Lynn Gregory, Individually, and D/B/A G.C. Unlimited v. Amanda Graves and Jerry W. Graves, Jr.

CourtCourt of Appeals of Texas
DecidedDecember 6, 2023
Docket06-23-00005-CV
StatusPublished

This text of Lynn Gregory, Individually, and D/B/A G.C. Unlimited v. Amanda Graves and Jerry W. Graves, Jr. (Lynn Gregory, Individually, and D/B/A G.C. Unlimited v. Amanda Graves and Jerry W. Graves, Jr.) 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.

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Lynn Gregory, Individually, and D/B/A G.C. Unlimited v. Amanda Graves and Jerry W. Graves, Jr., (Tex. Ct. App. 2023).

Opinion

In the Court of Appeals Sixth Appellate District of Texas at Texarkana

No. 06-23-00005-CV

LYNN GREGORY, INDIVIDUALLY, AND D/B/A G.C. UNLIMITED, Appellant

V.

AMANDA GRAVES AND JERRY W. GRAVES, JR., Appellees

On Appeal from the 352nd District Court Tarrant County, Texas Trial Court No. 352-333561-22

Before Stevens, C.J., van Cleef and Rambin, JJ. Memorandum Opinion by Justice Rambin MEMORANDUM OPINION

This case involves the appeal of a default judgment against Lynn Gregory, individually

and d/b/a G.C. Unlimited (Gregory), in which Gregory claims that (1) he was never served with

process, (2) he is entitled to a new trial under Craddock,1 and (3) he is entitled to a new trial on

damages. Although we conclude that the record is sufficient to support the trial court’s finding

that Gregory was actually served, and though we find that the trial court acted within its

discretion in granting the default judgment on liability, we also find that Gregory is entitled to a

new trial on damages.

I. Background

Amanda and Jerry Graves, Jr., sued Gregory for breach of contract involving the

construction of an outdoor renovation of their Fort Worth home.2 After the trial court entered a

default judgment against Gregory, Gregory filed a sworn motion for new trial. Although

Gregory requested a hearing on the motion, the motion was ultimately overruled by operation of

law.

On appeal, Gregory claims that he was never served with process in the lawsuit in which

the default judgment was entered. The morning of May 18, 2022, is the critical time regarding

service. The clerk’s record contains a return of service by Kevin Blessing, who declared, under

penalty of perjury, that, “[o]n Wednesday May 18, 2022[,] at 08:30 AM,” citation and

1 Craddock v. Sunshine Bus Lines, Inc., 133 S.W.2d 124, 126 (Tex. [Comm’n Op.] 1939). 2 Originally appealed to the Second Court of Appeals in Fort Worth, this case was transferred to this Court by the Texas Supreme Court pursuant to its docket equalization efforts. See TEX. GOV’T CODE ANN. § 73.001 (Supp.). We are unaware of any conflict between precedent of the Second Court of Appeals and that of this Court on any relevant issue. See TEX. R. APP. P. 41.3. 2 plaintiff’s original petition “were hand delivered” to Gregory at “6600 E[AST] PEDEN ROAD,

FORT WORTH, TX.”

In his affidavit accompanying his motion for new trial, Gregory admitted to having a

“motor home” at the East Peden Road address shown on the return of service. Gregory claimed,

though, that he had moved from the Peden Road address and was not in Fort Worth on May 18.

In his affidavit, Gregory stated that he was in Merkle (a town near Abilene) on “the night of

May 17 . . . to celebrate [his] brother’s birthday” and then went to “Brownwood [on] the morning

of May 18” to make “a payment to Brown County.”

In his affidavit, Gregory stated that he “had dealt with this matter” in a justice court suit.

The affidavit provided a cause number. No docket sheet or order was attached. Gregory also

stated that he had received a pre-default telephone call from the Graveses’ counsel asking why

Gregory had not answered. Gregory’s affidavit states that, on that call, he denied being served,

he provided updated contact information, and he “was left with the impression” that he would be

served using that contact information.

One of Gregory’s contentions on appeal is that his motion for new trial was timely, that

he requested a hearing, and, therefore, that his motion should not have been overruled without a

hearing. Because his motion for new trial was timely, we abated this matter pursuant to Rule

44.4 of the Texas Rules of Appellate Procedure for the trial court to conduct a full evidentiary

hearing on Gregory’s motion for new trial to determine, among other things, whether Gregory

was served with process in the underlying lawsuit. See TEX. R. APP. P. 44.4.

3 The trial court conducted a hearing on the motion for new trial, at which Gregory testified

that he was not served with process in the underlying lawsuit. Gregory testified that he “was in

Abilene” on the morning he was supposedly served. Gregory testified that he was on

“probation” at that time. Gregory went on to state that he was from Abilene, but “got in[to]

trouble . . . in Brownwood.” Gregory testified that he went “to Brownwood to pay out.”

At the hearing, Gregory put considerable emphasis on an answer he had filed in another

case, a justice court matter in Taylor County brought against Gregory by a different plaintiff.

Gregory testified to the answer in the other case as an indication that he was not served in this

case, because if he had been served, he would have answered.

At the hearing, considerable attention was also given to a redacted screenshot of what

Gregory said was his online bank statement. Initially, Gregory relied on the screenshot to

support his testimony that he was in Brownwood on the morning of May 18.

The first question on cross-examination, however, was about a liquor store on Boat Club

Road in Fort Worth. Gregory conceded that the liquor store was “less than five miles from

Peden Road.” Gregory then asked, “Yeah. And the point is?” The Graveses’ counsel then

asked Gregory why his bank statement showed a purchase at that liquor store on May 17. The

statement showed an entry for May 17 that was partially obscured by redactions with a black

marker, but nonetheless has legible text stating, “5/17/22 Liquor Run 2 . . . PURCHASE 9595

Boat Club R[d], Fort Worth.” Gregory’s explanation for this entry was as follows:

A. Well, I mean, I went down on the 16th and come back on the 17th. I mean, that would be the same – that would be – I mean, what time of day is it going to be? You know, it’s 2 hours and 47 minutes to get from Merkel, Texas to here if you never stop and use the restroom. And I had probation and I went to 4 Brownwood. So does it say what time of day that that purchase might have been made?

Q. [The Graveses’ counsel] It does not say that.

A. I mean, it’s going to have to be after 3 o’clock. You can’t buy liquor before noon, so there’s no way I could be out there anyway, so it’s a moot point. That’s a fishing expedition for the same reason why y’all didn’t serve me. You know, I don’t even live there . . . .”

At this point, the trial court instructed Gregory, “[W]ait until he asks you a question.”

Gregory was then asked about another entry on the screenshot that listed a purchase in

Nashville on May 18. Gregory testified that he had “never been in Nashville” and that it must

have been an online purchase. The Graveses’ counsel then asked if Gregory agreed with him

“that bank statements aren’t an accurate depiction of [Gregory’s] location.” By asking if

Gregory agreed with the Graveses’ counsel, it appears that the Graveses’ counsel was referring

to the Graveses’ response to the motion for new trial, which asserted that bank statements cannot

be used to pin down the account holder’s location at a given time because (1) the entries may

reflect online purchases, or (2) they may be processed at a different location than the purchase, or

(3) they may be processed days after the purchase. Gregory responded with another lengthy

answer that included “there’s a million ways we can go about that” and concluded with an

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Lynn Gregory, Individually, and D/B/A G.C. Unlimited v. Amanda Graves and Jerry W. Graves, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lynn-gregory-individually-and-dba-gc-unlimited-v-amanda-graves-and-texapp-2023.