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BAKER v. GOLDSMITH

Supreme Court of Texas.
May 23, 1979
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Vernon R. Baker et ux. v. Edward Goldsmith et ux., No. B-7793 (Sup. Ct. Tex., May 23, 1979) — Opinion Summary

Factual and Procedural Background

The Bakers (Vernon R. Baker and his wife Audane Baker) brought an original suit alleging that Edward and Juliette Goldsmith, Mark S. Barrow, and the Goldsmiths' son, Warren, conspired to sell the Bakers a gift shop franchise in Austin and made fraudulent misrepresentations; the Bakers alleged they paid $10,000 plus other expenses in reliance. Upon receipt of citation, Edward Goldsmith sent a letter to the district judge substantially denying the Bakers' allegations. A certified-mail receipt indicates the letter was received at a Travis County Courthouse mail room employee on December 11, 1973. On January 4, 1974 the Bakers' claims against Warren Goldsmith and Mark Barrow were severed; on that same day a default judgment was rendered against Edward and Juliette Goldsmith for $44,699.66.

On March 10, 1974 Edward and Juliette Goldsmith filed a bill of review seeking to set aside the default judgment. They alleged (1) the letter to the judge was a timely answer that had been misplaced at the courthouse, and (2) they received no notice of the judgment until more than 30 days after its rendition, preventing a timely motion for new trial. They also pleaded several factual items asserted to be meritorious defenses (e.g., no misrepresentations, no franchise contract with the Bakers, lack of receipt of franchise money, lack of knowledge of Warren Goldsmith's representations or whereabouts).

After a bench trial at which both sides presented evidence, the trial court found the letter had been received and forwarded to the judge but subsequently had "disappeared" through no fault of the Goldsmiths; the court concluded the letter was an "answer" but that delivery to the judge did not constitute filing. The trial court also found the Goldsmiths received notice of the January 4, 1974 judgment more than 30 days after its rendition. Nevertheless, the trial court concluded the Goldsmiths had not established a meritorious defense by a preponderance of the evidence and rendered judgment that the Goldsmiths take nothing.

The court of civil appeals, over a dissent, reversed and remanded, holding the trial court erred in requiring the Goldsmiths to establish their meritorious defense by a preponderance of the evidence (reported at 567 S.W.2d 590). The Texas Supreme Court granted the Bakers' writ of error and in this opinion affirmed the judgment of the court of civil appeals and remanded for further proceedings consistent with the opinion.

Legal Issues Presented

  1. Whether a bill of review complainant is required to prove his meritorious defense by a preponderance of the evidence in order to obtain relief from a final judgment.
  2. Whether reliance on official mistake (erroneous information from a court officer or court functionary) excuses the bill of review complainant from proving the prior judgment was rendered due to fraud, accident, or wrongful act of the opposite party.
  3. What preliminary pleadings, proofs, and trial procedure and allocation of burdens should apply when a bill of review complainant alleges official mistake or similar grounds and also asserts a meritorious defense.

Arguments of the Parties

Petitioners (Bakers)

  • Contended there were no pleadings or proof supporting that the prior judgment was rendered as a result of fraud, accident, or wrongful act of the opposite party unmixed with negligence by the Goldsmiths.
  • Contended that the Goldsmiths, as bill of review complainants, bore the burden of establishing their meritorious defense by a preponderance of the evidence.

Respondents (Edward and Juliette Goldsmith)

