R & G Transportation, Inc. A/K/A and D/B/A R & G Transportation v. Fleetmatics
01-14-00891-CV
| Tex. App. | Jul 14, 2015Background
- Fleetmatics sued R & G Transportation for breach of contract and filed an amended petition on April 11, 2014.
- Fleetmatics served R & G via the Texas Secretary of State on April 29, 2014; the Secretary returned the process unforwarded to R & G.
- Fleetmatics obtained a final default judgment on July 17, 2014 for damages and attorney’s fees.
- R & G filed a Motion for New Trial on August 18, 2014, asserting it never received notice and that Massachusetts was the proper forum under the contract.
- The trial court overruled the Motion for New Trial by operation of law on November 3, 2014; R & G appealed.
Issues
| Issue | Plaintiff's Argument (Fleetmatics) | Defendant's Argument (R & G) | Held |
|---|---|---|---|
| Whether the trial court erred in overruling R & G’s Motion for New Trial | Service via Secretary of State was sufficient and default judgment was proper | R & G did not receive notice (service returned); failure to answer was mistake/accident; meritorious defense (Massachusetts forum clause); no prejudice to plaintiff | Trial court overruled the Motion for New Trial by operation of law and entered final default judgment |
| Whether Craddock factors support setting aside default judgment | N/A (opposed to setting aside) | R & G: satisfies Craddock: failure to answer was not intentional, meritorious defense exists, and reopening won’t prejudice plaintiff | Trial court denied relief (motion overruled) |
| Compliance with the Soldiers’ and Sailors’ Civil Relief Act (non-military affidavit) | Judgment should stand despite affidavit issue | R & G: appellee failed to file a non-military affidavit before default judgment as required | Trial court nonetheless entered final default judgment |
Key Cases Cited
- Craddock v. Sunshine Bus Lines, Inc., 133 S.W.2d 124 (Tex. 1939) (sets three-part test for setting aside default judgments)
- Dolgencorp of Tex., Inc. v. Lerma, 288 S.W.3d 922 (Tex. 2009) (discusses application of Craddock standards)
- Estate of Pollack v. McMurrey, 858 S.W.2d 388 (Tex. 1993) (addresses excusable neglect and reopening default judgments)
- In re R.R., 209 S.W.3d 112 (Tex. 2006) (procedural guidance on motions for new trial and default judgments)
- Ivy v. Carrell, 407 S.W.2d 212 (Tex. 1966) (related authority on relief from default judgments)