Elick v. Woods

859 S.W.2d 454, 1993 WL 274481
CourtCourt of Appeals of Texas
DecidedJune 17, 1993
Docket09-92-120 CV
StatusPublished
Cited by1 cases

This text of 859 S.W.2d 454 (Elick v. Woods) 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
Elick v. Woods, 859 S.W.2d 454, 1993 WL 274481 (Tex. Ct. App. 1993).

Opinion

OPINION

COLLEY, Assigned Justice.

This is a summary judgment case involving the construction and application of the Texas Professional Corporation Act, Texas Revised Civil Statutes Annotated, Article 1528e, (Vernon 1980 and Vernon Supp. 1993), (hereinafter called “Article 1528e”).

I.

INTRODUCTION

A. On November 18, 1988, Orange County attorney Marlin Neal Thompson, Jr., (hereinafter called “Thompson”) and his wife, Linda Frederick Thompson (hereinafter called “Linda”), were killed simultaneously in an airplane crash in Arkansas. Thompson’s typewritten will dated January 11, 1984, was admitted to probate and record on January 17, 1989. Appellant, Tau-nia Nell Thompson Elick (hereinafter called “Elick”), and Janis Lynn Thompson Woods (hereinafter called “Woods”) were appointed Independent Co-Administrators without bond of Thompson’s estate in Trial Court No. 7794. Later, on October 24, 1990, Woods filed a Motion to Remove Elick as Co-Administrator of Thompson’s estate. Appellee Wallace Wayne Frederick (hereinafter called “Frederick”) as Independent Administrator of the Estate of Linda filed an intervention in the removal cause. In December 1990, Woods and Elick filed their Application to probate the holographic will (second will) of Thompson dated March 31, 1987. On January 3,1991, the court signed an order removing Elick as Independent Co-Administrator of Thompson’s estate. *456 On February 19, 1991, in the same cause, the court admitted the holographic will to probate and record, appointing Woods and Appellee Nathan Cross (hereinafter called “Cross”) as Co-Administrators of Thompson’s estate, but requiring a bond to be filed by the co-administrators in the sum of FOUR MILLION DOLLARS ($4,000,-000.00). 1

B. At the time of the tragic, untimely deaths of Thompson and his wife Linda, Thompson was a licensed attorney engaged in the active practice of law as a plaintiffs lawyer in Orange County, Texas. He owned all of the authorized and outstanding shares (1,000) of a professional corporation organized as Stephenson & Thompson, P.C. (hereinafter called “P.C.”). Under the terms of Thompson’s last will, he devised and bequeathed all of his separate property to his four daughters, namely, Elick, Woods, Inga Beth Thompson and Leah Kim Thompson West, and devised and bequeathed all of his community property to his wife Linda, which property, by an agreed judgment passed to the heirs of Linda, viz., Frederick, Patsy F. Hardesty, John Roy Frederick, Pamela L. Williams, Larry Frederick, Lisa Frederick, Lori Pickering, Lance Frederick and Madeline Frederick all of whom are appellees. By the same agreed judgment, the court determined that sixty (60) percent of the stock in the P.C. was separate property of Thompson and that forty (40) percent thereof was community property, and, therefore, an asset of Linda’s estate. It is undisputed that Elick is the only legatee of both estates who is a licensed attorney.

II.

PLEADINGS

A. After Elick was removed as Independent Co-Administrator of Thompson’s estate, Woods and Cross, acting for Thompson’s estate, filed a pleading seeking an accounting from Elick, a declaratory judgment declaring that they, as personal representatives of Thompson’s estate, were entitled to possession and control of all shares of stock in the P.C. for the purposes of administration and distribution of Thompson’s estate in accordance with the terms of the second (holographic) will and recovery of reasonable and necessary attorney’s fees under the Declaratory Judgment Act, Tex.Civ.PRAC. & Rem.Code Ann. § 37.-009. Under this pleading, Woods and Cross also sought actual and exemplary damages from Elick for alleged breaches of her fiduciary duty as Independent Co-Administrator of Thompson’s estate, her conversion of estate property, and finally, alleged as a separate cause of action against Elick, the recovery of attorney’s fees in the previous removal action.

B. On February 12, 1992, Frederick and the eight other heirs of Linda filed an Amended Petition in Intervention in the causes of action pleaded by Woods and Cross against Elick, adopting the amended pleadings of Woods and Cross described in the foregoing paragraph hereof, and specifically adopting the pleadings of Woods and Cross for Declaratory Judgment and all other causes of action pleaded by Woods and Cross, but alleging, in addition thereto, “the following cause of action for Declaratory Judgment, [asking] the court to determine the rights of the parties in the stock of [the P.C.].”

Frederick requested the court to declare the following:

1. That the stock in [the P.C.] is an asset of [Thompson’s and Linda’s estates] to be administered as an asset of the respective estates.
2. That the administrators (and the heirs if they receive the stock on distribution) shall have the right to [sell] the stock to other attorneys or to wind up the affairs of the [P.C.] and dissolve same, in accordance with law.
3. To make other declarations of the rights of the parties to the stock in [the P.C.], in accordance with law.

*457 in.

PARTIAL SUMMARY JUDGMENT MOTIONS

1. Woods and Cross filed a Motion for Partial Summary Judgment on all causes of action alleged by them in their amended pleadings, and Frederick’s last amended pleading and intervention, including the allegations that the personal representatives of the two estates were entitled to the sole and exclusive right of possession and control of the one thousand (1,000) shares in the P.C.; that said representatives were authorized by law to act as officers, directors and shareholders of the P.C. for the purposes of winding up its affairs and effecting its dissolution, by selling the assets of the P.C., or selling the outstanding shares of the P.C., but not for rendering any professional legal services. Woods and Cross also alleged that Elick was not and had never been a shareholder of the P.C., and had no right to require the personal representatives of the two estates, or either of them to sell the stock of the P.C. to her, to the said P.C., or to any other person.
Finally, the movants alleged that El-ick, who was removed by court order as Co-Independent Administrator of Thompson’s estate, is liable to Thompson’s estate for the cost of her removal and for reasonable attorney’s fees of the estate incurred in removing her. 2
Woods and Cross specifically adopted Frederick’s “Motion for Partial Summary Judgment.”
2. Frederick, individually and as Co-Administrator of Linda’s estate joined by all of Linda’s heirs, also filed a separate Motion for Partial Summary Judgment. Frederick moved the court to determine the rights of all parties to the cause under applicable statutory and code provisions by declaring that the shares of the P.C. constituted assets of both estates, and that the personal representatives of each estate, in order to make proper distribution of said estates, has lawful authority to either sell the stock of the P.C. to other attorneys or to wind up the affairs of the P.C. and dissolve the P.C.

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Bluebook (online)
859 S.W.2d 454, 1993 WL 274481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elick-v-woods-texapp-1993.