Default Judgment Reversed on Appeal

Brett Kutnick was part of the team that successfully represented defendants Paul Williams and Hughes-Roth Financial Group in an appeal of a no-answer default judgment awarding the plaintiff Nexplore Corporation over $300,000 in damages and attorney’s fees and the right to cancel Williams’s 10 million shares of stock in Nexplore valued at approximately $7 million.  The Court of Appeals for the Fifth District of Texas at Dallas held that the trial court never obtained personal jurisdiction over the defendants because substituted service was not property authorized, and that the default judgment rendered against the defendants was therefore void.  The court thus reversed the judgment and remanded the case to the trial court for further proceedings.  Williams v. Nexplore Corp., No. 05-09-00621-CV, 2010 WL 4945364 (Tex. App.—Dallas 2010, pet. denied.) (mem. op.).