Teresa Cox and Terry De Los Santos v. National Collegiate Student Loan Trust 2006-2, a Delaware Statutory Trust ( 2014 )


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  •                                   In The
    Court of Appeals
    Seventh District of Texas at Amarillo
    No. 07-14-00253-CV
    TERESA COX AND TERRY DE LOS SANTOS, APPELLANTS
    V.
    NATIONAL COLLEGIATE STUDENT LOAN TRUST 2006-2, A DELAWARE
    STATUTORY TRUST, APPELLEE
    On Appeal from the 251st District Court
    Randall County, Texas
    Trial Court No. 66,224A, Honorable Ana Estevez, Presiding
    November 24, 2014
    MEMORANDUM OPINION
    Before QUINN, C.J., and HANCOCK and PIRTLE, JJ.
    In this restricted appeal, Teresa Cox and Terry De Los Santos appeal from
    default judgments taken against them in favor of National Collegiate Student Loan Trust
    2006-2 (the Trust) for recovery on student loans. Teresa and Terry contend the trial
    court erred in granting a default judgment because they filed an answer. We reverse.
    The Trust filed a petition seeking to recover for default in the repayment of
    student loans to Teresa which Terry had co-signed. Service was made on September
    17, 2013. On September 24, 2013, Terry filed a handwritten pro se letter in which she
    stated:
    To Whom It May Concern,
    In response to cause numbers
    66224C
    66219A
    66223A
    66220C
    My daughter owes an unknown amount to NCP for student loans
    which I cosigned for.
    Sincerely,
    Terry DeLosSantos
    An address and telephone number followed Terry’s name. On the same day, Teresa
    also filed a handwritten pro se letter which stated:
    To whom it may concern,
    In response to cause No. 66224C, 66219A, 66223A, & 66220C. I owe an
    unknown amount to National Collegiate Partners for Student loans.
    Sincerely,
    Teresa Cox
    Again, an address and phone number followed the name. Terry and Teresa contend
    that these letters constitute an answer in the lawsuit which prevents the taking of a no
    answer default judgment.1
    An answer does not necessarily have to follow a standard form, and a letter that
    is signed with the name of the parties, the cause number, and an address constitutes an
    answer which prevents the taking of a default judgment. Smith v. Lippman, 
    826 S.W.2d 1
               The Trust argues that Terry and Teresa filed their notice of restricted appeal one day late. A
    restricted appeal must be filed within six months after the date the judgment or order is signed. TEX. R.
    APP. P. 26.1(c). The judgment was signed on January 6, 2014, and the restricted appeal was filed on July
    7, 2014. However, July 6 was a Sunday. If the last day for filing a document is a Sunday, the period runs
    until the end of the next day which is not a Saturday, Sunday, or legal holiday. TEX. R. APP. P. 4.1(a);
    TEX. R. CIV. P. 4.
    2
    137, 138 (Tex. 1992); Faunce v. NCNB Tex. Nat’l Bank, 
    846 S.W.2d 876
    , 877 (Tex.
    App.—Houston [14th Dist.] 1992, no writ). The letters sent by Terry and Teresa were
    signed by them and contained the relevant cause numbers, their names, and their
    addresses. So too were they filed of record before the Trust moved the court to enter
    “no answer” default judgments. Simply put, the letters in question constituted answers
    preventing the entry of “no answer” default judgments.
    Nevertheless, the Trust would have us affirm the “no answer” default judgments
    by characterizing them as judgments nihil dicit.         This characterization we eschew.
    Though akin to a “no answer” default judgment, their use is generally limited to
    situations where 1) the defendant made a plea, usually dilatory in nature but the
    pleading has not placed the merits of the plaintiff's case in issue before it is overruled, or
    2) the defendant has placed the merits of the case in issue by filing an answer but has
    withdrawn that answer. Paradigm Oil, Inc. v. Retamco Operating, Inc., 
    372 S.W.3d 177
    ,
    184 n.8 (Tex. 2012). Neither situation is before us. The appellants filed answers, not
    dilatory pleas, which answers they did not withdraw.
    Moreover, by filing answers, both Terry and Teresa appeared in the cause. See
    In re I.L.S., 
    339 S.W.3d 156
    , 159 (Tex. App.—Dallas 2011, no pet.) (stating that an
    answer constitutes an appearance). Defendants who appear are entitled to notice of
    the trial setting as a matter of due process. LBL Oil Co. v. International Power Services,
    Inc., 
    777 S.W.2d 390
    , 390-91 (Tex. 1989). This is of import here since a hearing on a
    motion for default judgment is effectively a trial setting, 
    id. at 391,
    and the record fails to
    show that either defendant had actual or constructive notice of that hearing. Indeed, the
    motions for default filed by the Trust do not even contain certificates of service which
    3
    would allow us to presume that Terry or Teresa even had notice of the motions being
    filed.
    We reverse the default judgments and remand the causes to the trial court.
    Brian Quinn
    Chief Justice
    4
    

Document Info

Docket Number: 07-14-00253-CV

Filed Date: 11/24/2014

Precedential Status: Precedential

Modified Date: 10/16/2015