Asit Choksi v. Ulupi Choksi

CourtCourt of Appeals of Texas
DecidedNovember 19, 2020
Docket09-19-00183-CV
StatusPublished

This text of Asit Choksi v. Ulupi Choksi (Asit Choksi v. Ulupi Choksi) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asit Choksi v. Ulupi Choksi, (Tex. Ct. App. 2020).

Opinion

In The

Court of Appeals

Ninth District of Texas at Beaumont

________________

NO. 09-19-00183-CV ________________

ASIT CHOKSI, Appellant

V.

ULUPI CHOKSI, Appellee ________________________________________________________________________

On Appeal from the 410th District Court Montgomery County, Texas Trial Cause No. 17-08-10143-CV ________________________________________________________________________

MEMORANDUM OPINION

Asit Choksi appeals the trial court’s Final Decree of Divorce entered in the

proceeding involving his wife, Ulupi Choksi. 1 The trial court rendered the decree

based on the parties’ mediated settlement agreement (MSA). See Tex. Fam. Code

Ann. § 6.602. Subsequently, the trial court denied Asit’s motion for new trial.2

1 We refer to the parties by their first names for purposes of clarity. 2 Asit does not appeal the denial of his motion for new trial. 1 In three issues, Asit argues that the trial court erred by rendering a final

divorce decree based on the parties’ MSA because (1) he signed the MSA against

his will due to the “looming threat of criminal prosecution,” and an MSA procured

by fraud, duress or coercion is unenforceable, (2) there was a mutual mistake of fact

pertaining to his belief that he could transfer properties on behalf of Choksi, Ltd.,

and due to this mistaken belief, the MSA is unenforceable, and (3) certain provisions

of the MSA are illegal and violate public policy.3 Ulupi filed a brief and moved to

dismiss Asit’s appeal, arguing he waived his right to appeal under the terms the

parties reached in the MSA. For the following reasons, we affirm the trial court’s

judgment.

I. Background

Asit and Ulupi married in 1981. Both parties are physicians, and they acquired

extensive community assets, including real estate. Some of the real estate was held

by Choksi, Ltd., a limited partnership in which Asit and Ulupi held a ninety-five

percent interest. On August 17, 2017, Ulupi called police following an incident

where Asit, while intoxicated, allegedly threatened her with a firearm. Police

arrested Asit. Ultimately, he was charged with making a terroristic threat. Ulupi sued

3 Ulupi has also filed a motion to dismiss Asit’s appeal based on the waiver of Asit’s right to appeal contained in the MSA; however, since Asit has raised a claim of duress in the procurement of the MSA, we must first address the MSA’s enforceability. 2 him for divorce the following day. Asit, through counsel, asked Ulupi to mediate the

issues in their divorce that were in dispute. Before the mediation, Ulupi’s attorney

attempted to confirm that Asit had the authority to convey the properties owned by

the Choksi partnership. Asit’s counsel contacted the mediator’s office to facilitate

the mediation, and the mediation occurred on July 23, 2018, ending with a signed

MSA. Under the terms of the agreement, Asit agreed to transfer much of their real

estate, including much of the property held by Choksi, Ltd., to Ulupi. He also agreed

to sign the documents required to do so.

In bold and capital letters, the MSA provides:

AS EVIDENCED BY THEIR SIGNATURES BELOW, THE PARTIES AGREE THAT THIS BINDING MEDIATED SETTLEMENT AGREEMENT IS NOT SUBJECT TO REVOCATION AND IS NOT APPEALABLE. FURTHER, THE ATTORNEYS’ SIGNATURES BELOW WERE AFFIXED AFTER THE PARTIES SIGNED THIS AGREEMENT AND IN THE PRESENCE OF THE PARTIES.

Both parties signed the document, as did their attorneys. The MSA also states, “Each

signatory to this Agreement has entered into the settlement freely and without duress

after having consulted with professionals of his or her choice” and that the parties

“signed voluntarily and with the advice and consent of counsel on the date set out

below[.]” (Emphasis original.)

On November 13, 2018, Ulupi moved for entry of judgment based on the

MSA. Asit responded to the motion for entry of judgment claiming that “disputes

3 [ ] have arisen regarding the interpretation and/or performance of [the MSA]” and

that they further needed to take the “necessary steps to complete the disposition of

the remaining assets to be divided as set forth in the [MSA.]” In his response, Asit

asked that the “Court refer this matter to arbitration pursuant to the agreed terms of

the [MSA]” so the arbitrator could “approve[] all documents related to a final

judgment on all issues.” The parties then arbitrated to resolve any terms of the

drafting disputes, and the arbitrator signed the proposed final decree to confirm he

approved and that it conformed to the MSA. On February 14, 2019, Ulupi filed the

arbitrator’s approved decree with the court as a supplement to her motion for entry

of judgment and again urged the trial court to enter judgment.

While the criminal charges were pending, Asit, an oncologist, lost his

privileges to practice at several of the local hospitals. In the trial court and in his

appeal, he claims the loss of his privileges has adversely affected his ability to make

a living. During the evidentiary hearing on Ulopi’s motion to enter judgment, Asit

claimed he was forced to sign the agreement due to the looming threat presented by

his indictment, which interfered with his ability to consider the advice he was given

by his attorneys.

On February 14, 2019, Asit filed a supplemental response to Ulupi’s motion

to enter judgment. He asked the trial court to set aside the MSA, to conduct an

evidentiary hearing, and to compel Ulupi’s deposition, based on his claims alleging

4 he signed the MSA while under duress. He attached his declaration to the motion,

claiming Ulupi falsely accused him of making terroristic threats. While Asit was

released following his arrest, the trial court in his criminal case ordered that he not

engage in any conduct that would “harass, annoy, alarm, abuse, torment, or

embarrass Ulupi[.]” Asit further claimed Ulupi “used the continued threat of

criminal prosecution against [him] to gain substantive advantage over [him] in the[]

divorce proceedings[,]” but he did not specify how she did so. Asit claimed that to

maintain his hospital privileges, he had to disclose whether he had ever been

arrested, and during the course of the criminal case, Ulupi “directly caused [him] to

lose [his] hospital privileges” at several local hospitals. He asserted “[u]pon

information and belief[,]”Ulupi reported the fact he had been charged in a criminal

case to the Texas Medical Board, a charge that threatened his ability to maintain his

license. Boiling it down, Asit asserted in his declaration that when he signed the

MSA, he felt he “had no choice[,]” he was not exercising free will when he signed

it, and he was unable to evaluate whether to follow the advice he received from his

lawyer.

The trial court held an evidentiary hearing prior to entry of judgment. The

evidence in the hearing shows that Asit was represented by two attorneys during the

mediation. He communicated with the mediator and his attorneys but no others

during the mediation. Asit testified in the hearing that he did not communicate

5 directly with Ulupi or her legal counsel during the mediation, but he admitted that

before the mediation, he drafted a letter that he asked Ulupi to sign. After the

mediator revised the letter, he presented it to Ulupi and her attorney.

Ulupi also testified at the evidentiary hearing. She testified that shortly before

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