Default Judgment Against Business Entities

In Texas, once a plaintiff has filed a lawsuit against a business entity (corporation, limited liability company, etc.) defendant, the plaintiff will attempt to serve the registered agent, president or vice president of said business entity. If the registered agent is served, the registered agent should forward the citation and petition on to the business entity.  In district and county courts, the business entity’s answer to the suit will be due by 10:00 am on the first Monday after the expiration of twenty days from the date the registered agent or officer was served with the citation.

If the defendant does not answer by the date the answer is due, the court may render a default judgment against the defendant.  When a defendant does not answer, all allegations of facts in the plaintiff’s petition except unliquidated damages are deemed as admitted.  That is why tt is essential that when a defendant’s registered agent or officer is served with citation, the citation and suit be forwarded to the defendant as soon as possible.  Otherwise, the defendant risks missing the deadline to answer.  If a default judgment is awarded, the plaintiff can start garnishing accounts of the defendant immediately and can levy and execute once the judgment is final.

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