Limestone Construction, Inc. v. Summit Commercial Industrial Properties, Inc.

143 S.W.3d 538, 2004 WL 1897672
CourtCourt of Appeals of Texas
DecidedSeptember 30, 2004
Docket03-03-00500-CV
StatusPublished
Cited by84 cases

This text of 143 S.W.3d 538 (Limestone Construction, Inc. v. Summit Commercial Industrial Properties, Inc.) 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
Limestone Construction, Inc. v. Summit Commercial Industrial Properties, Inc., 143 S.W.3d 538, 2004 WL 1897672 (Tex. Ct. App. 2004).

Opinion

*540 OPINION

BOB PEMBERTON, Justice.

Limestone Construction, Inc. (Limestone) appeals from the district court’s overruling, by operation of law, Limestone’s motion for new trial challenging a default no-evidence summary judgment. Limestone claims that the affidavit it filed with its new trial motion, which averred that Limestone did not receive prior notice of the summary judgment motion or hearing, conclusively entitles it to relief. Ap-pellee Summit Commercial Industrial Properties, Inc. (Summit) contends that Limestone, in effect, waived its right to relief by failing to comply with the Williamson County local rules for obtaining a hearing on its motion. Because we hold that Limestone’s affidavit established its entitlement to a new trial on the record before us, we must reverse the trial court and remand for a new trial.

BACKGROUND

The underlying dispute arises from a real estate transaction, the details of which are unnecessary to address the issues before us. To summarize, Limestone filed suit against several defendants, including Summit, for common law fraud, statutory fraud, and negligent misrepresentation arising from Limestone’s attempt to purchase development property that later proved to be subject to federal endangered species restrictions.

On March 27, 2003, Summit filed a no-evidence motion for summary judgment and obtained a hearing for April 21. See Tex.R. Civ. P. 166a(i). The motion contained a certificate of service prepared by Summit’s attorney that complied with Texas Rule of Civil Procedure 21a. The certificate stated that “on March 27, 2003, a true and correct copy of the foregoing No Evidence Motion for Summary Judgment has been forwarded via certified mail, return receipt requested” to Limestone’s attorney at “7475 Skillman, # 101-A, Dallas, Texas.” It also referenced certified mail certificate number 7002 2030 0000 8852 4469 as having been posted to Limestone’s attorney. Written in bold, capital letters just below the certificate of service was the following: “A HEARING HAS BEEN SCHEDULED FOR APRIL 21, 2003, AT 9:00 A.M., ON THE NO EVIDENCE MOTION FOR SUMMARY JUDGMENT, IN THE ABOVE REFERENCED MATTER.”

Limestone did not file a response to the summary judgment motion. The summary judgment hearing was held on April 21 as scheduled, but Limestone’s attorney did not attend. The trial court granted summary judgment in an order reflecting that “Plaintiff failed to appear or respond.” Limestone’s attorney later claimed that he learned of the summary judgment motion and hearing for the first time “mid-morning” on April 21, when he received a call from Summit’s attorney’s office inquiring whether he had intended to attend the hearing.

Upon obtaining summary judgment, Summit filed a motion to sever Limestone’s claims against it so as to make the order final and appealable. Summit set its severance motion for hearing on May 22. Limestone does not dispute that it had notice of the severance motion and hearing, but neither filed a response nor appeared at the hearing. On May 22, the trial court granted the severance.

On June 23, the last day on which it could do so, 1 Limestone filed a motion for *541 new trial. The motion, supported by the affidavit of Limestone’s attorney, relied solely on the ground that Limestone had not received notice of the summary judgment motion or hearing until after the hearing. Limestone’s attorney further testified that he had received no notice of any attempted failed delivery of certified mail regarding the summary judgment proceedings until Summit’s attorney advised him of same by letter of April 21, 2003. Thereafter, Limestone’s attorney went to the post office “and they had no undelivered mail addressed to me, being held for me, nor did they know of any which had been held for me.” He acknowledged that he shared his office with another attorney and a secretary who were authorized to sign for his mail, and “routinely” would do so. But he added, “To my knowledge, no mail has ever been refused by failure of the other attorney or his secretary to sign for mail addressed to me.”

Limestone’s letter transmitting its new trial motion to the Williamson County District Clerk purported to request a hearing “on or before July 25, 2003.” 2 The Williamson County local rules require that all settings for non-jury matters be obtained through the office of court coordinator for each of the county’s district courts. Williamson County (Tex.) Dist. Ct. Loe. R. Ill, B.l. There is no evidence that Limestone complied with these procedures or otherwise made further attempts to obtain a hearing.

On September 5, the seventy-fourth day after the summary judgment became final and appealable, Summit filed an affidavit from its attorney in opposition to Limestone’s new trial motion. Summit’s attorney averred that on March 27, 2003, he sent to Limestone’s attorney’s office, by certified mail, return receipt requested, reference number 7002 2030 0000 8852 4469, a copy of Summit’s no-evidence summary judgment motion and notice of hearing. Attached to the affidavit was a copy of the front side of the transmittal envelope, which had been returned to Summit’s attorney’s office on May 28, 2003. The envelope had a postal service stamp mark indicating an attempted delivery on March 28 and three stamps stating “Returned to Sender — Unclaimed.”

Also attached to the affidavit was a computer printout dated April 21, 2003, signed and stamped by a postal employee on the same date, indicating that the envelope had been mailed on March 27, 2003, from ZIP code 78626 in Georgetown to ZIP code 75231 in Dallas, and that notice had been left at the Dallas ZIP code on March 28. Although the 75231 Dallas ZIP code corresponded to that of Limestone’s attorney, the report did not state a specific address at which the notice had been left. 3

No hearing on Limestone’s new trial motion was ever set or held and, on September 6, 2003, the seventy-fifth day after the summary judgment became appeal-able, Limestone’s motion for new trial was overruled by operation of law. See Tex.R. Civ. P. 329b(c). This appeal ensued.

DISCUSSION

Limestone brings a single issue complaining that the trial court abused its discretion in failing to grant its motion for new trial.

*542 Standard of review

Trial courts have broad discretion in ruling on motions for new trial. We review the denial of a motion for new trial for an abuse of discretion. Cliff v. Huggins, 724 S.W.2d 778, 778-79 (Tex. 1987); Smith v. Holmes, 53 S.W.Bd 815, 817 (Tex.App.-Austin 2001, no pet). When a motion for new trial is overruled by operation of law, as here, the question becomes whether the trial court abused its discretion in allowing the motion to be overruled. Bank One of Tex., N.A. v. Moody, 830 S.W.2d 81, 85 (Tex.1992).

A trial court abuses its discretion when it fails to correctly analyze or apply the law. In re E.I.

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Cite This Page — Counsel Stack

Bluebook (online)
143 S.W.3d 538, 2004 WL 1897672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/limestone-construction-inc-v-summit-commercial-industrial-properties-texapp-2004.