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    <TD class=3DTextSmall><A class=3DTextSmall=20
      href=3D"mailto:?subject=3DAn opinion from the Texas Judiciary =
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      <P><STRONG><SPAN style=3D"FONT-SIZE: 14pt">Opinion issued May 31,=20
      2007</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 11pt"><STRONG></STRONG></SPAN></P><BR =
WP=3D"BR1"><BR=20
      WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2"><MULTICOL GUTTER=3D"23" =
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      <P></MULTICOL></P><BR WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR =
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      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman"><STRONG>In =

      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>Court of=20
      Appeals</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG>For=20
      The</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 18pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>First=20
      District of Texas</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: EngrvrsOldEng Bd =
BT"><STRONG>
      <HR align=3Dcenter width=3D"15%">
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>NO. <A=20
      name=3D5>01-06-00068-CV</A></STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>____________</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>MARROT=20
      COMMUNICATIONS, INC., Appellant</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>V.</STRONG></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG><A =

      name=3D7></A>TOWN &amp; COUNTRY PARTNERSHIP D/B/A TOWN &amp; =
COUNTRY=20
      VILLAGE, Appellee</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>On =
Appeal=20
      from the<A name=3D8></A> 61st District Court</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG><A =

      name=3D10></A>Harris County, Texas</STRONG></SPAN></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Trial Court=20
      Cause No. 2005-54598</STRONG></SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>
      <HR>
      </STRONG></SPAN>
      <P></P>
      <P align=3Dcenter><SPAN=20
      style=3D"FONT-FAMILY: Times New =
Roman"><STRONG></STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><STRONG>O =
P I N I O=20
      N</STRONG></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Appellant,=20
      Marrot Communications, Inc. ("Marrot"), challenges the trial =
court's=20
      no-answer default judgment rendered in favor of appellee, Town =
&amp;=20
      Country Partnership doing business as Town &amp; Country Village =
("Town=20
      &amp; Country"), in Town &amp; Country's suit against Marrot for =
breach of=20
      contract, fraud, conversion, and quantum meruit/unjust enrichment. =
In=20
      three issues, Marrot contends that the trial court erred in =
denying=20
      Marrot's motion for new trial "based on defective service" and,=20
      alternatively, "under the <EM>Craddock</EM> test,"<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_1_"><SUP>=20
      (1)</SUP></A> and in awarding Town &amp; Country "tort/punitive =
damages."=20
      </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">We reverse=20
      and remand.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>Factual and Procedural =
Background</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In its=20
      original petition, dated August 26, 2005, Town &amp; Country =
alleged that=20
      on or about January 26, 2005, it entered into a "Media Services =
Agreement"=20
      with Marrot. Under the contract, Marrot was required, among other =
things,=20
      to negotiate on behalf of Town &amp; Country with local television =

      stations for advertising air time, coordinate and plan the media =
to be=20
      broadcasted, manage and administer the advertising account, and =
pay the=20
      stations for air time allocated to and used by Town &amp; Country. =
In=20
      particular, Town &amp; Country entrusted Marrot with $200,000, =
$125,000 of=20
      which was to be paid to the stations for advertising between March =
21,=20
      2005, and May 29, 2005 (the "Spring Flight"). The remaining =
$75,000 was to=20
      be paid to the stations for advertising between November 21, 2005 =
and=20
      December 24, 2005 (the "Christmas Holiday Flight").</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Town &amp;=20
      Country further alleged that despite the Spring Flight being run =
by the=20
      media, Marrot never paid the stations the $125,000 fee for the =
advertising=20
      time. Instead, Marrot kept the money for its own use and benefit, =
contrary=20
      to its express agreement to pay for this advertising time from the =

