Summary
The Supreme Court of Texas held that a default judgment challenged by restricted appeal cannot be sustained when the record does not show that substituted service was forwarded to the address required by the applicable statute. Because the record did not establish that 920 King Street was Wachovia's home office or principal office, the court found error apparent on the face of the record, reversed the court of appeals' judgment, vacated the default judgment, and remanded.
Topics
Practice areas
Questions Presented
- Whether, in a restricted appeal from a default judgment, the face of the record must show that substituted service was forwarded to the address required by the applicable service statute.
- Whether the default judgment could survive when the record showed that process was forwarded to 920 King Street but did not establish that the address was Wachovia's home office or principal office.
Holdings
- For a default judgment to survive a restricted appeal, the face of the record must reflect that substituted service was forwarded to the address required by the applicable statute.
- The default judgment could not stand because nothing in the record showed that 920 King Street was Wachovia's home office or principal office as required by the statutes relied upon for substituted service.
Key quotations
“Accordingly, we agree with all the courts of appeals (until this one) that for a default judgment to survive a restricted appeal, the face of the record must reflect that service was forwarded to the address required by statute.” (850)
“While an official's certificate establishes that process was served and forwarded to the address provided, unless it certifies that the forwarding address is the one required by statute, we cannot presume otherwise.” (850)
Factual background
In April 2001, Patsy Fowler obtained a $44,000 home-equity loan secured solely by her home because she had no personal liability on the loan. Fowler later sued, alleging that her daughter, Marjorie Gilliam, owned a twenty-five-percent undivided interest in the home but had not signed the loan documents. The plaintiffs served Wachovia through the Texas Secretary of State, which forwarded process to 920 King Street in Wilmington, Delaware, but the record did not show that address was Wachovia's home office, principal office, or other statutorily required address.
Procedural history
Patsy Fowler and Marjorie Gilliam sued to declare a home-equity lien void and to enjoin foreclosure. The trial court entered a default judgment after substituted service on Wachovia through the Secretary of State. The court of appeals affirmed on the ground that service was proper under the Texas Business Corporation Act. The Supreme Court of Texas reversed the court of appeals, vacated the default judgment, and remanded.
Remand instructions
The court of appeals' judgment was reversed, the default judgment was vacated, and the case was remanded for further proceedings consistent with the opinion.