Maverick Oil Tools, LLC v. Dem Well Head Services, LLC
13-15-00588-CV
| Tex. App. | Dec 14, 2017Background
- DEM sued Maverick for unpaid equipment rental invoices; Maverick did not answer and a default judgment was entered on August 6, 2015.
- Maverick moved for a new trial under Craddock, claiming mistake/accident because parties were negotiating a settlement before the default.
- Maverick relied on an affidavit from its owner, Jim Dane, asserting settlement discussions and attempts to resolve the suit; no live testimony for Maverick was presented at the new-trial hearing.
- DEM’s owner, Carmel Martinez, testified at the hearing that no settlement negotiations occurred before the default and that a three‑way call with DEM’s counsel occurred after the judgment.
- The trial court denied Maverick’s motion for new trial; it awarded DEM liquidated damages based on sworn invoices and later modified the judgment reducing the award to $226,322.89.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment should be set aside under Craddock (excuse for failing to answer) | Maverick: failure to answer was mistake/accident because the parties were negotiating settlement before judgment | DEM: controverting evidence — no pre-judgment settlement negotiations; assertions by Maverick were vague and not credible | Denied. Court found credibility issues and concluded Maverick failed to prove an excuse; no abuse of discretion in denying new trial |
| Whether Maverick presented a meritorious defense (Craddock element) | Maverick argued settlement efforts excused non‑appearance and raised defenses | DEM disputed settlement; trial court as factfinder could disbelieve Maverick’s affidavit | Implicitly rejected — because Maverick failed to establish the excusable reason, meritorious defense element not reached in its favor |
| Sufficiency of evidence for damages awarded | Maverick: damages should be reduced by $60,702 (claimed payments/credits) | DEM: default admitted material facts and attached sworn invoices supporting liquidated damages | Affirmed. Default admitted facts except unliquidated damages; invoices constituted liquidated claims and supported the award |
| Prejudgment interest calculation | Maverick: premised on successful challenge to damages | DEM: no change needed because damages stand | Moot/overruled because damages challenge failed |
Key Cases Cited
- Craddock v. Sunshine Bus Lines, Inc., 133 S.W.2d 124 (Tex. 1939) (standard for setting aside default judgments)
- Levine v. Shackelford, Melton & McKinley, L.L.P., 248 S.W.3d 166 (Tex. 2008) (Craddock standard requires negating conscious indifference)
- Dolgencorp of Tex., Inc. v. Lerma, 288 S.W.3d 922 (Tex. 2009) (abuse of discretion review of denial of Craddock motion)
- Pentes Design, Inc. v. Perez, 840 S.W.2d 75 (Tex. App.—Corpus Christi 1992) (conclusory settlement assertions insufficient to excuse default)
- First Nat’l Bank of Irving v. Shockley, 663 S.W.2d 685 (Tex. App.—Corpus Christi 1983) (liquidated damages proved by written instruments need not be proven at hearing)
- Novosad v. Cunningham, 38 S.W.3d 767 (Tex. App.—Houston [14th Dist.] 2001) (default admits amount of liquidated damages)