Dianna Jones v. Currie A. McRee, IV and Ed Baranowski, Independent Co-Executors of the Estate of Harold John Brelsford

390 S.W.3d 486, 2012 Tex. App. LEXIS 7692, 2012 WL 3808587
CourtCourt of Appeals of Texas
DecidedAugust 30, 2012
Docket01-11-00265-CV, 01-11-00266-CV
StatusPublished
Cited by18 cases

This text of 390 S.W.3d 486 (Dianna Jones v. Currie A. McRee, IV and Ed Baranowski, Independent Co-Executors of the Estate of Harold John Brelsford) 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
Dianna Jones v. Currie A. McRee, IV and Ed Baranowski, Independent Co-Executors of the Estate of Harold John Brelsford, 390 S.W.3d 486, 2012 Tex. App. LEXIS 7692, 2012 WL 3808587 (Tex. Ct. App. 2012).

Opinion

OPINION ON REHEARING

HARVEY BROWN, Justice.

In this dispute with her siblings — Harold Brelsford, Susanna Brelsford, and John Brelsford — over the division of their deceased parents’ estates, Dianna Jones brings an interlocutory appeal of the probate court’s orders (1) denying confirmation of an arbitration award in her favor and instead, vacating the award and (2) appointing a new arbitrator. Because the arbitration award also affected the property interests of another of Dianna’s siblings, Georganna (Madge) Brelsford, and three of the decedents’ grandchildren, Edyth Brelsford, Jefferson Brelsford, and Joseph Brelsford, they are also parties to the appeal. We previously issued an opinion and judgment affirming the vacatur of the arbitration award, reversing the appointment of a new arbitrator, and remanding for further proceedings. Harold, Susanna, and John have moved for rehearing on the ground that we lack jurisdiction to review the appointment of a new arbitrator. After review of the argument and authorities cited in the rehearing motion, we agree with Harold, Susanna, and John. Accordingly, we grant the rehearing motion to explain the scope of our jurisdiction under section 171.098 of the Texas Civil Practice and Remedies Code, 1 withdraw our prior opinion and judgment, and substitute the following in their stead.

Background

Harold John Brelsford had five children — Harold, Susanna, John, Dianna, and Madge — and four grandchildren — Edyth, Jefferson, Joseph, and Currie. Upon Harold John’s death, his children and grandchildren inherited interests in certain family properties, including a ranch and an apartment complex. Three of the children — Harold, Susanna, and John — filed two lawsuits against their father’s estate: one in their individual capacities and one as co-trustees of family trusts they alleged their father had mismanaged. 2 Dianna and Madge joined these lawsuits as necessary parties. One of the grandchildren, Currie, also participated as a co-executor of the estate; however, the remaining three grandchildren, who were not beneficiaries of the trusts, did not participate. At some point during the pendency of the lawsuits, joint ownership of the ranch and apartments became problematic, and the parties were sent to mediation before the Honorable Carolyn Garcia.

At mediation, the parties reached settlement. The estate, Harold, Susanna, John, Dianna, and Madge signed a document titled “Mediated Settlement Agreement” (MSA), attached to which were terms and additional agreements. In the MSA, the estate agreed to transfer certain interests *489 in the ranch and the apartments to Harold, Susanna, and John as co-trustees of the family trusts and to Edyth, Jefferson, and Joseph individually (these three, to the exclusion of Currie, are referred to hereinafter collectively as the “grandchildren”). Upon execution of the settlement, the estate was relieved of any and all management responsibility, right of control, and liability for the ranch and the apartments. The MSA also provided that “any dispute as to interpretation of terms of this agreement shall be submitted to binding arbitration with [Judge] Garcia as mediator.”

Most relevant to this appeal are the two additional agreements attached to the MSA, each of which is two-pages in length. The first agreement is between (1) Dianna and (2) Harold, Susanna, and John. The second agreement is between (1) Madge and (2) Harold, Susanna, and John. Dianna and Madge individually agreed to transfer their interests in family properties, including the ranch, to Harold, Susanna, and John in exchange for payment. Other than the parties’ names, these agreements contain identical terms describing the amount and method of payment as follows:

At the closing of the transaction contemplated by this Mediation Agreement, [Harold, Susanna, and John] shall deliver a cashier[’]s check in the amount of $15,000 together with a promissory note (the “Note”) in the principal amount of $480,000. The Note shall bear interest at 6% per annum, and [Harold, Susanna, and John] shall make monthly payments of interest only on the unpaid balance to [Dianna or Madge, accordingly], over a 12 month period. Monthly payments shall commence on January 1, 2010 and shall be due and payable on the first of the month thereafter. A balloon payment of all remaining principal and interest amounts due shall be paid on January 1, 2011.

A first lien deed of trust on the ranch secured the note to Dianna, and a first lien deed of trust on the apartments secured the note to Madge.

The agreements further provide for an identical two-step process in the event of future disputes: “attend a ½ day mediation with Judge Garcia; if no agreement/ then Judge Garcia shall serve as arbitrator, and she shall rule in a manner that she believes is fair and just, and her decision is non-appealable and final.” If Judge Garcia was unwilling or unable to serve, then a new arbitrator would be “chosen by unanimous consent of the parties.” Failing the parties’ agreement, they would petition the “Administrative Judge of Harris County” for appointment of a new arbitrator.

The five siblings thereafter disagreed about the terms of portions of the MSA, and they, along with the estate, participated in further mediation. That mediation resulted in certain agreed clarifications for performance of the MSA but did not resolve all the parties’ disputes. Consequently Judge Garcia, acting in her role as arbitrator, decided the remaining matters and issued the first arbitration award in this case. That arbitration award is not the subject of this appeal.

When Harold, Susanna, and John failed to make the payment due under their agreement with Dianna, Dianna demanded a second mediation and arbitration. In her demand letter, Dianna requested enforcement of her rights under her agreement with Harold, Susanna, and John, “including without limitation, judicial foreclosure and/or damages for breach of contract.” A dispute arose between the parties as to the scope of the arbitrator’s authority in the second arbitration, and Dianna, Harold, Susanna, and John submitted the issue to the probate court. Before the hearing in the probate court, however, the parties agreed to the follow *490 ing order giving the arbitrator broad authority to decide their dispute:

Dianna Jones on the one hand, and Susanna Brelsford, Harold Petsch Brels- ■ ford and John Brelsford in their individual [capacities on the other hand, collectively referred to as (the “Parties”), agreed to enter into this Agreed Order as to the following. Therefore it is:
ORDERED, ADJUDGED AND DECREED that the Parties shall submit to full merits arbitration of any and all issues and/or disputes related to the above causes of action and any and all issues or disputes with regard to any mediation agreement and/or settlement agreement executed by and between the Parties. The Honorable Carolyn Garcia shall serve as arbitrator and shall have full authority to rule and issue orders as to any and all issues and/or disputes related to the above causes of action and any and all issues or disputes with regard to any mediation agreement and/or settlement agreement executed by and between the Parties.

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Cite This Page — Counsel Stack

Bluebook (online)
390 S.W.3d 486, 2012 Tex. App. LEXIS 7692, 2012 WL 3808587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dianna-jones-v-currie-a-mcree-iv-and-ed-baranowski-independent-texapp-2012.