CAUSE NO. 01-14-00571-CV
IN THE COURT OF APPEALS FOR THE FIRST JUDICIAL DISTRICT

HOUSTON, TEXAS TED KALDIS AKA TED LEFTERIS KALDIS,

Appellant, VS. CREST FINANCE, Appellee.
ON APPEAL FROM THE 281 DISTRICT COURT OF HARRIS COUNTY, TEXAS The Honorable Sylvia Matthews, Presiding

Cause No. 2012-71189
THE APPELLANT’S REPLY BRIEF

ORAL ARGUMENT REQUESTED Gus E. Pappas State Bar No. 15454850 Nicole M. Hilburn State Bar No. 24055663 D ABNEY & P APPAS 1776 Yorktown, Suite 425 Houston, Texas 77056 (713) 621-2678 Telephone (713) 621-0074 Facsimile gus@dabneypappas.com ATTORNEYS FOR APPELLANTS January 9, 2015 ACCEPTED 01-14-00571-cv FIRST COURT OF APPEALS HOUSTON, TEXAS 1/9/2015 5:57:48 PM CHRISTOPHER PRINE

CLERKi T AB LE OF C ONTENTS P age T ab l e o f C o n t e n t s . ....... ....... ....... ....... ....... ....... ....... . i I n d e x o f A u t h o r i t i e s . ....... ....... ....... ....... ....... ....... ...... iii Obj ection to Regulated Lending Portion of A ppellee’ s Brief
. . . . . . . . . . . . . . . . . 2 A r g u m e n t
. ....... ....... ....... ....... ....... ....... ....... ....... . 2 I. APPELLEE’ S CLA I M AGAINST APPELLANT IS BARR ED BY THE S T A T U T E O F L I M I T A T I O N S
. . ....... ....... ....... ....... ...... 2 C o n c l u s i o n a n dP r a y e r

. ....... ....... ....... ....... ....... ....... .... 5 C e r t i f i c a t e o f S e rv i c e . ....... ....... ....... ....... ....... ....... ...... 7 C e r t i f i c a t e o f C o m p l i a n c e . ....... ....... ....... ....... ....... ....... . . 7ii I ND EX OF A UTHORI TIES TEX AS SU PREME CO UR T C AS ES B ark er v . Eck m an , 2 1 3 S
. W
. 3 d3 0 6 ( T e x . 2 0 0 6 )
. ....... ....... ....... ..... 3 AP PE LLA TE C OUR T C AS ES Bick ne ll v. W el ls Far go Ban k, N.A. , N o. 11- 08- 0020 3- CV , 201 0 W L 163 5832 (T ex. App.-Be aum ont Apr. 22, 2010, no pet.).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Co lv in v
. T

ex . D ow E

m ps. Cr edit U

nio n , No. 0 1- 11 -0 03 42 -CV, 2012 W L 554 4950 ( T ex . A pp. -H oust on [ 1st D ist
. ] 201 2, no p et
. ).
. . . . . . . . . . . . . 3 D ode ka , L

. L. C. v . Ca m

pos , 377 S
. W
. 3d 7 26 ( T e x . A p p . - S a n A n t o n i o 2 0 1 2 , n o p e t
. )
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 STA TUT ES T EX . C IV . P RAC . & R EM . C OD E § 1 6
. 0 0 4 ( a ) ( 3 )
. ....... ....... ....... ..... 3, 4 T EX . C IV . P RAC . & R EM . C OD E § 1 6
. 0 0 4 ( c )
. ....... ....... ....... ....... . . 4 T EX . R. A PP . P. 3 8
. 1 ( k ) ( 1 ) ( c )
. ....... ....... ....... ....... ....... ....... 21 CAU SE NO . 01-14-00571 -CV
IN TH E C OUR T OF AP PE ALS FOR THE FIRST J UDICI AL DIS TRI CT

HOUS TON, TE XAS
TED KA LDIS AK

A T ED LEF TER IS KA LDIS , A ppe llant, VS
. CR EST F INA NC E, Appellee.
ON AP PE AL FRO M T HE 281 DIST RICT CO URT OF HARRIS C OUNTY, TEXAS T he H onor ab le S y lvi a Ma tth ew s, P re sid ing

Ca use N o. 201 2- 7118 9
THE A PP ELLA NT’ S R EP LY BRIE F
TO TH E H ON ORA BL E JU ST ICE S O F T HE FIR ST CO URT OF AP PE AL S: CO ME S N O W , T E D K

A L D IS A K

A T E D L E FT E RIS KALD IS , A ppe llant herein, and files this his brief in s uppo rt of his pray er that this Court reverse the trial
co urt’ s e ntr

y of it s M ay 22, 201 4 F ina l Ju dgm en t a nd re nde r a ta ke not hin g j udgm en t in i ts plac e, an d fo r such o the r an d f urthe r re lie f, a t l awa nd i n e qui ty , to w hic h th e A ppe llant i s e nti tle d.2

