Katy Venture, Ltd. and Katy Management, L.L.C. v. Cremona Bistro Corp.

Summary

The Supreme Court of Texas held that the petitioners raised a genuine issue of material fact in their equitable bill-of-review action challenging a no-answer default judgment. Although the petitioners failed to update their registered address, evidence indicated that the respondent knew their current address but certified an outdated address as their last known mailing address under Texas Rule of Civil Procedure 239a. The court reversed the court of appeals’ judgment and remanded for further proceedings.

Holdings

1. The Katy entities raised a genuine issue of material fact as to whether Cremona gave the trial-court clerk their last known mailing address as required by Rule 239a.
2. The Katy entities' negligent failure to update their registered address did not necessarily contribute to their failure to receive notice of the default judgment because evidence showed Cremona may already have known their correct current address.
3. The trial court should not have granted summary judgment, and the court of appeals erred by affirming that judgment.

Questions Presented

1. Whether the Katy entities raised a genuine issue of material fact regarding whether Cremona failed to provide their actual last known mailing address under Texas Rule of Civil Procedure 239a.
2. Whether the Katy entities' failure to update their registered address necessarily established that their own negligence contributed to their failure to receive notice of the default judgment.
3. Whether the trial court properly granted traditional summary judgment against the Katy entities' equitable bill of review.

Disposition

reversed_and_remanded