Elke Crump and Steven Michael Perry v. Margarete Frenk

404 S.W.3d 146, 2013 WL 2420381, 2013 Tex. App. LEXIS 6810
CourtCourt of Appeals of Texas
DecidedJune 5, 2013
Docket06-12-00063-CV
StatusPublished
Cited by4 cases

This text of 404 S.W.3d 146 (Elke Crump and Steven Michael Perry v. Margarete Frenk) 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
Elke Crump and Steven Michael Perry v. Margarete Frenk, 404 S.W.3d 146, 2013 WL 2420381, 2013 Tex. App. LEXIS 6810 (Tex. Ct. App. 2013).

Opinion

*148 OPINION

Opinion by

Justice MOSELEY.

I. Background

This case arose due to a dispute between a mother and daughter and centers upon the ownership of a residence once occupied by the mother in White Oak, Gregg County, Texas. In the first step of the controversy, Margarete Frenk executed a general warranty deed in 2005, granting her daughter, Elke Crump, all of her undivided right, title, and interest in and to the residence (the property). About two years later, Frenk attempted to rescind that transaction by filing a suit in an attempt to divest Crump of her rights in the property. The suit was resolved upon the entry of the parties into a settlement agreement, the performance of which by the respective parties is a major matter of controversy in this case. Crump instituted suit and Frenk responded by filing a counter-claim against Crump and cross-claim against Steven Michael Perry (Crump’s grandson, who had moved into the house on the property at Crump’s request). After the parties filed competing motions for summary judgment, the trial court ruled that Crump had breached the settlement agreement and entered judgment in favor of Frenk against Crump and Perry, prompting the losing parties at trial to appeal. As modified, we affirm the judgment of the trial court.

(a) The Settlement Agreement

The settlement agreement, executed in the summer of 2007, 1 provided that “Crump shall convey a non-transferrable life estate in the property ... to [Frenk], giving her the right to occupy and enjoy the property, to the exclusion of all others for the remainder of [Frenk’s] life.” In exchange, Frenk specifically obligated herself to maintain hazard insurance on the property, to “protect, preserve, and maintain the residence in a manner consistent with its condition,” and to “attend to all issues requiring maintenance or repair as soon as she becomes aware of the problem or condition.” Finally, the agreement required Frenk to “take all actions necessary to seek a reversal of the current tax status, invoking the homestead and over-65 exemptions available to her, retroactive to July 18, 2005.” It did, however, permit Frenk to “apply for and receive a deferral of the taxes for the remainder of her life.”

(b) The Correction Deed

Despite the wording of the settlement agreement, which required Crump to execute and deliver a deed of the life estate interest to Frenk, the parties apparently chose a different tack. Instead, Frenk executed a “Correction General Warranty Deed” on July 26, 2007, as grantor in favor of Crump as grantee. This deed purported to grant the property to Crump, with a reservation from the conveyance “of the full possession, benefit, and use of the Property for the remainder of the life of Grantor, as a life estate. Grantor shall be responsible for all taxes related to the subject property and shall apply for the homestead and over 65 exemptions.” 2 Both parties believed the *149 correction deed accomplished the desired result of creating a life estate in favor of Frenk. Attorney Scott Novy (who represented Frenk in the dispute with Crump that gave rise to the settlement agreement) signed an affidavit which stated, in part, “Upon execution of the Settlement Agreement and Correction Warranty Deed, I believed, and did advise Ms. Frenk, that by execution of these documents, Ms. Frenk obtained a life estate on the property located at 209 E. Driftwood, White Oak, Texas.” 3 Both parties apparently having believed that the issues had been fully resolved with the alternative means employed rather than following the dictates of the settlement agreement, Frenk peacefully resided on the property for almost three years after the correction warranty deed was executed. 4

(c) Frenk Abandons the Property

In May 2010, Crump discovered that Frenk had apparently abandoned the occupancy of the house; the yard was unkempt, the garage doors were broken, fencing was in need of repair, and the shrubs were overgrown. Investigating further, Crump learned that Frenk, upon encountering health problems, had moved to nearby Longview in order to live next to her daughter, AnnMarie Price. Frenk had no current plans to return to the property.

Having discovered the property was uninsured, Crump obtained property hazard insurance. Crump also discovered windows in need of replacement, inoperable plumbing in the master bedroom, interior walls which required painting, and “filthy” carpets. Crump paid for the necessary clean-up and repair work and commenced the payment of the regular utility bills. Additionally, Crump asked her grandson, Perry, to move into the property in order to care for and maintain it. Thereafter, Frenk filed a forcible entry and detainer action in the justice court, seeking to evict Perry from the property. 5

(d) The Lawsuit

Crump filed a declaratory judgment action in the trial court, asking the court to declare the correction deed void since it purported to change the substance of the original deed rather than merely correct a facial imperfection. Crump alleged that the effect of voiding the correction deed would vest Crump, by virtue of the original warranty deed, with all the rights and interests in the property, including possession. Crump further alleged that Frenk breached the settlement agreement by failing to pay the ad valorem taxes, property hazard insurance, and utilities on the property, and by failing to maintain, protect, and preserve the property. Crump asked to have the settlement agreement rescind *150 ed on the bases that (1) Frenk had allegedly breached the agreement and (2) the correction deed was void. Although Crump asked to recover attorney’s fees pursuant to the Declaratory Judgments Act (Tex. Civ. Prao. & Rem.Code Ann. § 37.002 (West 2008)), she did not seek the recovery of monetary damages.

Frenk counterclaimed seeking a declaratory judgment that she holds a life estate in the property, that Crump is not entitled to rescission of the agreement, and that Frenk is entitled to possession of the property. Frenk alleged Crump breached the settlement agreement in failing to convey a life estate to Frenk in accord with the dictates of the settlement agreement and in her act of having taken possession of the property. Frenk sought damages consisting of the amounts paid for insurance and taxes during the period she had been unable to use the property and sought specific performance of the settlement agreement to compel Crump to convey a life estate.

Crump filed a motion for summary judgment wherein she sought a declaration that the correction deed was void because it was used to make substantive changes in the original warranty deed. Cramp further argued that Frenk moved from the property, does not consider it her primary residence, and has no intention of moving back to the property.

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404 S.W.3d 146, 2013 WL 2420381, 2013 Tex. App. LEXIS 6810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elke-crump-and-steven-michael-perry-v-margarete-frenk-texapp-2013.