in Re Donald W. Davis

CourtCourt of Appeals of Texas
DecidedFebruary 21, 2012
Docket02-11-00415-CV
StatusPublished

This text of in Re Donald W. Davis (in Re Donald W. Davis) 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 Donald W. Davis, (Tex. Ct. App. 2012).

Opinion

COURT OF APPEALS SECOND DISTRICT OF TEXAS FORT WORTH

NO. 02-11-00415-CV

IN RE DONALD W. DAVIS RELATOR

------------

ORIGINAL PROCEEDING

MEMORANDUM OPINION1

I. Introduction

In five issues, Relator Donald W. Davis seeks relief from Respondent the

Honorable Jonathan Bailey‘s judgment of contempt and commitment order. We

grant Relator‘s requested relief and order that he be discharged from custody.

II. Factual and Procedural Background

Real Party in Interest Julia Davis (RPI) is Relator‘s mother. Relator‘s

father and RPI executed a power of attorney naming Relator—who has been a

1 See Tex. R. App. P. 47.4. certified public accountant since 1970 and has his own accounting firm—attorney

in fact. After Relator‘s father died in December 2003, RPI executed a new power

of attorney on June 21, 2005, naming both Relator and Charles N. Davis, III,

Relator‘s brother, as attorneys in fact. Relator‘s sisters were named executors of

Relator‘s father‘s estate, and at the September 23, 2011 contempt hearing,

Relator testified that after his father‘s death, he gave his parents‘ financial

records to his sisters so that they could do the work on the estate.

Relator‘s sisters transferred responsibility for RPI‘s affairs back to him

―some months‖ later. On February 12, 2009, Relator admitted that he had

―commingled with certain of [his] funds certain funds belonging to [RPI].‖ He

estimated the amount of his mother‘s funds that he had commingled to be

between $400,000 and $550,000 and indicated that he would complete an

analysis of the amount on or before May 15, 2009. 2 RPI sued Relator in October

2009.

2 In his March 12, 2010 deposition, Relator admitted that he never told RPI that he was borrowing money from her and that he needed to repay $564,621.22 to RPI. He also admitted that he should have done ―a far better job of documenting things,‖ but he stated that he had a complete record of everything and could show where the money went. Relator contended that the documents he produced to his mother‘s attorneys were all the documents that would be necessary to determine the money that had been paid for his mother‘s living expenses and the money that he owed his mother. However, he acknowledged that he had not produced documents that would show a transactional history; rather, ―[t]here‘s a functional summary history of the amounts, including a number of transactions.‖

2 On September 3, 2010, RPI filed a motion for partial summary judgment to

compel Relator to provide a complete accounting under probate code section

489B, to include

at least, a description of the assets or funds of [RPI] that came into [Relator‘s] control, care, or possession; a description of what portion of those assets or funds were commingled with [Relator‘s] funds; and a description of the use and investments made of [RPI‘s] funds and those funds of [Relator] that were commingled with [RPI‘s] assets and funds, and sufficient information to locate and allow [RPI] [to] plead for a constructive trust over such assets and funds of [RPI] and such commingled funds whether those be assets or funds of [Relator, Relator‘s] business interests, or assets or funds in the possession of third parties.

To her motion, RPI attached, among other things, portions of Relator‘s

March 12, 2010 deposition; the February 12, 2009 letter in which Relator

admitted that he had commingled their funds; the affidavit of Emilia D‘Mello, a

CPA retained to review and attempt to produce a complete accounting from the

documents provided by Relator;3 an August 20, 2010 letter from RPI to Relator

demanding an accounting; and the affidavit of Janese Dudash, a paralegal at the

law firm representing RPI, in which Dudash stated that she served RPI‘s fourth

request for production to opposing counsel‘s office on August 17, 2010, that the

response was due August 27, 2010, and that, as of September 2, 2010, no

3 In her affidavit, D‘Mello stated that none of the documents produced by Relator, individually or in combination, met the requirements of section 489B. She stated that she had compiled a list of the additional documents necessary to complete an accounting meeting the requirements of section 489B, which were incorporated into ―Plaintiff‘s Fourth Request for Production.‖ Plaintiff‘s Fourth Request for Production was attached as an exhibit to her affidavit.

3 response had been received. The request for production attached as an exhibit

to D‘Mello‘s affidavit requests very specific documents and time periods,

including ―the missing statements for [Relator‘s] account at Wells Fargo ending in

account number x4051, e.g., statements prior to 5/2007 and 3/2008-7/2008‖ and

statements from five other specific banks and account numbers, as well as ―[a]ny

other account in existence or opened for or by [Relator] between May 2005 and

April 2009.‖ It also requests information on RPI‘s accounts from December 2003

―until present or when the account was closed,‖ among other items.

On December 7, 2010, the Honorable Margaret Barnes granted RPI‘s

motion for partial summary judgment and ordered Relator to

provide [RPI] with an accounting meeting the requirements of Texas Probate Code § 489B and including the information necessary to plead for a constructive trust on the assets and accounts derived from the funds originating with [RPI] and commingled with the funds of [Relator] whether those be assets or funds of [Relator, Relator‘s] business interests, or assets or funds in the possession of third parties.

Relator‘s deadline to provide the accounting and all supporting documentation

was December 20, 2010.

Relator did not meet the deadline, and RPI filed her first motion for

contempt on December 21, 2010. On March 7, 2011, Respondent held a hearing

on the motion. In his introductory remarks, RPI‘s counsel stated that Relator had

managed RPI‘s financial affairs from 2003 until mid-2008. He testified that his

firm had not received an accounting from Relator or communications from

Relator or his counsel with regard to any excuse for failure to comply with the

4 order to deliver the accounting and materials supporting the accounting. He

admitted that the order did not list the requirements of probate code section

489B.

At the conclusion of the March 7, 2011 hearing, Respondent granted the

motion, stating,

Okay. [Relator,] I‘m finding you in contempt. I believe the order rendered December 7, 2010, was sufficiently specific. I find by clear and convincing evidence that you failed to comply with the terms of that order.

I find it particularly bothersome that you made no attempts to notify this court either prior to obtaining counsel or subsequent to obtaining counsel that you had any questions regarding what was expected of you. There was no indication that you did not understand what was required of you as a result of that order, no attempts to clarify that order, and apparently no attempts to comply with the order.

I am ordering you be taken into custody of the Denton County Sheriff and confined until you comply with that order. I don‘t care how long it takes. You will make arrangements to have the order complied with or you will sit in jail until you do. I‘ve entered a written order to those effects to be executed on March 7, 2011.

Respondent ordered that Relator would be confined in the county jail until he had

complied with the following:

1.

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