Fredis Benitez, Margarita Benitez, and Roberto Viera-Segura DBA Viera's Body Shop/Viera's Kustoms/Viera's Kustomz v. City of Dallas ( 2015 )


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  • Affirmed and Opinion Filed June 3, 2015
    S   In The
    Court of Appeals
    Fifth District of Texas at Dallas
    No. 05-13-01368-CV
    FREDIS BENITEZ, MARGARITA BENITEZ, AND ROBERTO VIERA-SEGURA DBA
    VIERA'S BODY SHOP/VIERA'S KUSTOMS/VIERA'S KUSTOMZ, Appellants
    V.
    CITY OF DALLAS, Appellee
    On Appeal from the 14th Judicial District Court
    Dallas County, Texas
    Trial Court Cause No. 13-03671
    MEMORANDUM OPINION
    Before Justices Bridges, Lang, and Evans
    Opinion by Justice Bridges
    Fredis Benitez, Margarita Benitez, and Roberto Viera-Segura d/b/a Viera’s Body
    Shop/Viera’s Kustoms/Viera’s Kustomz appeal the trial court’s default judgment in favor of the
    City of Dallas. In two points of error, appellants argue they are entitled to reversal of the default
    judgment because they were not properly served under rule of civil procedure 107 and the
    evidence does not support the trial court’s award of $100,000 damages. We affirm the trial
    court’s judgment.
    On April 2, 2013, the City filed its original petition alleging appellants were using their
    property illegally for outside salvage and reclamation and vehicle or engine repair or
    maintenance. In addition, the City alleged numerous health and safety violations. The City
    sought an injunction under section 211.012(c) of the local government code enjoining appellants’
    illegal land uses alleged in the petition. Pursuant to sections 54.016 and 54.018 of the local
    government code, the City sought civil penalties of $1000 per day per violation.
    On April 3 and 4, 2013, the process server served appellants individually with a copy of
    the petition and citation. On May 8, 2013, the City filed a motion for leave to file amended
    returns of service pursuant to rule of civil procedure 118. The City stated it sought leave to
    amend “in order to strictly comply with Texas Rule of Civil Procedure 107 by adding the process
    server’s certification expiration date and a more precise description of the pleading served.
    Appellants did not file an answer. The City filed a motion for default judgment, and the
    trial court set the matter for a hearing on June 20, 2013. At the hearing, Kate Lawler, a code
    officer for the City, testified appellants did not have a specific use permit which would have
    permitted them to “have outside salvage reclamation.” The City introduced photographs of
    appellant’s property, and Lawler testified the same violations as were alleged in the City’s
    petition were still present on a subsequent investigation on June 18, 2013. Counsel stated
    appellants committed nine health and safety violations over seventy-seven days, entitling the
    City to $693,000 in civil penalties. Nevertheless, counsel for the City requested $100,000 in
    civil penalties. The trial court entered a default judgment granting the City certain injunctive
    relief and awarding $100,000 in civil penalties. Appellants filed a motion to set aside the default
    judgment and for new trial, which was overruled by operation of law. This appeal followed.
    In their first issue, appellants argue they are entitled to a reversal of the default judgment
    and a remand for new trial because the record reflects the City failed to strictly comply with rule
    of civil procedure 107. Specifically, appellants argue “the amended return of service was not
    located on the citation or attached to it.” Appellants argue the first sentence of rule 107 “is
    framed in mandatory terms: the return of the officer or authorized person executing the citation
    shall be endorsed on or attached to the same.” However, appellants cite the former rule 107.
    –2–
    The current version of rule 107, effective since January 1, 2012, states: “The officer or
    authorized person executing the citation must complete a return of service. The return may, but
    need not, be endorsed on or attached to the citation.” TEX. R. CIV. P. 107. Thus, Rule 107 did
    not require the amended return of service in this case to be attached to the citation. See 
    id. We overrule
    appellants’ first issue.
    In their second issue, appellants argue they are entitled to a reversal of the default
    judgment and a remand for new trial because there is no evidence or insufficient evidence to
    support the award of $100,000 in civil penalties.
