Linda Hayes Schoendienst v. Robert L. Haug, Vince Wood and Highland Ventures, I, Ltd.

399 S.W.3d 313, 2013 WL 1149545, 2013 Tex. App. LEXIS 2741
CourtCourt of Appeals of Texas
DecidedMarch 15, 2013
Docket03-12-00291-CV
StatusPublished
Cited by18 cases

This text of 399 S.W.3d 313 (Linda Hayes Schoendienst v. Robert L. Haug, Vince Wood and Highland Ventures, I, Ltd.) 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
Linda Hayes Schoendienst v. Robert L. Haug, Vince Wood and Highland Ventures, I, Ltd., 399 S.W.3d 313, 2013 WL 1149545, 2013 Tex. App. LEXIS 2741 (Tex. Ct. App. 2013).

Opinion

OPINION

BOB PEMBERTON, Justice.

This is a restricted appeal from a “no-answer” default judgment that appellees Robert L. Haug, Vince Wood, and Highland Ventures, I, Ltd. obtained against appellant Linda Hayes Schoendienst (Hayes). 1 Hayes brings three issues urging reversal of the judgment. Her principal complaint is that appellees violated her due process rights by taking the default judgment without prior notice after she had appeared in the action. In the alternative, Hayes urges that appellees’ pleadings did not support the judgment’s imposition of liability against her and that there was no evidence to support the damages the judgment awarded. Concluding that Hayes had appeared and that appellees violated due process by taking the default judgment against her without notice, we will reverse the district court’s judgment and remand.

BACKGROUND

On August 22, 2011, appellees sued an entity known as Stewardship Advisors, LLC, alleging they had been victimized by a fraudulent investment scheme. About two weeks later, on September 11, 2011, appellees filed an amended petition that named additional defendants including Hayes. Appellees sought monetary damages, attorney’s fees, declaratory relief, and equitable relief that included a temporary restraining order and temporary injunction to prohibit the defendants from “using, spending, investing, withdrawing, transferring!,] or otherwise dissipating” *315 certain funds or assets allegedly obtained ■wrongfully from appellees. On September 21, 2011, the district court granted the TRO, 2 and set a hearing on the temporary injunction for October 3, 2011.

In advance of the scheduled hearing on the temporary injunction request, the parties, including Hayes, who was acting pro se, consented to and signed an agreed temporary injunction on September 30, 2011. The agreed temporary injunction recited that the parties “have reached an agreement that the Temporary Restraining Order ... will be extended as an Agreed Temporary Injunction,” found that appellees would probably prevail at trial and the other facts necessary to justify the relief, and imposed restraints on the defendants’ conduct that generally tracked those in the TRO. 3 The district court signed the agreed temporary injunction on October 3, 2011.

Meanwhile, as Hayes concedes, she was served with process yet did not file an answer. On October 20, 2011, after Hayes’s answer date had passed, appellees obtained — without notice, as they acknowledge — an interlocutory default judgment against her. The default judgment awarded appellees $420,000 in actual damages, attorney’s fees, an accounting of Hayes’s records, a constructive trust against any assets in her possession that may be traced to funds or assets provided by ap-pellees, and a declaration that any funds or assets in Hayes’s possession that were traceable to appellees’ investments belonged to them. Contemporaneously, ap-pellees obtained — again, without notice to Hayes — a severance of their claims against the other defendants so as to make the interlocutory default judgment against Hayes final. This restricted appeal later followed.

STANDARD AND SCOPE OF REVIEW

Hayes has opted to challenge the default judgment by restricted appeal, as the Texas Rules of Appellate Procedure permit her to do. See Tex.R.App. P. 30; Insurance Co. of State of Pa. v. Lejeune, 297 S.W.3d 254, 255 (Tex.2009) (per curiam). As the party filing a restricted appeal, Hayes must show that: (1) she brought the appeal within six months after the trial *316 court signed the complained-of judgment; (2) she was a party to the underlying suit; (3) she did not “participate” in the hearing that resulted in the complained-of judgment and did not timely file any post-judgment motions or requests for findings of fact and conclusions of law; and (4) error is “apparent from the face of the record.” See Tex.R.App. P. 26.1(c), 30; Alexander v. Lynda’s Boutique, 134 S.W.3d 845, 848 (Tex.2004). Only the fourth element, whether error is apparent from the face of the record, is in dispute here.

The “record,” for purposes of a restricted appeal, consists of the clerk’s record, the reporter’s record (if one was made), and any evidence otherwise presented to the trial court before final judgment. See Norman Commc’ns v. Texas Eastman Co., 955 S.W.2d 269, 270 (Tex.1997) (per curiam); Alexander, 134 S.W.3d at 848-49 (“The rule has long been that evidence not before the trial court prior to final judgment may not be considered in a [restricted appeal] proceeding.” quoting General Elec. Co. v. Falcon Ridge Apartments, Joint Venture, 811 S.W.2d 942, 944 (Tex.1991)). Error must be apparent from the face of the record, not inferred from the record. Gold v. Gold, 145 S.W.3d 212, 213 (Tex.2004) (per curiam). The scope of our review in a restricted appeal is the same as in ordinary appeals; that is, we review the entire case. Norman, 955 S.W.2d at 270.

ANALYSIS

Hayes asserts that there are three reversible errors underlying the default judgment that are apparent on the face of the record: (1) appellees failed to give her notice of their intent to take the default judgment after she had appeared in the action, violating her due process rights (her first issue); (2) appellees’ pleadings did not support the judgment’s imposition of liability against her (second issue); and (3) there was no evidence to support unliq-uidated damages the judgment awarded (third issue). We need only address Hayes’s first issue.

A plaintiff may take a default judgment against a defendant who, like Hayes, fails to file an answer. See Tex.R. Civ. P. 239. The plaintiff may take the default judgment without further notice if the defendant has not filed a written answer or otherwise “appeared” in the action. See Wilson v. Wilson, 132 S.W.3d 533, 536 (Tex.App.-Houston [1st Dist.] 2004, pet. denied). But if the defendant has answered or “appeared” in some manner, due process thereafter entitles the defendant to notice of any trial setting— and that includes a hearing on a motion for default judgment. See LBL Oil Co. v. International Power Servs., Inc., 777 S.W.2d 390, 390-91 (Tex.1989); In re Marriage of Runberg, 159 S.W.3d 194, 197 (Tex.App.-Amarillo 2005, no pet.).

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Bluebook (online)
399 S.W.3d 313, 2013 WL 1149545, 2013 Tex. App. LEXIS 2741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/linda-hayes-schoendienst-v-robert-l-haug-vince-wood-and-highland-texapp-2013.