Unity National Bank v. John Scroggins

Court of Appeals of Texas·Decided October 21, 2021·No. 01-20-00593-CV·Published

Opinion

Opinion issued October 21, 2021

In The

Court of Appeals

For The

First District of Texas

We dismiss the appeal for lack of jurisdiction.1 Background

In his petition, Scroggins alleged that he was previously employed as the president and chief executive officer (“CEO”) of Unity. Scroggins signed an employment agreement dated May 11, 2010, which had an effective date of May 1, 2010. On April 13, 2017, Kase Lawal, the chairman of the board of directors for Unity, terminated Scroggins’ employment as president and CEO without cause. According to Scroggins, the termination of his employment without cause “triggered the severance provisions contained in [section] 2.2.3. of [his] [e]mployment [a]greement.” Under the employment agreement, Unity was supposed to pay Scroggins “an amount equal to [twenty-two] days of earned vacation time and a severance payment equal [to] six months[’] salary.”

Yet, on April 13, 2017, Unity made “offers of severance conditioned upon Scroggins’ agreement to release [Unity] and its officers, directors, representatives[,] and agents from any and all claims” and to not compete with Unity. Scroggins did not agree to release Unity and did not sign a covenant not to compete. On May, 2, 2017, Scroggins demanded immediate payment of his severance payment and for his accrued unused vacation time, but Unity did not pay.

1 In accordance with Texas Rule of Appellate Procedure 42.3, we provided Unity with notice of our intention to dismiss for lack of jurisdiction. See TEX. R. APP. P.

42.3(a). Unity filed a response to our notice on August 12, 2021.

Scroggins brought a breach-of-contract claim against Unity, alleging that section 2.2.3 of the employment agreement states that Unity may terminate Scroggins’ employment without cause, but, in that event, Scroggins shall be entitled to a severance payment as liquidated damages in an amount equal to six months of his base salary and a payment for all of his unused vacation time. Scroggins also alleged that Unity breached the employment agreement because Scroggins’ employment was terminated by Unity without cause and Unity failed to pay Scroggins his severance payment and for twenty-two days of his unused vacation time. Scroggins requested damages, attorney’s fees, and costs.

Unity answered, generally denying the allegations in Scroggins’ petition and asserting certain defenses including that the employment agreement had expired, the employment agreement was not valid, Scroggins resigned as president and CEO of Unity, and Scroggins’ employment was not terminated by Unity.

Scroggins moved for partial summary judgment,2 asserting that he was entitled to judgment as a matter of law on his breach-of-contract claim. Unity did not respond to Scroggins’ partial-summary-judgment motion. On January 7, 2020,

2 Scroggins titled this motion: “Plaintiff’s Second Amended Motion for Partial Summary Judgment.” The motion addressed Unity’s liability and Scroggins’

damages related to Scroggins’ breach-of-contract claim, but it did not address Scroggins’ claim for attorney’s fees.

the trial court granted Scroggins partial summary judgment on his breach-of-contract claim.

Scroggins then filed a motion for partial summary judgment on his claim for attorney’s fees,3 asserting that he was entitled to judgment as a matter of law on his attorney’s fees claim. Scroggins stated that the trial court had granted his previous partial-summary-judgment motion “on the issue[s] of liability and . . . damages” related to his breach-of-contract claim against Unity, and as a result of Unity’s breach of the employment agreement, Scroggins was forced to retain counsel and pursue enforcement of his breach-of-contract claim. Scroggins requested $22,844.00 in attorney’s fees and $1,882.08 in costs. Scroggins also requested certain “conditional [appellate attorney’s] fees if further action [was] taken in th[e] matter and in the event of an appeal.”

In response to Scroggins’ partial-summary-judgment motion on his attorney’s fees claim, Unity argued that Scroggins was not entitled to judgment as a matter of law on his claim for attorney’s fees because “there [was] a genuine issue of material fact regarding [Unity’s] liability” related to Scroggins’ breach-of-contract claim.

Unity also filed a motion for reconsideration of the trial court’s January 7, 2020 order granting Scroggins partial summary judgment on his breach-of-contract

3 Scroggins titled this partial-summary-judgment motion: “Plaintiff’s Motion for Final Summary Judgment.”

claim. And Unity requested leave to file a response to Scroggins’ partial-summary-judgment motion on his breach-of-contract claim. In its motion for reconsideration, Unity asserted that Scroggins had failed to establish that he was entitled to judgment as a matter of law on his breach-of-contract claim.

On May 21, 2020, the trial court granted Scroggins’

partial-summary-judgment motion on his attorney’s fees claim and entered final judgment in favor of Scroggins on his claims for breach of contract and attorney’s fees. The trial court awarded Scroggins $117,513.77 in damages for his breach-of-contract claim, $22,840.00 in attorney’s fees, and $1,882.08 in costs. It also awarded Scroggins certain conditional appellate attorney’s fees.

On July 16, 2020, Unity filed a sworn Texas Rule of Civil Procedure 306a motion for reinstatement and extension of post-judgment deadlines.4 Unity asserted that it did not receive notice and did not obtain actual knowledge of the trial court’s May 21, 2020 final judgment within twenty days of the date the judgment was signed. Instead, Unity, through its attorney, first received notice or obtained actual knowledge of the trial court’s final judgment on June 23, 2020. Thus, according to Unity, the time periods for the trial court to exercise plenary power and for Unity to file various post-judgment motions, including a motion for new trial, should be deemed to have begun to run on June 23, 2020—the date it first received notice or

4 See TEX. R. CIV. P. 306a(4), (5).

obtained actual knowledge of the trial court’s final judgment. Unity attached to its motion a declaration of its trial counsel.

After Scroggins responded to Unity’s Texas Rule of Civil Procedure 306a motion for reinstatement and extension of post-judgment deadlines,5 the trial court, on July 22, 2020, held a hearing on Unity’s motion.6 At the conclusion of the hearing, the trial court stated orally that it “grant[ed]” Unity’s motion. The trial court did not sign a written order finding “the date when [Unity] or [Unity’s] attorney first . . . received notice or acquired actual knowledge that the [trial court’s] judgment . . . was signed.”7 On July 23, 2020, Unity filed a motion for new trial.8 On August 18, 2020, Unity filed its notice of appeal.

Jurisdiction

“[C]ourts always have jurisdiction to determine their own jurisdiction,” and “[a]ppellate jurisdiction is never presumed.” Heckman v. Williamson Cty., 369 S.W.3d 137, 146 n.14 (Tex. 2012) (internal quotations omitted); Florance v. State, 352 S.W.3d 867, 871 (Tex. App.—Dallas 2011, no pet.); see also Royal Indep. Sch. Dist. v. Ragsdale, 273 S.W.3d 759, 763 (Tex. App.—Houston [14th Dist.] 2008, no

5 Unity filed a reply to Scroggins’ response.

6 See TEX. R. CIV. P. 306a(5).

7 See TEX. R. APP. P. 4.2(c).

8 Scroggins and Unity filed various responses and replies to the new-trial motion.

pet.) (jurisdiction fundamental in nature and cannot be ignored). Whether we have jurisdiction is a question of law, which we review de novo. See Tex. A & M Univ. Sys. v. Koseoglu, 233 S.W.3d 835, 840 (Tex. 2007). If this is an appeal over which we have no jurisdiction, it must be dismissed. Ragsdale, 273 S.W.3d at 763.

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