      $200,000 provided by Town &amp; Country for this special purpose. =
As a=20
      result of not receiving payment for the Spring Flight, the =
stations=20
      refused to run the Christmas Holiday Flight. </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In its=20
      first amended original petition, dated September 2, 2005, Town =
&amp;=20
      Country alleged that Marrot "failed to properly maintain a =
registered=20
      agent for service" and requested substituted service, pursuant to =
the=20
      Texas Business Corporations Act,<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_2_"><SUP>=20
      (2)</SUP></A> through the Secretary of State. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">After =
filing its=20
      amended petition, Town &amp; Country then served Marrot by =
substituted=20
      service on the Secretary of State, as indicated by a certificate =
from the=20
      Secretary of State, filed by Town &amp; Country with the trial =
court on=20
      October 20, 2005. Marrot failed to answer, and Town &amp; Country =
filed=20
      its motion for default judgment on November 3, 2005, alleging that =

      "service was effectuated on [Marrot] through the Texas Secretary =
of State=20
      as of September 26, 2005, making [Marrot's] answer deadline =
October 17,=20
      2005," and that proof of service had been on file with the trial =
court for=20
      more than ten days.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_3_"><SUP>=20
      (3)</SUP></A> </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The trial=20
      court signed its default judgment on November 15, 2005, reciting =
that it=20
      found and determined that Marrot had "been, duly, regularly and =
lawfully=20
      served with Citation and process in the form and manner and for =
the length=20
      of time required by law, and the return of Citation has been on =
file with=20
      the [trial court] for more than ten (10) days (exclusive of the =
date of=20
      filing and the date of judgment), but [Marrot] has failed to =
appear to=20
      make answer and wholly made default . . . ."</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">Marrot, on=20
      December 9, 2005,</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"> filed its =
motion=20
      for new trial,<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_4_"><SUP>=20
      (4)</SUP></A> asserting that service was defective and, =
alternatively,=20
      that a new trial should be granted under <EM>Craddock</EM>. Marrot =
alleged=20
      that "[t]he record reflects that service was effectuated on the =
Secretary=20
      of State and not on [Marrot's] duly registered agent" and "[t]here =
is no=20
      constable's (or private process server's) return in the record =
reflecting=20
      attempted service on [Marrot] through its registered agent." =
</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">In its=20
      response, Town &amp; Country asserted that service was attempted =
on=20
      Marrot's registered agent. Town &amp; Country attached to its =
response the=20
      affidavit of the process server, Joel L. Hershey.<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_5_"><SUP>=20
      (5)</SUP></A> In his affidavit, Hershey testified that he =
attempted to=20
      serve a copy of the petition and citation on Mark Rothenberg, =
Marrot's=20
      agent registered with the Secretary of State, at 7026 Old Katy =
Road, Suite=20
      210, Houston, Texas 77024, on August 30, 2005, at 2:10 p.m., but =
the=20
      registered office was vacant.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"> Town =
&amp; Country=20
      argued that because Marrot failed to maintain a registered agent =
at the=20
      registered address, Town &amp; Country "effectuated service on =
[Marrot]=20
      through the Secretary of State . . . as evidenced by the =
[certificate from=20
      the Secretary of State]."<A=20
      =
href=3D"http://www.1stcoa.courts.state.tx.us/opinions/htmlopinion.asp?Opi=
nionId=3D84334#N_6_"><SUP>=20
      (6)</SUP></A> </SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman">The trial=20
      court denied Marrot's motion for new trial. </SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"><STRONG>Defective=20
      Service</STRONG></SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In its=20
      first issue, Marrot argues that the trial court erred in denying =
its=20
      motion for new trial on the ground of defective service because =
the=20
      record, prior to the entry of the default judgment, contains no =
evidence=20
      that Town &amp; Country attempted to serve Marrot's registered =
agent at=20
      the registered office or used reasonable diligence in attempting =
to serve=20
      Marrot's registered agent prior to serving the Secretary of State. =
Marrot=20
      concludes that Town &amp; Country's service of process was =
defective as a=20
      matter of law and deprived it of both substantive and procedural =
due=20
      process.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">At any time=20
      after a defendant is required to answer, a plaintiff may take =
judgment by=20
      default against the defendant if the defendant has not previously =
filed an=20
      answer and the citation with proof of service has been on file =
with the=20
      clerk of the court for ten days. Tex. R. Civ. P. 107, 239. Before =
a trial=20
      court may properly render a default judgment, the record must =
reflect that=20
      the trial court has jurisdiction of the subject matter and the =
parties and=20
      that the case is ripe for judgment. <EM>Finlay v. Jones</EM>, 435 =
S.W.2d=20
      136, 138 (Tex. 1968). A trial court has "no more solemn judicial=20
      obligation than that of seeing that no litigant is unjustly =
saddled with a=20
      judgment in the absence of notice and a hearing." <EM>Id</EM>. at =
138-39.=20
      When determining whether a case is ripe for judgment, the trial =
court has=20
      a "judicial duty to ascertain and determine" that the defendant =
has been=20
      "duly served with citation" and has no answer on file. =
<EM>Id</EM>. at=20
      139. Unless the record affirmatively shows, "at the time the =
default=20
      judgment is entered," either an appearance by the defendant, =
proper=20
      service of citation on the defendant, or a written memorandum of =
waiver,=20
      the trial court does not have in personam jurisdiction to enter =
the=20
      default judgment against the defendant. <EM>Am. Universal Ins. Co. =
v. D.B.=20
      &amp; B., Inc.</EM>, 725 S.W.2d 764, 766 (Tex. App.--Corpus =
Christi 1987,=20
      writ ref'd n.r.e.); <EM>see also Cates v. Pon</EM>, 663 S.W.2d 99, =
101-02=20
      (Tex. App.--Houston [14th Dist.] 1983, writ ref'd n.r.e.). The =
Texas=20
      Supreme Court has explained that even "[a]ctual notice to a =
defendant,"=20
      after defective substituted service, is "not sufficient to convey =
upon the=20
      court jurisdiction to render default judgment against him." =
<EM>Wilson v.=20
      Dunn</EM>, 800 S.W.2d 833, 836 (Tex. 1990). As noted by one court =
of=20
      appeals, "[v]irtually any deviation from the statutory requisites =
for=20
      service of process will destroy a default judgment." <EM>Carmona =
v. Bunzl=20
      Distribution</EM>, 76 S.W.3d 566, 568-69 (Tex. App.--Corpus =
Christi 2002,=20
      no pet.).</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The Texas=20
      Business Corporations Act places upon corporations the duty to =
maintain a=20
      registered agent and office and to notify the Secretary of State =
of any=20
      change in either. <EM>See</EM> Tex. Bus. Corp. Act Ann. art. 2.11, =
=A7 B=20
      (Vernon Supp. 2006);<EM> Ingram Indus., Inc. v. U.S. Bolt Mfg., =
Inc.</EM>,=20
      121 S.W.3d 31, 34 (Tex. App.--Houston [1st Dist.] 2003, no pet.). =
Article=20
      2.11, section B, provides in pertinent part,</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Whenever a=20
      corporation shall fail to appoint or maintain a registered agent =
in this=20
      State, or whenever its registered agent <EM>cannot with reasonable =

