Brent v. Field

275 S.W.3d 611, 2008 Tex. App. LEXIS 9676, 2008 WL 5412059
CourtCourt of Appeals of Texas
DecidedDecember 30, 2008
Docket07-08-0065-CV
StatusPublished
Cited by37 cases

This text of 275 S.W.3d 611 (Brent v. Field) 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
Brent v. Field, 275 S.W.3d 611, 2008 Tex. App. LEXIS 9676, 2008 WL 5412059 (Tex. Ct. App. 2008).

Opinion

OPINION

JAMES T. CAMPBELL, Justice.

Presenting eleven issues, Elizabeth C. Brent appeals from the trial court’s judgment in her breach of contract and declaratory judgment action against her sister Martha C. Field, J & J Family Limited Partnership, Thomas & Watson Trucking, Inc., and American Express Travel Related Services Company, Inc. Brent’s claims arise from a contract by which she sold her interest in family business entities to Field.

We will reverse and render in part, vacate in part, and otherwise affirm the judgment. We will order a limited remand for calculation of prejudgment interest and for an award of reasonable attorney’s fees.

Background

Brent and Field inherited the Houghton Ranch in Hartley County from their mother. In 1995, Brent and Field conveyed the property to J & J Cattle Family Limited Partnership, a limited partnership they created. Through the limited partnership and other entities Brent and Field carried on the ranching operation and other business. 1 Brent’s husband R.P. Brent IV and Field’s husband Steve Field also were active in the partnership’s business.

In the midst of strained economic circumstances, in early 2003 Brent and Field reached an agreement through which Brent sold her interest in the partnership to Field. They memorialized their bargain in a contract of February 11, 2003. 2 Paragraphs 2 and 5 of the contract read:

2. [Field] shall become a substituted general and limited partner of the Partnership in place of [Brent] as of the date of the transfer of the partnership Interest, and [Field] shall also become the President and sole director of JJ ROUNDUP, INCORPORATED, a Texas corporation. [Field] agrees to protect and indemnify [Brent] and [Brent’s husband] from liability from any and all obligations of the Partnership. [ 3 ] This Agreement shall be binding on and inure to the benefit of the parties and their respective heirs, executors, administrators, assigns and legal representatives.
* * *
5. [Brent] will pay the partnership obligation of approximately $800,000.00 which is owed to PNB FINANCIAL BANK out of the sale proceeds. Out of the initial advance, at least $50,000 will be paid to PNB FINANCIAL BANK. [Field] agrees to reimburse [Brent] $400,000.00 LESS a $50,000.00 offset which represents a capital contribution that was not made by [Brent] and LESS *615 any other amounts of Partnership funds expended by [Brent] as general partner of the Partnership for non-partnership purposes which may have occurred during the two-year period immediately preceding the date of this instrument. For the same time period, any funds expended or used by [Field] or STEVE FIELD for non-partnership purposes shall be credited against the offsets. Any reimbursement will be paid to [Brent] on the earlier of the date on which the Partnership sells its entire interest in the Ranch, or February 10, 2006.

(Capitalization in original).

The partnership at times ran its own cattle on the ranch, and from time to time cattle belonging to Brent’s husband, and Maltese Cross Cattle Company, Ltd. also were pastured there. Brent’s husband was primarily responsible for care of cattle on the ranch. In early 2003, Maltese Cross demanded compensation from the partnership for missing cattle and overpayment of fees under its pasturage agreement with the partnership. A March 11, 2003, agreement entitled “Assignment Agreement and Release” (which we will refer to as the Maltese Cross assignment) fixed the amount of the Maltese Cross obligation at $281,529.

In pertinent part, the Maltese Cross assignment provided:

1. As the result of a series of transactions between Maltese Cross and one or more of the entities described above and collectively referred to as JJ Cattle [4] , JJ Cattle has become indebted to Maltese Cross. All disputes regarding

the amount of this debt have been resolved as a result of negotiations giving rise to this Agreement. It has been agreed that the amount of the debt in question is $281,529.00.

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3. Reference is made below to that certain “Agreement For Sale Of Limited Partnership Interest,” dated February 11, 2003 between Elizabeth C. Brent, as “Seller” and Martha C. Field, as “Purchaser” (the “Sale Agreement”). Pursuant to the Sale Agreement, Elizabeth C. Brent has agreed to sell to Martha C. Field all her interest in JJ Cattle.
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4. Pursuant to the terms of the Sale Agreement, Elizabeth C. Brent will receive an initial cash payment, in the amount provided in the Sale Agreement, on or before March 10, 2003 (the “Initial Payment”). Further, pursuant to the Sale Agreement, Elizabeth C. Brent has the right to obtain a reimbursement payment, as described in paragraph 5 of the Sale Agreement on or before February 10, 2006 (the “Reimbursement Payment”).
5. [Brent and her husband] by execution of this agreement, do not admit any personal liability for the indebtedness to Maltese Cross described in paragraph 1 above. [Brent and her husband] enter into the terms of this agreement for the purpose of compromise and to buy peace with Maltese Cross.
TERMS OF AGREEMENT
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3. As collateral and security for payment of the Settlement Note, [5] [Brent] *616 does hereby assign to Maltese Cross her interest and right to receive all amounts under the Reimbursement Payment (“the Final Assigned Payment”) not to exceed the then outstanding obligation under the Settlement Note....
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8. The Reimbursement Payment shall be made by [Field], when due under the Sale Agreement, to the trust account of the law firm of Gibson, Ochsner & Adkins, LLP. Upon receipt of such payment, the attorneys shall determine the amount payable to Maltese Cross under the Settlement Note and make immediate payment thereof to Maltese Cross. Any remaining funds shall be remitted to [Brent],....
9. Notwithstanding any contingencies which may be set forth in paragraph 5 of the Sale Agreement, [Field] does hereby guarantee that the amount payable as the Final Assigned Payment shall not be less than $170,000.

While the ranch was marketed for sale, a dispute arose between Field and Brent. It centered chiefly on amounts due Brent on sale of the ranch through the reimbursement clause of paragraph 5 of them February 2003 contract. As a result, Brent filed suit against Field and J & J Family Limited Partnership, Thomas & Watson Trucking, Inc., and American Express Travel Related Services Company, Inc. 6 Meanwhile, Field sold the ranch.

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Cite This Page — Counsel Stack

Bluebook (online)
275 S.W.3d 611, 2008 Tex. App. LEXIS 9676, 2008 WL 5412059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brent-v-field-texapp-2008.