This section contains the nature of the case and procedural background.

The Medical Center (P) sued Peralta (D) to recover $5,600 due from D's guarantee of a hospital debt incurred by one of D's employees. The service was untimely, and D did not answer or appear. P was personally served, but it was 90 days after the summons was issued and this delay nullified the service of process under state law. A default judgment was entered and in 1984. P’s title to real property was clouded, and that property was sold to satisfy the judgment. D filed a bill of review to have the judgment set aside and his record cleared and the sale set aside. P filed for a summary judgment in that D could not show a meritorious defense in order to obtain his bill. The trial court granted summary judgment to P, the Texas court of appeals affirmed, and the Supreme Court accepted review. The lower courts reasoned that without a meritorious defense, the same result would have been entered on retrial.

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