Ben Florey v. Estate of Linda McConnell

Court of Appeals of Texas·Decided June 9, 2006·No. 03-04-00318-CV·Published

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN

NO. 03-04-00318-CV

Ben Florey, Appellant

v.

Estate of Linda McConnell, Appellee

FROM THE DISTRICT COURT OF WILLIAMSON COUNTY, 368TH JUDICIAL DISTRICT NO. 03-099-C368, HONORABLE BURT CARNES, JUDGE PRESIDING

OPINION

In this appeal, we must decide the validity of a real property lien, an inquiry that turns on a dispute regarding the property’s homestead status. Ben Florey represented Richard E. McConnell (McConnell) in connection with charges for murdering his wife, Linda McConnell.1 To secure payment of legal fees, McConnell executed a promissory note payable to Florey, secured by a deed of trust on real property owned jointly by McConnell and the Estate of Linda McConnell. The Estate2 brought a wrongful death suit against McConnell and obtained a judgment. The Estate sued Florey to invalidate his deed of trust on the property and collect some of its wrongful death

1 Richard McConnell ultimately pled guilty, was convicted, and received a forty-year sentence.

2 The McConnell’s four minor children; the minors’ maternal grandparents and next friends, James and Annie Caulkins; and the minors’ attorney ad litem, Patricia J. Cummings.

judgment from the proceeds of the property’s sale.3 After a bench trial, the district court declared Florey’s lien invalid, specifically finding that the property was a homestead; the court also awarded attorney’s fees to the Estate. Florey appeals, contending that his lien is valid because McConnell abandoned the homestead. We will affirm the district court’s judgment.

BACKGROUND

The record shows that on October 9, 2000, McConnell murdered his wife, Linda McConnell, who died intestate. McConnell retained Florey to defend him on the murder charge, agreeing to pay him $75,000. McConnell paid $11,000 of that fee and executed a $75,0004 promissory note to Florey, secured by a deed of trust on real property owned jointly by McConnell and Linda McConnell.5 Florey recorded the deed of trust. After it was recorded, the Estate obtained a child support lien and a $1,000,000 wrongful death judgment against McConnell. The Estate recorded its lien and judgment.

Planning to collect its judgment from the sale of the McConnells’ property,6 the Estate brought a declaratory judgment action to quiet title in the property by invalidating Florey’s deed of

3 The probate court ordered the sale of the property as part of the administration of Linda McConnell’s estate.

4 Although McConnell’s note was for the full amount of the fee, Florey contends that $65,000 plus interest remains due.

5 The real property is located at 9850 State Highway 29 in Liberty Hill, Texas 78642 and is described as 9.94 acres of land out of the Noah Smithwick Survey, Abstract Number 590, Williamson County, Texas.

6 The probate court ordered the sale of the property as part of the administration of Linda McConnell’s estate.

trust. The property sold for $135,262.68. Half of the proceeds were paid to the Estate and the remaining half were deposited into the registry of the court pending final determination of the Estate’s suit to quiet title. After a bench trial, the district court invalidated Florey’s lien and awarded the Estate its attorney’s fees.

The court entered findings of fact and conclusions of law.7 Among its findings and conclusions, it determined that:

• McConnell was convicted of murdering Linda McConnell;

• McConnell attempted to transfer the real property to Florey to secure payment of attorney’s fees;

• The property in question was classified as homestead property from 1998-2001;8 and

• McConnell “repeatedly testified” that the property he intended to convey was his homestead.

• The property was the homestead of Richard McConnell, Linda McConnell, and the McConnell children when the deed of trust was executed and when it was recorded;

• McConnell did not abandon the homestead property before signing the note and deed of trust;

• The property was exempt from creditors’ claims, including Florey’s;

• There is not an exception to the homestead exemption permitting transfer of homestead property for attorney’s fees;

7 To the extent that any of the district court’s conclusions regarding homestead and abandonment are properly findings of fact, we treat them as such. See Ray v. Farmers’ State Bank of Hart, 576 S.W.2d 607, 608 n.1 (Tex. 1979).

8 McConnell and his wife filed for a homestead exemption in 1999 and their property was designated as a homestead with the Williamson County Appraisal District from 1999-2001.

• The deed of trust transfer from McConnell to Florey was an invalid transfer of “homesteaded property”; and

• The deed of trust filed by Florey placing a lien on the homestead property is invalid and unenforceable.

Florey brings eight issues on appeal challenging the district court’s (1) subject matter jurisdiction; (2) finding that McConnell did not abandon the homestead property before signing the note and deed of trust; (3) finding that the property was the McConnell family’s homestead when McConnell executed the deed of trust and when it was recorded; (4) refusal to find that McConnell owned one-half interest in the property as his separate property, (5) determination that the minors had standing to assert a homestead right superior to McConnell’s; (6) conclusion that the deed of trust to Florey was invalid; (7) denial of Florey’s counterclaims and requests for relief, and (8) award of attorney’s fees to the Estate.

DISCUSSION

Homestead interests and abandonment Because Florey’s issues center on the homestead status of the property, we begin by briefly surveying the legal principles governing homestead interests. The homestead interest is a legal interest created by the constitution that protects property from all but the few types of constitutionally permitted liens that may be imposed against a homestead. See Heggen v. Pemelton, 836 S.W.2d 145, 148 (Tex. 1992); see Tex. Const. art. XVI, § 50. Homesteads are protected from forced sale for the payment of debts, except for those debts specifically enumerated in the constitution, including debts incurred for purchase money on the homestead, taxes thereon, work or

services performed thereon, certain extensions of credit, and certain reverse mortgages. Tex. Const. art. XVI, § 50(a); see Tex. Prop. Code Ann. § 41.001(b) (West 2000 & Supp. 2005). Constitutional homestead rights protect citizens from losing their homes; accordingly, statutes relating to homestead rights are liberally construed to protect the homestead. Kendall Builders, Inc. v. Chesson, 149 S.W.3d 796, 807 (Tex. App.—Austin 2004, pet. denied). Homestead rights have historically enjoyed great protection in our jurisprudence. See id. (citing Mills v. Von Boskirk, 32 Tex. 360, 362 (1869)).

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