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

Court of Appeals of Texas·Decided July 10, 2014·No. 01-13-00384-CV·Published

Opinion

Opinion issued July 10, 2014

In The

Court of Appeals

For The

First District of Texas

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.

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

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.

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.

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. P. 166a(i); Mack Trucks, Inc. v. Tamez, 206 S.W.3d 572, 582 (Tex. 2006). The trial court must grant the motion unless the nonmovant presents more than a scintilla of evidence raising a fact issue on the challenged elements. Flameout Design & Fabrication, 994 S.W.2d at 834; Merrell Dow Pharms., Inc. v. Havner, 953 S.W.2d 706, 711 (Tex. 1997) (“More than a scintilla of evidence exists when the evidence supporting the finding, as a whole, ‘rises to a level that would enable reasonable and fair-minded people to differ in their conclusions.’” (quoting Burroughs Wellcome Co. v. Crye, 907 S.W.2d 497, 499 (Tex. 1995))). To determine if the nonmovant raises a fact issue, we review the evidence in the light

most favorable to the nonmovant, crediting favorable evidence if reasonable jurors could do so and disregarding contrary evidence unless reasonable jurors could not. See Fielding, 289 S.W.3d at 848 (citing City of Keller v. Wilson, 168 S.W.3d 802, 827 (Tex. 2005)).

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

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