  • Argued their March 1974 bill of review alleged that the letter to the judge constituted a timely answer that had been misplaced at the courthouse and that they received no notice of the default judgment until more than 30 days later, precluding a timely motion for new trial.
  • Alleged a number of defenses to the original suit (e.g., no misrepresentations, representations were true, no franchise contract with the Bakers, they did not receive money for a franchise, if a fee was paid it was paid to others, lack of knowledge of any representations by Warren or his whereabouts).
  • Contended that they need only present probative evidence that the result would have been different (a prima facie showing) rather than prove the meritorious defense by a preponderance of the evidence; if prima facie shown, the parties revert to their original burdens at trial.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
McEwen v. Harrison, 162 Tex. 125, 345 S.W.2d 706 (1961) Describes bill of review as independent equitable action and states that a defendant not negligent in suffering a default may have suit tried on its merits if he has a meritorious defense. Used to explain foundational nature of bill of review relief and to show that parties eventually revert to original status with burden on plaintiff should relief be granted.
Alexander v. Hagedorn, 148 Tex. 565, 226 S.W.2d 996 (1950) Sets out three elements complainant must allege and prove: (1) meritorious defense; (2) prevented from making it by fraud, accident or wrongful act of the opposite party; (3) unmixed with complainant's own negligence. Adopted as the basic elements that must be pleaded and at some stage proven by a bill of review complainant.
Texas Machinery Equipment Co. v. Gordon Knox Oil Exploration Co., 442 S.W.2d 315 (Tex. 1969) Affirmed the Hagedorn requirements (cited as accord). Used to support the Hagedorn elements and related discussion.
Gracey v. West, 422 S.W.2d 913 (Tex. 1968) Holds that where an officer of the court gives erroneous official information preventing filing of a motion for new trial, complainant is excused from showing wrongful conduct by the opposite party. Relied upon to excuse the Goldsmiths from pleading and proving fraud, accident or wrongful act by the Bakers because the record showed an official mistake (misplaced letter) at the courthouse.
Hanks v. Rosser, 378 S.W.2d 31 (1964) Cited for the principle that erroneous official information to a litigant can excuse the usual showing of wrongful conduct by the opposite party. Referenced in support of the Gracey principle used to excuse the Goldsmiths from proving the Bakers' wrongful act.
Vogel v. Vogel, 405 S.W.2d 87 (Tex.Civ.App. San Antonio 1966, no writ) Accepts that a complainant may be prevented from presenting contentions by mistake or error of the court or a court functionary in discharge of official duties. Cited as authority consistent with excusing the Goldsmiths from proving wrongful conduct by the opposing party when official mistake prevented filing.
Texas State Bd. of Examiners in Optometry v. Lane, 358 S.W.2d 636 (Tex.Civ.App. Fort Worth 1962, writ ref'd n.r.e.) Similar acceptance that court or official mistake can prevent presentation of contentions. Cited for the same proposition that official error may excuse the usual showing against the opposing party.
Trevino v. American Nat'l Ins. Co., 140 Tex. 500, 168 S.W.2d 656 (1943) Cited for authority that certain determinations are questions of law for the court. Used analogously in describing the court's role in determining whether a prima facie meritorious defense exists as a legal question.
Duncan v. Butterowe, Inc., 474 S.W.2d 619 (Tex.Civ.App. Houston (14th) 1971, no writ) Support for classifying the prima facie meritorious defense determination as a legal question. Used to support the proposition that the court makes the legal determination whether the complainant's defense is not barred as a matter of law.
