Lead Opinion
MAJORITY OPINION
In an attempt to have a six year old default judgment set aside, appellant, Angelo Dispensa filed a bill of review and a suit collaterally attacking the judgment. He claimed that he was not served with the underlying law suit University State Bank filed against him. He claims that this lack of service prevented the court from obtaining personal jurisdiction over him, and made the trial court’s judgment void. He also claims that the trial court erred (1) in granting a summary judgment on his collateral attack and in not allowing him to introduce evidence extrinsic to the judgment and (2) in dismissing his bill of review. We conclude that the judgment was not void, but merely voidable because Dispensa received notice of the judgment shortly after it was entered. We also conclude that (1) Dispensa, having received notice of the default judgment shortly after it was entered, lost his right to attack the judgment by a bill of review when he failed to timely use the remedies contained in the Texas Rules of Civil Procedure for setting aside default judgments and (2) Dispensa could not rely on extrinsic evidence to collaterally attack the valid service recitals in the judgment.
Dispensa was a Texas resident when he executed a promissory note to the Bank in 1987 for $281,009.16. He moved to Connecticut in 1989 and shortly thereafter defaulted on the note. The Bank sued on the note in 1990. In its first amended original petition, the Bank alleged Dispensa was a nonresident engaging in business in Texas without a place of business or agent for service of process, and based on this, served the Secretary of State of Texas as Dispensa’s agent for service of process. See Tex. Civ. Prac. & Rem. Code Ann. § 17.045 (Vernon 1997). The Bank’s petition alleged that Dispensa lived at 109 Long Hill Drive, East Hartford, Connecticut 06108.
The Secretary of State forwarded the citation and petition to this address. The certificate of the Secretary of the State, dated September 14, 1990, stated the citations and petitions were “forwarded on AUGUST 21, 1990 by CERTIFIED MAIL, return receipt requested, to” Dispensa at 109 Long Hill Drive, East Hartford, CT 06108. The certificate further stated “[t]he PROCESS was returned to this office on SEPTEMBER 13, 1990, bearing the notation UNCLAIMED.”
Apparently, when the Bank sent the citation and petition to the Secretary of State the address was correct, but, by the time the Secretary of State sent the citation to Dis-pensa, he had moved. The Bank had his new address in its files but did not try to correct the service by serving Dispensa at the new address.
Based on Dispensa’s failure to answer the suit, the Bank moved for entry of a default judgment. On December 26, 1990, the trial court entered a default judgment against Dispensa. The default judgment recited that Dispensa was duly served with citation according to law but failed to appear and wholly defaulted. Although the record is unclear as to exactly what type of notice Dispensa received, Dispensa received notice of the entry of the default judgment only days after it was entered. He contacted a lawyer to take care of the problem but never followed up on it.
Six years later, when the Bank instituted foreclosure proceedings against the property, Dispensa began his first real attempts to have the judgment set aside. On September 6, 1996, he filed his original petition alleging that the suit was brought as a collateral attack on the default judgment and claiming that the judgment was void because he was never served with process. The Bank filed a motion for summary judgment alleging that Dispensa’s collateral attack must fail because the judgment was voidable, not void, and was not subject to a collateral attack. The Bank contended that the judgment’s recital of valid service was conclusive and that extrinsic evidence could not be used to establish lack of jurisdiction. The trial court agreed and ordered Dispensa to file an amended petition asking for a bill of review. Dispensa complied, filing a second amended original petition collaterally attacking the default judgment as void and, in the alternative, asking for a bill of review.
