Proline Energy Resources, Inc. v. Gordy Oil Company

Court of Appeals of Texas·Decided October 23, 2025·No. 09-23-00344-CV·Published

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

NO. 09-23-00344-CV

PROLINE ENERGY RESOURCES, INC., Appellant V.

GORDY OIL COMPANY, Appellee

On Appeal from the 75th District Court Liberty County, Texas

Trial Cause No. 23DC-CV-00668

MEMORANDUM OPINION

Gordy Oil Company (“Gordy”) sued Proline Energy Resources, Inc.

(“Proline”) for breach of contract, quantum meruit, and unjust enrichment claiming Proline owed it money under an oil and gas contract. The trial court granted Gordy’s Motion for Default Judgment and awarded Gordy more than a million dollars in economic damages, attorney’s fees, contingent appellate attorney’s fees, court costs, and pre- and post-judgment interest. Proline filed a Motion for New Trial, which the trial court determined was untimely, and thus, it lacked plenary power to consider

the Motion. In a single issue, Proline asks whether the trial court erred in denying without considering its Motion for New Trial because it no longer had plenary power, so it lacked jurisdiction. We hold Proline’s Motion for New Trial was timely under Rule 21(f)(5) where it transmitted the Motion to its electronic filing service provider before midnight on the due date, thus the trial court erred when it refused to consider Proline’s Motion for New Trial based on a lack of plenary power. See Tex. R. Civ. P. 21(f)(5). Therefore, we will reverse and remand for the reasons discussed below.

BACKGROUND

Original Petition and Default Judgment On May 2, 2023, Gordy filed its Original Petition naming Proline as a defendant. Gordy asserted causes of action for breach of contract, quantum meruit, and unjust enrichment claiming Proline owed money under an oil and gas operating agreement. On July 3, 2023, Gordy served Proline through its registered agent via certified mail, which made Proline’s answer due on July 24, 2023. See generally id. 99(b) (noting general deadline to answer in civil suits is the first Monday after the expiration of twenty days). On July 7, 2023, Gordy filed the citation and proof of service.

When Proline failed to timely file an answer, on August 8, 2023, Gordy filed its Motion for Default Judgment supported by evidence. On August 9, 2023, the trial court signed the Order Granting Default Judgment. The Default Judgment awarded

Gordy the following damages: $1,379,281.69 in economic damages; $15,476.50 in attorney’s fees; $861.40 in court costs; prejudgment interest; $30,000 in conditional attorney’s fees if appealed to the court of appeals; $30,000 conditional attorney’s fees if appealed to the Supreme Court of Texas; and post-judgment interest. Motions for New Trial and Hearing Proline’s Motion for New Trial and [to] Set Aside Default Judgment was file-

stamped September 11, 2023. Proline supported its Motion for New Trial with evidence and counsel’s declaration. In the Motion for New Trial, Proline argued that it met its burden under Craddock as to all three elements, so the default judgment should be set aside. Proline also argued that Peri Petroleum, LLC is the lessee under the applicable agreement rather than Proline Energy Resources, Inc.

In addition, although the Motion for New Trial was file-stamped after the filing deadline, in subsequent filings, the record shows that Proline argued the Motion for New Trial was timely. In its Amended Motion for New Trial, Proline explained to the trial court that it originally sent its Motion for New Trial to the electronic service provider on the deadline of Friday, September 8, 2023. Proline noted the documentation showed it “did, in fact, timely submit for e-filing and e- service its motion for new trial within the time allowed.” Proline stated that this “e- file submission was returned as failed due to ‘error.’” Proline described its additional attempts to re-file the Motion for New Trial, and “the e-filing was successfully

submitted in the early hours of the following morning.” Thereafter, on Monday, September 11, Proline’s counsel received an email notification that the Clerk’s Office rejected the filing “for the sole reason that ‘exhibits must be [e-filed as] part of the lead document.’” Per the District Clerk’s instructions, Proline “re-filed its motion for new trial in the exact same form and with the same exhibits” except that the “exhibits were e-filed as part of the lead document,” and the filing was accepted. Proline asserted that its Motion for New trial was timely, and the trial court retained jurisdiction.

On October 19, 2023, the trial court conducted a hearing on Proline’s Motion for New Trial, where it addressed the filing timeline. The trial court noted it entered the Default Judgment on August 9, 2023, and the Motion for New trial was due thirty days from that, which was September 8, 2023. The trial court stated that Proline did not file the Motion for New Trial until September 11, 2023, and did not file the Amended Motion for New Trial until September 15, 2023. The trial court reasoned it could not consider the Amended Motion for New Trial, because the original Motion for New Trial was untimely. The trial court said it did not have authority to extend the motion for new trial deadline, because Texas Rule of Civil Procedure 5 prohibits it. The trial court explained that the amended motion was a nullity, because Proline filed the original motion for new trial late. The trial court determined that it could not consider the Motion for New Trial or Craddock factors, and it was not

technically “denied” since it did not have plenary power to do so. See Craddock v. Sunshine Bus Lines, Inc., 133 S.W.2d 124, 126 (Tex. Com. App. 1939); see also Dolgencorp of Texas, Inc. v. Lerma, 288 S.W.3d 922, 925 (Tex. 2009). Proline’s Motion for Reconsideration On October 26, 2023, after the hearing but before the trial court signed an Order on the Motion for New Trial, Proline filed its “Motion for Reconsideration of and Motion to Deem Timely Defendant Proline Energy Resources, Inc.’s Motion for New Trial.” Proline supported its Motion for Reconsideration with exhibits, including, among other things: the e-filing envelopes for its original Motion for New Trial; communications from Proline to the trial court’s manager detailing the e-filing steps with the e-filing support documentation; and the transcript from the hearing on the Motion for New Trial.

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