## Facts

- Annie Lee Young lived at the Sebring Apartments and fell in the laundry room, injuring her hip.
- Young sued only Kao Holdings, L.P. (the alleged owner) on a premises-liability theory.
- Young did not name William Kao (the partnership’s general partner) as an individual defendant in her live pleadings.
- Citation for the partnership was served by serving William Kao in his representative capacity as agent for the partnership.
- Kao Holdings did not answer.
- Young moved for a default judgment requesting relief against both Kao Holdings, L.P. and William Kao individually.
- The trial court signed a default judgment for about $2.5 million against the partnership and against William Kao, jointly and severally.

## Issues

1. Whether a default judgment may be rendered against an individual who was not named as a defendant in the live pleadings, even if he was served only in a representative capacity for the named defendant.
2. Whether the default judgment violated Texas rules requiring default judgments to be entered only against a “defendant” and requiring judgments to conform to the pleadings.

## Decision

- The Supreme Court of Texas held that a default judgment could not be rendered against William Kao individually because he was not a defendant named in Young’s pleadings and no claim was pleaded against him.
- The court modified the court of appeals’ judgment to vacate the portion of the default judgment imposing individual liability on William Kao.
- The judgment against Kao Holdings, L.P. as to liability remained in place; the damages portion remained subject to remand for proof of unliquidated damages as determined below.
- The court declined to address any due process theory because it was not argued.

## Legal Principles

- A default judgment under Tex. R. Civ. P. 239 may be taken only against a “defendant” who has failed to answer; a person not named as a defendant is not subject to default judgment.
- Under Tex. R. Civ. P. 301, a judgment must conform to the live pleadings and cannot grant relief different from or in excess of what the pleadings support.
- Service on an individual solely in a representative capacity for an entity does not make that individual a party in his personal capacity absent pleadings naming him and asserting claims against him.
- In a restricted appeal, an appellate court may reverse or modify for error apparent on the face of the record, including a judgment that exceeds the pleadings.

## Conclusion

The court held that the trial court erred by entering a default judgment against an individual not sued in the pleadings, and it vacated the judgment against William Kao personally while leaving the default judgment against the partnership intact (with damages requiring proper proof on remand).


Kao Holdings, L.P. v. Young, 261 S.W.3d 60 (Tex. 2008)