Guadalupe Lugo v. Regions Bank, Ginger Lott, Temporary Guardian of the Person and Estate Pending Contest and Marissa Garcia, Guardian Ad Litem

Court of Appeals of Texas·Decided June 6, 2024·No. 01-22-00438-CV·Published

Opinion

Opinion issued June 6, 2024

In The

Court of Appeals

For The

First District of Texas

guardianship proceeding. In three issues, Guadalupe contends that the trial court erred in granting her counsel’s motion to withdraw without giving her time to find new counsel to defend against the Bank’s motion in limine and in appointing appellee, Ginger Lott, as successor third-party private professional guardian of Samantha’s person.1 We reverse and remand.

Background

Samantha, in infancy, suffered a brain injury which left her permanently incapacitated, and the settlement of a medical malpractice lawsuit filed by Samantha’s parents led to the creation of a trust for her care.

In 2016, Samantha’s sister, Guadalupe Leticia Lugo (“Tish”), was appointed as the guardian of Samantha’s person. Four years later, in June 2020, the Bank filed an application to remove Tish as guardian. Among other things, the Bank alleged that Tish had “create[d] unnecessary costs and financial drain on [Samantha’s] finances,” citing various conflicts between Tish and the Bank.2 Eventually, the Bank agreed not to pursue Tish’s removal in exchange for her resignation as guardian of Samantha’s person. After Tish’s resignation as guardian, the trial court heard

1 See TEX. EST. CODE ANN. § 1055.001.

2 The history of this dispute is set forth in detail in our previous opinion in In re Guardianship of Lugo, No. 01-21-00403-CV, 2022 WL 17835520, at *1–5 (Tex.

App.—Houston [1st Dist.] Dec. 22, 2022, no pet.) (mem. op.).

testimony concerning the appointment of Guadalupe as her daughter’s guardian of the person but made no ruling at that time as to whether Guadalupe should be appointed successor guardian. It appointed Marissa Garcia to serve as Samantha’s guardian ad litem pending contest.

On May 14, 2021, Guadalupe filed a written application for appointment as guardian of Samantha’s person.3 She alleged that she “ha[d] been providing daily care and life decisions” for Samantha, who lived with her, since Samantha was an infant. Guadalupe also pointed out that under the Texas Estates Code, she was qualified to accept letters of guardianship and had priority over other applicants to serve as Samantha’s guardian.4 On February 11, 2022, the Bank filed an amended motion in limine challenging Guadalupe’s interest in the guardianship proceeding. The Bank acknowledged that Guadalupe “ha[d] lovingly cared for her daughter, Samantha, for years, and continue[d] to do so.” But the Bank alleged that “[Guadalupe] and Tish [we]re one and the same” and that “[t]hrough her attorney and [Guadalupe], Tish continue[d] to create drama and unnecessary expense.” And the Bank argued that Guadalupe had an interest adverse to Samantha because “of her defiance to repay funds” to the trust “and the influence over her by and involvement of [Tish] and

3 See TEX. EST. CODE ANN. § 1203.102(a).

4 See id. § 1104.102.

Tish’s attorneys in the[] guardianship proceeding[].” According to the Bank, Guadalupe owed the trust $40,055.14 because Samantha had to “vacate her home and move into a condominium” when Guadalupe’s home was damaged during the extreme cold weather in Texas during Winter Storm Uri in February 2021. Since then, the trust “ha[d] been paying the nearly $9,000 rental on the condominium.” And the Bank observed that although the trial court had ordered Guadalupe “to pay $40,055.14 to the trust, she ha[d] not made the payment.” Thus, the Bank asserted that Guadalupe had “a financial interest which [wa]s adverse to Samantha and [the trust] . . . such that she lacked standing under Texas Estates Code section 1055.001 to apply for or contest an application for guardianship.” The Bank requested that the trial court “(i) intervene on behalf of Samantha, (ii) find that the application for guardianship and the original petition seeking the removal of trustee” filed by Guadalupe “should be dismissed due to lack of standing, and (iii) award all other relief to which [the] trustee [wa]s entitled.”

