Cedyco Corp. v. Whitehead
Full Opinion (html_with_citations)
OPINION
Appealing from a summary judgment entered in favor of Anderson Martin Whitehead (âWhiteheadâ), Cedyco Corporation (âCedycoâ) raises two issues. First, Cedyco contends that the trial court âerred in entering summary judgment ... based on two broad requests for admissions, which were deemed admittedâ and, second, Cedyco contends that the trial court âabused its discretion in refusing to grant the motion to undeem the requests for admissions.â From the substance of Cedycoâs first issue, we understand it as complaining of Whiteheadâs failure to support his summary judgment motion with proper summary-judgment evidence. We agree and reverse the summary judgment.
The record indicates that in April of 2006, Whitehead petitioned the trial court for a judgment declaring certain assignments purportedly held by Cedyco to a $1.8 million judgment ânull and void, without force or effect, and that any abstracts, writs, or other instruments issued pursuant to same are declared also to be null and void[.]â âWhitehead alleges that the money-judgment at issue, entered in September of 1984, in a Jasper County district court, was assigned and transferred to him via a negotiated settlement agreement during the pendency of a separate and unrelated 1997 lawsuit, styled, Head Oil Prod. Co. v. Marvin Whitehead et al., Trial Cause Number 17,205. As part of his 2006 declaratory judgment action, Whitehead served requests for admissions on Cedyco. When Cedyco failed to timely respond to the requests for admissions, they were deemed admitted by Cedyco. See Tex.R. Civ. P. 198.2(a) (a party must respond to requests for admissions within thirty days); 198.2(c) (âIf a response is not timely served, the request is considered admitted without the necessity of a court order.â).
Thereafter, Whitehead filed a motion for summary judgment supported primarily by the deemed admissions and Cedycoâs pleadings. On the day of the summary judgment hearing, Cedyco appeared and filed a motion for leave to make late responses to Whiteheadâs request for admissions. The trial court denied Cedycoâs motion for leave and granted Whiteheadâs summary judgment motion, declaring him ârightful owner and holderâ of the $1.3 million judgment. The summary judgment also awarded Whitehead attorneyâs fees in the amount of $25,000.
âThe function of summary judgment is not to deprive a litigant of his right to trial by jury, but to eliminate patently unmeritorious claims and untenable defenses.â City of Houston v. Clear Creek Basin Auth., 589 S.W.2d 671, 678 n. 5 (Tex.1979) (citing Gulbenkian v. Penn, 151 Tex. 412, 252 S.W.2d 929, 931 (1952)). A plaintiff is entitled to summary judgment on a cause of action only if he conclusively proves all essential elements of his claim as a matter of law. See Tex.R. Civ. P. 166a(a), (c); Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217, 223 (Tex.1999); MMP Ltd. v. Jones, 710 S.W.2d 59, 60 (Tex.1986). When reviewing a summary
The longstanding rule is that allegations in pleadings are not competent summary judgment evidence, even if sworn or verified. See Laidlaw Waste Sys. (Dallas), Inc. v. City of Wilmer, 904 S.W.2d 656, 660 (Tex.1995); Americana Motel, Inc. v. Johnson, 610 S.W.2d 143, 143 (Tex.1980); Clear Creek Basin Auth, 589 S.W.2d at 678; Hidalgo v. Surety Sav. & Loan Assân., 462 S.W.2d 540, 545 (Tex.1971). âPleadings outline the issues, but they are not evidence.â Shawell v. Pend Oreille Oil & Gas Co., 823 S.W.2d 336, 338 (Tex.App.-Texarkana 1991, writ denied). Therefore, any averments contained in pleadings are not proper summary judgment evidence and will not sustain the trial courtâs summary judgment in favor of Whitehead.
Regarding the deemed admissions, we noted above that when a party fails to timely respond to request for admissions, the matters therein are deemed admitted. Tex.R. Civ. P. 198.2(c). Admissions of fact on file at the time of a summary judgment hearing are proper summary judgment proof and will, therefore, support a motion for summary judgment. Tex.R. Civ. P. 166a(c); see e.g., Acevedo v. Commân for Lawyer Discipline, 131 S.W.3d 99, 105 (Tex.App.-San Antonio 2004, pet. denied). However, a request for admission asking a party to admit or deny a purely legal issue is improper, and a deemed admission involving a purely legal issue is of no effect. See Boulet v. State, 189 S.W.3d 833, 838 (TexApp.-Houston [1st Dist.] 2006, no pet.); Fort Bend Cent. Appraisal Dist. v. Hines Wholesale Nurseries, 844 S.W.2d 857, 858-59 (TexApp.-Texarkana 1992, writ denied). This is so because the primary purpose of requests for admissions is to simplify trials by eliminating matters about which there is no real controversy. See Stelly v. Papania, 927 S.W.2d 620, 622 (Tex.1996). âIt was never intended to be used as a demand upon a plaintiff or defendant to admit that he had no cause of action or ground of defense.â Id. (quoting Sanders v. Harder, 148 Tex. 593, 227 S.W.2d 206, 208 (1950)).
Whiteheadâs motion for summary judgment contains, inter alia, the following assertion:
12. Three admissions by Defendant Cedyco Corporation are sufficient to support a judgment for Plaintiff Whitehead .... Those three admissions are quoted here in full:
NO. 8: The sole current legal owner of the Judgment is Anderson Martin Whitehead.
NO. 9: Defendant Cedyco Corporation is not the current legal owner of the Judgment.
*881 No. [sic] 10: Reasonable and necessary-legal fees of the plaintiff in this suit are $25,000.00.
The deemed admissions Numbers 8 and 9, as quoted above, are purely questions of law and, therefore, are improper summary judgment evidence. See Wheeler v. Green, 157 S.W.3d 489, 443 (Tex.2005) (equating merits-preelusive discovery sanctions with merits-preclusive deemed admissions for due process purposes); Boulet, 189 S.W.3d at 838 (summary judgment may not be sustained by deemed admissions that âembrace the fundamental legal issues to be triedâ); Gore v. Cunningham, 297 S.W.2d 287, 291 (Tex.Civ.App.-Beaumont 1956, writ ref d n.r.e.) (requests for admissions exists âto eliminate in advance of the trial fact issues which would not be in dispute, and ... the rule does not contemplate or authorize admissions to questions involving points of lawâ).
Accordingly, we hold the trial court erred in granting summary judgment as Whiteheadâs summary judgment motion and proper summary judgment evidence failed to prove all the elements of Whiteheadâs claims as a matter of law. We find Whiteheadâs motion was entirely supported by improper summary judgment evidence in the form of pleadings and merits-preclusive deemed admissions solely embracing the fundamental legal issues of the case. We sustain Cedycoâs first appellate issue.
In light of our analysis and holding on issue one, and because we are remanding this cause to the trial court, we decline to address Cedycoâs second issue. The trial court may wish to revisit its ruling on Cedycoâs motion for leave to make late responses regarding the previously deemed admissions in an effort to avoid compromising the presentation of the merits of either party to the suit. See Wheeler, 157 S.W.3d at 443 (citing TransAmerican Nat. Gas Corp. v. Powell, 811 S.W.2d 913, 917-18 (Tex.1991)).
We reverse the summary judgment of the trial court and remand for further proceedings consistent with this opinion.
REVERSED AND REMANDED.