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MC Phase II Owner, LLC v. TI Shopping Center, LLC
477 S.W.3d 489
Tex. App.
2016
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Background

  • 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)
Read the full case

Case Details

Case Name: MC Phase II Owner, LLC v. TI Shopping Center, LLC
Court Name: Court of Appeals of Texas
Date Published: Sep 28, 2016
Citation: 477 S.W.3d 489
Docket Number: No. 07-15-00138-CV
Court Abbreviation: Tex. App.