      diligence be found</EM> at the registered office, then the =
Secretary of=20
      State shall be an agent of such corporation upon whom any such =
process,=20
      notice, or demand may be served.</SPAN></P><BR WP=3D"BR1"><BR =
WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Tex. Bus.=20
      Corp. Act Ann. art. 2.11, =A7 B (emphasis added). Only after the =
registered=20
      agent of a corporation cannot be found with reasonable diligence =
at the=20
      registered office can the Secretary of State act as agent of the=20
      corporation for service of process. <EM>Ingram Indus., Inc.</EM>, =
121=20
      S.W.3d at 34. "Thus, a default judgment obtained after an =
attempted=20
      substituted service [on the Secretary of State] will not stand =
absent a=20
      showing by the plaintiff that, before it resorted to substituted =
service=20
      [on the Secretary of State], it first used reasonable diligence in =
seeking=20
      service on the registered agent of the corporation." <EM>Id</EM>. =
This=20
      Court has noted that one attempt to serve process on the =
registered agent,=20
      when subsequent attempts would be futile, may be sufficient to =
establish=20
      "reasonable diligence." <EM>Id</EM>.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Marrot=20
      asserts that, at the time the trial court entered the default =
judgment=20
      against it, the record was completely devoid of any evidence of =
attempted=20
      service on its registered agent, let alone evidence of diligence =
in=20
      attempting such service. Marrot further asserts that Town &amp; =
Country=20
      recognized this deficiency and attempted, post-judgment, to =
correct the=20
      defective service by filing the process server's affidavit in =
response to=20
      Marrot's motion for new trial. Marrot contends that the affidavit =
cannot=20
      be considered because we are to examine the record as it existed =
at the=20
      time the judgment was entered.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">In fact,=20
      when Town &amp; Country filed its first amended original petition, =

