Liberty Mutual Fire Insurance Co. v. Ybarra

751 S.W.2d 615, 1988 Tex. App. LEXIS 1029, 1988 WL 45646
CourtCourt of Appeals of Texas
DecidedMay 11, 1988
Docket08-87-00240-CV
StatusPublished
Cited by39 cases

This text of 751 S.W.2d 615 (Liberty Mutual Fire Insurance Co. v. Ybarra) 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
Liberty Mutual Fire Insurance Co. v. Ybarra, 751 S.W.2d 615, 1988 Tex. App. LEXIS 1029, 1988 WL 45646 (Tex. Ct. App. 1988).

Opinion

OPINION

FULLER, Justice.

This is an appeal from a no-answer default judgment in a worker’s compensation case. Appellant filed a motion and supplemental motion for new trial which was heard and then overruled. We affirm.

Rebecca Ybarra sued her employer’s worker’s compensation carrier, Liberty Mu *617 tual Fire Insurance Company as a result of an on-the-job injury. Liberty Mutual failed to file an answer. A hearing was had and the trial court awarded Appellee total and permanent benefits. The sequence of events were:

(1) Appellee’s petition was filed February 23, 1987.
(2) Service was on the Commissioner of Insurance in Austin, Texas on March 3, 1987.
(3) Appellee’s motion for default judgment was filed on June 3, 1987.
(4) The trial court conducted an eviden-tiary hearing on June 5, 1987, granted the judgment which was signed and filed on June 5, 1987.

Appellant filed its motion for new trial with affidavit attached on June 15, 1987, and later a supplemental motion for new trial with affidavit attached on June 22, 1987. The trial court heard motions for new trial on July 6, 1987, with the Appellant relying on its motions with the attached affidavits. Appellee had filed a written response with attached affidavits in reply to Appellant’s motions and affidavits.

After hearing arguments, the trial court overruled Appellant’s motions for new trial and instructed Appellee’s attorney to prepare and submit the proper order.

Point of Error No. One asserts the trial court erred in failing to grant Appellant’s motion for new trial.

We are concerned with determining whether the trial court abused its discretion in denying the motion for new trial. The default judgment should be set aside if Appellant establishes all of the conditions as laid down by Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388, 133 S.W.2d 124 (1939): (1) That the failure to answer was neither intentional nor the result of conscious indifference, (2) that the failure to answer was due to mistake or an accident, (3) that the defendant has a meritorious defense, and (4) that the defendant’s motion was filed at a time when the granting thereof would occasion no delay or otherwise work an injury to plaintiff.

The elements of the Craddock test may be established by affidavit or other competent evidence. The question of whether Craddock is satisfied is addressed to the sound discretion of the trial court and will not be overturned absent a showing of abuse of discretion. Farley v. Clark Equipment Company, 484 S.W.2d 142, 150 (Tex.Civ.App.—Amarillo 1972, writ ref’d n.r.e.).

Trial courts should set aside defaults only if convinced that defendant acted in good faith and that the accident or mistake by which he seeks to excuse himself was the cause of his default, and that he could not have protected himself by the exercise of reasonable diligence. Pohl and Hittner, Judgment By Default in Texas, 37 SW.L.J., 421, 447 (1983).

We now look to what was the fact situation facing the trial judge insofar as deciding on whether the failure of Liberty Mutual to answer in the lawsuit was the result of conscious indifference.

When the allegations in a movant’s affidavits are not controverted, a conscious indifference question must be determined in the same manner as a claim of meritorious defense. It is sufficient that the mov-ant’s motion and affidavits set forth facts which, if true, would negate conscious indifferent conduct. In this case, however, Appellant’s motions for new trial and the affidavits attached were controverted by the Appellee.

Appellant had attached to its motions the affidavit of its Midland-Odessa, Texas claim’s manager and its Boston, Massachu-settes claim’s supervisor. Both affiants stated, in very general terms, that when a citation is received in its Boston office, a copy is sent over a “Rapid Fax” machine to the proper office for handling and employing local counsel. The affidavits go on to say that, by error, the incorrect telephone number was used, resulting in the service of citation being sent to the wrong number or wrong office, or other than the Midland, Texas office. Though both affiants made the affidavits after reviewing their file, no dates were given in regard to the receipt of the citation in Boston or the date it went *618 out on the “Rapid Fax.” No mention was made of the name of the operator or the wrong number keyed into, or the office to which the citation went (if known). The affidavits are silent as to whether the wire system in use produced any record of transactions or whether the Appellant had any procedure for double checking to make sure the citation and petition were received by the proper local office.

Appellee responded to Appellant’s motions and affidavits: “most Rapid Fax machines create a record of where and when an item was sent. If the Insurance Company’s Rapid Fax created such a record, the obligation of the Insurance Company here was to provide that evidence so their excuse could be verified. Most companies that use Rapid Fax machines that do not automatically create a record of each transaction, usually require that the operator of the machine record each transaction in a diary.”

Since the Appellee controverted the Appellant’s allegations, the trial judge was under the duty to look to the knowledge and acts of the Appellant to determine whether its conduct was the result of conscious indifference, Strackbein v. Prewitt, 671 S.W.2d 37 (Tex.1984). The burden of proof was upon Appellant to show that the failure to appear at trial was not the result of conscious indifference. Ward v. Nava, 488 S.W.2d 736 (Tex.1972). Conscious indifference means failing to take some action which would seem indicated to a person of reasonable sensibilities under the same circumstances. Johnson v. Edmonds, 712 S.W.2d 651 (Tex.App.—Fort Worth 1986, no writ). It was within the trial judge’s discretion to decide whether the facts warranted the vacating of the default judgment and the granting of a new trial. Appellant did make a request for findings of fact and conclusions of law, but failed to make a follow-up request. We therefore must affirm the trial court’s judgment if it can be supported by the evidence and authorized by the law. 4 McDonald, Texas Civil Practice sec. 16.10 (rev.1984); Tex.R.Civ.P. 296. The trial court did not abuse his discretion in deciding that Appellant failed to sustain its burden. Therefore, its failure to answer in the lawsuit was the result of conscious indifference.

We now turn to the question of whether or not the Appellant established that it had a meritorious defense. Craddock.

In Ivy v. Carrell,

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Bluebook (online)
751 S.W.2d 615, 1988 Tex. App. LEXIS 1029, 1988 WL 45646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liberty-mutual-fire-insurance-co-v-ybarra-texapp-1988.