Frost National Bank v. Fernandez

315 S.W.3d 494, 53 Tex. Sup. Ct. J. 609, 2010 Tex. LEXIS 321, 2010 WL 1526369
CourtTexas Supreme Court
DecidedApril 16, 2010
Docket08-0534
StatusPublished
Cited by751 cases

This text of 315 S.W.3d 494 (Frost National Bank v. Fernandez) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frost National Bank v. Fernandez, 315 S.W.3d 494, 53 Tex. Sup. Ct. J. 609, 2010 Tex. LEXIS 321, 2010 WL 1526369 (Tex. 2010).

Opinion

Justice GREEN

delivered the opinion of the Court.

Believing herself to be the non-marital child of John G. Kenedy, Jr., Ann M. Fernandez has initiated multiple proceedings in both district court and statutory probate court to set aside decades-old judgments and reopen the estates of Kenedy, his wife, and his sister, and to declare Fernandez an hem to those estates. The defendants filed motions for summary judgment in the district court arguing numerous grounds, including that because Fernandez’s heir-ship claim was barred by limitations, she could not establish an interest in the estates and could not pursue bills of review. The district court granted summary judgment against Fernandez in a broadly-worded order that did not specify the grounds. The principal issue on appeal is whether the district court had jurisdiction to render summary judgment when similar bill of review proceedings and applications *497 for determination of heirship were pending in the probate court. The court of appeals held that the district court lacked subject matter jurisdiction and was required to abate its proceedings until the probate court first resolved questions of heirship. We disagree. Fernandez’s pleadings and her direct attack on a previous judgment vested the district court with subject matter jurisdiction. Moreover, the Texas Probate Code does not authorize a probate court to exercise jurisdiction over heirship claims when an estate has been closed for decades and the decedent did not die intestate. We therefore reverse those parts of the court of appeals’ judgment that relate to jurisdiction and abatement. Further, we hold that the discovery rule does not apply to inheritance or heirship claims by non-marital children, or bill of review claims to set aside probate judgments. Because Fernandez’s claims were barred by the applicable statute of limitations, we render judgment reinstating the district court’s judgment. In light of today’s ruling, we conclude that none of Fernandez’s claims for heirship or inheritance rights to the Kenedy estate remain viable, so we affirm the portion of the court of appeals’ judgment that set aside the district court’s anti-suit injunction.

I. Facts and Procedural Background

John G. Kenedy, Jr., died in 1948. In his holographic will, Kenedy left all his “property of every character and description both personal and mixed” to his wife, Elena Suess Kenedy. After Kenedy’s will was probated in the County Court of Ken-edy County, Humble Oil & Refining Company, which leased mineral interests that were part of Kenedy’s estate, brought a will construction suit in district court to resolve a potential ambiguity regarding whether Kenedy’s will disposed of all Ken-edy’s real property (the Humble Oil suit). On October 12,1949, 1 the district court found that all of Kenedy’s heirs were before it and held that the will did not leave an intestacy but instead passed his interest in any property to his wife. The judgment states that “as a matter of law” Kenedy was survived by no children and that “all persons who would have inherited any part of the Estate of John G. Kenedy, Jr., deceased, if he had died intestate as to all or any part of his estate, are parties to this suit and therefore all necessary and interested parties are included among the defendants herein.” Kenedy’s estate was distributed, taxed, and closed in 1952. 2

Sarita Kenedy East, Kenedy’s sister, died in 1961. East’s 1960 will and codicils, which left the bulk of East’s estate to The John G. and Marie Stella Kenedy Memorial Foundation and contained a residual clause leaving any remaining property to the Foundation, were admitted to probate later in 1961. After extensive litigation (the Trevino will contest), the district court dismissed several contests to the 1960 will and codicils. See Trevino v. Turcotte, 564 S.W.2d 682, 690 (Tex.1978). As a part of that litigation, the district court entered a final judgment in 1975 pursuant to a settlement agreement as to some of *498 the parties contesting East’s 1960 will. We later affirmed the district court’s dismissal judgment, id., and the district court then transferred the Trevino will contest back to the County Court of Kenedy County for a final accounting of East’s estate in 1986. The county court closed East’s estate in 1987.

Apart from the contests to East’s will, a temporary administrator of her estate had also filed an action to set aside certain inter vivos mineral royalty assignments East had made to the Foundation (the Garcia suit). The district court abated this action in 1964, after the Foundation argued that it would own the property at issue under East’s will regardless of the status of the inter vivos transfers, if the Trevino will contest failed. After our opinion in Trevino, in September 1978 the district court dismissed the Garcia suit with prejudice.

Mrs. Kenedy passed away in 1984, leaving a will that bequeathed most of her estate to The John G. Kenedy, Jr. Charitable Trust. 3 That will was probated in 1984, the estate was closed in late 1987, and Mrs. Kenedy’s interest in the real property at issue was distributed to the Trust. The La Parra Ranch, which was among Kenedy’s real property assets that passed to Mrs. Kenedy, was the primary trust asset. 4

Fernandez was born in 1925 to Maria Rowland, who was then unmarried and worked for the Kenedy family. 5 For years, Fernandez heard rumors and speculation that Kenedy was her father. Fernandez alleges that on Mother’s Day of 2000, shortly before her death, Rowland revealed Kenedy’s paternity when she told Fernandez’s son, Dr. Ray Fernandez, that he bore a resemblance to his grandfather, Kenedy. Fernandez then began engaging in litigation to assert her putative right to inherit from the estates of Kenedy, his wife, and East. 6

Fernandez filed multiple lawsuits contesting court orders and probate proceedings relating to those estates, and she seeks to reopen the estates and set aside distributions of real and personal property that were made decades ago in those probate proceedings. Fernandez, who did not receive notice of the suits pertaining the estates of Kenedy, his wife, and East, contends that she should have been a party to those suits, that the judgments in those cases are not binding and should be set aside, and that she is entitled to her intestate share. We discuss the relevant underlying proceedings and filings generally in chronological order.

In October 2001, Fernandez filed her initial suit, a bill of review in the County Court of Kenedy County seeking to set aside the order probating Kenedy’s will, to reopen Kenedy’s estate, and to be declared Kenedy’s heir. 7 In May 2002, she filed *499

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Bluebook (online)
315 S.W.3d 494, 53 Tex. Sup. Ct. J. 609, 2010 Tex. LEXIS 321, 2010 WL 1526369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frost-national-bank-v-fernandez-tex-2010.