In response to Dispensa’s request, the trial court entered findings of fact and conclusions of law. The trial court’s findings of fact stated that “[b]y the time service was made on the secretary of state, Dispensa had moved from 109 Long Hill Drive,” the secretary of state forwarded process to the address given by the Bank, and the process was returned marked “unclaimed.” The Court also found that Dispensa learned of the December 26,1990, default judgment “as early as January 1991, and probably on or before December 31, 1990.” In addition, the court found that Dispensa “learned of the
The trial court’s conclusions of law found that Dispensa was not properly served with citation in the underlying case but concluded that the four-year statute of limitations barred Dispensa’s bill of review because he knew about the default judgment “almost four years before the statute of limitations ran.” The trial court further concluded that Dispensa would not be entitled to a bill of review because he did not exhaust his legal remedies of a motion for new trial, appeal, or writ of error, and he knew about the judgment in time to file a motion for new trial.
As we have said earlier, Dispensa has two main complaints on appeal. First, he complains that the court erred when it granted summary judgment and dismissed his collateral attack. Second, he complains that the trial court wrongly concluded that his bill of review claim was barred by the statute of limitations and barred because he did not exhaust other remedies such as a motion for new trial, appeal, or writ of error to set aside the judgment. We will address the bill of review first.
The Bill of Review
The ultimate question is whether Dispensa had to meet the bill of review requirement that he exercise due diligence in setting aside the judgment. See Rizk v. Mayad,
A. Due Process
The validity of a personal judgment against an out of state person depends on the state meeting the due process requirements of the Fourteenth Amendment. See WorldWide Volkswagen Corp. v. Woodson,
1. Adequate Notice
Almost fifty years ago the Supreme Court explained what kind of notice will satisfy due process concerns and constitute adequate notice. See Mullane v. Central Hanover Bank & Trust Co.,
“An elementary and fundamental requirement of due process in any proceeding which is to be accorded finality is notice reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections. The notice must be of such nature as reasonably to convey the required information and it must afford a reasonable time for those interested to make their appearance.
But if with due regard for the practicalities and peculiarities of the case these conditions are reasonably met the constitutional requirements are satisfied.
... [W]hen notice is a person’s due, process which is a mere gesture is not due process. The means employed must be such as one desirous of actually informing*927 the absentee might reasonably adopt to accomplish it. The reasonableness and hence the constitutional validity of any chosen method may be defended on the ground that it is in itself reasonably certain to inform those affected....”
Id (citations omitted).
The issue of procedural due process was revisited in a 1965 Supreme Court opinion, where the court focused on the right to be heard. See Armstrong v. Manzo,
2. The Importance of Peralta
More recently, in Peralta, the Supreme Court again had an opportunity to address the due process rights of a litigant. See Peralta,
Peralta received no actual or constructive notice of the suit or the judgment against him. See id.,
The court agreed that under the circumstances, Peralta’s due process rights were violated. See id.
3. This Case is Different From Peralta
Although Peralta is an important due process case for Texas procedure, its actual impact is more limited than Dispensa contends. As one law review article has noted,
Cases are infrequent in which there is no service at all as opposed to defective service. ... Even if the defendant receives no notice initially, it is likely he will receive either formal or actual notice3 of the judgment against him during a period in which relief is guaranteed without an allegation of a meritorious defense.
See William R. Trail & Julia A. Beck, Peralta v. Heights Medical Center, Inc.: A Void Judgment Is a Void Judgment Is a Void Judgment — Bill of Review and Procedural
Even though Dispensa was not served, he did receive notice of the judgment. Although the record is unclear whether Dispen-sa received rule 239a notice of the judgment, clearly, he received notice shortly after the entry of the judgment. The court found that Dispensa probably learned of the judgment within five days of its entry; but that in any event, he knew of it within thirty to thirty-five days. Thus, at the very least, Dispensa had actual notice of the judgment and may have had formal notice pursuant to the rules of civil procedure. Furthermore, he had notice at a time when he could have had the judgment set aside simply by showing that he was not served with citation. See Tex.R. Crv. P. 306a(4); Tex.R. Civ. P. 329b; Tex. R.App. P. 30.
