Proline Energy Resources, Inc. v. Gordy Oil Company

CourtCourt of Appeals of Texas
DecidedOctober 23, 2025
Docket09-23-00344-CV
StatusPublished

This text of Proline Energy Resources, Inc. v. Gordy Oil Company (Proline Energy Resources, Inc. v. Gordy Oil Company) 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
Proline Energy Resources, Inc. v. Gordy Oil Company, (Tex. Ct. App. 2025).

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

1 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

2 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

3 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

4 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.

In its Motion for Reconsideration, Proline outlined its e-filing attempts and

explained that it transmitted its Motion for New Trial to the electronic filing service

provider (“EFSP”) at 11:55 p.m., which was before midnight in the trial court’s time

zone on Friday, September 8, 2023. Proline explained that at 11:58 p.m. on

September 8, 2023, its attorney received an email from the EFSP notifying it of a

“submission failure” with the filing under Envelope No. 79378166. Proline attached

the e-filing documents supporting these contentions as exhibits to the Motion for

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