Crosby v. Di Palma, 141 S.W. 321 (Tex.Civ.App. El Paso 1911, writ ref'd) Holds that a meritorious defense is shown when complainant demonstrates the prior result would have been different if the defense had been presented; after prima facie showing parties revert to original burdens. Relied upon to support the court's statement that a prima facie meritorious defense suffices to revert parties to their original status and burdens at trial.
Dicker v. Binkley, 555 S.W.2d 495 (Tex.Civ.App. Dallas 1977, no writ) States that complainant must show meritorious defense to extent that, had it been presented, the prior judgment would not have been rendered. Used as authority consistent with the Crosby formulation of a prima facie showing sufficing to proceed to trial on the merits.
Petro-Chemical Transport, Inc. v. Carroll, 514 S.W.2d 240 (Tex. 1974) Cited (Cf.) in relation to authorities on meritorious defense and burdens. Referenced as comparative authority in the discussion of meritorious-defense standards.
Overton v. Blum, 50 Tex. 417 (1878) Historical authority cited in connection with the meritorious-defense discussion. Referenced for historical support of the court's treatment of meritorious defenses in bill of review context.
Swenson v. Swenson, 466 S.W.2d 424 (Tex.Civ.App. Houston (1st) 1971, no writ) Holds complainant need not prove facts constituting a complete defense; fact issues may be resolved at trial and by jury answers as in ordinary cases. Used to support the court's view that the complainant need not prove a complete defense pretrial and that factual questions are properly submitted at trial.
Gordon v. Halstead, 283 Ala. 578, 219 So.2d 629 (1969) Example of another jurisdiction not requiring bill of review complainant to prove meritorious defense by preponderance. Used to show persuasive authority from other jurisdictions supporting the court's holding.
Olivera v. Grace, 19 Cal.2d 570, 122 P.2d 564 (1942) Another out-of-state example where preponderance proof of meritorious defense is not required in bill of review. Used as persuasive support for the court's holding.
Overstreet v. Grinstead's Adm'r, 283 Ky. 73, 140 S.W.2d 836 (1940) Out-of-state authority on bill of review standards. Used as persuasive authority that many jurisdictions do not impose a preponderance requirement for meritorious defense at the bill of review preliminary stage.
Hockenberry v. Cooper County State Bank, 338 Mo. 31, 88 S.W.2d 1031 (1935) Another out-of-state case cited for the proposition that preponderance is not uniformly required. Used as persuasive comparative authority.
Stocking v. Charles Beard Co., 102 Mont. 65, 55 P.2d 949 (1936) Out-of-state authority on bill of review approach. Included among persuasive authorities showing variance in other jurisdictions' standards.
Warren v. Walter, 414 S.W.2d 423 (Tex. 1967) Discusses court's discretion to conduct trial in one hearing or separate hearings pursuant to Rule 174(b), Tex.R.Civ.P. Cited to support the court's statement that it may, in its discretion, try the bill of review issues in one hearing or in separate hearings.
Ivy v. Carrell, 407 S.W.2d 212 (Tex. 1966) Holds that only one final judgment may be rendered in a bill of review proceeding either granting or denying relief. Relied upon to state that only one final disposition is appropriate in a bill of review.
Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388, 133 S.W.2d 124 (1939) Governs standards for granting new trial where motion for new trial is timely (fault not intentional, not conscious indifference, due to accident or mistake; must also set up meritorious defense). Used to contrast the less onerous standards for timely motions for new trial with the heavier burdens placed on bill of review complainants because of finality policy.