This notice does not violate Peralta and therefore does not violate the due process clause of the Fourteenth Amendment because Dispensa received “notice at a meaningful time and in a meaningful manner that would have given him an opportunity to be heard.” See Peralta,
Because Dispensa’s own inaction — rather than lack of notice — caused him to miss the opportunities for filing a motion for new trial and a restricted appeal, the trial court correctly made the dual conclusions that the judgment was not constitutionally void and that Dispensa had to meet the requirements of a bill of review. See, e.g., Transworld Fin. Servs. Corp. v. Briscoe,
THE COLLATERAL ATTACK
Dispensa’s second argument against the judgment presents an equally interesting issue. In points of error two through four, Dispensa complains because the trial court held that (1) he could not introduce extrinsic evidence to collaterally attack the default judgment, (2) the default judgment should not be set aside by a collateral attack, and (3) Dispensa was required to pursue a bill of review instead of a collateral attack.
We look first at whether Dispensa could collaterally attack the judgment.
If a court has not acquired jurisdiction of both the parties and the subject matter of the litigation, the judgment is void and subject to both direct and collateral attack. “[A] void judgment is one entirely null within itself, and which is not susceptible of ratification or confirmation, and its nullity cannot be waived.”
Id. (alteration in original) (citations omitted). However, the Supreme Court cases and most court of appeal cases indicate that this rule cannot be taken as literally as Dispensa argues it should be. And, in fact, the Texas Rules of Civil Procedure and Texas case law limit the ability of one to attack a judgment alleged to be void for defective service. See Tex.R. Civ. P. 329b(f) (stating that after the trial court has lost plenary power, the only way to attack a judgment is by a bill of review); Akers v. Simpson,
As long ago as 1935, the Supreme Court noted limitations on what a court could look to when a judgment was attacked collaterally.
It has long been the rule of law in this state, in fact it is the general rule, that a judgment rendered in a civil case against a defendant without some character of appearance by him, or citation having been issued and served on him, is a nullity. In spite of the rule just mentioned, it is the well settled law of this state that where a judgment is collaterally attacked, plain jurisdiction recitals contained therein must be accorded absolute verity.
Pure Oil Co. v. Reece,
Later, in 1969, the court was even more clear that, when defective service is alleged, a court cannot go behind the judgment. “It is the firmly established rule in Texas that a defendant who is not served and who does not appear may not, as a matter of public policy, attack the verity of a judgment in a collateral proceeding; the jurisdictional recitals import absolute verity.” Akers,
Citing us to several collateral attack cases, Dispensa has argued that courts have been willing to look behind the recitals in a judgment. See Mueller v. Banks,
Dispensa has also argued that a court can look to extrinsic evidence when a non-resident has attacked a judgment for defective service. In support of this, he cites us to several cases and to McDonald’s Texas Civil Practice. See O’Boyle v. Bevil, 259 F.2d 506, 513 (5th Cir.1958); Hicks,
Here, the court had potential jurisdiction over Dispensa. Our rules of procedure governing service of process and our long arm statute — each of which protect the due process rights of individuals — enabled the court to have potential jurisdiction over him. Thus, because the court had potential jurisdiction over Dispensa, he is subject to the general rule regarding collateral attacks on judgment. As stated earlier, under that rule, a defendant alleging defective service may not rely on extrinsic evidence to attack the judgment and may not collaterally attack the judgment.
We overrule points of error one, two, three, and four and affirm the judgment of the trial court.
MAURICE E. AMIDEI, Justice, dissenting.
Notes
. A bill of review is considered a direct attack on default judgment.
. When this judgment was entered, the proceeding by which a party made a direct attack on a judgment after the trial court had lost plenary power but before six months had passed was called a writ of error. Currently, the proceeding is called a restricted appeal. See TexR.App. P. 30.
. The authors of this article note that they use "formal notice” to describe the notice provided by the Texas Rules of Civil Procedure and “actual notice" to describe the situation where the defendant becomes aware of the proceedings against him without the intervention of the official notice under the Texas Rules of Civil Procedure. See William R. Trail & Julia A. Beck, Peralta v. Heights Medical Center, Inc.: A Void Judgment Is a Void Judgment Is a Void Judgment — Bill of Review and Procedural Due Process in Texas, 40 Baylor L.Rev. 367, 379 nn.73-74 (1988).
