Greene v. Young

174 S.W.3d 291, 2005 WL 1308936
CourtCourt of Appeals of Texas
DecidedJuly 20, 2005
Docket01-04-00679-CV
StatusPublished
Cited by81 cases

This text of 174 S.W.3d 291 (Greene v. Young) 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
Greene v. Young, 174 S.W.3d 291, 2005 WL 1308936 (Tex. Ct. App. 2005).

Opinion

OPINION

LAURA CARTER HIGLEY, Justice.

In this family law case, attorneys, Liza Greene and Corey Mills (“appellants”), appeal a sanctions order signed by the trial court against them. 1 ,Of the seven issues presented by appellants, the dispositive issues that we address are whether the trial court abused its discretion by sanctioning appellants on grounds on which appellants had no notice and whether the trial court had jurisdiction to sanction appellants under Texas Rule of Civil Procedure 13 for signing a motion filed in federal bankruptcy court.

We reverse and render.

Factual and Procedural Background

On November 26, 2001, the trial court signed a final decree of divorce between Ronald Eugene Repine (“Ronald”) and Elizabeth Ann Pollard-Repine (“Elizabeth”). The decree ordered Ronald to make bimonthly child-support payments of $561 to Elizabeth. When Ronald failed to make these payments, Elizabeth retained attorney, and appellee in this appeal, Patsy Young (‘Young”), who filed a motion for enforcement by contempt for failure to pay child support against Ronald.

On June 26, 2003, the trial court signed an order holding Ronald in contempt for failure to pay child support and ordered him confined to jail for six months and then from day to day until he purged himself of contempt. The trial court also ordered Ronald to pay $22,858.75 in child support arrearage and $2,026.75 in attorney’s fees to Young. 2

On July 1, 2003, Ronald filed a voluntary petition in bankruptcy. Attorney Corey Mills represented Ronald in the bankruptcy proceeding. Mills also represented Ronald in the family court until early August 2003, when Liza Greene became Ronald’s family law attorney. Margaret McClure represented Elizabeth in bankruptcy court and Young continued to represent Elizabeth in family court.

During July and August 2003, the parties engaged in negotiations to settle the *295 child support claims. As part of this process, Young offered to settle if Ronald deeded his home to Elizabeth and paid Young’s attorney’s fees. Mills responded that Ronald could not deed his home because it was part of the bankruptcy estate.

Elizabeth and Ronald ultimately reached an agreement that was memorialized in an “Agreed Order Lifting Stay,” which was signed by the bankruptcy court on September 11, 2003. In making this agreement, Mills acted as Ronald’s counsel and McClure acted as Elizabeth’s attorney.

The Agreed Order Lifting Stay provided that the bankruptcy stay would be lifted as to Elizabeth. It further provided that Ronald would deed his home to Elizabeth, and the property would then be sold. The sale proceeds would first pay the outstanding balance on the mortgage and then any attorney’s fees secured by the deed of trust. The remaining proceeds would be applied to the child support arrears owed to Elizabeth and the attorney’s fees owed to Young. The order also provided that the family court would determine whether Ronald should be released from jail.

On September 12, 2003, the family court heard Ronald’s motion to suspend his incarceration. Although Elizabeth testified that she wanted Ronald released from jail, Young told the family court that she opposed Ronald’s release. The trial court denied Ronald’s motion on the basis that the Agreed Order Lifting Stay placed payment of Ronald’s other debts, including his attorney’s fees, before payment of the child support arrears.

On September 23, 2003, Ronald’s father died. Mills and Greene worked with Elizabeth and her bankruptcy attorney, McClure, to secure Ronald’s release to attend the funeral and be with his mother. Young prepared an “Agreed Amended Release Order,” which provided for Ronald’s release. The order provided, inter alia, that Ronald would deed his home to Elizabeth, pay the child support arrearage, pay Young her attorney’s fees, and agree that he would not pursue any action against Young or Elizabeth for violating the bankruptcy stay. In correspondence sent with the proposed order of release, Young stated that she would appear in court to present the order on the condition that she first receive a certified check from Ronald, paying a portion of her attorney’s fees. Ronald and his attorneys declined Young’s offer and turned to the bankruptcy court, seeking to secure Ronald’s release from jail.

Elizabeth, as movant, and Ronald, as debtor, with the assistance of their counsel McClure, Mills, and Green, filed a “Joint Motion to Enforce Agreed Order Lifting Stay and Request for Additional Relief’ (“Joint Motion”) in the bankruptcy court. The Joint Motion alluded that the family court had overstepped its bounds in refusing to release Ronald in light of the parties’ agreement that was reflected in the earlier order signed by the bankruptcy court, which lifted the stay as to Elizabeth. The Joint Motion contended, in relevant part, as follows:

The [family court’s] ruling had been primarily at the request of the family counsel for [Elizabeth] Patsy Young, who, despite direction from her client, [Elizabeth], that she wishes [Ronald] to be released, has continually insisted that her attorney fees MUST be paid in full before [Ronald] is released from jail. Apparently, Patsy Young believes that, despite the priority of claims set forth per the Bankruptcy Code, she is more of a priority than secured creditor Ford Motor Credit or the children of [Ronald] and [Elizabeth], each of whom have made claims in this case. Additionally, Ms. Young’s refusal to heed her client’s requests out of her own self-interest in *296 immediately obtaining her attorney fees is a conflict of interest and, further, appears highly unethical.
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... The only obstacle to [Ronald’s] release is a family court Judge who does not understand that [Ronald] has a right to pay his child support arrears, including attorney fees owed to Patsy Young, via his Chapter 13 Plan.

The bankruptcy court conducted a hearing on the Joint Motion on September 24, 2003. In attendance were Elizabeth, McClure, Greene, and Mills. The bankruptcy court did not rule on the Joint Motion. Instead, based on the information supplied by the attorneys in the Joint Motion, the bankruptcy court issued an order, providing that Young was to appear before the bankruptcy court on September 25, 2003, and show cause why she should not be held in contempt for violating the bankruptcy stay. The bankruptcy court explained, “I want that lawyer [Young], that creditor, apparent creditor, to show cause why she shouldn’t be held in contempt for continuing to assert a prepetition debt, which is resulting in harm to the debtor and therefore harm to the estate and the viability of the bankruptcy case.”

Mills attempted to personally serve Young with the order to appear and show cause, but Young knocked the order from Mills’s hands. Mills, Greene, and McClure appeared at the show cause hearing on September 25. However, Young did not appear and the bankruptcy court issued an order for the United States Marshal to arrest Young. On September 29, 2003, Young, represented by counsel, surrendered herself at the bankruptcy courtroom.

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Bluebook (online)
174 S.W.3d 291, 2005 WL 1308936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-young-texapp-2005.