      requesting substituted service on the Secretary of State under =
article=20
      2.11, section B, although it alleged that Marrot "failed to =
properly=20
      maintain a registered agent for service" at the registered =
address, there=20
      was nothing in the record to indicate to the trial court that Town =
&amp;=20
      Country had demonstrated reasonable diligence in seeking service =
on Mark=20
      Rothenberg, Marrot's registered agent. Again, prior to seeking =
substituted=20
      service on the Secretary of State, a plaintiff must first show the =
trial=20
      court that it used reasonable diligence in seeking service on the=20
      registered agent of the corporation. <EM>Id</EM>. Here, at the =
time Town=20
      &amp; Country sought substituted service, and when the trial court =

      subsequently entered the default judgment, the record did not =
contain=20
      either an unexecuted return of citation, a process server's =
affidavit, or=20
      a motion for substituted service.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Town &amp;=20
      Country asserts that "[a]s evidenced by a Certificate of the =
Secretary of=20
      State, filed with the trial court, the amended petition and =
citation were=20
      duly served on the Secretary of State on September 19, 2005, with =
a copy=20
      forwarded to Marrot's Registered Agent by certified mail, return =
receipt=20
      requested, at the last known Registered Address on September 26, =
2005."=20
      Town &amp; Country contends that, "[a]s evidenced by the =
Certificate of=20
      the Secretary of State, the substituted service was properly =
exercised by=20
      Town &amp; Country upon Marrot through its agent, the Secretary of =

      State."</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">The Texas=20
      Supreme Court has stated that absent fraud or mistake, a Secretary =
of=20
      State's certificate constitutes conclusive evidence that the =
Secretary of=20
      State, as agent of the defendant, received service of process for =
the=20
      defendant and forwarded the service as required by the statute. =
<EM>Campus=20
      Investments, Inc. v.</EM> <EM>Cullever</EM>, 144 S.W.3d 464, 465 =
(Tex.=20
      2004); <EM>Capitol Brick, Inc. v. Fleming Mfg. Co., Inc.</EM>, 722 =
S.W.2d=20
      399, 401 (Tex. 1986). Thus, the certificate may conclusively =
establish=20
      that process was served. <EM>See</EM> <EM>Cullever</EM>, 144 =
S.W.3d at=20
      466. However, the supreme court in <EM>Cullever</EM> did not state =
that=20
      the certificate establishes that a defendant's registered agent =
could not,=20
      "with reasonable diligence be found at the registered office" as =
required=20
      by article 2.11, section B. As noted above, a plaintiff must =
establish,=20
      before resorting to substituted service on the Secretary of State, =
that it=20
      used reasonable diligence in seeking service on the registered =
agent of a=20
      corporation. <EM>Ingram Indus., Inc.</EM>, 121 S.W.3d at 34. A =
default=20
      judgment is simply improper against a defendant who has not been =
served in=20
      strict compliance with the law. <EM>Wilson</EM>, 800 S.W.2d at=20
      837.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Town &amp;=20
      Country asserts that the affidavit of Hershey, its process server, =

