Coppock & Teltschik v. Mayor, Day & Caldwell

857 S.W.2d 631, 1993 WL 164638
CourtCourt of Appeals of Texas
DecidedMay 20, 1993
Docket01-92-00890-CV
StatusPublished
Cited by13 cases

This text of 857 S.W.2d 631 (Coppock & Teltschik v. Mayor, Day & Caldwell) 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
Coppock & Teltschik v. Mayor, Day & Caldwell, 857 S.W.2d 631, 1993 WL 164638 (Tex. Ct. App. 1993).

Opinion

*634 OPINION

O’CONNOR, Justice.

This Court is asked to determine if the probate court had jurisdiction in this case (yes), if the court erred in its order of severance (no), and if it erred in granting the summary judgment (no). We affirm.

Fact summary

The case involves a debt of the Estate of D.C. Anderson (Estate) and the validity of a lien on the Vagabond Motel, the largest asset in the Estate. Upon Mr. Anderson’s death, a probate action was filed to dispose of his property. The court appointed three separate groups of substitute administrators. Ms. Linda Anderson, his widow, was in the second group of administrators, and was replaced by Kenneth McLaughlin, Jr. (McLaughlin), a partner at Mayor, Day & Caldwell (MDC). Sometime later, Ms. Anderson filed a suit in district court against Mercury-Milam Savings Association (Mercury), a banking entity from which McLaughlin borrowed $1.1 million for the Estate, which was secured by a lien on the Vagabond Motel. We do not have any of the original pleadings from that suit in this record.

This appeal had its genesis when Lloyd M. Lunsford and the firm of Coppock & Teltschik (collectively, the Interpleader-law-yers) filed an interpleader action in Ms. Anderson’s district court suit against Mercury. 1 The Interpleader-lawyers sued McLaughlin, a partner with MDC, who was the temporary administrator of the Estate, and MDC (collectively, the Estate lawyers), which represented the Estate during McLaughlin’s appointment.

To simplify matters, we provide the following chronological list of events:

3-27-80 The probate court appointed two individuals as co-executors and co-trustees of the Estate.
7-15-83 The probate court decided the Vagabond Motel was property of the Estate and was not the homestead of Ms. Anderson.
10-2-84 The first two executors resigned; the probate court appointed Ms. Anderson and Larry Anderson as temporary administrators.
7-26-85 The probate court removed the Andersons and appointed McLaughlin, a partner with MDC, as temporary administrator.
9-3-85 The probate court approved McLaughlin’s request for a $1.1 million loan, secured by a first lien on the Vagabond Motel, to repay creditors of the Estate. Mercury, also a client of MDC, was the lender. 2
3-11-86 Ms. Anderson assigned the In-terpleader-lawyers, who represented her during the administration of the Estate, 20 percent of all her interests in the Estate and 20 percent interest in her causes of action in the probate court suit. 3-12-86 The Interpleader-lawyers notified McLaughlin that Ms. Anderson assigned them a partial interest in the Estate and her causes of action.
1-23-87 McLaughlin filed the final account in probate court.
6-26-87 The probate court held two hearings and approved the final account. The court’s order released and discharged McLaughlin from all liability in connection with the Estate.
Date unknown — Ms. Anderson filed suit in district court against Mercury.
2-15-89 The Interpleader-lawyers filed an interpleader action in Ms. Anderson’s suit in district court, joining the Estate lawyers.
7-31-90 The temporary administrator of the Estate intervened in the district court suit and transferred it to the probate court.
5-1-92 The probate court granted MDC and McLaughlin’s motions for summary judgment and severed their causes.

The Interpleader-lawyers pled the following causes of action against Mercury, McLaughlin, and MDC: (1) fraud; (2) slander of title; (3) tortious interference with contracts, assignments, and liens; and (4) *635 civil conspiracy to convert the Interpleader-lawyers’ property.

The Interpleader-lawyers claim an interest in the property upon which Mercury has a lien. They allege Mercury loaned money to the Estate and encumbered a major asset of the Estate, despite the fact McLaughlin and MDC knew of Ms. Anderson’s homestead interest, 3 and the Interpleader-lawyers had liens that had attached to the property. The Interpleader-lawyers contend the loan reduced the value of the Estate and the money that would ultimately flow to Ms. Anderson, and through her assignment, to them.

This appeal challenges only the motion for summary judgment granted to MDC. The motion for summary judgment granted to McLaughlin was appealed and affirmed by this Court in an unpublished opinion issued November 18, 1992.

In its motion for summary judgment, MDC raised three affirmative defenses: standing, res judicata, and collateral estop-pel. Additionally, it addressed each of the five causes raised by the plaintiffs: fraud, slander of title, tortious interference with contracts, assignments, and liens, tortious interference with inheritance, and civil conspiracy.

1. Jurisdiction

In their point of error one, the In-terpleader-lawyers argue the probate court erred in granting summary judgment because it did not have subject matter jurisdiction of their suit. We disagree.

At the time suit was brought, section 5(d) of the Texas Probate Code provided, in pertinent part, “All courts exercising original probate jurisdiction shall have the power to hear all matters incident to an estate.” Act of June 21, 1975, 64th Leg., R.S., ch. 701, § 2, 1975 Tex.Gen.Laws 2195, 2196 (amended 1989) (current version at Tex.Prob.Code Ann. § 5(e) (Vernon Supp. 1993)).

Section 5A(b) 4 of the code defines matters “appertaining” and “incident” to an estate as including “all claims by and against an estate and generally all matters relating to the settlement, partition, and distribution of estates.” Bunnell v. Jordan, 807 S.W.2d 1, 2 (Tex.App. — Houston [1st Dist.] 1991, writ denied). Section 5A(b) further provides that “where the jurisdiction of a statutory probate court is concurrent with that of a district court, any cause of action appertaining to estates or incident to an estate shall be brought in a statutory probate court rather than in the district court.”

In 1985, the Legislature amended the Texas Probate Code to broaden the jurisdiction of the statutory probate court. Palmer v. Coble Wall Trust Co., 36 Tex.S.Ct.J. 120, 122 (October 31, 1992); see also Pearson v. K-Mart Corp., 755 S.W.2d 217, 219 (Tex.App. — Houston [1st Dist.] 1988, no writ). The 1985 amendment adds the last sentence to section 5A, which provides “[i]n actions by or against a personal representative, the statutory probate courts have concurrent jurisdiction with the district court.” Tex.Prob.Code Ann. § 5A(b) (Vernon 1985).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
857 S.W.2d 631, 1993 WL 164638, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coppock-teltschik-v-mayor-day-caldwell-texapp-1993.