Pro-Fire & Sprinkler, L.L.C. and James C. Lankford v. the Law Company, Inc.

Court of Appeals of Texas·Decided November 29, 2021·No. 05-19-01480-CV·Published

Opinion

REVERSE AND REMAND and Opinion Filed November 29, 2021

In The Court of Appeals Stith Avatrict of Texas at Dallas

No. 05-19-01480-CV

PRO-FIRE & SPRINKLER, L.L.C. AND JAMES C. LANKFORD, Appellants

V. THE LAW COMPANY, INC., Appellee

On Appeal from the 95th District Court Dallas County, Texas Trial Court Cause No. DC-18-18762

OPINION

Before Justices Myers, Osborne, and Carlyle Opinion by Justice Osborne

In this restricted appeal, appellants Pro-Fire & Sprinkler, L.L.C. and James C. Lankford challenge the trial court’s default judgment in favor of appellee The Law Company, Inc. (TLC). In a single issue with four parts, Pro-Fire and Lankford claim that there is error apparent on the face of the record that requires reversal. We agree and reverse the trial court’s default judgment.

BACKGROUND The suit arises from an alleged subcontract between Pro-Fire and TLC relating

to a construction project in which TLC was the general contractor; Lankford allegedly guaranteed Pro-Fire’s performance on the contract. In 2018, TLC filed suit against Pro-Fire for breach of contract and against Lankford for his liability under the guaranty.

In January 2019, after four unsuccessful attempts to serve appellants, TLC filed a motion requesting substituted service on Pro-Fire and a separate motion requesting substituted service on Lankford.' The trial court denied the motions; a few days later, TLC filed amended motions attaching a new affidavit from its process server with additional detail, including statements confirming that the address at issue was Lankford’s residence based on the process server’s conversations with Lankford’s wife at the address.

The trial court subsequently signed an order authorizing substituted service on Lankford. The trial court’s order required the process server to attempt personal service on anyone over the age of sixteen at Lankford’s residence before leaving a

copy of the citation and original petition attached to the front door:

[I]t is ordered ... that service upon Defendant, JAMES C. LANKFORD, be made by a person authorized by law to serve process by delivering a true copy of the Citation and Plaintiffs Original Petition to anyone over sixteen years of age at the Defendant’s usual place of abode, [Lankford’s residence], or in the event no one over sixteen is present when service is attempted, by attaching copies of the Citation and Plaintiff's Original Petition to the front door at [Lankford’s residence].

IT IS FURTHER ORDERED that the return of service on the Citation and Plaintiffs Original Petition state when and how the

' TLC asserted that although Pro-Fire is an LLC, Pro-Fire does not maintain a registered agent and office in Texas and could be served through its manager, Lankford, at his residence.

2 Citation and Plaintiff's Original Petition were served, and be signed and sworn to by the person making the return of service.

The return of service relating to Lankford was filed February 5, 2019.7 In the affidavit of service attached to the return, the process server testified:

"The following came to hand onjJan 29, 2019, 4:00 pm, CITATION, PLAINTIFF'S ORIGINAL PETITION, AND ORDER FOR SUBSTITUTED SERVICE,

and was executed at 1165 BRENT AVE, TERRELL, TX 75160 within the county of KAUFMAN at 12:55 PM on Fri, Feb 01 2019,'by delivering a true copy to the within named

JAMES C, LANKFORD, BY ATTACHING A TRUE COPY OF THE CITATION AND PLAINTIFF'S ORIGINAL PETITION TO THE FRONT DOOR AT 1165 BRENT AVENUE, TERRELL, TEXAS 75160, PURSUANT THE ORDER FOR SUBSTITUTED SERVICE

in person, having first endorsed the date of delivery on same.

| am a person over eighteen (18) years of age and | am competent to make this affidavit. | am a resident of the State of Texas, | am familiar with the Texas Rules of Civil Procedure as they apply to service of Process. | am nota party to this suit nor related or affiliated with any herein, and have no interest in the outcome of the suit. | have never been convicted of a felony or of a misdemeanor involving moral turpitude. | have personal knowledge of the facts stated herein and they are true and correct."

In March 2019, after a hearing, the trial court signed an order authorizing substituted service on Pro-Fire in the manner of securing a copy of the citation and original petition to the front door of Lankford’s residence; the trial court’s order did not first require an attempt at personal service on anyone over age sixteen. The trial court stated, in relevant part:

[T]he Court GRANTS the motion and authorizes substituted service on

Defendant Pro-Fire & Sprinkler, LLC by securing a copy of the citation and Original Petition to the front door of James C. Lankford’s, the

* In late February 2019, TLC filed a First Amended Petition that was essentially identical to its Original Petition, but it added a request to serve Pro-Fire through the Texas Secretary of State and alleged that Lankford had been served “by attaching a true and correct copy of the citation and Plaintiff's Original Petition to the front door at [Lankford’s residence].” Although the record reflects that a new citation was issued for service through the Texas Secretary of State, the record reflects that it remained unserved.

3 Manager of Defendant Pro-Fire & Sprinkler, LLC, residence located at [Lankford’s residence].

The return of service relating to Pro-Fire was filed April 26, 2019. In the affidavit of

service attached to the return, the process server testified:

"The following came to hand on Dec 26, 2018, 10:35 am,

CITATION, PLAINTIFF'S ORIGINAL PETITION AND ORDER ON PLAINTIFF'S MOTION FOR SUBSTITUTED SERVICE ON DEFENDANT PRO-FIRE & SPRINKLER, LLC,

and was executed at 1165 BRENT AVE, TERRELL, TX 75160 within the county of KAUFMAN at 09:40 AM on Thu, Apr 25 2019, by delivering a true copy to the within named

PRO-FIRE ANDO SPRINKLER, LLC., BY SECURING A COPY OF THE CITATION AND ORIGINAL PETITION TO THE FRONT DOOR OF JAMES C, LANKFORD'S, THE MANAGER OF DEFENDANT PRO-FIRE & SPRINKLER, LLC, RESIDENCE LOCATED AT 1165 BRENT AVENUE, TERRELL, TEXAS 75160, PER THE ORDER ON PLAINTIFF'S MOTION FOR SUBSTITUTED SERVICE ON DEFENDANT PRO-FIRE & SPRINKLER, LLC,

in person, having first endorsed the date of delivery on same.

| am apersonover eighteen(18) years of age and | am competent to make this affidavit. |am a resident of the State of Texas, 1am familiar with the Texas Rules of Civil Procedure as they apply to service of Process.! am nota party to this suit nor related or affillated with any herein, and have no interest in the outcome of the suit. ! have never been convicted of a felony or of a misdemeanor Involving moral turpitude. Ihave personal knowledge of the facts stated herein and they are true and correct."

On May 31, 2019, without a hearing, the trial court signed a Final Default Judgment against Pro-Fire and Lankford, jointly and severally, in the amount of $115,314.95 (including principal, attorney’s fees, court costs and expenses, and prejudgment interest) plus additional attorney’s fees in the event of a motion for new trial or unsuccessful appeal to the court of appeals or Supreme Court of Texas. This restricted appeal followed.

DISCUSSION

To prevail on a restricted appeal, the appellant must establish four elements:

(1) it filed the appeal within six months after judgment was signed; (2) it was a party

to the lawsuit; (3) it did not participate in the hearing that resulted in the judgment

_4- complained of, and it did not timely file any postjudgment motions or requests for findings of fact and conclusions of law; and (4) error is apparent on the face of the record.

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