Aubrey v. Aubrey

523 S.W.3d 299, 2017 WL 2464678, 2017 Tex. App. LEXIS 5213
CourtCourt of Appeals of Texas
DecidedJune 7, 2017
DocketNo. 05-16-00506-CV
StatusPublished
Cited by14 cases

This text of 523 S.W.3d 299 (Aubrey v. Aubrey) 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
Aubrey v. Aubrey, 523 S.W.3d 299, 2017 WL 2464678, 2017 Tex. App. LEXIS 5213 (Tex. Ct. App. 2017).

Opinion

OPINION

Opinion by

Justice Lang

Appellant Steven B. Aubrey,1 proceeding pro' se, filed the underlying lawsuit seeking' to remove appellee Betsy S. Aubrey, Trustee of the Aubrey Family Trust Created Under the Will of Richard Buck Aubrey, Deceased, (“Betsy”) as trustee of the Aubrey Family Trust (“the Trust”). The trial court signed a judgment declaring appellant a vexatious litigant, dismissing the lawsuit with prejudice, and granting Betsy sánctions against appellant.

On appeal, we construe appellant’s issues to assert, that the trial court erred by (1) granting Betsy’s motion to declare him a vexatious litigant and (2) awarding the sanctions - described above.2 We decide in [302]*302favor of appellant on a portion of his second issue and against appellant'on his first issue and the remaining portion of.his second issue. We affirm the trial court’s judgment, in part; reverse the judgment, in -part; and remand this case for further proceedings consistent with this opinion.

I. FACTUAL AND PROCEDURAL CONTEXT

Upon the death of Richard Buck Aubrey in 2004, his will (“the Will”) provided for creation of the Trust and appointed his spouse, Betsy, as the trustee.3 Additionally, the Will stated that at the time of signing, Richard Buck Aubrey had the following children: Richard B. Aubrey Jr. (“Junior”), Thomas Alan Aubrey, and appellant.

Appellant filed the underlying lawsuit on September 23, 2015, seeking to remove Betsy as trustee of the Trust based on breach of fiduciary duty and “self-dealing.” In his petition, appellant stated in part (1) “[Betsy] is the current, income beneficiary of the Trust”; (2) “[a]ll of the net income from the Trust must be annually distributed to [Betsy]”; (3) “[Betsy] may utilize any part of the Trust principal assets if needed for her health, support or maintenance”; and (4) “[t]he 3 sons are vested remainder-man [sic] because,the Trust properties will vest in them when [Betsy] dies and be divided equally, with no further conditions (also properly referred to as future interest beneficiaries whose remainder becomes possessory upon [Betsy’s] death)” (emphasis original). Further, appellant contended (1) with the help of accountant David Hendricks and attorney Ira Tobolowsky, Junior has “tricked” Betsy into signing deeds for “sham” transactions that “unlawfully stripped” assets from the Trust; (2) in approximately 2007, Junior “tricked [Betsy] into signing a deed that unlawfully stripped the first asset (valued at $2.5 million) from the Trust into his empty shell [corporation], giving nothing in return”; (3) “[a]gainst the terms of the Trust, all of the net income flows to Junior, not to [Betsy]”; (4) r “[e]vidence .that [Betsy] is damaging herself, the Trust and its beneficiaries is profound throughout [her] De-; cember 8, 2014 deposition” taken in a previous case filed 'against her by appellant that resulted in a dismissal; (5) Betsy is “frail and confused” and her deposition testimony described a¡bove “indicates her CQmpIete inability to ,direct, manage ..or oversee, this Trust. (or any trust)”; (6) “[Betsy’s] unlawful, deed, transfers prove she repeatedly breached her duty”; (7) “Trustee has not shown good faith in administering the trust and performing the duties imposed on her by common law pursuant to Prop. Code §. 113.051,”. see Tex. Prop. Code Ann. § 113.051 (West 2014); (8) “[Trustee] has breached her fiduciary duty, she has been caught, self-dealing and she is willfully ignoring the law and must be removed from the Trust [303]*303for ■ her violations of Prop. Code § 113.082(a)(l)(2)(3) and (b),” see id. § 113.082; and (9) “[t]he pattern of secreting properties has been ongoing.” Specifically, appellant stated in part,