Court's Reasoning and Analysis

The Court began by identifying the nature of the proceeding (a bill of review) and the procedural posture (trial court denied relief; court of civil appeals reversed and remanded; Supreme Court affirmed the court of civil appeals).

On the issue of official mistake and the required showing of wrongful act by the opposite party, the Court relied on prior Texas authority (notably Gracey v. West and Hanks v. Rosser) to hold that when a court officer or functionary gives erroneous official information or a document is misplaced by the courthouse after receipt, the complainant in a bill of review need not show the prior judgment was rendered by reason of fraud, accident, or wrongful act of the opposing party. Applying that rule to the record before it, the Court accepted the trial court's finding that the Goldsmiths' letter had been received and forwarded to the judge and thereafter misplaced through no fault of the Goldsmiths; the Court agreed that those circumstances obviated the necessity of pleading and proving wrongful conduct by the Bakers.

Turning to the central contested question — whether a bill of review complainant must prove his meritorious defense by a preponderance of the evidence — the Court reviewed Texas and out-of-state authorities and concluded that the complainant is not required to prove his meritorious defense by a preponderance of the evidence at the preliminary stage. Instead, the Court established a two-step process and clarified burdens and procedure:

  1. Pleading and preliminary proof: The complainant must file a bill of review petition alleging with particularity that the prior judgment resulted from fraud, accident, wrongful act of the opposite party, or official mistake unmixed with the complainant's own negligence. The complainant must also plead with particularity sworn facts sufficient to constitute a defense and, as a pretrial matter, present prima facie proof to support that contention. This prima facie showing is intended to be a legal threshold to prevent spurious full-blown trials.
  2. Nature of the prima facie meritorious-defense inquiry: The Court specified that the inquiry is not whether the result would "probably be different" (which would require weighing evidence). Rather, a prima facie meritorious defense exists when the court determines, as a matter of law, that the complainant's asserted defense is not barred as a matter of law and that the complainant would be entitled to judgment on retrial if no evidence to the contrary were offered. This legal determination may be based on documents, interrogatory answers, admissions, affidavits, and other evidence the trial court allows in its discretion. Factual disputes in this pretrial legal determination are to be resolved in favor of the complainant.
  3. If no prima facie meritorious defense is shown, the court must dismiss the bill of review proceeding. If a prima facie meritorious defense is shown, the court proceeds to trial (either in one hearing or in separate hearings under Rule 174(b) at the court's discretion).
  4. Allocation of burdens at trial: At the full trial stage the complainant must prove by a preponderance of the evidence that the prior judgment was rendered as a result of fraud, accident or wrongful act of the opposite party or by official mistake unmixed with the complainant's negligence. If the complainant satisfies that burden, the parties revert to their original positions — the original plaintiff (now the bill of review defendant) bears the burden of proving the elements of his original cause of action by a preponderance of the evidence. The factfinder decides both issues; the first may be submitted as a broad issue under Rule 277, Tex.R.Civ.P., and only one final judgment may be entered in the bill of review proceeding.

The Court thus reversed the trial court's requirement that the complainant prove a meritorious defense by a preponderance in the preliminary stage, and instead required only a prima facie legal showing at that stage followed, if successful, by trial with the burdens allocated as described above. The Court applied these legal principles to affirm the court of civil appeals' reversal and remand and instructed that further proceedings be consistent with the opinion.

Concurring view: Justice Pope concurred in the result but expressed disagreement with the majority's requirement of an interim prima facie hearing. He would have the trial proceed on the two principal issues in sequence at the trial without a separate preliminary prima facie sub-hearing, relying on existing rules (including summary judgment and Rule 174(b)) to weed out frivolous claims.

Holding and Implications

Holding: The Texas Supreme Court held that a complainant in a bill of review is not required to prove his meritorious defense by a preponderance of the evidence at the preliminary stage. Instead, the complainant must make a prima facie showing (a legal determination that the defense is not barred as a matter of law and would entitle the complainant to judgment if unrebutted) before proceeding to trial. The trial court's judgment (that the Goldsmiths take nothing) was reversed by the court of civil appeals, and the Supreme Court affirmed that reversal and remanded for further proceedings consistent with the opinion.

Implications:

  • Direct effect: The Supreme Court affirmed the court of civil appeals and remanded the case for further proceedings under the procedural framework set out in this opinion. The Goldsmiths need only make the court-determined prima facie showing of a meritorious defense at the pretrial stage; if successful, the parties proceed to trial where the complainant must prove the judgment was obtained by fraud/accident/official mistake (preponderance), and the original plaintiff must prove his original cause of action.
  • Broader legal consequence: The opinion clarifies the proper standard and procedure for bill of review proceedings in Texas: it rejects the requirement that a complainant prove a meritorious defense by a preponderance at the preliminary stage and prescribes a two-step process (prima facie legal threshold, then full trial with allocated burdens). This articulation guides future bill of review practice and balances protecting finality of judgments with permitting equitable relief where warranted.

This summary is based exclusively on the text of the provided opinion and does not add information beyond what the opinion contains.

Show all summary ...

McGEE, Justice.

This is a proceeding in the nature of a bill of review. The trial court denied the requested equitable relief from a prior default judgment, but the court of civil appeals reversed the judgment and remanded the cause for trial. 567 S.W.2d 590. We affirm the judgment of the court of civil appeals.

The original suit underlying this bill of review was filed by Vernon R. Baker and his wife, Audane Baker, against Edward and Juliette Goldsmith, Mark S. Barrow, and the Goldsmiths' son, Warren. The Bakers alleged that the four defendants entered into a conspiracy to sell them a gift shop franchise to be located in Austin, Texas. Specifically, the Bakers contended that the Goldsmiths and Barrow made certain fraudulent misrepresentations concerning the franchise and that in reliance thereon the Bakers paid $10,000 for the franchise in addition to other expenses incurred in anticipation of establishing the shop.

Upon receipt of citation to appear in the Baker suit, Edward Goldsmith sent a letter to the district judge of the court in which the suit was pending, substantially denying the material allegations in the Baker petition. A certified mail receipt returned to the Goldsmiths before appearance day indicates that the letter was received by a Travis County Courthouse mail room employee on December 11, 1973. On January 4, 1974 the Bakers' cause of action against Warren Goldsmith and Mark Barrow was severed from the suit, and neither of these defendants has participated further in the original suit or the subsequent bill of review. On the same day a default judgment was rendered against Edward and Juliette Goldsmith for $44,699.66.

