in Re: Amoco Federal Credit Union

506 S.W.3d 178, 2016 Tex. App. LEXIS 11759, 2016 WL 6426845
CourtCourt of Appeals of Texas
DecidedOctober 31, 2016
DocketNO. 12-16-00166-CV
StatusPublished
Cited by8 cases

This text of 506 S.W.3d 178 (in Re: Amoco Federal Credit Union) 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
in Re: Amoco Federal Credit Union, 506 S.W.3d 178, 2016 Tex. App. LEXIS 11759, 2016 WL 6426845 (Tex. Ct. App. 2016).

Opinion

OPINION

JAMES T. WORTHEN, Chief Justice

Amoco Federal Credit Union asserts in this original mandamus proceeding that the 122nd Judicial District Court of Galveston County, Texas, has dominant jurisdiction to determine the issues raised in two rival declaratory judgment actions. The actions pertain to Amoco’s disposition of $566,585.86 from the account of Michael Burgett. Amoco seeks a writ of mandamus directing the trial court to (1) vacate its June 10, 2016 temporary restraining order and (2) stay the declaratory judgment action filed by Michael Burgett, Lynda Bur-gett, and Marylou Kusmanoff (the real parties). 1 We conditionally grant the writ.

Background

Eighty-four-year-old Marylou Kusma-nofFs husband of thirty-six years, Sam, died in February 2012. Sometime after Sam died, a dispute arose between Marylou’s adult children, Michael Burgett and Carol Easterley, over the money Marylou had inherited from Sam (their stepfather). In March 2015, Marylou moved from a nursing home in Belleville, Illinois, to live near Michael and his wife, Lynda, in Bro-addus, San Augustine County, Texas. The following month, Carol initiated guardianship proceedings in St. Clair County, Illinois, requesting appointment as Marylou’s guardian. The Illinois court issued a re *181 straining order on April 24, 2015, prohibiting Amoco and its agent in Illinois from releasing any monies from Michael’s Amoco account.

A hearing in the Illinois guardianship proceeding was held on December 2 and 3, 2015. Michael and Lynda appeared at the December hearing in person and were represented by an attorney. Marylou appeared in person and was represented by a different attorney. After the December 3 hearing, the guardianship proceeding was continued to March 1, 2016. However, Marylou, Michael, and Lynda did not appear at the March 1 hearing.

Rather, on February 26, 2016, Lynda filed an application to establish a guardianship for Marylou in the San Augustine County Court. She also filed an ex parte application for a temporary restraining order prohibiting Amoco from disbursing or distributing any funds from Michael’s Amoco, account. On March 4, 2016, the Illinois court rendered an order appointing Carol as Marylou’s guardian. The day before the appointment, the Illinois court issued a mandatory injunction order that stated as follows:

AMOCO FEDERAL CREDIT UNION as principal] and GATEWAY METRO CREDIT UNION [sic] as agent is ordered to deliver the funds remaining in Amoco Account no. 294930 immediately to attorney Gregory Skinner, Guardian ad litem for MARYLOU KUSMANOFF by end of business this date, March 3, 2016 at 5:00 p.m. Said delivery is to be accomplished by wire transfer to the IOLTA Attorney Trust Account of Gregory Skinner. Attorney Gregory Skinner is ordered to provide his account information to Robert Carter the attorney for AMOCO FEDERAL CREDIT UNION herein immediately.

Amoco complied with the order at 9:10 a.m. on March 4, 2016. At 9:30 a.m. on the same date, the 273rd Judicial District Court of San Augustine County (the San Augustine court) issued an ex parte “temporary order” restraining Amoco from transferring the funds in Michael Bur-gett’s Amoco account.

On March 17, 2016, the San Augustine court conducted a hearing on Lynda’s guardianship application. At the hearing, the court informed the parties that the guardianship had been transferred from the San Augustine County Court. Marylou’s newly appointed guardian ad litem in Texas told the court that “[t]here was an order entered by the [Illinois] Court up there for guardianship, Judge. Now, we’re requesting that this court take jurisdiction.” During the hearing that ensued, Lynda’s attorney informed the court that one of the reasons for obtaining the guardianship was to “start the process where the guardian, Mrs. Burgett, can start obtaining some of the monies back ....” He further added, “I’m hoping today that she will take the order, go to the bank in Illinois, and say we now have a lawful order and they will be as gracious in removing that money from that account as swiftly and effectively as [Amoco] was sending it up there.”

At Lynda’s request during the hearing, the court appointed her as Marylou’s temporary guardian rather than as her permanent guardian. After the appointment, the judge asked Amoco’s attorney why Amoco had disbursed the $566,586.86 to Marylou’s guardian" ad litem in Illinois without domesticating the Illinois order in Texas. Amoco’s attorney responded that “we were under the jurisdiction of the court as part of the final adjudication in Illinois. We were ordered to transfer the monies that were in an account in the name of Mr. Michael Burgett to the Guardian Ad Litem *182 of Mrs: [Marylou] Kusmanoff in Illinois.” The judge responded, “[W]ell, if that’s the case, it comes down to a question of whether [Amoco] has a right to dispose of property pursuant to a foreign judgment that hasn’t been registered or domesticated in the State of Texas. And, I’d just be interested in knowing that.”

On April 6, Amoco filed a declaratory judgment action in the 122nd Judicial District Court of Galveston County (the Galveston court) against Michael and Lynda asking the court to declare that Amoco had not breached its member agreement with Michael or committed any other violation of law in instituting the freeze of Michael’s account and the transfer of funds pursuant to the Illinois court order. Amoco alleged that its declaratory judgment action was in response to Michael and Lynda’s contention in the San Augustine court on March 17. that it should not have transferred the $566,585.86 in Michael’s account before the Illinois mandatory injunction order was domesticated in Texas. Amoco filed its declaratory judgment action in Galveston County based on the venue clause in its membership agreement with Michael, which provided that “any legal action regarding this Agreement shall be brought in the county in which the Credit Union is located.”

The real parties responded to Amoco’s declaratory judgment action with one of them own filed in the San Augustine court on May 9. The real parties based their suit on Amoco’s failure to domesticate the Illinois mandatory injunction order before transferring the $566,585.86 to Marylou’s Illinois guardian ad litem. They further alleged various tort causes of action against Amoco for failing to domesticate the Illinois order.

On May 31, Amoco filed an application for an anti-suit injunction in the Galveston court. The real parties followed on June 6 with their own application for an anti-suit injunction in the San Augustine court. On June 9, the Galveston court issued a temporary restraining order, which stated in part as follows:

It is THEREFORE ORDERED that Michael Burgett, Lynda Burgett, and Marylou Kusmanoff and any person acting on their behalf (including, but not limited to, Paul Anderson and Johnny Weismuller Jr.) (collectively, “Defendants”) are commanded to desist and refrain from taking any further action in Cause No. CV-16-09656 pending in the 273rd Judicial District Court, San Augustine County, Texas[.]

The following day, the San Augustine court reciprocated with a temporary restraining order that included the following paragraph:

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Bluebook (online)
506 S.W.3d 178, 2016 Tex. App. LEXIS 11759, 2016 WL 6426845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-amoco-federal-credit-union-texapp-2016.