In Ferguson & Co. v. Roll, 776 S.W.2d 692 (Tex. App.--Dallas 1989, no writ), Roll filed suit against Ferguson for breach of an agreement to compensate Roll for services he had performed in recruiting a job candidate later hired by Ferguson.
Ferguson did not file an answer and a default judgment was entered against it. In its motion for new trial, Ferguson asserted it had the following meritorious defenses:
(1) it denied the agreement existed;
(2) if it did exist, the candidate was not hired pursuant to the agreement;
(3) Ferguson never agreed to pay Roll a percentage of the employee's first year of compensation as a fee. Ferguson, 776 S.W.2d at 698-99.
The Court concluded that because Ferguson put the terms of the contract in issue, both as to liability and as to damages, Ferguson successfully met the meritorious defense requirement of Craddock v. Sunshine Bus Lines, Inc. Id. at 699.