On March 10, 1974, Edward and Juliette Goldsmith filed this bill of review praying that the default judgment be set aside. In their petition they alleged that the aforementioned letter constituted a timely filed answer to the Baker suit, and that the answer had been misplaced at the courthouse after its receipt. The petition also stated that the Goldsmiths received no notice of the judgment until more than 30 days after its rendition, thus precluding the timely filing of a motion for new trial. As a meritorious defense to the original suit the Goldsmiths alleged:

(1) that they had made no misrepresentations;
(2) that any representations made by them to the Bakers were true;
(3) that they had no franchise contract with the Bakers;
(4) that they had not received any money in exchange for a gift shop franchise;
(5) that if the Bakers paid a franchise fee, it was either to the two former defendants, Warren Goldsmith and Mark Barrow, or to a corporation controlled by them, that the Goldsmiths were not part of that corporation and had no knowledge of any moneys received by that corporation;
(6) that they had no knowledge of representations made by Warren Goldsmith, if any, to the Bakers;
(7) that they had no knowledge of the whereabouts of Warren Goldsmith.

After a trial before the court where evidence and testimony was presented by both sides, the court found as a matter of fact that the letter was received and forwarded to the judge of the court in which the suit was pending, but that it had subsequently "disappeared" through "no fault" of the Goldsmiths. The court further concluded that such letter constituted an "answer" to the Baker suit, but that the delivery of the instrument to the judge did not constitute a filing thereof. It was also found that the Goldsmiths received no notice of the January 4, 1974 default judgment until February 10, 1974, more than 30 days after its rendition. The court concluded, however, that a meritorious defense had not been established by a preponderance of the evidence, and rendered judgment that the Goldsmiths take nothing. Over a dissenting justice, the court of civil appeals reversed and remanded the case, holding that the trial court erred in requiring the Goldsmiths to establish their meritorious defense by a preponderance of the evidence. 567 S.W.2d 590. We granted the Bakers' application for writ of error.

A bill of review is an independent equitable action brought by a party to a former action seeking to set aside a judgment, which is no longer appealable or subject to motion for new trial. See McEwen v. Harrison, 162 Tex. 125, 131-32, 345 S.W.2d 706, 709-10 (1961); Comment, Setting Aside Judgments Against the Absent Defendant, 37 Texas L.Rev. 208, 221 (1958). Rule 329b(b) of the Texas Rules of Civil Procedure provides that: "After the expiration of thirty (30) days from the date the judgment is rendered or motion for new trial overruled, the judgment cannot be set aside except by bill of review for Sufficient cause, filed within the time allowed by law." Tex.R.Civ.P. 329b(5) (emphasis added). The rules do not define "sufficient cause," but Texas courts have enunciated several requirements that must be satisfied. In Alexander v. Hagedorn, 148 Tex. 565, 568, 226 S.W.2d 996, 998 (1950), this court stated that in order to be successful upon a bill of review the complainant must "allege and prove: (1) a meritorious defense to the cause of action alleged to support the judgment, (2) which he was prevented from making by the fraud, accident or wrongful act of the opposite party, (3) unmixed with any fault or negligence of his own." Accord, Texas Machinery Equipment Co. v. Gordon Knox Oil Exploration Co., 442 S.W.2d 315, 317-18 (Tex. 1969); Gracey v. West, 422 S.W.2d 913, 915 (Tex. 1968). The second requirement of Hagedorn, however, has been qualified in later cases. To the extent there is reliance on the erroneous official information given by an official court functionary preventing the filing of a motion for new trial, the bill of review plaintiff is excused from showing the wrongful conduct, fraud or accident of the opposite party. Gracey v. West, 422 S.W.2d 913, 915-16 (Tex. 1968) (citing Hanks v. Rosser, 378 S.W.2d 31, 34 (1964)).