Three days later, on February 14, 2022, Bryan Sample, Guadalupe’s then-attorney, filed a motion for withdrawal as counsel. As grounds for withdrawal, Sample asserted that Guadalupe was “unable effectively to communicate with [him] in a manner consistent with good attorney-client relations” and “ha[d] not complied with the terms” of their attorney-client agreement. Sample also reported in the motion that a “Trustee’s Motion to Enforce Court’s Order” filed by the Bank was

set for hearing on March 3, 2022 at 9:30 a.m. But Sample, who had not filed a response on behalf of Guadalupe to the Bank’s amended motion in limine, did not identify any other pending motions or hearing settings. A copy of Sample’s motion to withdraw was “delivered to the last known address of Applicant [by] certified mail.” The motion for withdrawal was set for hearing at 1:30 p.m. on March 3, 2022, the same date as the trustee’s motion to enforce.

The March 3, 2022 hearing was held remotely. The trial court first addressed Sample’s motion to withdraw. At the trial court’s request, Sample clarified that he represented only Guadalupe, and he did not represent Tish. The trial court then stated that it would sign Sample’s proposed order granting the motion to withdraw and told Sample to “make sure that it says [Guadalupe] on it.”5 The record, though, does not contain a signed order granting Sample’s motion to withdraw.

Next, the trial court proceeded to hear the Bank’s amended motion in limine.6 The Bank called Guadalupe as its first witness. Guadalupe, who was attending the

5 The record does not affirmatively show whether Guadalupe participated the portion of the hearing addressing Sample’s motion to withdraw. She is not listed in the “appearances” portion of the reporter’s record, was not announced as present, did not speak, and was not addressed by counsel or the trial court until she was sworn in as a witness for the later portion of the hearing addressing the Bank’s amended motion in limine.

6 The “Trustee’s Motion to Enforce Court’s Order” was not addressed at the March 3, 2022 hearing.

hearing by telephone, confirmed that she needed an interpreter.7 She also stated to the trial court that she “d[id]n’t have an attorney.” The trial court responded that Guadalupe “d[id]n’t have an attorney because [she] d[id]n’t have an attorney,” that she “ha[d] the right to have an attorney, and [she] d[id]n’t have one.” Guadalupe replied that she “need[ed] one.” The trial court told her that she “should have hired one before.”

Technical problems ensued during the hearing, and Guadalupe was placed in an electronic waiting room. While Guadalupe was in the electronic waiting room and thus unable to hear or participate, the trial court, the Bank’s counsel, and Garcia engaged in a discussion about the pending amended motion in limine. The Bank’s counsel proposed that the trial court grant the motion as unopposed because Guadalupe had not filed a response. He also informed the trial court about what the Bank expected the evidence would show. The Bank’s counsel suggested that if Guadalupe was “not willing to put on any evidence,” he was “willing to put on evidence” and then request that the trial court grant the Bank’s amended motion in limine “because [Guadalupe] didn’t meet her burden” and “didn’t file a response.” And the Bank’s counsel requested that the trial court “find that [Guadalupe]

7 A Spanish-English interpreter was present for at least the portion of the hearing in which the Bank elicited testimony from Guadalupe. But because of the frequent technical problems, it is unclear from the reporter’s record how much of the rest of hearing was interpreted for Guadalupe and how much her responses relied on her apparently limited ability to understand and speak English.

ha[d] . . . an interest that was adverse to Samantha.” The trial court asked Garcia whether she objected to the Bank’s proposal, and she responded that she did not.

Guadalupe was then brought back into the hearing and sworn in to testify.

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Guadalupe Lugo v. Regions Bank, Ginger Lott, Temporary Guardian of the Person and Estate Pending Contest and Marissa Garcia, Guardian Ad Litem (Guadalupe Lugo v. Regions Bank, Ginger Lott, Temporary Guardian of the Person and Estate Pending Contest and Marissa Garcia, Guardian Ad Litem) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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