    We will sustain a legal sufficiency or “no evidence” challenge if the record shows one of
    the following: (1) a complete absence of a vital fact; (2) rules of law or evidence bar the court
    from giving weight to the only evidence offered to prove a vital fact; (3) the evidence offered to
    prove a vital fact is no more than a scintilla; or (4) the evidence establishes conclusively the
    opposite of the vital fact. City of Keller v. Wilson, 
    168 S.W.3d 802
    , 810 (Tex. 2005). In
    reviewing a legal sufficiency complaint, we consider the evidence in the light most favorable to
    the prevailing party, crediting favorable evidence if a reasonable fact finder could, and
    disregarding contrary evidence unless a reasonable fact finder could not. 
    Id. at 827.
    A legal
    sufficiency challenge fails if there is more than a scintilla of evidence to support the finding.
    Kroger Tex. Ltd. P’ship v. Suberu, 
    216 S.W.3d 788
    , 793 (Tex. 2006). When confronted by both
    a legal and factual sufficiency challenge, an appellate court must first review the legal
    sufficiency of the evidence. Glover v. Tex. Gen. Indem. Co., 
    619 S.W.2d 400
    , 401 (Tex. 1981).
    In reviewing a factual sufficiency challenge, we examine all the evidence.           Castanon v.
    Monsevais, 
    703 S.W.2d 295
    , 297 (Tex. App.—San Antonio 1985, no writ). We will reverse only
    if the finding is against the great weight and preponderance of the evidence. 
    Id. –3– When
    a no-answer default judgment is entered against a party on an unliquidated claim,
    the non-answering party is deemed to have admitted all facts properly pleaded, except for the
    amount of damages. Dolgencorp of Tex., Inc. v. Lerma, 
    288 S.W.3d 922
    , 930 (Tex. 2009) (per
    curiam); Tex. Commerce Bank, Nat’l Ass’n v. New, 
    3 S.W.3d 515
    , 516 (Tex. 1999). Thus, if the
    facts set out in the petition allege a cause of action, the default judgment conclusively establishes
    the defendant’s liability. Morgan v. Compugraphic Corp., 
    675 S.W.2d 729
    , 731 (Tex. 1984).
    Thus, appellants are deemed to have admitted the health and safety violations alleged in
    the City’s petition.   As further set out in the City’s petition, section 54.017 of the local
    government code permits an imposition of $1000 per violation per day. See TEX. LOC. GOV’T
    CODE ANN. § 54.017 (West 2008). Lawler testified that the health and safety violations at
    appellants’ property were still present on June 18, 2013. Counsel for the City argued there were
    nine violations over seventy-seven days, entitling the City to $693,000 in civil penalties.
    Nevertheless, counsel for the City requested $100,000 in civil penalties. Thus, the trial court’s
    award of $100,000 in civil penalties is actually less than it could have properly awarded,
    considering the number of violations.       We conclude the evidence is legally and factually
    sufficient to support the trial court’s award. See City of 
    Keller, 168 S.W.3d at 810
    ; 
    Castanon, 703 S.W.2d at 297
    . We overrule appellant’s second issue.
    We affirm the trial court’s judgment.
    131368F.P05
    /David L. Bridges/
    DAVID L. BRIDGES
    JUSTICE
    –4–
    S
    Court of Appeals
    Fifth District of Texas at Dallas
    JUDGMENT
    FREDIS BENITEZ, MARGARITA                            On Appeal from the 14th Judicial District
    BENITEZ, AND ROBERTO VIERA-                          Court, Dallas County, Texas
    SEGURA DBA VIERA'S BODY                              Trial Court Cause No. 13-03671.
    SHOP/VIERA'S KUSTOMS/VIERA'S                         Opinion delivered by Justice Bridges.
    KUSTOMZ, Appellant                                   Justices Lang and Evans participating.
    No. 05-13-01368-CV         V.
    CITY OF DALLAS, Appellee
    In accordance with this Court’s opinion of this date, the judgment of the trial court is
    AFFIRMED.
    It is ORDERED that appellee CITY OF DALLAS recover its costs of this appeal from
    appellants FREDIS BENITEZ, MARGARITA BENITEZ, AND ROBERTO VIERA-SEGURA
    DBA VIERA'S BODY SHOP/VIERA'S KUSTOMS/VIERA'S KUSTOMZ.
    Judgment entered June 3, 2015.
    –5–