

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TABLE OF CONTENTS

INDEX OF AUTHORITIES iii STATEMENT OF THE CASE 1 ISSUES PRESENTED 1 STATEMENT OF FACTS 2 SUMMARY OF THE ARGUMENT 3 ARGUMENT 4 CONCLUSION 9 PRAYER 9 APPENDIX 12 A. JUDGMENT 13 B. SECTION 37, TEX. CIV. PRAC. & REM.S CODE 16 C. SECTION 304.003, TEXAS FINANCE CODE 22 D. RULE 26.1, TEXAS RULES OF CIVIL PROCEDURE 24 E. RULE 30, TEXAS RULES OF APPELLATE PROCEDURE 26 F. RULE 243, TEXAS RULES OF CIVIL PROCEDURE 27 G. TEXAS CREDIT LETTER 28

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INDEX OF AUTHORITIES Statutes Tex. Civ. Prac. & Rem. Code §37 _________________________________ 1, 6 Tex. Fin. Code §304.003 ____________________________________ 2, 3, 8, 9 Rules Tex. R. App. P. 26.1 ___________________________________________ 4, 5 Tex. R. App. P. 30 ______________________________________________ 4 Tex. R. Civ. P. 243 ______________________________________________ 6 Cases Vazquez v. Vazquez, 292 S.W.3d 80 (Tex. App.—Houston [14th Dist.] 2007, no pet.) _________ 4 Argyle Mech., Inc. v. Unigus Steel, Inc., 156 S.W.3d 685 (Tex. App.—Dallas 2005, no pet.) __________________ 5, 6 Holt Atherton Indus., Inc. v. Heine, 835 S.W.2d 80 (Tex. 1992) _____________________________________ 5, 6 Arenivar v. Providian Nat'l Bank, 23 S.W.3d 496 (Tex. App.—Amarillo 2000, no pet.) _________________ 5, 6 First Nat'l Bank v. Shockley,

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663 S.W.2d 685 (Tex. App.—Corpus Christi 1983, no writ) _____________ 6 Dawson v. Briggs, 107 S.W.3d 739 (Tex. App.—Fort Worth 2003, no pet.) _______________ 6 Morgan v. Compugraphic Corp., 675 S.W.2d 729 (Tex. 1984) ______________________________________ 6

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STATEMENT OF THE CASE

Appellee, Roy Gene Butler (“Butler”) sued Appellant, Johnny Peevy (“Peevy”) in an action to quiet title on real property and requested a declaratory judgment pursuant to the Texas Civil Practices and Remedies Code §37. Butler filed his Original Petition on May 21, 2014 (Clerk’s Record 1-4). Appellant was served the Original Petition on July 11, 2014 (Clerk’s Record 5). The Motion for Default Judgment was filed on November 13, 2014 (Clerk’s Record 6-12). The Trial Court entered the Default Judgment on November 21, 2014 (Clerk’s Record 13-15) without holding a hearing (Clerk’s Record 34). The Default Judgment contained an award of attorney’s fees in the amount of $7,000.00, post-judgment interest of ten percent (10%) per annum, and costs of court. Appellant filed his Notice of Restricted Appeal within six months of the entry of the Default Judgment and accordingly, perfected this appeal.

ISSUES PRESENTED

Issue No. 1: Whether the Default Judgment entered in favor of Butler against Peevy should be reversed and remanded for a new trial with regard to the award of attorney’s fees due to the record reflecting no evidence as to the amount of reasonable and necessary attorney’s fees. Issue No. 2: Whether the Default Judgment entered in favor of Butler against Peevy should be reversed and rendered with regard to the award of post-

judgment interest at a rate of ten percent (10%) per annum and revised to five percent (5%) per annum.

STATEMENT OF FACTS

Peevy was the victim of a Default Judgment taken by Butler. Butler filed his Original Petition against Peevy on May 21, 2014 (Clerk’s Record 1-4), upon which Butler’s Default Judgment is based. The Default Judgment was signed on November 21, 2014 (Clerk’s Record 13-15). The Default Judgment contained an award of attorney’s fees in the amount of $7,000.00, post- judgment interest of ten percent (10%) per annum, and costs of court. The Default Judgment states “At the hearing on this cause…” (Clerk’s Record 13) which would indicate that a hearing was held. However, the Court never conducted an evidentiary hearing to receive evidence of reasonable and necessary attorney’s fees. The Docket Sheet (Clerk’s Record 34) does not note that a hearing was held and does not identify a court reporter. In fact, no hearing was held and no evidence presented to the Trial Court to support the judgment for attorney’s fees.

Secondly, the award of post-judgment interest at the rate of ten percent (10%) interest per annum is double the correct interest rate of five percent (5%) per annum pursuant to a correct application of Tex. Fin. Code §304.003 for the time the Default Judgment was entered. Peevy filed his notice of restricted

appeal within the six-month deadline (Clerk’s Record 19-20), bringing the Default Judgment into review by this Court. This being a default judgment, Peevy did not participate at the hearing (which never took place), and the failure of the Docket Sheet (Clerk’s Record 34) to note the identity of the Court Reporter or the existence of a hearing establishes the absence of a hearing on the face of the record.

SUMMARY OF THE ARGUMENT

The Trial Court erroneously granted a default judgment in favor of Butler against Peevy for attorney’s fees without conducting an evidentiary hearing to determine the amount of reasonable and necessary attorney fees. Reasonable and necessary attorney’s fees are unliquidated damages, and a no- answer default judgment still requires a judge to receive evidence on the amount of unliquidated damages before they can be awarded. When a no evidence point is sustained as to unliquidated damages which results from a no- answer default, the appropriate disposition is to remand for a new trial on the issue of the unliquidated damages.

Secondly, the trial court erroneously granted an award of post-judgment interest at the rate of ten percent (10%) per annum. A correct application of Tex. Fin. Code §304.003 for November 21, 2014, which is the entry date of the Default Judgment, is five percent (5%). Tex. Fin. Code §304.003(c)(2) should

have been applied to the amount of the interest charged because on November 21, 2014, the prime rate as published by the Board of Governors of the Federal Reserve System was less than five percent (5%). The Appendix contains the Texas Credit Letter published by the Texas Office of Consumer Credit Commissioner which shows the Judgment Rate for November 21, 2014 was five percent (5%).

ARGUMENT

A party filing a restricted appeal must demonstrate the following: (1)

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Related

Morgan v. Compugraphic Corp.
675 S.W.2d 729 (Texas Supreme Court, 1984)
Dawson v. Briggs
107 S.W.3d 739 (Court of Appeals of Texas, 2003)
Holt Atherton Industries, Inc. v. Heine
835 S.W.2d 80 (Texas Supreme Court, 1992)
Arenivar v. Providian National Bank
23 S.W.3d 496 (Court of Appeals of Texas, 2000)
Argyle Mechanical, Inc. v. Unigus Steel, Inc.
156 S.W.3d 685 (Court of Appeals of Texas, 2005)
Vazquez v. Vazquez
292 S.W.3d 80 (Court of Appeals of Texas, 2007)
First National Bank of Irving v. Shockley
663 S.W.2d 685 (Court of Appeals of Texas, 1983)