The Bakers first contend that there are no pleadings or proof to support the conclusion that the prior judgment was rendered as the result of fraud, accident or wrongful act of the opposite party unmixed with any negligence on the part of the Goldsmiths. This contention is without merit. As aforementioned, in Gracey v. West, 422 S.W.2d 913 (Tex. 1968), this court held that where an officer of the court gives wrong information which prevents the filing of a motion for new trial, the complainant in a bill of review is excused from showing that the judgment was rendered as the result of the wrongful conduct of the opposite party. Id. at 915 (citing Hanks v. Rosser, 378 S.W.2d 31, 34 (Tex. 1964)). Consistent with this, it is also acceptable for the complainant to allege and prove that he was prevented from presenting his contentions in the former action by a mistake or error of the court or a functionary thereof in the discharge of official duties. Vogel v. Vogel, 405 S.W.2d 87, 90 (Tex.Civ.App. San Antonio 1966, no writ); Texas State Board of Examiners in Optometry v. Lane, 358 S.W.2d 636, 637 (Tex.Civ.App. Fort Worth 1962, writ ref'd n. r. e.); 4 R. McDonald, Texas Civil Practice in District and County Courts § 18.27 (1970).

Turning to the record, we find that there are pleadings, proof, and a finding that the letter was misplaced without the fault of the Goldsmiths after it was received at the Travis County Courthouse. We agree with the conclusion of the trial judge that this letter constituted an answer, and it is to be assumed that the presiding judge entered the default judgment against the Goldsmiths under the mistaken belief that the Goldsmiths had indeed failed to answer. These circumstances obviate the necessity of pleading and proving accident, fraud or wrongful act of the Bakers.

The Bakers next contend that the Goldsmiths, as bill of review complainants, had the burden of establishing their meritorious defense by a preponderance of the evidence. The Goldsmiths respond that the court of civil appeals correctly held that the complainants were only required to present probative evidence that the result would have been different whereupon the parties are relegated to their original status of plaintiff and defendant with the burden resting upon the plaintiff to make his case.

While this court has never confronted the exact issue presented by these contentions, several cases are helpful to an analysis of the problem. In McEwen v. Harrison, 162 Tex. 125, 345 S.W.2d 706 (1961), it was stated that:

. . . If . . . a defendant has not been negligent in suffering a default judgment to be rendered against him by a court which had jurisdictional power to render it, or in permitting it to become final, and if he has a meritorious defense to the suit, He may still have the suit tried on its merits with the right to require the plaintiff to prove his case and the corresponding right to establish his defense. Texas Employers' Ins. Ass'n v. Arnold, 126 Tex. 466, 88 S.W.2d 473, 474; Wear v. McCallum, 119 Tex. 473, 33 S.W.2d 723, 724.

Id. 345 S.W.2d at 710 (emphasis added); Accord, Texas Machinery Equipment Co. v. Gordon Knox Oil Exploration Co., 442 S.W.2d 315, 318 (Tex. 1969). This language does not indicate what quantum of proof is required to show that the bill of review complainant "Has a meritorious defense," but it is clear that at some point in the proceeding the parties will revert to their original status as plaintiff and defendant with the burden on the plaintiff to prove his case.

In an earlier case the court of civil appeals in Crosby v. Di Palma, 141 S.W. 321 (Tex.Civ.App. El Paso 1911, writ ref'd), concluded that a good and meritorious defense had been presented when the complainant had shown that the result reached in the prior case would have been different had the defensive matter been presented. If a Prima facie meritorious defense has been shown to the court, "the measure of the law is fulfilled, and the parties are then relegated to their original status of plaintiff and defendant, with the burden of proof resting upon the plaintiff to make his case, leaving the defendant the right, if he sees fit, to rely merely upon the weakness of his adversary's case." Id. at 325; See Dicker v. Binkley, 555 S.W.2d 495, 498 (Tex.Civ.App. Dallas 1977, no writ) (must show meritorious defense to the extent that, had the defense been presented, the prior judgment would not have been rendered); Cf. Petro-Chemical Transport, Inc. v. Carroll, 514 S.W.2d 240, 245 (Tex. 1974); Overton v. Blum, 50 Tex. 417, 425 (1878).

