Glassman v. Goodfriend

347 S.W.3d 772, 2011 Tex. App. LEXIS 4189, 2011 WL 2150225
CourtCourt of Appeals of Texas
DecidedJune 2, 2011
Docket14-09-00522-CV
StatusPublished
Cited by137 cases

This text of 347 S.W.3d 772 (Glassman v. Goodfriend) 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
Glassman v. Goodfriend, 347 S.W.3d 772, 2011 Tex. App. LEXIS 4189, 2011 WL 2150225 (Tex. Ct. App. 2011).

Opinion

EN BANC OPINION

CHARLES W. SEYMORE, Justice.

Appellant Elene B. Glassman’s motion for panel rehearing is denied, and her motion for rehearing en banc is denied as moot. On its own motion, this court grants en banc rehearing to secure uniformity in the court’s precedent regarding the legal standard for imposing sanctions under Texas Rule of Appellate Procedure 45.

Glassman appeals from a final order in garnishment obtained by appellee, Meryl B. Goodfriend, to satisfy an underlying judgment. Glassman, an attorney, appears pro se in this appeal. Goodfriend contends this appeal is frivolous and requests sanctions. We affirm the final order in garnishment and assess $2,500 in sanctions against Glassman.

BACKGROUND

Glassman and Goodfriend are sisters. Their parents established an inter vivos trust with Glassman appointed as trustee. Under its provisions, the trust was to be discharged and the assets distributed equally to Glassman and Goodfriend upon the last surviving parent’s death. In 2004 (after the last parent died), Goodfriend filed a petition to compel an accounting, which she later amended to also compel distribution of trust assets, alleging Glass-man had failed to comply with Good-friend’s requests for performance of these duties. Goodfriend also applied for injunc-tive relief to preserve the status quo of trust property, alleging she believed Glass-man might wrongfully disburse assets or remove them beyond the court’s jurisdiction.

On January 31, 2005, the trial court signed an order requiring an accounting by a date certain. 1 The court also ordered the parties to mediate following the accounting. Goodfriend subsequently filed a motion for contempt, contending Glassman had not complied with the order for the accounting. The parties then mediated and signed an agreement on various matters. On May 4, 2005, the trial court reduced to interlocutory judgment several items of this agreement, including Good-friend’s willingness to pass an upcoming hearing set on her previous motion for contempt in exchange for Glassman’s providing the accounting by another date certain.

Goodfriend later again moved for contempt, alleging Glassman failed to provide *776 the accounting as specified in the May 4, 2005 judgment. The trial court signed an order requiring Glassman to provide the accounting within seven days or serve three days in jail. When Glassman failed to comply with that order, Goodfriend filed a motion to enforce. On July 20, 2005, after a hearing, the trial court found Glass-man in contempt of the May 4, 2005 judgment and ordered her confined for three days. 2

Subsequently, Goodfriend amended her request for injunctive relief, alleging Glassman had mismanaged the trust and still refused to provide the accounting. Glassman then filed a motion to recuse both the trial judge and associate judge, suggesting they had committed various procedural irregularities, engaged in ex parte communications, and lacked impartiality. Another judge assigned to decide the recusal matter denied the motion, found it was filed to delay a hearing originally scheduled on Goodfriend’s application for injunctive relief, and sanctioned Glass-man $2,000.

The trial coui't then resumed proceedings in October 2005 on the application for injunctive relief. On October 24, 2005, after having issued a temporary restraining order, the trial court signed a temporary injunction and order removing Glass-man as ti’ustee, terminating the trust, and appointing a successor trustee to wind up the trust. The court also enjoined Glass-man from exercising control over any trust assets and ordered her to relinquish the assets and records to the successor trustee. Thereafter, the successor trastee performed her duties, partial distributions of assets were made to Goodfriend, and the trust was ultimately closed in August 2007 after a final accounting.

In the meantime, on the same day that the trial court issued the temporary injunction, Goodfriend filed a second amended petition alleging claims against Glass-man for breach of fiduciary duty based on her various actions and omissions as trustee and breach of contract for her failure to comply with several provisions in the parties’ mediation agreement. Goodfriend requested an accounting, distribution of trust assets, damages, attorneys’ fees, removal of Glassman as trustee, and a ruling that Glassman must forfeit all trustee fees, profits, and improper benefits she obtained by breach of the fiduciary relationship.

While these claims were pending, the trial court again sanctioned Glassman $9,624.09, finding she had engaged in “a pattern of discovery abuse and misconduct,” including disregarding prior court orders compelling discovery, failing to provide the accounting as previously ordered, disobeying the temporary injunction by refusing to produce trust records, filing the groundless motion to recuse, and failing to pay the sanctions assessed for filing the motion to recuse. As requested by Good-friend, the trial court converted both sanctions orders to an enforceable money judgment for $11,624.09. This judgment was satisfied via a garnishment proceeding instituted by Goodfriend for funds held by Glassman at Raymond James & Associates, Inc.

On June 9, 2006, a bench trial was conducted on the remaining claims asserted in Goodfriend’s second amended petition. Although notified of the setting, Glassman did not attend. Goodfriend presented evidence supporting her claims. On June 27, 2006, the trial court signed a final judgment (1) finding that Glassman “knowingly and willfully breached her fiduciary duty *777 as Trustee ... including malfeasance and defalcation,” (2) awarding Goodfriend $307,948.63 in damages (the total damages found minus partial distributions of trust assets already made), $45,114.47 in prejudgment interest, $50,000 in exemplary damages, conditional appellate attorneys’ fees, and post-judgment interest, (3) ruling that Glassman’s liability under the judgment exceeded her beneficial interest in the trust and thus her interest was awarded to Goodfriend, (4) ruling that Glassman take nothing on her counterclaim for declaratory judgment that a condominium owned by the parties’ mother (which passed under her will) should be an asset of the trust, and (5) ordering Glassman to relinquish to Goodfriend, and refrain from exerting control over, any trust property. Glassman did not file a timely motion for new trial or equivalent and did not timely appeal.

Thereafter, the June 27, 2006 judgment was partially satisfied via garnishment proceedings of funds held by Glassman at Raymond James and Charles Schwab & Co. Goodfriend then instituted the garnishment proceeding that resulted in the order at issue in this appeal. Specifically, in August 2006, Goodfriend filed an original application for writ of garnishment after judgment directed to JP Morgan Chase Bank (“Chase”), which was assigned a separate cause number from the underlying suit. Chase answered that it was indebted to Glassman for $3,723.31 and she held one or more safe deposit boxes at the institution. In March 2009, Goodfriend filed a motion for final order in garnishment. 3

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Cite This Page — Counsel Stack

Bluebook (online)
347 S.W.3d 772, 2011 Tex. App. LEXIS 4189, 2011 WL 2150225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glassman-v-goodfriend-texapp-2011.