MC Phase II Owner, LLC v. TI Shopping Center, LLC
477 S.W.3d 489
Tex. App.2016Background
- TI-TX sued MCP2 and TI-DE in Williamson County, Texas for trespass to try title, unjust enrichment, and money had and received over a disputed Round Rock property.
- TI-TX claimed MCP2 and TI-DE, foreign filing entities, transferred property via a false deed and were served via the Texas Secretary of State (SOS) under the Texas Business Organizations Code.
- MCP2 and TI-DE did not answer, and TI-TX obtained a default judgment on December 5, 2014, including damages, pre-judgment interest, and attorney’s fees.
- A writ of execution issued January 1, 2015; MCP2 and TI-DE filed a restricted appeal on March 3, 2015.
- The restricted appeal challenges the lack of an SOS Whitney certificate and purported noncompliance with the long-arm statute for service.
- The court held that, without a Whitney certificate, the trial court lacked personal jurisdiction to enter the default judgment and reversed and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the default judgment is valid without a Whitney certificate | MCP2/TI-DE argue Whitney certificate required. | TI-TX asserts Whitney certificate not required under BOC service. | Whitney certificate required; judgment reversed |
Key Cases Cited
- Whitney v. L & L Realty Corp., 500 S.W.2d 94 (Tex. 1973) (Whitney certificate required to confer jurisdiction under long-arm service)
- Wachovia Bank of Del., N.A. v. Gilliam, 215 S.W.3d 848 (Tex. 2007) (address and forwarding of SOS service; no presumptions in restricted appeals)
- Campus Invs., Inc. v. Cullever, 144 S.W.3d 464 (Tex. 2004) (certificate from SOS establishes service; designee not an agent for service)
- Fid. & Guar. Ins. Co. v. Drewery Constr. Co., 186 S.W.3d 571 (Tex. 2006) (restricted appeal carries no presumption of valid service)
- Marrot Communications, Inc. v. Town & Country P’ship, 227 S.W.3d 372 (Tex.App. Houston [1st Dist.] 2007) (default judgment requires affirmative demonstration of service)
