Epperson v. Greer

626 S.W.2d 884, 1981 Tex. App. LEXIS 4540
CourtCourt of Appeals of Texas
DecidedDecember 30, 1981
DocketNo. 16672
StatusPublished
Cited by1 cases

This text of 626 S.W.2d 884 (Epperson v. Greer) 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
Epperson v. Greer, 626 S.W.2d 884, 1981 Tex. App. LEXIS 4540 (Tex. Ct. App. 1981).

Opinions

OPINION

BUTTS, Justice.

Thomas Walker Epperson, independent executor of the estate of Jane Greer Epper-son, deceased has appealed from only that part of the judgment in this case which denies recovery of attorney’s fees in the sum of sixty thousand dollars ($60,000) as a surcharge against the trustee, James Leo Greer, Jr., appellee, in his individual capacity as independent executor and substitute trustee under the will and of the estate of Ida J. Greer, deceased. We affirm the judgment of the trial court which denied attorney’s fees.

[885]*885A narration of the facts leading to this appeal will pose the question before this court. On January 25, 1953, Ida J. Greer died testate, and the terms of her will established a testamentary trust. She devised her 9,352.6 acres of ranchlands to her son, J. L. Greer, Sr., as trustee, to be held for the benefit of himself and his wife for their lifetimes, and thereafter for the benefit of their children, Jane Greer Epperson and James Leo Greer, Jr., appellee herein, for their lives with remainder to their children.

Jane Greer Epperson, who initiated this cause of action died before the judgment was entered. She initially filed two suits, the first being for partition of the trust corpus, which consisted of real and personal property, and for an accounting. The second suit, brought by her individually and as a beneficiary of the trust, requested partition of the real property, construction of her grandmother’s will, an accounting, and removal of her brother, the appellee, as trustee. The appellee had replaced his father as successor trustee when the senior Greer died in 1975. The senior Mrs. Greer had predeceased her husband.

The trial court consolidated the two causes. Shortly after trial to a jury had begun, the parties settled the case and negotiated an agreed judgment which disposed of all matters in controversy except attorney’s fees owed by Epperson. It was after this time but before entry of the judgment that Jane Greer Epperson died. Her husband, Thomas Walker Epperson, independent executor of her estate, became appellant herein. The trial court, in the meantime, heard evidence on this appeal’s single issue and denied attorney’s fees “as a matter of law.”

Appellant contends that where a suit is brought by the beneficiary to remove the trustee, to protect and preserve the corpus, and to declare the rights of the beneficiaries, all because of the wrongful conduct or negligence of the trustee, attorney’s fees incurred in prosecuting the litigation may be assessed or surcharged (emphasis supplied) against the trustee in his individual capacity. He sets out two related sub-points: 1) That the trial court erred in holding, as a matter of law, that appellant is not entitled to a judgment against the trustee individually for attorney’s fees incurred for the reason that such attorney’s fees may properly be assessed or surcharged; and, 2) That the trial court abused its discretion in not surcharging the trustee, individually, and awarding attorney’s fees because of the nature and extent of the breaches of fiduciary duty by the trustee, appellee Greer.

We will address the second sub-point. At issue in the consolidated trials was whether the trustee had acted in good faith and without malice in his administration of the ranchland trust. The record shows that the parties entered into an agreed judgment which partitioned the real property by dividing the estate into two sub-trusts, and settled all monetary disputes. No finding of or reference to self-dealing or lack of good faith in any action by appellee appears in the judgment, which was reduced to writing and entered after the trial for attorney’s fees. The consent judgment plainly dispensed with those grounds and settled the controversy between the trustee and beneficiaries by partition of the land, accounting, and payment of monies by the trustee. Tex.R.Civ.P. 301; 33 Tex.Jur.2d Judgments §§ 106, 108 (1962).

The pleadings, as well as argument on appeal, however, indicate that malfeasance or negligence on the part of the trustee is the sole basis for the award of attorney’s fees and, further, that the trial judge did hear evidence concerning management of the trust. Even if this court assumes that an award of attorney’s fees could have been made by the trial court, we hold that there was no abuse of discretion in their denial, for there is no evidence of wrongful conduct to support such an award.

However, this court will not agree that such an award would be proper in Texas. We now address the first sub-point. Did the trial court err in not surcharging the trustee, individually, for attorney’s fees as a matter of law?

[886]*886A surcharge is commonly understood in trust law to be a penalty which may be taxed against the trustee to compensate the trust corpus and its beneficiaries for loss caused by the fiduciary’s want of due care. Bogert, Trusts and Trustees, 2d Ed. § 862 (1962). The power of the court is codified in the Tex.Rev.Civ.Stat.Ann. art. 7425b-24, Texas Trust Act. Section A provides:

The district court shall have original jurisdiction to construe the provisions of any trust instrument; to determine the law applicable thereto; the powers, responsibilities, duties, and liability of trustee; the existence or non-existence of facts affecting the administration of the trust estate; to require accounting by trustee; and to surcharge trustee. (Emphasis added.)

We must determine whether the trial court erred by not awarding attorney’s fees as a surcharge against the trustee, appellee herein, individually. The general rule in Texas is that attorney’s fees are not recoverable either in an action in tort or a suit upon a contract unless provided by statute or a contract between the parties. New Amsterdam Casualty Co. v. Texas Industries, Inc., 414 S.W.2d 914, 915 (Tex.1967). Such statutory provisions allowing for collection of attorney’s fees are in derogation of the common law and must be subject to strict construction. New Amsterdam Casualty Co. v. Texas Industries, Inc., supra, at 915. Michaux v. Koebig, 555 S.W.2d 171, 175 (Tex.Civ.App.—Austin 1977, no writ). The necessary statutory basis for an award of attorney’s fees may not be supplied by implication but can be found only in express terms of the statute in question. New Amsterdam Casualty Co. v. Texas Industries, Inc., supra, at 916, Knebel v. Capital Nat’l Bank in Austin, 518 S.W.2d 795, 804 (Tex.1975), construing Tex. Prob.Code Ann. § 352, and Tex.Rev.Civ. Stat.Ann. art. 2226.

While the appellant asserts that article 7425b-24, (A) of the Trust Act, supra, vests the trial court with the power to tax attorney’s fees against the trustee as a surcharge under the facts of this case, he brings forward no authorities to sustain the assertion. We note that the judgment provides that all costs and expenses incident to the trust suit be paid from the accounts of the estate trust by the trustee Greer, Jr., prior to the division of the estate into the Epperson sub-trust and the Greer sub-trust.

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626 S.W.2d 884, 1981 Tex. App. LEXIS 4540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epperson-v-greer-texapp-1981.