Similarly, in Swenson v. Swenson, 466 S.W.2d 424 (Tex.Civ.App. Houston (1st) 1971, no writ), the court stated that the complainant was not required to prove facts constituting a complete defense to the suit in which the prior judgment was rendered. Instead, if the trial court were convinced that certain facts existed that would lead to a new and different verdict and that the complainant had been prevented from presenting those facts by the wrongful conduct of the opposite party unmixed with fault or negligence on the complainant's part, the question of meritorious defense could be resolved "by the answers to the issues on the merits submitted to the jury As in any ordinary case." Id. at 426-27 (emphasis added). Notably, Texas commentators that have considered this question have reached the same conclusion. 4 R. McDonald, Texas Civil Practice in District and County Courts § 18.29, at 335 (1971); Meyer, The Equitable Bill of Review in Texas, 41 Tex.B.J. 699, 602 (1978).

Moreover, many other American jurisdictions do not require the complainant in a bill of review proceeding to prove his meritorious defense by a preponderance of the evidence. See, e. g., Gordon v. Halstead, 283 Ala. 578, 219 So.2d 629, 631 (1969); Olivera v. Grace, 19 Cal.2d 570, 122 P.2d 564, 569 (1942); Overstreet v. Grinstead's Adm'r, 283 Ky. 73, 140 S.W.2d 836, 839 (1940); Hockenberry v. Cooper County State Bank, 338 Mo. 31, 88 S.W.2d 1031, 1037 (1935); Stocking v. Charles Beard Co., 102 Mont. 65, 55 P.2d 949, 952 (1936).

In light of the aforementioned authorities we now hold that the complainant in a bill of review is not required to prove his meritorious defense by a preponderance of the evidence. Since this case must be remanded for trial under correct principles, we deem it appropriate to outline the trial procedure to be utilized and the burdens of persuasion to be assumed by the respective parties.

First, in order to invoke the equitable powers of the court, the bill of review complainant must file a petition. This petition must allege factually and with particularity that the prior judgment was rendered as the result of fraud, accident or wrongful act of the opposite party or official mistake unmixed with his own negligence. See Gracey v. West, supra at 915; Hanks v. Rosser, Supra at 34; McEwen v. Harrison, Supra, 345 S.W.2d at 710. The complainant must further allege, with particularity, sworn facts sufficient to constitute defense and, as a pretrial matter, present prima facie proof to support the contention. Crosby v. Di Palma, Supra at 325. This preliminary showing is essential in order to assure the court that valuable judicial resources will not be wasted by conducting a spurious "full-blown" examination of the merits.

The relevant inquiry is not whether "the result would probably be different" on retrial as some Texas cases have indicated. Such a test would require the court to weigh the evidence. Rather, a prima facie meritorious defense is made out when it is determined that the complainant's defense is not barred as a matter of law and that he will be entitled to judgment on retrial if no evidence to the contrary is offered. This is a question of law for the court. Cf. Trevino v. American National Insurance Co., 140 Tex. 500, 168 S.W.2d 656 (1943); Duncan v. Butterowe, Inc., 474 S.W.2d 619 (Tex.Civ.App. Houston (14th) 1971, no writ). Prima facie proof may be comprised of documents, answers to interrogatories, admissions, and affidavits on file along with such other evidence that the trial court may receive in its discretion. The bill of review defendant may respond with like proof showing that the defense is barred as a matter of law, but factual questions arising out of factual disputes are resolved in favor of the complainant for the purposes of this pretrial, legal determination. If the court determines that a prima facie meritorious defense has not been made out, the proceeding terminates and the trial court shall dismiss the case.

On the other hand, if a prima facie meritorious defense has been shown, the court will conduct a trial. At this juncture we note that the court may, within its discretion, conduct the trial of the issues in one hearing or in separate hearings pursuant to Rule 174(b) of the Texas Rules of Civil Procedure. See Warren v. Walter, 414 S.W.2d 423 (Tex. 1967). In any event, only one final judgment may be rendered in a bill of review proceeding either granting or denying the requested relief. Ivy v. Carrell, 407 S.W.2d 212, 214 (Tex. 1966).

