Capital One Bank (USA), N.A. v. Conti
2011 Tex. App. LEXIS 734
| Tex. App. | 2011Background
- Capital One sued Conti for breach of a credit card account contract and amounts owed.
- Conti asserted limitations and counterclaims under the Texas Debt Collection Act, FDCPA, and common-law unfair debt collection.
- Conti’s last payment on the account was June 2005; Capital One’s petition was file-stamped August 4, 2009.
- The trial court granted traditional summary judgment to Conti and awarded fees; Capital One appeals.
- The dispositive issue is whether the action was timely under the open-account statute of limitations and accrual rules.
- The court held that proof of last payment alone does not conclusively establish accrual or cessation of dealings, so summary judgment was improper and must be reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is a suit on an open account timely under §16.004(c)? | Capital One argues the accrual date is the last payment date. | Conti argues accrual is the last payment date as a definite point in time. | No; accrual not fixed by last payment alone; burden to show cessation of dealings. |
| Does last-payment evidence conclusively establish accrual date in open-account claims? | Capital One contends last payment marks accrual. | Conti relies on last payment as definitive accrual point. | Not conclusive; other evidence of ongoing dealings may show accrual later. |
| Did Conti meet his burden to prove the date dealings ceased? | Capital One asserts the evidence suffices to show cease-date. | Conti contends more proof needed beyond last payment. | Conti did not meet burden; trial court erred in granting summary judgment. |
Key Cases Cited
- KPMG Peat Marwick v. Harrison County Hous. Fin. Corp., 988 S.W.2d 746 (Tex. 1999) (burden to prove accrual and cessation of dealings for limitations issues)
- Valence Operating Co. v. Dorsett, 164 S.W.3d 656 (Tex. 2005) (de novo standard for summary judgment; limitations framework)
- Eaves v. Unifund CCR Partners, 301 S.W.3d 402 (Tex. App.-El Paso 2009) (open-account elements and applicability to credit card debt)