WWLC INVESTMENT, L.P., PETITIONER, v. SORAB MIRAKI, RESPONDENT
No. 20-0173
IN THE SUPREME COURT OF TEXAS
June 18, 2021
ON PETITION FOR REVIEW FROM THE COURT OF APPEALS FOR THE FIFTH DISTRICT OF TEXAS
PER CURIAM
Petitioner WWLC Investment, L.P., a Texas limited partnership, seeks a bill of review vacating a default judgment taken against it by respondent Sorab Miraki. WWLC contends that it was not properly served with process. A limited partnership’s agents for service of process are its general partner,
WWLC leased commercial property to Miraki effective October 2013 for use as a specialty food market and restaurant. The lease term was five years, with monthly rent starting at about $4,400 in the first year and increasing to about $5,400 for the remainder of the term. Wendy Chen, then WWLC’s owner and president and later its CEO, executed the lease for WWLC. Two years into the lease, Miraki stopped paying rent, complaining that WWLC had not made promised repairs. WWLC had Miraki evicted, and he sued WWLC in November 2015 for breach of lease, fraud, and violations of the Texas Deceptive Trade Practices Act,
Miraki’s process server tried five times over the course of about a week in January 2016 to personally serve Chen at a house that she owned, but the attempted service was unsuccessful. Miraki then obtained an order for substituted service under
Miraki made no attempt to serve WWLC through its registered agent, HPZ International, Inc. WWLC identified HPZ International, Inc. as its registered agent in name-change and assumed-name documents filed with the Secretary of State in 2011. By those filings, WLC Investment, L.P., changed its name to WWLC, and WWLC adopted WLC Investment, L.P. as an assumed name. The Business Organizations Code required both documents to be filed by WWLC’s general partner,
On June 1, 2017, a month after it first learned of the judgment from receipt of a demand for payment from the constable, WWLC sued to enjoin Miraki from executing on the formerly leased property and for a bill of review. The trial court heard both two weeks later and denied all relief. Though the court did not make findings of fact, it stated at the hearing on WWLC’s motion for new trial that Chen had to be its general partner because “she was the only person” involved in WWLC. The court of appeals affirmed. ___ S.W.3d ___ (Tex. App.—Dallas 2018). Noting that HPZ’s charter had been forfeited while Miraki was trying to serve Chen and that Chen was WWLC’s president and owner, the court concluded that the trial court did not abuse its discretion in finding that service on WWLC was not defective. Id. at ___.
“A bill of review is an equitable proceeding brought by a party seeking to set aside a prior judgment that is no longer subject to challenge by a motion for new trial or appeal. Bill of review plaintiffs must ordinarily plead and prove (1) a meritorious defense to the underlying cause of action, (2) which the plaintiffs were prevented from making by the fraud, accident or wrongful act of the opposing party or official mistake, (3) unmixed with any fault or negligence on their own part.” Caldwell v. Barnes, 154 S.W.3d 93, 96 (Tex. 2004) (per curiam) (citations omitted). But plaintiffs alleging that they were not properly served are excused from proving the first two elements. They need only prove the third, id. at 96–97, which “[p]roof of non-service . . . will conclusively establish,” id. at 97.
“For well over a century, this court has required that strict compliance with the rules for service of citation affirmatively appear on the record in order for a default judgment to withstand direct attack. There are no presumptions in favor of valid issuance, service, and return of citation in the face of a [direct] attack on a default judgment.” Primate Constr., Inc. v. Silver, 884 S.W.2d 151, 152 (Tex. 1994) (per curiam) (citations omitted). A bill of review is a direct attack on a judgment. PNS Stores, Inc. v. Rivera, 379 S.W.3d 267, 271 (Tex. 2012) (“A direct attack—such as an appeal, a motion for new trial, or a bill of review—attempts to correct, amend, modify or vacate a judgment . . . .“).
As noted at the outset, service on a limited partnership may be made on its general partner or registered agent.
While the trial court found that Chen’s testimony established that she was the sole person involved with WWLC, that finding, standing alone, does not qualify her as WWLC’s general partner. A limited partnership’s general partner is “a person who is admitted to a limited partnership as a general partner in accordance with the governing documents of the limited partnership.”
Miraki additionally argues that service on Chen was proper because she served as president and registered agent of both HPZ and WWLC. But there is no evidence that Chen was HPZ’s president, only that she was its “authorized person” to sign the documents filed for WWLC. And there is no evidence that Chen served as either HPZ’s or WWLC’s registered agent. Instead, the evidence shows that only HPZ, not Chen, was WWLC’s registered agent.
Finally, Miraki argues, and the court of appeals reasoned, that service through Chen was proper because HPZ forfeited its corporate charter on January 29, 2016. ___ S.W.3d at ___. But all five of Miraki’s process server’s attempts to serve Chen occurred on or before January 29, when he could have served HPZ. Moreover, a corporate general partner that loses its certificate of formation remains a limited partnership’s general partner for at least 90 days unless the partnership agreement or the partners by written consent provide otherwise.
In sum, WWLC met its burden to prove lack of proper service and is therefore
OPINION DELIVERED: June 18, 2021