Whether the trial is conducted in one hearing or in separate hearings the burden of persuasion is allocated in the following manner. The complainant must open and assume the burden of proving that the judgment was rendered as the result of the fraud, accident or wrongful act of the opposite party or official mistake unmixed with any negligence of his own. McEwen v. Harrison, Supra, 345 S.W.2d at 710; 4 R. McDonald, Supra at 335. This may be an onerous burden, but it is a major distinguishing factor between a bill of review and a motion for new trial. In a motion for new trial the movant is merely required to prove that his failure to answer in the prior trial was not intentional or the result of conscious indifference, but was due to accident or mistake, and that the granting of a new trial will occasion no delay or injury to the plaintiff. Craddock v. Sunshine Bus Lines, Inc., 134 Tex. 388, 133 S.W.2d 124, 125 (1939) (must also set up a meritorious defense); 4 R. McDonald, Supra at 267. This distinction rests on our policy favoring finality of judgments. A less onerous standard for the movant in a timely filed motion for new trial is justified inasmuch as the judgment has yet to become final and only a brief period of time has elapsed since its rendition. On the other hand, once a judgment has become final, it must be accorded a measure of respect or litigation would tend to become endless. 4 R. McDonald, Supra at 318; Recent Cases, 24 Texas L.Rev. 223, 224 (1946).

While the complainant must assume this burden, the bill of review defendant must assume the burden of proving his original cause of action. Crosby v. Di Palma, Supra at 335. This assures that the original, underlying cause of action is supported by the weight of the evidence.

The fact finder will determine whether the complainant has established by a preponderance of the evidence that the prior judgment was rendered as a result of fraud, accident or wrongful act of the opposite party or official mistake unmixed with negligence on the complainant's part. This may be submitted in one broad issue under Rule 277 of the Texas Rules of Civil Procedure. Conditioned upon an affirmative finding to this issue, the fact finder will then determine whether the bill of review defendant, the original plaintiff, has proved the elements of his original cause of action. 4 R. McDonald, Supra at 335; Meyer, Supra at 702. Once it is found that the complainant is suffering under a wrongfully obtained judgment that is unsupported by the weight of the evidence, equity is satisfied and the court should grant the requested relief.

The judgment of the court of civil appeals which reversed the trial court judgment and remanded the cause is affirmed with instructions that further proceedings should be consistent with this opinion.

Concurring opinion by POPE, J.

POPE, Justice, concurring.

While I concur in the result, it is my view that we are unnecessarily confounding the trials of bill of review cases. I agree that the bill of review plaintiff must prove by a preponderance of the evidence that the prior judgment was rendered as a result of fraud, accident or wrongful act of the opposite party which was unmixed with any fault or negligence of his own or that there was an official mistake unmixed with the negligence on the part of the bill of review plaintiff. The majority at that point injects a new step into the trial that in my opinion is unnecessary, wasteful, and confusing.

The majority requires an interim hearing at which the bill of review plaintiff must satisfy the trial court by prima facie proof that he has a meritorious defense. That hearing is not the trial of the defense that counts; it is a preliminary showing of what one will prove when it does count. It is an additional and redundant hearing. Instead of saving time, it creates an extra sub-trial of uncertain nature and duration. The rules already authorize adequate proceedings by which a frivolous or non-meritorious claim to a defense can be exposed. A partial or complete summary judgment proceeding will expose the unmeritorious case. Rule 166-A, Tex.R.Civ.P. The court may order a separate trial of an issue as authorized by Rule 174(b), Tex.R.Civ.P.

When Alexander v. Hagedorn, 148 Tex. 565, 226 S.W.2d 996 (1950) was tried, the parties announced ready and tried the case to final judgment in one day. There was no trial before the trial. I would hold that a bill of review trial should be conducted as suggested in 4 McDonald, Texas Civil Practice § 18.29 (1971):

The controversy turns upon two issues: (I) Was the judgment complained of rendered as a result of fraud, accident, or mistake, without the negligence of the complainant either in the course of the former action or after judgment? (II) Was the judgment incorrect? The burden is upon the complainant to establish the affirmative of the elements of the first issue. If he does so, the burden of proof upon the second issue rests upon the party who would have had such burden had no judgment been entered.
That kind of a trial would certainly not be an erroneous one.