U.S. Energy Management, Inc. and Bradley R. Hitchcock v. JRB International, L.P., and Robert Brewer
05-16-00505-CV
| Tex. App. | Apr 26, 2017Background
- JRB sued U.S. Energy Management, Inc. (USEM) and Bradley Hitchcock for breach of contract and defamation; service efforts targeted Holly Hitchcock at USEM’s registered office (1116 Dobie Drive).
- After motion for substituted service, USEM answered; later counsel withdrew and USEM became effectively unrepresented.
- USEM moved its office to 1912 Red Rock Drive but did not update its registered agent/office with the Texas Secretary of State.
- JRB mailed notice of summary-judgment submission and later the final judgment to the Dobie Drive address on file; some mail was returned as unclaimed/unable to forward.
- The trial court granted default summary judgment in favor of JRB; USEM learned of the judgment only when receiver-related calls began and then filed a bill of review alleging lack of notice and asserting a meritorious defense (payment of commissions).
- The trial court denied the bill of review; the court of appeals affirmed, holding USEM was negligent for failing to update its registered-office address and therefore could not claim lack of notice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether USEM was entitled to bill-of-review relief because it lacked proper notice of JRB’s summary-judgment submission and final judgment | USEM: JRB intentionally used an old address so USEM did not receive required notice; lack of notice excuses the bill-of-review elements and entitles relief | JRB: USEM had a statutory duty to maintain/update its registered agent/office; mailing to address on file was reasonably calculated to provide notice and USEM’s failure to update was negligent | Affirmed: USEM was negligent for failing to update its registered address; JRB’s service was reasonably calculated to provide notice; bill of review denied. Other appellate issues not reached. |
Key Cases Cited
- Thompson v. Henderson, 45 S.W.3d 283 (Tex. App.—Dallas 2001) (elements and narrow scope of bill of review relief)
- Caldwell v. Barnes, 154 S.W.3d 93 (Tex. 2004) (non-service relieves plaintiff of proving meritorious defense and causation element in bill of review)
- Mabon Ltd. v. Afri-Carib Enter., Inc., 369 S.W.3d 809 (Tex. 2012) (extending non-service principles to include non-notice of trial setting)
- Interaction, Inc. v. State, 17 S.W.3d 775 (Tex. App.—Austin 2000) (due-process notice requires means reasonably calculated to apprise defendant; courts indulge presumptions favoring final judgments)
- Campus Invs., Inc. v. Cullever, 144 S.W.3d 464 (Tex. 2004) (failure to update registered office can support denial of bill of review for lack of notice)
