SAN ANTONIO – The 4th Court of Appeals overturned a default judgment against two oil and gas exploration companies worth $2.9 million and sent the dispute back to the trial court.
The appellants Michael Macs, High Cotton Holdings LLC, Ranger O&G Operating LLC and Ranger Exploration Corp. appealed a default judgment against them by the 218th Judicial District Court in La Salle County.
The case has been going on for several years. According to the appellate court's Jan. 3 opinion, on March 11, 2014, Christopher Lenahan, doing business as CPL Services, sued Macs, High Cotton Holdings LLC, Ranger O&G Operating LLC and Ranger Exploration Corp. The complaint was served on attorney J. Wayne Ballew by agreement, and Ballew signed the agreement letter confirming he would accept service but it was not a sworn signature. That meant the agreement did not comply with Rule 119.
No answer was filed and the defendants were found to be in default. According to the memorandum opinion filed in the appellate court on Jan. 3 “On the same day, the trial court rendered a final default judgment against appellants, finding that each were responsible for the same alleged wrongdoing and awarding Lenahan a total of $2,964,732 in actual and punitive damages, plus an additional $76,000 in attorney’s fees.”
However, the appellate court notes in its memorandum and opinion that “Before judgment can be granted to a party, there must be strict compliance with the appropriate service rules.”
Defendants appealed. Lenahan cross appealed. Both sides filed briefs.
Justice Rebeca Martinez concluded the memorandum opinion by stating “We reverse the final summary judgment order rendered by the trial court. We render judgment granting appellants’ bill of review and setting aside the default judgment, and remand this cause to the trial court for further proceedings.”
Also sitting were Justice Marialyn Barnard, Justice Rebeca C. Martinez and Justice Irene Rios.