Pirate Oilfield Services, Inc. and Mark Anthony Torres v. Michael Cunningham

CourtCourt of Appeals of Texas
DecidedMarch 18, 2021
Docket11-19-00080-CV
StatusPublished

This text of Pirate Oilfield Services, Inc. and Mark Anthony Torres v. Michael Cunningham (Pirate Oilfield Services, Inc. and Mark Anthony Torres v. Michael Cunningham) 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
Pirate Oilfield Services, Inc. and Mark Anthony Torres v. Michael Cunningham, (Tex. Ct. App. 2021).

Opinion

Opinion filed March 18, 2021

In The

Eleventh Court of Appeals __________

No. 11-19-00080-CV __________

PIRATE OILFIELD SERVICES, INC. AND MARK ANTHONY TORRES, Appellants V.

MICHAEL CUNNINGHAM, Appellee

On Appeal from the 238th District Court Midland County, Texas Trial Court Cause No. CV54325

OPINION This is a restricted appeal arising from a no-answer default judgment. The primary issue on appeal concerns whether service of process strictly complied with the applicable rules. The trial court entered a default judgment against Appellants, Pirate Oilfield Services, Inc. and Mark Anthony Torres, in favor of Appellee, Michael Cunningham. In two issues, Appellants contend that service of process was defective against both Pirate Oilfield and Torres. We affirm the judgment of the trial court. Background Facts Cunningham and Torres were original shareholders of Pirate Oilfield. Both Cunningham and Torres guaranteed a loan that Pirate Oilfield received from a bank. Cunningham subsequently transferred all of his stock in Pirate Oilfield to Torres in exchange for an agreement from Pirate Oilfield and Torres to indemnify Cunningham for the debt. Pirate Oilfield later defaulted on the loan, and Pirate Oilfield failed to pay the accelerated amount demanded by the bank. The bank then required Cunningham to pay the amounts, and Cunningham paid over $1,140,000 toward satisfaction of the debt. Torres failed to honor his own guaranty, and neither Torres nor Pirate Oilfield indemnified Cunningham for the amounts paid. Cunningham sued both Pirate Oilfield and Torres for subrogation and indemnity. Torres was Pirate Oilfield’s registered agent for service, and the registered address stated that Torres could be served at 5412 Canyon Oaks Dr., Lago Vista, Texas 78465. Citation was issued for service on Pirate Oilfield and Torres, and process server George Castillo unsuccessfully attempted to serve Torres at the above address. Castillo attempted service at the registered address but was unsuccessful because the address was “a locked, gated property with no access. Phone number for [Pirate Oilfield and Torres] is no longer in service. Further research showed new owners are listed at address. Registered agent no longer at registered office listed above.” On Castillo’s recommendation, service was later made on the Texas Secretary of State. The secretary of state received the citation and petition and forwarded them to Torres. However, the documents were returned to the secretary of state with the notation: “Return to Sender, Not deliverable as Addressed, Unable to Forward.” Cunningham filed the return with the trial court.

2 Through another process server, Tony Garcia, Cunningham attempted to serve Torres personally at two other possible addresses. No one answered at either address when Garcia attempted service, but Garcia confirmed with the apartment manager of one of the locations that Torres lived there. Garcia left his business card and a note on Torres’s apartment door multiple times, asking Torres to call him. Garcia returned to Torres’s apartment to attempt service, but no one answered. Garcia noticed, however, that the note which he earlier attached to the door was no longer there. The trial court granted Cunningham’s motion for substituted service on Torres and ordered that substituted service be made by posting at Torres’s Faudree Rd. address. Garcia served the citation by posting, and the return was filed with the trial court the next day. A month after the return was filed, the trial court entered a no- answer default judgment against Torres and Pirate Oilfield for liquidated damages. This appeal followed. Analysis I. Standard of Review Appellants contend that the trial court erred in entering default judgment because service of citation was defective. This court generally reviews de novo whether service was defective. Creaven v. Creaven, 551 S.W.3d 865, 870 (Tex. App.—Houston [14th Dist.] 2018, no pet.). In a restricted appeal, such as the case here, it is well settled that strict compliance with the rules of service of citation is required for a default judgment to withstand a direct attack. Spanton v. Bellah, 612 S.W.3d 314, 316 (Tex. 2020) (per curiam) (citing Primate Constr., Inc. v. Silver, 884 S.W.2d 151, 152 (Tex. 1994) (per curiam)); see generally TEX. R. CIV. P. 99(a), 124. Because no-answer default judgments are disfavored, Texas courts have construed “strict compliance” to mean

3 just that; there are no presumptions in favor of valid issuance, service, or return of citation. Spanton, 612 S.W.3d at 316. “Service of process that does not strictly comply with the rules’ requirements is ‘invalid and of no effect.’” Id. at 317 (quoting Uvalde Country Club v. Martin Linen Supply Co., 690 S.W.2d 884, 885 (Tex. 1985)). However, strict compliance does not require “obeisance to the minutest detail.” See Spanton, 612 S.W.3d at 317 (citing Cuetara v. DSCH Capital Partners, LLC, No. 03-16-00078-CV, 2016 WL 3917181, at *2 (Tex. App.—Austin July 14, 2016, no pet.) (mem. op.)). “As long as the citation and return show, with reasonable certainty, that the citation was served on the defendant in the suit, service of process will not be invalidated.” Regalado v. State, 934 S.W.2d 852, 854 (Tex. App.— Corpus Christi–Edinburg 1996, no writ). To prevail on a restricted appeal, Appellants must demonstrate that (1) notice of the restricted appeal was filed within six months of the judgment being signed; (2) they were parties to the underlying lawsuit; (3) they did not participate in the trial; and (4) error is apparent on the face of the record. TEX. R. APP. P. 26.1(c), 30; Pike-Grant v. Grant, 447 S.W.3d 884, 886 (Tex. 2014) (citing Alexander v. Lynda’s Boutique, 134 S.W.3d 845, 848 (Tex. 2004)). The only element at issue in the instant case is whether error is apparent on the face of the record. Unlike the first three elements, whether error is apparent on the face of the record is not a jurisdictional requirement, and “[t]he task of determining error on the face of the record ultimately requires an analysis of the merits of the appellant’s grounds for appeal.” Ex Parte E.H., 602 S.W.3d 486, 495– 97 (Tex. 2020). For purposes of a restricted appeal, “the face of the record” consists of all papers on file in the appeal, including the reporter’s record. DSC Fin. Corp. v. Moffitt, 815 S.W.2d 551 (Tex. 1991).

4 II. Service on Pirate Oilfield In their first issue on appeal, Appellants contend that service was defective as to Pirate Oilfield because Castillo’s process-server certification had expired prior to attempting service on Pirate Oilfield. Castillo first attempted service on March 21, 2018. In his affidavit following this attempted service, Castillo stated that his certification expired on August 31, 2017. However, the return of citation that followed service through the secretary of state noted that Castillo’s certification expired on August 31, 2020. Appellants assert that, because Castillo’s certification expired prior to attempting service, Castillo could not legally attempt service and that, therefore, service did not strictly comply with the rules. See TEX. R. CIV. P. 103, 107. We disagree. A process server is certified by the commission under order of the Texas Supreme Court to serve process. TEX. GOV’T CODE ANN. § 156.001(2) (West 2019).

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