Todd Simmons v. Mitel Leasing, Inc. F/K/A Inter-Tel, Leasing, Inc.

Court of Appeals of Texas·Decided October 10, 2013·No. 01-12-00659-CV·Published

Opinion

Opinion issued October 10, 2013

In The

Court of Appeals

For The

First District of Texas

the trial court that he had received only fourteen days’ notice of the trial setting, and he orally moved for a continuance. The trial court denied this request, the case proceeded to trial, and Simmons participated in the trial. After the trial court ruled against him, Simmons retained counsel and moved for a new trial. The trial court denied this motion. In two issues, Simmons contends that he did not receive forty- five days’ notice of the trial setting as required by Texas Rule of Civil Procedure 245, and, therefore, the trial court abused its discretion in denying his motion for new trial.

We affirm.

Background

In June 2004, Shirley Pepper, the executive vice president of Internet Tech Services, Inc. (“Internet Tech”), and Simmons, the chief operating officer, executed a lease agreement with Mitel Leasing on behalf of Internet Tech. Under the initial lease agreement, Internet Tech leased communications equipment from Mitel Leasing for a period of thirty-six months. Both Pepper and Simmons personally guaranteed Internet Tech’s performance of its lease obligations. The parties supplemented the lease agreement on several occasions over the next few years, with Internet Tech leasing additional equipment from Mitel Leasing and the parties agreeing to extend the lease period. Eventually, Internet Tech stopped making payments under the lease.

On October 4, 2010, Mitel Leasing sued Internet Tech as lessee and Simmons and Pepper as guarantors. Mitel Leasing alleged that, under the lease agreement, Internet Tech, Simmons, and Pepper owed $37,093.19 in past and future rental payments for the equipment. It is undisputed that Mitel Leasing effectuated service of citation only as to Simmons.

Simmons, acting pro se, timely answered on December 1, 2010. He alleged that he had resigned from Internet Tech in January 2009 and that Internet Tech had no assets and had permanently ceased doing business on June 30, 2010.

The parties tried the case before the court on March 6, 2012. At trial, Simmons allegedly informed the trial court that he did not receive notice of the trial setting until February 22, 2012, fourteen days before trial, and he orally moved for a continuance. The trial court denied this request and proceeded with trial. Simmons participated in the trial. He did not present a reporter’s record of the trial to this Court.

After the trial court announced that it would render judgment in favor of Mitel Leasing, Simmons retained counsel and moved for a new trial on March 28, 2012, prior to entry of final judgment. In his affidavit in support of his motion, Simmons averred that, after he made his initial appearance via his answer on December 1, 2010, he received no further information from either Mitel Leasing’s counsel or the trial court concerning the trial setting until February 22, 2012, when

he received a “reminder” notice that trial was set for March 5, 2012. Simmons averred that he immediately called the court coordinator and asked if he could request a continuance or appear by phone because he was scheduled to be out of state for work on the trial date. He further averred that the court coordinator informed him that he had to appear in person on March 5, 2012; 1 that he did appear for trial and explained to the court that “due to the lack of notice of the trial setting [he] was unprepared for trial and requested a continuance of trial and the continuance was denied”; and that, after the trial court found in favor of Mitel Leasing, he retained counsel to move for a new trial.

On May 4, 2012, the trial court rendered final judgment in favor of Mitel Leasing for $33,695.85 due under the lease, pre- and post-judgment interest, and court costs.

On May 16, 2012, Mitel Leasing responded to Simmons’ new trial motion.

It argued that, although Simmons claimed that he did not receive timely notice of the trial setting, the trial court’s docket control order “indicates that it was mailed to Defendant Todd Simmons at [his home address] on or about June 14, 2011 and provided the Defendant with notice of all future deadlines and trial settings in this matter.” Mitel Leasing also noted that the address listed for Simmons on the

1 Simmons then called the court coordinator on March 2, 2012, to confirm the trial date of March 5. The court coordinator confirmed that date but then called Simmons back to inform him that the court had set trial for March 6, 2012.

docket control order was the same address used for the setting reminder and used by Simmons himself when he filed his answer.

The trial court held a hearing on Simmons’ new trial motion on May 18, 2012. Simmons testified that after he answered he did not have any contact with Mitel Leasing’s attorney until the date of trial. He stated that he first learned of the March 5, 2012 trial date on February 22, 2012, when he received the setting reminder via regular mail. He further stated that he first saw the trial court’s docket control order when his counsel showed it to him on the date of the new trial hearing. He testified that he never threw away any mail sent to him from the court.

The trial court, upon reviewing the setting reminder, noted that “the date it was generated, which is usually the date it’s sent out by the clerk’s office, is January 5, 2012.” Simmons acknowledged this, but again testified that he did not actually receive the reminder until February 22, 2012, and that there was never more than a five-day period in which he did not check his mail. Simmons testified that he raised the notice issue with the trial court on March 6, 2012, and moved for a continuance, which the trial court denied. On cross-examination, Simmons acknowledged that he did not contact an attorney after receiving the setting reminder and that he did not file a written motion for continuance.

Mitel Leasing did not present any evidence at this hearing. Instead, its counsel argued:

I received my notice timely of the trial setting. The presumption is that the address was correct on the defendant’s notice and the presumption was that the defendant received his; but I have no way of saying that he did or did not, obviously.

I would only further add that the defendant came, appeared at trial, conducted the proceeding and even called and brought on additional witnesses and, therefore, conducted the trial proceeding; and the court awarded judgment against him.

The trial court denied Simmons’ motion for new trial.

Simmons then filed a “supplemental” motion for new trial on May 29, 2012, again arguing that he was entitled to a new trial because he did not receive forty- five days’ notice of the trial setting pursuant to Rule 245. Simmons also argued that this case should be treated as a post-answer default judgment, and, as such, the trial court should apply the three-factor test of Craddock v. Sunshine Bus Lines, Inc. to grant a new trial. See 133 S.W.2d 124, 126 (Tex. 1939).

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Todd Simmons v. Mitel Leasing, Inc. F/K/A Inter-Tel, Leasing, Inc., (Tex. Ct. App. 2013).

Todd Simmons v. Mitel Leasing, Inc. F/K/A Inter-Tel, Leasing, Inc. (Todd Simmons v. Mitel Leasing, Inc. F/K/A Inter-Tel, Leasing, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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