In Credigy Receivables, Inc., v. Holt, No. 05-07-01577-CV, (Tex. App.–Dallas March 17, 2009), a Texas appellate court did not confirm an arbitral award because of invalid service of process.
In July 2007, Credigy sued Barbara Holt to recover the balance due on Holt’s credit card account, after an arbitrator awarded Credigy $10,558.36. However, Credigy’s petition served to Holt was not verified and Holt did not answer the lawsuit.
On September 19, 2007, Credigy moved for default judgment, however, the trial court returned the unsigned motion citing “several substantive deficiencies.” In addition, the trial court returned the proposed judgment confirming the award, for “various deficiencies” including lack of showing jurisdiction. On October 12, 2007, the trial court dismissed the case.
Credigy appealed and the Court of Appeals for the Fifth District of Texas at Dallas affirmed. The appellate court concluded that the service of process to Holt was invalid, thus the court did not have personal jurisdiction over Holt.
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