      establishes that it used reasonable diligence in seeking service =
on=20
      Rothenberg, Marrot's registered agent. Hershey in fact testified =
that he=20
      attempted to serve Rothenberg, but he found the registered office =
vacant.=20
      However, this evidence was not in the record and before the trial =
court=20
      when it entered the default judgment against Marrot.</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Nevertheless, Town=20
      &amp; Country argues that we must consider Hershey's affidavit =
because "on=20
      appeal, the reviewing court scrutinizes the <EM>entire record</EM> =
to=20
      determine whether service was valid," citing<EM> Ingram =
Industries,=20
      Inc.</EM>, 121 S.W.3d at 34 ("The record as a whole, not only the=20
      unexecuted citation, may be considered to determine whether the=20
      reasonable-diligence requirement is satisfied") and <EM>G.F.S. =
Ventures,=20
      Inc. v. Harris</EM>, 934 S.W.2d 813, 816 (Tex. App.--Houston [1st =
Dist.]=20
      1996, no writ) (same). In response, Marrot argues that we cannot =
consider=20
      Hershey's affidavit because it was not before the trial court at =
the time=20
      of the entry of the default judgment, citing <EM>Tankard-Smith, =
Inc.=20
      General Contractors v. Thursby</EM>, 663 S.W.2d 473, 476 (Tex.=20
      App.--Houston [14th Dist.] 1983, writ ref'd n.r.e.) (in assessing =
validity=20
      of default judgment, appellate court may only consider record =
before trial=20
      court as it existed prior to entering default judgment). <EM>See =
also Hot=20
      Shot Messenger Serv., Inc. v. State of Texas</EM>, 818 S.W.2d 905 =
(Tex.=20
      App.--Austin 1991, no writ); <EM>Thomas Petroleum Prods., Inc. v. =
Rulon=20
      Elec. Co., Inc.</EM>, 609 S.W.2d 890 (Tex. App.--Houston [14th =
Dist.]=20
      1980, no writ).</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">However, we=20
      again note that in order for a default judgment to be properly =
rendered,=20
      the record must affirmatively show, <EM>at the time the default =
judgment=20
      is entered</EM>, either an appearance by the defendant, proper =
service of=20
      citation on the defendant, or a written memorandum of waiver. =
<EM>See=20
      Carmona</EM>, 76 S.W.3d at 568. Otherwise, the trial court does =
not have=20
      in personam jurisdiction to enter a default judgment against the=20
      defendant. <EM>See id</EM>. Because Hershey's affidavit was not =
part of=20
      the record until after the trial court signed the default =
judgment, we=20
      cannot consider the affidavit as proper evidence of reasonable =
diligence=20
      prior to seeking substituted service on the Secretary of =
State.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">As noted by=20
      Town &amp; Country, the cases relied upon by Marrot involved =
restricted=20
      appeals. <EM>See Thursby</EM>, 663 S.W.2d at 474; <EM>Hot Shot =
Messenger=20
      Serv., Inc.</EM>, 818 S.W.2d at 906; <EM>Thomas Petroleum Prods.,=20
      Inc.</EM>, 609 S.W.2d at 891. Because a restricted appeal, =
typically=20
      dealing with issues of valid issuance, service, and return of =
citation, is=20
      filed directly in an appellate court, "review is limited to errors =

      apparent on the face of the record." <EM>See Fidelity &amp; Guar. =
Ins. Co.=20
      v. Drewery Constr. Co., Inc.</EM>, 186 S.W.3d 571, 573 (Tex.=20
      2006).</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Here,=20
      Marrot is appealing after it filed a motion for new trial, which =
was=20
      denied. When a default judgment is attacked by a motion for new =
trial or=20
      bill of review in the trial court, the record is not so limited =
and the=20
      "parties may introduce affidavits, depositions, testimony, and =
exhibits to=20
      explain what happened." <EM>Id</EM>. at 573-74. This allows the =
parties,=20
      in the trial court, to address the elements of <EM>Craddock</EM> =
or a bill=20
      of review. <EM>See Craddock v. Sunshine Bus Lines, Inc.</EM>, 133 =
S.W.2d=20
      124, 126 (Tex. 1939) (requiring new trial if defendant shows (1) =
default=20
      was neither intentional nor result of conscious indifference, (2)=20
      meritorious defense, and (3) new trial would cause neither delay =
nor undue=20
      prejudice); <EM>Alexander v. Hagedorn</EM>, 226 S.W.2d 996, 998 =
(Tex.=20
      1950) (requiring that default judgment be set aside in bill of =
review=20
      proceeding if defendant shows (1) meritorious defense to =
plaintiff's cause=20
      of action, (2) which he was prevented from making by extrinsic =
fraud,=20
      accident, or wrongful conduct of opposing party, and (3) that =
excuse=20
      offered is unmixed with any fault or negligence of his own). =
Obviously, a=20
      trial court would need to hear and consider evidence regarding =
these=20
      elements before granting or denying a motion for new trial or =
deciding=20
      whether or not to set aside a default judgment in a bill of=20
      review.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">However,=20
      the critical issue before us is whether service upon the defendant =
was=20
      defective in the first place, not "Why did the defendant not =
appear?"=20
      <EM>See Fidelity &amp; Guar. Ins. Co.</EM>, 186 S.W.3d at 574. In =
other=20
      words, did the trial court err in entering a default judgment =
against=20
      Marrot on the record before it at the time that it entered the =
default=20
      judgment? A trial court's jurisdiction is dependent upon citation =
issued=20
      and served in a manner provided for by law. <EM>Wilson</EM>, 800 =
S.W.2d at=20
      836. As noted above, unless the record affirmatively shows "at the =
time=20
      the default judgment is entered" an appearance by the defendant, =
proper=20
      service of citation, or a written memorandum of waiver, a trial =
court does=20
      not have in personam jurisdiction to enter the default judgment. =
<EM>Am.=20
      Universal Ins. Co.</EM>, 725 S.W.2d at 766. Town &amp; Country did =
not=20
      present Hershey's affidavit, in which he testified about his =
service=20
      attempt on Rothenberg, to the trial court until after the trial =
court had=20
      entered the default judgment against Marrot. As noted by Marrot, =
the=20
      record, prior to the entry of the default judgment, contains no =
evidence=20
      that Town &amp; Country could not "with reasonable diligence" find =