On June 27, 2013, Junior, Tobolowsky, and Hendricks conspired to fraudulently transfer a Trust asset in Travis County out of the Trust. The' scam included three sham transactions on- one day:
a) Betsy Aubrey, Trustee transferred the property to Betsy Aubrey, Individually; (without consideration)
b) Betsy Aubrey, Individually transferred the property to her son Junior (without consideration); and
c) Junior sold the property for $300,000 to United Heritage Credit Union.
The first two transfers are rendered void by law because ho consideration was given to the Trust or to Mrs. Aubrey, Individually in return for the real property. Junior used a fraudulent address on his third deed transfer, put $300,000 in his pocket, and left the Trust with nothing at all. Transferring property without consideration directly violates the terms of the Trust and violates TEXAS PROPERTY CODE § 113.010. The beneficiaries of the Trust are the owners of the Trust assets, not the Trustee. Because Mrs. Aubrey is not the owner of the Trust assets, Texas law prevents “gifting” assets that do not belong to her.

(emphasis original).

Betsy filed a general denial answer. Additionally, on December 18, 2015, Betsy filed a combined “Motion to Determine Vexatious Litigant and Motion for Sanctions.” Therein, Betsy stated in part that “[i]n the last seven years, Plaintiff has commenced, prosecuted ‘ or maintained more than five litigations (other than in small claims court) that have been determined adversely to Plaintiff (or have been dismissed by Plaintiff),” including, in part, (1) “Cause No. C-l-PB-14-000668, styled, Steven B. Aubrey v. Betsy Stirratt Aubrey, filed in Probate Court No. 1 of Travis County, Texas”; (2) “Cause No. 05-14-01172-CV, styled, In 'Re: Steven B. ■ Aubrey, Realtor v. the Honorable Michael Miller, filed in the 5th -Court of Appeals, Texas”; (3) “Cause No. 15-CV-1792', styled, Steven B. Aubrey v. the Honorable Ingrid Michelle Warren, filed in the United States District Court, Northern District of Texas”; (4) “Cause No. D-l-GN-13-003586, styled, Steven Aubrey v. Susan Stiég, filed in the 200th District Court of Travis County, Texas”; and (5) “D-l-GN-08-003721, styled, Brian Vodicka v. Southern. Methodist • University, et al., filed .in the 250th District Court of Travis County, Texas.” Also, Betsy asserted (1) “there is not a reasonable probability that' Plaintiff will prevail in the current litigation” because he “lacks standing to bring this lawsuit”; (2) pursuant to Chapter 10 of the Texas Civil Practice and Remedies Code, see Tex. Civ. Prac. & Rem. Code Ann, §§ 10.001-.006 (West 2002), she was requesting a monetary sanction against appellant in the amount of her reasonable land necessary attorney’s fees and expenses she necessarily incurred in this case and six others previously filed against her by appellant, as well as “for prosecuting this Motion”; and (3) a sanction in the amount of $350,000.00 is “just. and reasonable” because “Plaintiffs frivolous tactics and allegations have forced Betsy Aubrey and the Aubrey Family Trust to defend Defendant Betsy Aubrey in the prior lawsuits.”

Further, in a February 5, 2016 supplemental motion to her combined motions, Betsy asserted several additional “grounds for contending that there is no reasonable probability that Plaintiff will prevail in the current lawsuit.” Specifically, Betsy stated [304]

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523 S.W.3d 299, 2017 WL 2464678, 2017 Tex. App. LEXIS 5213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aubrey-v-aubrey-texapp-2017.