Unger Texas Stone, LP and Shelia Unger v. Deere Credit, Inc.

Summary

The Texas Eleventh Court of Appeals reversed a default judgment against Unger Texas Stone, LP and Shelia Unger in a restricted appeal. The court held that Shelia’s timely pro se letter constituted an answer for herself and the limited partnership, entitling both appellants to notice of Deere Credit’s motion for default judgment and an opportunity to be heard.

Holdings

1. A timely filed pro se letter constitutes an answer when, viewed by its substance rather than its title or formal style, it provides fair and adequate notice that the defendant disputes the plaintiff's claims. Shelia's letter was therefore a sufficient answer on her behalf.
2. A timely answer filed by a non-attorney associated with a limited partnership may constitute an effective answer on behalf of the limited partnership for purposes of preventing a default judgment, even though the entity ordinarily must appear through licensed counsel.
3. A party that has filed an answer before judgment is rendered against it is entitled, as a matter of due process, to notice of filings and settings that may result in disposition of the action and a meaningful opportunity to be heard. Entering default judgment without that notice establishes error apparent on the face of the record.

Questions Presented

1. Whether Shelia Unger's timely filed pro se letter contained sufficient information to constitute an answer to Deere Credit's suit.
2. Whether Shelia Unger's letter constituted an answer on behalf of Unger Texas Stone, LP even though it was filed by a non-attorney associated with the limited partnership.
3. Whether the trial court erred on the face of the record by entering a default judgment without giving appellants notice of the motion for default judgment and an opportunity to respond after they had filed an answer.

Disposition

reversed_and_remanded