      Rothenberg at the registered office.</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Accordingly, we hold=20
      that Town &amp; Country's substituted service on the Secretary of =
State=20
      was defective and the default judgment in this case cannot stand.=20
      <EM>See</EM> <EM>Wilson</EM>, 800 S.W.2d at 837; <EM>Ingram</EM>=20
      <EM>Indus., Inc.</EM>, 121 S.W.3d at 34. We further hold that the =
trial=20
      court erred in granting the default judgment, not setting it =
aside, and in=20
      denying Marrot's motion for new trial. Having so held, we need not =

      consider Marrot's second and third issues.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">We sustain=20
      Marrot's first issue.</SPAN></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman">
      <CENTER><STRONG>Conclusion</STRONG></CENTER></SPAN>
      <P></P>
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">We reverse=20
      the judgment of the trial court and remand the cause for =
proceedings=20
      consistent with this opinion.</SPAN><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman"></SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2"><BR WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Terry=20
      Jennings</SPAN></P>
      <P><SPAN=20
      style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Justice</SPAN></P><BR=20
      WP=3D"BR1"><BR WP=3D"BR2">
      <P><SPAN style=3D"FONT-SIZE: 14pt; FONT-FAMILY: Times New =
Roman">Panel=20
      consists of Justices Nuchia, Jennings, and Higley.</SPAN></P>
      <P><A name=3DN_1_>1. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman"><EM>See =
Craddock v.=20
      Sunshine Bus Lines, Inc.</EM>, 133 S.W.2d 124, 126 (Tex. 1939).=20
      <P><A name=3DN_2_>2. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><EM>See</EM> Tex.=20
      Bus. Corp. Act Ann. art. 2.11, =A7 B (Vernon Supp. 2006).=20
      <P><A name=3DN_3_>3. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><EM>See</EM> Tex. R.=20
      Civ. P. 107.=20
      <P><A name=3DN_4_>4. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New =
Roman"><EM>See</EM> Tex. R.=20
      Civ. P. 329b.=20
      <P><A name=3DN_5_>5. </A>Hershey's affidavit appears in the record =
only as=20
      exhibit "B" to Town &amp; Country's response to Marrot's motion =
for new=20
      trial.=20
      <P><A name=3DN_6_>6. </A></SPAN><SPAN=20
      style=3D"FONT-SIZE: 13pt; FONT-FAMILY: Times New Roman">The =
certificate from=20
      the Secretary of State is attached as exhibit "C" to Town &amp; =
Country's=20
      response to Marrot's motion for new trial.=20
</SPAN></P></TD></TR></TBODY></TABLE></BODY></HTML>

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