Garcia v. Garza

311 S.W.3d 28, 178 Oil & Gas Rep. 130, 2010 Tex. App. LEXIS 727, 2010 WL 374405
CourtCourt of Appeals of Texas
DecidedFebruary 3, 2010
Docket04-09-00163-CV
StatusPublished
Cited by47 cases

This text of 311 S.W.3d 28 (Garcia v. Garza) 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
Garcia v. Garza, 311 S.W.3d 28, 178 Oil & Gas Rep. 130, 2010 Tex. App. LEXIS 727, 2010 WL 374405 (Tex. Ct. App. 2010).

Opinion

OPINION

Opinion by:

KAREN ANGELINI, Justice.

In March 2008, Israel Garcia and other members of the Garcia family filed suit against Homer E. Dean Jr.; Dean Partners, Ltd.; 1 and B.J. Shepherd, (hereinafter “Dean and Shepherd”) concerning mineral interests conveyed to Dean and Shepherd by members of the Garcia fami *32 ly as attorneys’ fees in 1975. Dean and Shepherd moved for summary judgment on grounds of limitations, lack of privity, lack of standing, and laches. The trial court granted the summary judgment motion and signed a take-nothing judgment against the Garcias. The Garcias appeal from this judgment. We affirm.

Factual and PROCEDURAL Background

1. The 1975 Partition Suit

In April 1975, attorneys Dean and Shepherd began representation of twelve members of the Garcia family in a suit to partition land in Brooks County, Texas, known as Rancho Nuevo and Rancho Salado. Even though they had no written fee agreement with the Garcias, Dean and Shepherd filed the partition suit and reached a settlement agreement with the opposing parties in the case. The settlement agreement partitioned the surface estate but did not partition the mineral estate. On December 8, 1975, Dean and Shepherd presented the settlement agreement to the trial court. On December 19, 1975, the trial court signed a final judgment in the partition suit.

On December 16, 1975, after the settlement agreement was presented to the trial court but before the final judgment was signed, the Garcias went to Dean’s office, where they were asked to sign various documents. One of these documents was a written fee agreement. All but two of the Garcias, Oscar and Viola Garcia, signed the fee agreement, which stated, in relevant part,

It is hereby agreed by and between Homer E. Dean, Jr., and B.J. Shepherd, as attorneys, and ... [the] clients of said attorneys, that the following will be the total amount of attorneys’ fees to be paid to said attorneys for their services in cause No. 2423 [sic] in the District Court of Brooks County, Texas, styled Jose A. Gonzales et al. v. Tomasa G. Figueroa et al:
Total attorneys’ fees $5,000.00 to be paid in cash and clients furthermore agree to execute to said attorneys a mineral deed deeding to said attorneys one-half (1/2) of the mineral interest acquired by each of said plaintiffs in a partition of the property in the above entitled and numbered cause....

(emphasis added).

All of the Garcias, including Oscar and Viola Garcia, then signed a mineral deed conveying to Dean and Shepherd one-half of the mineral interests in the land in question. This mineral deed, dated December 16, 1975, was recorded in the Brooks County deed records on December 23,1975.

2. The Present Suit

More than thirty-two years later, in March 2008, members of the Garcia family filed suit against Dean and Shepherd, seeking to recover the mineral interests conveyed to Dean and Shepherd in 1975. The plaintiffs in the present suit included five members of the Garcia family who were represented by Dean and Shepherd in the 1975 partition suit — Tomasita Ramos, Maria Garcia, Gloria Garcia, Oscar Garcia, and Viola Garcia. The plaintiffs in the present suit also included the heirs of other Garcia family members who were represented by Dean and Shepherd in the 1975 partition suit, but die d by the time the present suit was filed.

Initially, the Garcias’ petition alleged six causes of action: (1) a quiet title action; (2) a slander of title action; (3) a trespass to try title action; (4) an accounting action; (5) a constructive trust action; and (6) a declaratory judgment action. Later, the petition was amended to add causes of action for breach of fiduciary duty and fraud. The breach of fiduciary duty and *33 fraud claims, however, were brought only by the plaintiffs who had had an attorney-client relationship with Dean and Shepherd and had signed the mineral deed in 1975.

The Garcias’ claims were based on factual allegations that Dean and Shepherd:

-forced their clients to execute a mineral deed in Dean’s and Shepherd’s favor without making full disclosure of their conflicts of interest;
-impaired the interests of their clients in the underlying litigation because the mineral interests should have been partitioned along with the surface estate;
-preferred their own improper financial interest by keeping the mineral estate undivided in the partition suit, and thus, did not fulfill their duties to their clients and protect their mineral interests;
-misrepresented to their clients in December 1975 that the mineral deed was necessary to complete the partition of the property;
-failed to inform the trial court of the grant of mineral interests to them;
-altered the partition deed after it was executed by their clients and then misrepresented to their clients the reasons for doing so;
-failed to disclose the value of the mineral estate they wrongfully obtained from their clients.

The Garcias’ petition alleged the discovery rule applied to defer the accrual of all of their causes of action. Additionally, the petition alleged that the Garcias exercised reasonable diligence but did not discover the breaches of fiduciary duty and other wrongs against them until November 2007.

Dean and Shepherd answered the suit, denying the allegations in the petition. Shortly after the suit was filed, Dean died and the personal representative of his estate — Richard Garza — was substituted in Dean’s place.

3. The Summary Judgment Proceedings

On October 8, 2008, Dean and Shepherd filed a motion for summary judgment arguing, among other things, that all of the Garcias’ claims were barred by the four-year statute of limitations. Dean and Shepherd further argued the discovery rule did not operate to defer the statute of limitations because the deed was recorded in the deed records and “[bjecause the ... [mjineral [djeed is a public record and constitutes public notice to the Plaintiffs, the Plaintiffs’ claims, categorically, were not ‘inherently undiscoverable.’ ”

On October 31, 2008, the Garcias amended their petition to include claims for breach of fiduciary duty and fraud. 2 On the same day, the Garcias filed a response to the summary judgment motion. In the response, the Garcias argued their trespass to try title and quiet title claims were not subject to any statute of limitations because the mineral deed was void ab ini-tio. The Garcias also argued the statute of limitations did not bar their breach of fiduciary duty claim because the discovery rule deferred the accrual of their causes of action.

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Cite This Page — Counsel Stack

Bluebook (online)
311 S.W.3d 28, 178 Oil & Gas Rep. 130, 2010 Tex. App. LEXIS 727, 2010 WL 374405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-garza-texapp-2010.