Universal Credit Co. v. Cunningham

109 S.W.2d 507, 1937 Tex. App. LEXIS 1141
Court of Appeals of Texas·Decided September 3, 1937·No. Nos. 13503, 13584.·Published·Cited by 1 cases

Opinion

BROWN, Justice.

This is a bill of review filed by plaintiff in error on April 22, 1936, to set aside a default judgment rendered for defendant in error in the county court of Young county on June 6, 1935.

It appears that defendant in error (who will be referred to as appellee) brought suit in the county court of Young county against plaintiff in error (who will be referred to as appellant), asking recovery of a money judgment on a contract alleged to be tainted with usury. Appellee alleged that one A. W. Swenson of Young county was the agent of appellant, a private corporation which deals in automobile paper and loans. Swenson employed a local firm of lawyers to file an amicus curiae pleading denying agency on his part.

The cause was set for trial, evidence introduced before the court (no jury being demanded), and the court found no virtue in the plea by the amicus curiae, but announced in open court that he did not wish to render a default judgment against appellant that day, but would continue the hearing a few days to allow appellant to answer to the merits. What was done with reference to anyone communicating with appellant (whose place of business is in Dallas, Tex.) is not made clear, but after waiting a few days and no appearance or answer having 'been made, the court rendered judgment for appellee on June 6, 1935, and the record discloses that notice of such action was given appellant immediately.

It appears that appellant sought to learn from certain persons, including a practicing attorney in Young county, just how long the term of the county court would continue, after the judgment was rendered against it, and, from the information given, appellant believed it had ample time within which to file whatever pleading it desired; and on July 5, 1935, appellant filed what it designates a “Motion for New Trial and/or Motion to Set Aside Judgment and/or Bill of Review.”

This pleading was filed after the term of court, at which the judgment was taken, had expired by operation of law, and •its purpose as a bill of review only was served by its late filing.

After a hearing, the trial court denied appellant the relief sought, on July 17, 1935, and an appeal was taken from such order and judgment to this court; but the appeal bond was not filed within the time required by law, and we were compelled to dismiss the appeal on October 4, 1935. We overruled the motion' for a rehearing on November 8, 1935.

Thus it will be seen that even after final action was taken by this court, on the appeal, appellant had until approximately January 16, 1936, in which to bring its cause before us by writ of error proceedings. But appellant, for reasons best known to it, abandoned all further efforts to obtain relief from the judgment of the trial court overruling its “Motion for New Trial and/ or Motion to Set Aside Judgment, and/or Bill of Review” theretofore filed, and on January 20, 1936, filed suit in one of the county courts of Dallas county, to which county an execution on appellee’s judgment against it had been issued, to enjoin the execution of the writ. Relief was granted appellant, but ascertaining that such proceeding was without merit, appellant, on April 17, 1936, took a nonsuit in its Dallas county case; and, on April 22, 1936, went back to Young county and filed a second bill of review, out of the trial of which, and because it was denied all relief thereunder, appellant comes to us with this appeal.

A defendant is entitled to a bill of review only when he can show that he has been prevented from defending the suit brought against him through fraud, accident, or mistake (and this means a mutual mistake, or the mistake of the complaining party coupled with some act of the opposing party, which enters into the unilateral mistake and1 brings it about, and this is, after all, fraud); and that there has been no want of diligence on the part of the complaining party. That is, that he, by his diligence, could not file and prosecute a motion for a new trial, before the end of the term at which the judgment complained about was rendered, or could not protect his rights by an appeal. And, furthermore, the bill of review must show that the complaining party has a meritorious defense to the cause of action brought against him. Johnson v. Templeton, 60 Tex. 238; Smith v. Ferrell (Tex.Com.App.) 44 S.W.(2d) 962.

There are two chapters to a proceeding for a bill of review: First, the complaining party must establish the facts nec *509 essary to impeach the judgment complained of, and second, he must then establish a meritorious defense. If he fails, in either of the necessary steps, his efforts are abortive.

If he shows no right to set aside the former judgment it is idle to inquire into its merits; and should he show a right to set aside the former judgment, but disclose no meritorious defense, it would be a useless waste of time to disturb the judgment theretofore rendered.

We believe that appellant’s second bill of review (being the one before us), which sets forth, substantially, what we have stated above, concerning the steps taken by it, after learning of the judgment against it, is wholly insufficient in equity as a bill of review.-

We are unable to see how appellant can rely upon the open record in order to show a semblance of the diligence required of it, under the facts disclosed.

The matter of the duration of the term of court at which judgment was taken against appellant is one of public record. Reasonable diligence required appellant to ascertain the facts from the proper source. This it did not do.

Even if the mistake as to the extent and duration of the term of court had been brought about through appellant making inquiry of the presiding judge, this would not suffice, in our opinion.

“In the absence of some element of fraud or misconduct on the part of the adverse party, equity will never interpose to vacate or enjoin a judgment on the ground of mistake or ignorance of law, nor because of a mistake of law caused by opinions or suggestions of the judge before whom the cause was tried.” Freeman on Judgments (5th Ed.) vol. 3, par. 1246, p. 2596; 25 Tex.Jur. p. 613.

Chief Justice Hemphill in Cannon v. Hemphill, 7 Tex. 184, draws the distinction between “a mistake of the law and ignorance of the law,” and says: “If the suitor come under the latter category, he is immediately met and overwhelmed by the maxim that ignorantia juris neminem ex-cusat.”

Equity will not set aside a judgment because through negligence or mistake of one’s attorney a full and fair presentment of his case has not been had. 25 Tex.Jur. par. 206, p. 614, and cases cited.

Truth is, the record discloses that appellant sought to avoid any appearance in the trial court for as long a time as possible, and, being forced into such court to seek relief, it appears that this appeal comes through a petition for writ of error. Why the delay, after appellant had been thoroughly educated on the matter of the terms of the court and their duration, is not made known to us.

We do not believe that appellant’s pleading in this suit shows any equitable ground for the relief sought, but we will go further and discuss the case.

Of the 14 assignments of error found in appellant’s brief several should not be considered and several disclose on their faces nothing to consider.

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Universal Credit Co. v. Cunningham, 109 S.W.2d 507, 1937 Tex. App. LEXIS 1141 (Tex. Ct. App. 1937).

109 S.W.2d 507 (Universal Credit Co. v. Cunningham) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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