O BJEC TION TO R EGULATED L ENDING P ORT ION OF A P P ELLEE ’ S B RIEF Appellant objec ts to the regulated lending section of Appellee’ s Brief , w hich begins o n page 13, as it con t ai ns no cites to case la w or other legal authority other tha n T he T ru th and L en din g A ct , a nd e ve n th en , onl y ge ne ra l c ite s a re inc lud ed
. A ddi tio na lly , the A ppe lle e fa ile d to inc lud e the T ru th and L en din g A ct in its Appendix, as re quired by T ex as Ru le of Appellate Procedure 38.1(k)(1)( c). By f a i l i n g t o i n c l u d e t h e T r

u t h a n d L e n d i n g A c ti n i t s A p p e n d i x a n do n l y c i t i n g t h e s a me g enerally , Appellant is unable to properly address the Tr uth and Le nd i n g Ac t ’s ap pli ca bil ity to A ppe lle e’ s ar gum en ts as to the sa m e. A cc or din gly , the Co urt sh oul d dis re ga rd the r eg ula te d le ndi ng a rg um en ts b y App elle e be gin nin g on pa ge 13 o f Appellee’ s Brief

. A RGUMENT I. APP ELLEE’S C LAIM AG AIN ST A PP ELLA NT IS BA RR ED BY THE STA TUT E OF LIMITA TIONS . Appellee a sserts that Appellant has not obj ected to any specific f indin g of fact
or c onc lus ion of

la w . H ow ev er , it

is cl ear fr om

A ppe llant’ s B ri ef

, A ppe llant c le ar ly ta ke s i ss ue an d o bjec ts to Co nc lu si on s o f Law 2,3 ,4, 5 , and 6. In that regar d, now that Appellee is c hangin g its pos ition in that it is no longer claim ing i t s l awsuit was filed on a suit on s worn ac count, it is clear that the tr ial
co urt’ s M ay

22, 201 4 F ina l Ju dgm en t shoul d be r ev er se d a nd a ta ke not hin g j udgm en tTex. Ci v. Prac. & Rem. Code Ann. §16.004(a )(3)
. 1 3 ren de red by thi s C o u r t
. The t ria l co ur t’s fi nd in gs of f act an d c on cl us io ns of l aw,
w hic h re sul te d in a j udgm en t fa vor ab le to the A ppe lle e, w er e ba se d on la w appl ic ab le to s uit s on sw or

n a cc ount , a nd not suit s su ch a s th is o ne , w hic h a re ba se d on the non pa ym en t of

ade bt. A sui t onade bt m

ust be br ough t " not

la te r tha n f

our y ears aft er th e da y

the cause of ac tion accrues," an d regardless of whether a debt r esults from cre dit card 1 ag re em en t or

a lin e of c re dit , a s is the c as e he re , in a sui t f or the non -p ay

m en t of de bt, the ca use of ac tio n acc ru es fr om the da te of de fa ult ba se d on the ge ne ra l rul e tha t a breach of contract ac tion accrues im m ediately upon a brea ch. See Co lv in v
. T ex . D ow E m ps. Cr edit U

nio n , N o. 01- 11- 0034 2- CV , 201 2 W L 554 4950 , a t *9 ( T ex . A pp. -H ou st on [1 st D ist
. ] 201 2, no p et
. ); Bick ne ll v. W el ls Far go Ban k, N.A. , N o. 11- 08- 0020 3- CV , 201 0 W L 163 5832 , a t *2 (T ex . A pp. -B ea um ont A pr . 22, 2010 , no pe t.) (m em . op .) (h ol di ng , i n an act io n by Well s Farg o Ban k to reco ve r de bt on two lines of credit, W ells Fargo's c ause o f action accrued w hen the default occurred. ) See B ark er v . Eck m an , 213 S
. W
. 3d 3 06, 311 ( T ex . 20 06 ). Accord ing ly , to the w el l
es ta bli she d law c ite d he re in a

bove a nd i nA

p p e l l an t ’ s B ri ef

, A ppe lle e’ s c la im s a ga ins t A ppe llant a cc ru e fr om

A ppe llant’ s a lle ge d de fa ult on or ab out

S ep te m be r 6, 200 8. D ode ka , L. L. C. v. Ca m

pos , 377 S. W
. 3d 726 at 730 (br ea ch of co ntr ac t oc cu rr ed thi rtyR. R. Vol. 2, p. 53. 2 C.R. Vol. 1, p. 4-27. 3 C.R. p. 4-6; R.R . Vol. 1 p. 8, line 23 and 24; Vol. 1 p. 20, line 12 4 4 da y s a ft er

la st m ini m

um m ont hly pa y m en t was m ad e. ) H er e, the la st m ini m um
m ont hly pa ym en t w as m ad e on Au gust 7, 2008 , w ith the ne xt p ay m en t be ing due on
or be fo re S ep te m

be r 5, 200 8 unde r the A gr ee m en t. T he A ppe lle e w ai te d to f ile the 2 sui t un til D ec em

