Crossley v. Staley

988 S.W.2d 791, 1999 Tex. App. LEXIS 733, 1999 WL 51812
CourtCourt of Appeals of Texas
DecidedFebruary 5, 1999
Docket07-98-0060-CV
StatusPublished
Cited by22 cases

This text of 988 S.W.2d 791 (Crossley v. Staley) 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
Crossley v. Staley, 988 S.W.2d 791, 1999 Tex. App. LEXIS 733, 1999 WL 51812 (Tex. Ct. App. 1999).

Opinion

DON H. REAVIS, Justice.

By this appeal, appellants Delia Staley Crossley (Crossley) and Nancy Staley Rettig (Rettig) challenge a summary judgment rendered in an action for declaratory judgment brought by appellee Joe H. Staley, Jr., individually and as Independent Co-Executor of the Estate of Joe H. Staley, Deceased (Sta-ley, Jr.), declaring that a certain document, printed with handwritten interlineations, constituted a compromise settlement agreement and that the agreement was valid and subsisting. By three points of error, Crossley and Rettig contend the trial court erred (1) in determining that it had subject matter jurisdiction, (2) by exercising jurisdiction, and (3) in refusing to transfer the case to Dallas County. Staley, Jr. responded by brief herein, but the Staley Business Partnership Limited (the partnership) and Jacqueline J. Gentry, Independent Executrix of the Estate of Helen Berry Steward, Deceased (Steward), 1 who were also defendants in the trial court, did not file a brief. Based upon the rationale expressed herein, we will affirm.

Our consideration of the points of error requires an analysis of the relevant history and events preceding the commencement of this action for declaratory judgment. Cross-ley, Rettig and Staley, Jr. are the children of Mildred W. Staley, who died on October 18, 1986, and Joe H. Staley, who died on May 18, 1994. Following the death of his wife, Joe H. Staley formed the partnership in August 1993. As of May 18, 1994, the partnership interest was held as follows: (1) Joe H. Sta-ley, 5% general partnership and 84% limited partnership; (2) Staley, Jr. 5% general partnership and 5% limited partnership; and (3) Steward, 1% limited partnership. Joe H. Staley served as managing general partner until his death and Staley, Jr. succeeded his father as the sole general partner. The partnership agreement provided that upon the death of either general partner, that the interest of a deceased general partner “shall be converted from a general partnership interest into a limited partnership interest.” It also provided that the partnership interest of the surviving general partner shall remain a general partnership interest. 2 In terms of value, the partnership interest of the deceased was a significant part of his estate.

Following their father’s death, Staley, Jr. and Crossley applied to probate the will, stating that at the time of their father’s death, he was domiciled and had his fixed place of residence in Wichita County. By order dated June 15, 1994, the will was admitted to probate and letters testamentary were issued to Crossley and Staley, Jr. as Independent Co-Executors 3 of the estate. Crossley, Rettig and Staley, Jr. are the prin *793 cipal devisees and legatees under the •will. 4 Affidavits filed in support and opposition to Staley, Jr.’s motion for summary judgment reflect that during the administration of the estate, numerous disputes and differences developed between Crossley, Rettig and Sta-ley, Jr. regarding the administration of their parents’ estates and trusts created by their mother’s will, matters concerning the partnership, and other matters.

Although no litigation was pending, Crossley, Rettig and Staley, Jr. agreed to meet with a mediator in September 1995 in an attempt to develop a plan for future action and settlement of disputes. All parties and their respective attorneys selected a mediator and attended a mediation session in Dallas. The mediation session lasted until late in the evening and was recessed without a definitive resolution of all issues. Thereafter, a typewritten proposed agreement entitled “Settlement Agreement and Mutual Releases” dated September 12, 1995, was circulated among the children and signed by them which contained numerous handwritten additions and revisions. In summary, the settlement agreement contemplated that:

• The partnership would be dissolved three years after filing of estate tax return.
• Additional estate taxes for Crossley and Rettig to be paid out of funds distributed from partnership.
• Non-partnership estate assets to be distributed as soon as IRS closure letter and payment of taxes.
• Partnership agreement amended to provide that all cash flow be distributed quarterly, and that Crossley and Rettig be provided quarterly financial reports. Also, the sisters would be admitted as limited partners after payment of estate taxes.
• Staley, Jr. to receive from the partnership, the working interest in the partnership, the Belden Ranch in New Mexico and the Gramatan JV, in repayment of his loan to the partnership.
• Staley, Jr. not to receive an executor’s fee or a management fee. Partnership investments were limited as specified under the direction of outside advisor, and bonds to be purchased by agreement of the parties.
• Application be made to the District Court by attorney paid by the estate to divide GST Exemption Trust into three separate trusts, one for each child with the child to be his or her own trustee.
• Note and deed of trust covering Laven-dale property to be assigned by Staley, Jr., to Crossley and Rettig, and Staley, Jr. as trustee as specifically set out therein.
• Provision for payment of the parties’ attorney’s fees.
• Crossley to receive $100,000 executor’s fee.
• Each party provide an accounting to others of personal property removed from the Staley family home.
• Crossley and Staley, Jr. as co-executors, exchange an account of all Estate funds and assets coming into their possession or control. All estate cash to be deposited in accounts subject to joint checking privileges; and provision for an operating account.
• All estate securities to be maintained in “street name” in a brokerage house approved by Crossley and Staley, Jr.
• Each party to release the other party “from all claims and causes of action related to the Estate or the Partnership arising from events occurring prior to the date hereof.”
• Certain note in approximate amount of $5,000 payable by Joe to the estate to be forgiven.
• Agree to finalize this agreement into a formal agreement with the provisions reasonably necessary to implement this agreement.
*794 • Stock trades at Merrill Lynch will be made at the employee’s discounted rate or institutional rate whichever is less.

Among other recitals preceding the 15 numbered paragraphs contained in the agreement, the parties recited that Crossley and Staley, Jr. were the Independent Co-Executors of the Estate of Joe H. Staley, (the estate); that a dispute has arisen between the executors regarding administration of the estate and their respective conduct as executors; a dispute had arisen between Staley, Jr.

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Bluebook (online)
988 S.W.2d 791, 1999 Tex. App. LEXIS 733, 1999 WL 51812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crossley-v-staley-texapp-1999.