Memorandum Opinion by Justice YAÑEZ.
Appellant, Christi Bay Temple ("the church"), appeals the trial court's order dismissing for want of prosecution its suit against appellees, Guideone Specialty Mutual Insurance Company, Texas Windstorm Insurance Association, Quantum Claim Service, L.L.C., Crawford Claim Services, Guideone Lloyds Insurance Company, Guideone Mutual Insurance Company, Guideone Elite Insurance Company, and Guideone Lloyds of Texas, Inc. (collectively "Guideone"). By three issues, the church contends the trial court abused its discretion in (1) granting Guideone's plea in abatement and (2) granting its motion to dismiss. It also contends the trial court fundamentally erred by signing the motion to dismiss for want of prosecution. We modify the trial court's judgment and affirm as modified.
The underlying claims in this case—an insurance dispute concerning alleged damages to church property—are not at issue in this appeal. On July 12, 2004, the church sued Guideone, alleging various causes of action. Almost a year later, on May 27, 2005, the trial court held a hearing to determine whether the case should be dismissed for want of prosecution. The church's counsel requested that the case be retained and promised to request a docket control conference.
On October 13, 2005, Guideone submitted discovery requests to the church, including a request for a copy of the deed to the church property. Although the church did not produce a copy of the deed, it promised to do so at a later time. On June 22, 2006, the trial court set a trial date for February 26, 2007. By letters dated October 16, 2006 and February 2, 2007, Guideone's counsel again requested a copy of the title deed to the subject property.
On February 14, 2007, Guideone filed its third amended answer and a plea in abatement, in which it argued, among other things, that the church lacked capacity to bring suit because it is a non-profit corporation that forfeited its corporate charter in 1983.
The trial court heard argument on Guideone's plea in abatement at a final pretrial hearing on February 16, 2007. At the hearing, the church's counsel argued that Guideone's plea in abatement was "a bad faith 11th hour attempt to avoid liability" and was therefore waived. Guideone's counsel argued that the church's waiver argument was unpersuasive because the church had delayed in producing a copy of the title deed for a year and a half. The church's counsel appeared to concede that the church had forfeited its corporate charter by stating, "I believe the reason why the charter was forfeited in 1983 is because [the church] became affiliated under the Pentecostal Church of God. . . ." He also stated that "if it turns out that [the church] need[s] to reestablish their corporate charter just to go forward with trial, that's something that . . . can easily be done."
By order dated the same day as the hearing, the trial court granted Guideone's plea in abatement. The order states that the church forfeited its corporate charter in 1983, and orders the cause "abated until such time as Plaintiff demonstrates that it had cured the incapacity referenced herein."
On February 21, 2007, the church filed a motion to reconsider the ruling on Guideone's plea in abatement. The church argued that this issue of its forfeiture was "moot" because the named insured on the insurance policy was "Christi Bay Temple," not "Christy Bay Temple, Inc." Following a hearing on February 23, 2007, the trial court denied the church's motion.
On April 23, 2007, the church filed a motion to lift the abatement, in which it asserted that it was "incorrect" that it was a "defunct corporation," and that it had "never been a corporation." On May 10, 2007, Guideone filed a combined response to the church's motion to lift the abatement and motion to dismiss for want of prosecution. Guideone noted that the church continued to make the same argument that had already been rejected by the trial court—that it had not ever been a corporation. Guideone argued that the case should be dismissed for want of prosecution under the trial court's inherent power because: (1) the case had been pending for three years and survived a dismissal docket hearing in 2005; (2) although the trial court had made it clear that the church could not continue its suit unless and until it cured its charter forfeiture, it had not done so; and (3) the church ignores the documentary evidence which contradicts its assertion that it is not a corporation. On May 14, 2007, the church filed a response to Guideone's motion to dismiss, in which it characterized Guideone's motion as "another in a long line of dilatory tactics." On July 23, 2007, Guideone filed a reply to the church's response, in which it argued that five months had elapsed since the church was given an opportunity to reinstate its corporate charter, but it had not done so. Following a hearing on July 26, 2007,
We review a dismissal for want of prosecution under an abuse of discretion standard.
A trial court may dismiss a case for want of prosecution under rule 165a for (1) failure to appear or (2) failure to comply with the supreme court time standards.
If, as here, the trial court's order dismissing a case for want of prosecution does not specify a particular reason for the dismissal, the appellate court will affirm if any proper ground supports the dismissal.
A court's decision whether to grant a motion to abate is also subject to review for abuse of discretion.
Generally, a defendant uses a plea in abatement to challenge the plaintiff's pleadings by asserting that facts outside the pleadings prevent the suit from going forward in its present condition.
A plea in abatement must be raised in a timely manner or it is waived.
By its first issue, the church contends that the trial court abused its discretion in granting the plea in abatement because Guideone: (1) waived its plea in abatement by failing to raise it in a timely manner; and (2) failed to present evidence establishing its entitlement to a plea in abatement.
In support of its waiver argument, the church cites Bluebonnet Farms, Inc. v. Gibraltar Sav. Ass'n.,
We are also unpersuaded by the church's argument that Guideone failed to present evidence in support of its motion to abate. According to the church, Guideone "simply has no evidence . . . that an entity named Christi Bay Temple of Corpus Christi, Texas, a non-profit corporation which ceased to exist in 1983, ever owned the church property at issue in this case." We disagree. Guideone presented evidence establishing that "Christi Bay Temple of Corpus Christi, Texas" is a non-profit corporation that forfeited its charter in 1983. As noted, the trial court's order granting the plea in abatement found that the church forfeited its corporate charter in 1983 and granted the abatement until the church cured its incapacity. We hold the trial court did not abuse its discretion in granting the plea in abatement.
By its second issue, the church contends the trial court abused its discretion in granting the motion to dismiss. Although the church acknowledges that the trial court's order abated the case to give the church an opportunity to cure its incapacity, the church argues it "cannot revive its corporation status when it has not operated as a corporation."
In response, Guideone asserts that after the February 16, 2007 hearing on the plea in abatement, the church "did nothing whatsoever to cure its charter forfeiture to bring itself into compliance with the requirements of the Texas Tax Code."
We first note that the record on appeal does not include the record of the July 26, 2007 dismissal hearing. Generally, in the absence of a reporter's record, it must be presumed that sufficient evidence was introduced to support the judgment of the court.
Moreover, we note that section 171.251 of the tax code provides that, if a corporation does not pay its corporate franchise tax, its corporate privileges are forfeited.
As Guideone notes, at the July 26, 2007 hearing on the church's motion to lift the abatement and Guideone's motion to dismiss, the church had not cured its incapacity. We hold the trial court did not abuse its discretion in granting Guideone's motion to dismiss for want of prosecution.
By its third issue, the church contends the trial court erred because the order granting the motion to dismiss renders a judgment on the merits. We agree.
The trial court's judgment states, in pertinent part:
A. dismissal for want of prosecution is not intended to be an adjudication of the merits of the case or the rights of the parties; it merely returns the parties to the position that they were in before suit was filed.
We modify the trial court's judgment to delete (1) the allocation of costs in Guideone's favor and (2) the phrase, "All relief not expressly granted herein is denied." We affirm the judgment as modified.