be r 3, 201 2, th re e (3 ) m on th s la te giv enit s S ep te m be r 4- 5, 201 2 3 deadline to do so based on the applicable four y ear statute of lim itations . T herefor e, A ppel la nt ’ s de bt c oll ec tio n/b re ac h of c ont ra ct c la im is ba rr ed

by the sta tut e of lim ita tio ns u nde r T ex as Ci vil P ra ct ic e & R em ed ie s C ode § 16
. 004( a) (3 ), a s th e ca use of a ct ion a cc ru ed

m or e tha n f

our y ears pr ior

to the A ppe lle e fi lin g su it. InA ppe lle e’ s B ri ef

, the A ppe lle e ci te s to Se ct ion 16. 004( c) of the T ex as Ci vil Pr ac tic e an d R em ed ie s C ode f or the pr opos iti on t ha t t he A ppe lle e’ s c au se of a ct ion ag ai nst the A ppe llant a cc ru ed

on the da y

the de al ing s be tw ee n th e pa rt ie s c ea se d. H ow ev er , ba se d on the fa ct s of thi s c as e an d th e A ppe lle e’ s r ep re se nta tio ns t o th e Co urt, bot h init s pl ea din gs and at tr ia l, the ba sis of thi s la w sui t w as A ppe llant’ s no np aym en t of debt, and, there fore, this case falls under T exas Civil Prac tice & 4 Re m ed ie s C ode §16. 004( a) (3 ), not T ex as Ci vil P ra ct ic e & R em ed ie s C ode § 1 6 .0 0 4 (c ), an dp u rs u an tt o § 1 6 .0 0 4 (a )( 3 ), Ap p el l ee ’s De ce m b er3 , 2 012 p etition was fi le d be y ond the appl ic ab le sta tut e of li m ita tio ns.5

Ba s ed o n t h e a b o v e a n dfo re g o i n g , t h e C o u rt s h o u l dre v e r s e t h e t ri al co u rt ’s final j udgm ent in this case and render a take noth ing judgm ent in its pl ace. C ONCLUS ION AND P RAYER T he tr ia l c ourt e rr one ousl y e nte re d j udgm en t in fav or the A ppe lle e in l igh t of the sta tut e of lim ita tio ns ba rr ing the A ppe lle e’ s cl ai m a ga ins t t he A ppe llant, r equir ing
rev ers al as r eq ue st ed he rei n. W H E RE FO RE , P RE MI SE S CO N SI D E RE D , A ppe llant pray s th at upo n a he ar ing of thi s ap pe al , the Co urt re ve rs es the tr ia l co urt’ s en tr y of it s M ay 22, 201 4 Final Judgm ent and render a take nothin g judgm ent in its pl ace, and for such other
an d fu rth er re li ef, at law an d i n e qu it y , to whi ch th e App el la nt is en ti tl ed
.6 Re spe ct fu lly sub m itt ed , DABNEY & PAPPAS B y : / s/ Gus E
. P ap pa s G us E
. P ap pa s S ta te Bar N o. 154 5485 0 Nic ole M. H ilburn S ta te Bar N o. 240 5566 3 177 6 Y orkto w n, S uit e 425 H oust on, T ex as 770 56 713 -6 21- 2678 T el ep hone 713-621 -0074 Facsim ile gus@ dabne y

pa ppa s. co m nic ole @da

bne y pa ppa s. co m ATTORNEYS FOR APPELLANT S7 C ER TIFICAT E OF S ERVICE Ina cc or da nc e w ith T E X
. R. CI V
. P
. 21a , I , G us E
. P ap pa s, c oun se l f or the Ap p el l an t s , d o h er eb y c er t i fy t h at a t ru e a n dco rr ec tco p y o f t h e f o re g o i n g Ap p el l an t ’s Re ply Br ie f w as se rv ed

on the A ppe lle e, by

a nd t hr ough it s a tto rn ey of r ec or d, And rew Oli v o , 16 22 E. Belt li ne Rd , Sui te 10 0, Ca rro ll to n, Tex as 75 00 6, vi a fa cs imi le , on t his the 9th da y of Ja nua ry , 201 5.

/ s/ G us E
. P ap pa s Gus E . P appas
C ER TIFICAT E OF C OMPLI ANCE WITH T EX . R. A PP . P. 9.4 1. This reply

brief c om

plies with the ty

pe-volum e lim it at i on of Tex. R. App. P. 9.4 (i) (2 )(c) , bec au se th is rep ly brie f co nt ai ns 93 6 wo rd s. 2. This b ri ef co m

plies with t he ty

peface requirem ents of Tex. R. App. P. 9.4( e) an d th e ty pe sty le r equir em en ts o f T ex . R. A pp. P. 9. 4( e) , be ca use thi s R ep ly Br ie f ha s be en pr ep ar ed in pr opor tio na lly spa ce ty pe fa ce usi ng W or dP er fe ct 12 in 14 po in t fo nt si ze i n Ti m es New Ro m an typefac e. D at ed : Ja nua ry

9, 201 5 /s/

G us E
. P ap pa s Gus E . P appas