Reginald L. Gilford, Sr. v. Texas First Bank

CourtCourt of Appeals of Texas
DecidedJuly 10, 2014
Docket01-13-00384-CV
StatusPublished

This text of Reginald L. Gilford, Sr. v. Texas First Bank (Reginald L. Gilford, Sr. v. Texas First Bank) 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
Reginald L. Gilford, Sr. v. Texas First Bank, (Tex. Ct. App. 2014).

Opinion

Opinion issued July 10, 2014

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-13-00384-CV ——————————— REGINALD L. GILFORD, SR., Appellant V. TEXAS FIRST BANK, Appellee

On Appeal from the 10th District Court Galveston County, Texas Trial Court Case No. 12-CV-0142

MEMORANDUM OPINION

Reginald L. Gilford, Sr. sued Texas First Bank (“Texas First”) for breach of

contract, arising out of Texas First’s decision to decline payment due to

insufficient funds on a check Gilford had written. Texas First moved for both no- evidence and traditional summary judgment, arguing that it provided overdraft

protection to its account holders only as a “non-contractual courtesy” and thus no

valid contract for overdraft protection existed between it and Gilford. The trial

court granted both motions for summary judgment and dismissed Gilford’s suit. In

four issues, Gilford contends that the trial court erroneously ruled (1) on Texas

First’s summary judgment motions without having all of the evidence that he had

submitted before it; (2) on Texas First’s traditional motion for summary judgment

without hearing arguments or considering evidence specific to that motion; (3) on

Texas First’s summary judgment motions without first granting Gilford’s motion

for continuance; and (4) on Texas First’s no-evidence summary judgment motion

before the discovery period had ended.

We affirm.

Background

In 2006, Gilford opened a checking account at Texas First. On December

28, 2007, Gilford, who was running for Galveston County Commissioner’s Court,

wrote a check for $1,250 to cover his filing fee for the race. Texas First

subsequently declined to pay the check due to insufficient funds in Gilford’s

account. Due to his failure to timely pay the filing fee, Gilford was ultimately

removed from the ballot.

2 Gilford later sued Texas First for breach of contract, alleging that, with

overdraft protection, he should have had sufficient funds in his account to cover

the amount of the check and that Texas First breached its contractual obligation to

provide him with overdraft protection. The trial court’s docket control order set

the end of the discovery period at December 7, 2012.

On December 4, 2012, Texas First moved for both no-evidence and

traditional summary judgment. In its no-evidence motion, Texas First stated: “In

the present case, there is no evidence of a valid contract between Plaintiff and

Defendant. As a result, there is no contract for Defendant to have breached, and

there is no evidence of an essential element of Plaintiff’s claim.” Texas First

expanded upon this argument in its traditional motion. Specifically, Texas First

argued that the “Texas First Bank Overdraft Privilege Disclosure,” which it

attached as summary judgment evidence, established that Texas First agreed to

provide overdraft protection to its account holders solely as a “non-contractual

courtesy.” This document emphasized that Texas First retained the discretion to

refuse to pay an insufficient item for its account holders “at any time, even though

we may have previously paid insufficient items resulting in your account becoming

overdrawn.” Texas First also attached as summary judgment evidence a document

setting out the terms and conditions of deposit accounts with the bank which

stated, “The fact that we may honor withdrawal requests which overdraw the

3 finally collected account balance does not obligate us to do so, unless required by

law.” Texas First thus argued that Gilford could not establish that it had a

contractual obligation to provide overdraft protection and pay his $1,250 check

when his account had insufficient funds.1

Gilford filed separate responses to Texas First’s two summary judgment

motions. Gilford argued that, as an account holder with Texas First, the parties had

a contractual relationship whereby Texas First agreed to provide overdraft

protection. He argued that this particular instance was the only occasion on which

Texas First had ever denied him overdraft protection. Gilford acknowledged that

the “Overdraft Privilege Disclosure” stated that overdraft protection was a “non-

contractual courtesy,” but he argued that this statement had to be read in the

context of the parties’ contractual relationship, and because “every document given

for a bank account is the whole contract,” it was not logical for the overdraft

protection to be called “non-contractual.” He also argued that Texas First violated

a bank policy to clear checks before pre-authorized transactions, and that, if it had

followed that policy in this case, his $1,250 check would have cleared without

overdrawing his account. As summary judgment evidence, Gilford attached

account documents, including the “Overdraft Privilege Disclosure” and the account

1 Texas First also argued that Gilford’s claim was barred by limitations. Gilford argued otherwise in his response. He does not challenge this potential basis for summary judgment on appeal.

4 terms and conditions that Texas First had attached to its traditional summary

judgment motion, bank records, and printouts of articles concerning the case.

Gilford did not file an affidavit setting out the facts of the case; thus, the only

evidence of the factual background of the case is the unsworn allegations in

Gilford’s petition and summary judgment responses.

On January 29, 2013, the day before the summary judgment hearing,

Gilford, who was acting pro se, filed an unverified motion for continuance. In this

motion, he stated that he was requesting a continuance because he was unsure of

how the seven-day summary judgment response deadline was calculated. He did

not attach an affidavit to this motion, and he did not, at any point before the trial

court ruled on Texas First’s summary judgment motions, argue that an inadequate

time for discovery had elapsed and that he needed time to conduct further

discovery.

At the summary judgment hearing on January 30, 2013, the trial court heard

arguments from both Gilford and Texas First on whether Texas First had a

contractual obligation to provide overdraft protection to Gilford. The trial court,

agreeing with Texas First that the bank had no contractual obligation to provide

such protection, granted both of Texas First’s motions for summary judgment and

dismissed Gilford’s breach of contract claim. Gilford filed a motion for new trial,

which was overruled by operation of law. This appeal followed.

5 Summary Judgment

A. Standard of Review

We review de novo the trial court’s ruling on a summary judgment motion.

Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848

(Tex. 2009). After an adequate time for discovery, a party may move for no-

evidence summary judgment on the ground that no evidence exists of one or more

essential elements of a claim on which the adverse party bears the burden of proof

at trial. TEX. R. CIV. P. 166a(i); see Flameout Design & Fabrication, Inc. v.

Pennzoil Caspian Corp., 994 S.W.2d 830, 834 (Tex. App.—Houston [1st Dist.]

1999, no pet.). The burden then shifts to the nonmovant to produce evidence

raising a genuine issue of material fact on the elements specified in the motion.

TEX. R. CIV.

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