Connelly v. Paul

731 S.W.2d 657, 1987 Tex. App. LEXIS 7222
CourtCourt of Appeals of Texas
DecidedMay 7, 1987
Docket01-86-00856-CV
StatusPublished
Cited by30 cases

This text of 731 S.W.2d 657 (Connelly v. Paul) 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
Connelly v. Paul, 731 S.W.2d 657, 1987 Tex. App. LEXIS 7222 (Tex. Ct. App. 1987).

Opinion

OPINION

JACK SMITH, Justice.

This is an appeal from a judgment awarding the appellees the sum of $94,334 after a trial to the court.

In September of 1968, Mary B. Connelly filed lease applications with the federal government and deposited approximately $94,573 in advance delay rentals for future oil and gas explorations on Alaskan lands. On March 9, 1971, Connelly died, and on May 11, 1971, her son was appointed administrator of her estate. A controversy arose between the Eskimos and the United States government, and as a result, the government rejected the first of four groups of leases in April of 1977. After the rejection, Connelly’s estate became entitled to a refund of the deposits.

On August 29,1977, the appellees, Bruce Paul, Fred Stein, and Fleschner Becker Associates, filed an original action against the appellant to remove him as administrator. The appellees also sought to enjoin him from disposing of the refunded deposits and lease application rights, and to seek a declaration of their rights with regard to the lease applications and deposit refunds. On September 20, 1985, the appellees filed their first amended original petition, alleging ownership of 50% of the refunded deposits based upon a purchase agreement and a subsequent letter agreement.

In his first three points of error, the appellant contends that the trial court erred in entering judgment for the appel-lees because their claim was a liquidated claim for money that was required to be presented to the administrator as a prerequisite to judgment, and because the claim was conclusively barred by the four-year statute of limitations.

The probate code provides that “[n]o judgment shall be rendered in favor of a claimant upon any claim for money which has not been legally presented to ⅛3 representative of an estate or ward.” Tex.Prob. Code Ann. § 314 (Vernon 1980) (emphasis added). It further provides that “[a]ll claims for money against a testator or intestate shall be presented to the executor or administrator within six months after the original grant of letters testamentary or of administration.” Tex.Prob.Code Ann. § 298(a) (Vernon 1980) (emphasis added). By express statutory provisions, only “claims for money” are required to be presented to the administrator before the initiation of a suit thereon.

A “claim for money” that requires presentment to and rejection by an administrator before suit includes claims for definite sums based upon specific data; it does not include a claim for an undetermined amount. Anderson v. First Nat’l Bank, 120 Tex. 313, 38 S.W.2d 768 (1931). If a claim cannot be verified with a reasonable degree of certainty, it need not be presented before suit. Id. 120 Tex. at 315, 38 S.W.2d at 770. The claim must be fixed and definite, not contingent and indeterminate, because it must be supported by an affidavit stating that the claim is just and that all legal offsets, payments, and credits have been allowed. Tex.Prob.Code Ann. § 301 (Vernon 1980). Thus, only verifiable money claims that can be reduced to a reasonably certain liquidated amount must be presented. Lusk v. Mintz, 625 S.W.2d 774 (Tex.App.—Houston [14th Dist.] 1981, no writ).

It is undisputed that the appellees did not present a claim against the estate within six months of the original grant of the letters of administration. However, the ap-pellees assert that their claim did not constitute a liquidated “claim for money” that required presentment.

The present claim involved the construction of a purchase agreement and a letter agreement executed by the appellees, and Mary B. Connelly, Gene Van Dyke, and Theresa Van Dyke. The original application, filed one month after the rejection of a group of leases by the government, alleged a joint venture between these parties. It further sought a declaration of the ap-pellees’ rights, duties, legal relations, and exact ownership in and to all applications, refunds, and oil and gas leases in the name *660 of Connelly or her estate. Although the purchase agreement purported to grant the appellees a 12.5% interest, the parties dispute whether the letter agreement grants the appellees an additional 37.5% interest in the refunded deposits.

The original suit was motivated by the rejection of the leases in April of 1977. However, when it was filed on August of 1977, the appellees did not know how many of Connelly’s approximately 80 lease applications were being rejected, the total amount of the deposits being refunded, or if certain leases would still be enforced. Moreover, the leases under the agreement were in the names of Connelly and the Van Dykes. The federal government issued refund checks on June 6,1977, November 10, 1977, August 30, 1982, and September 27, 1982. Therefore, the total amount of the refunded deposits was not known until September of 1982, more than four years after the suit was initiated, and in excess of 11 years after Connelly’s death.

We conclude that the appellees’ claim was not a liquidated “claim for money.” The original action sought injunctive relief, as well as a declaration of appellees’ rights under the purchase agreement and letter agreement. Claims for unliquidated amounts, injunctive relief, or for title to or possession of property need not be presented to and rejected by the administrator as a prerequisite to the filing of a suit against the estate. Lusk v. Mintz, 625 S.W.2d at 776. The appellees’ claim in the present case was unliquidated at the time the original action was filed because the total amount of refunds was unknown, the potential issuance of leases still existed, and the percentage of ownership in the refunds was disputed. There is no presentment requirement where damages become liquidated after suit has been filed. Finally, the action was not barred by limitations because the suit was filed one month after the initial lease rejection, and the claim did not require presentment.

Appellant’s first three points of error are overruled.

In his fourth and final point of error, the appellant urges that the trial court erred in finding that the appellees were the owners of a 50% interest in the refunded deposits.

It is undisputed that the purchase agreement entitled the appellees to a 12.5% interest in the deposits. However, the appellees assert that the letter agreement entitled them to an additional 37.5% interest in the refunded deposits, resulting in their total ownership of 50%. Appellant contends that the appellees received only a 37.5% interest in the lease “applications” and not the deposits.

The letter agreement provided that upon the paying of an additional $114,000 for a seismic operation, the appellees obtained an additional interest “to aggregate a %ths interest, thereby bringing our group’s total ownership therein to fifty percent (50%), subject only to the Smith and Simasko Overriding Royalties, totaling one and one-half percent (1½%).” The letter was to confirm the understanding that the appel-lees “shall have the right to receive all of the proceeds from any disposition of any interest in the Applications until our group has received a total of $714,000....” The letter agreement was signed by Mary B.

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Bluebook (online)
731 S.W.2d 657, 1987 Tex. App. LEXIS 7222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connelly-v-paul-texapp-1987.