. "A collateral attack is an attempt to avoid the effect of a judgment in a proceeding brought for some other purpose.” Gus M. Hodges, Collateral Attacks on Judgments, 41 Tex. L.Rev. 163, 163 (1962).
. When McEwen was issued in 1961, rule 329b read in relevant part as follows: " 'After the expiration of thirty (30) days from the date the judgment is rendered or motion for new trial overruled, the judgment cannot be set aside except by bill of review for sufficient cause, filed within the time allowed by law.’ " McEwen,
to mean that when the time for filing a motion for new trial has expired and relief may not be obtained by appeal, a proceeding in the nature of a bill of review is the exclusive method of vacating a default judgment rendered in a case in which the court had jurisdictional power to render it. Into this category will fall those cases in which a default judgment is asserted to be void for want of service, or of valid service, of process.
Id. at 710 (emphasis added).
. Although we have been cited to no cases on the issue, the general rule as outlined in Akers could not apply if a defendant did not receive any notice of the suit or judgment (i.e. if the service violated the due process clause of the Fourteenth Amendment as in Peralta.). Such an application would violate the due process clause of the Fourteenth Amendment.
Dissenting Opinion
dissenting.
I respectfully dissent.
Because Mr. Dispensa received a rule 239a notice of default judgment entered against him within five days of entry of the judgment, the majority concludes he had actual notice of the judgment at a time when he could have had the judgment set aside simply by showing that he was not served with citation. While this is no doubt true, a default judgment entered with no notice of the pendency of the action renders the default judgment constitutionally invalid. Peralta v. Heights Medical Center, Inc.,
A fundamental requirement of due process is “the opportunity to be heard.” Grannis v. Ordean,234 U.S. 385 , 394,34 S.Ct. 779 , 783,58 L.Ed. 1363 . It is an opportunity which must be granted at a meaningful time and in a meaningful manner. The trial court could have fully accorded this right to the petitioner only by granting his motion to set aside the decree and consider the case anew. Only that would have wiped the slate clean. Only that would have restored the petitioner to the position he would have occupied had due process of law been accorded to him in the first place. His motion should have been granted.
Armstrong,
In Peralta the United States Supreme Court held that Peralta was entitled to have a default judgment set aside in a Texas bill of review case on the grounds that he did not receive proper service of process, even though he did not have a meritorious defense. Peralta,
In this case, the majority argues that because Dispensa admitted receiving the notice of default judgment within five days of the entry of the judgment, he could have attacked the judgment by motion for new trial, or at least by writ of error within six months. Instead, Dispensa waited until after the statute of limitations had run for filing a bill of review (four years), and then filed a collateral attack on the judgment on the theory that the initial judgment was void for want of personal service. The majority contends that by receiving the default judgment notice, Peralta and due process are not violated because Dispensa received “notice at a meaningful time and in a meaningful manner that would have given him an opportunity to be heard.” To satisfy due process, the “notice” must be of the “pendency of the action and afford them the opportunity to present their objections.” Peralta,
Because the judgment in this case was void, it can be collaterally attacked. The record in this case clearly reflects Dispensa was denied constitutional due process because he did not receive notice of the pending action. Peralta,
Dispensa waited six years before filing this suit to set aside the default judgment. In this proceeding he collaterally attacked the judgment as being void because no notice was served on him of the pending action. By the time Dispensa filed this suit, limitations had run on all direct attacks available: (1) motion for new trial (30 days), (2) writ of error (six months), and (3) bill of review (four years). Therefore, his only recourse was to collaterally attack the judgment. A collateral attack is any proceeding that does not meet all the requirements of a valid direct attack, but seeks to avoid the effect of a judgment. Dept. of Transp. v. T. Brown Const.,
