In Re Staley

320 S.W.3d 490, 2010 Tex. App. LEXIS 6213, 2010 WL 3002331
CourtCourt of Appeals of Texas
DecidedAugust 3, 2010
Docket05-08-01171-CV
StatusPublished
Cited by20 cases

This text of 320 S.W.3d 490 (In Re Staley) 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 Staley, 320 S.W.3d 490, 2010 Tex. App. LEXIS 6213, 2010 WL 3002331 (Tex. Ct. App. 2010).

Opinion

*493 OPINION

Opinion By

Justice MOSELEY.

Pamela Staley entered into a Compromise Settlement Agreement (CSA) with trustees of various trusts formed during her marriage to Thomas Staley. The CSA was also incorporated into a decree of divorce between Pamela and Thomas. A number of subsequent lawsuits were filed asserting claims regarding the trusts, the CSA, and the divorce. After these suits were consolidated, the trial court severed a number of the claims into a separate case and rendered a final judgment. The judgment ordered specific performance of the CSA by ordering one of the trusts to pay $600,000 plus interest into the court’s registry and ordering Pamela to execute certain motions and other documents. The judgment also dismissed with prejudice Pamela’s claim for partition of certain real property held by one of the trusts and well as her other trust-related claims.

Pamela appeals, complaining the trial court erred in granting the motions for summary judgment filed by Thomas and Staley & Associates, Inc., and James Herblin, individually and as trustee of Heritable Trust assignee of Charis Interests, and erred in denying her own motion for summary judgment. She also argues the trial court improperly “modified and altered” the terms and conditions of the CSA and improperly supplied property descriptions. We affirm.

I. BACKGROUND

We detail only the background facts and the litigation among these parties pertinent to the dispositive issues on appeal. During Pamela and Thomas’s marriage, trusts were established to protect their assets and benefit their children. Among the trusts established were Egarg Interests and Charis Interests. Real property was transferred to the trusts, including five parcels of land totaling about 123 acres bought during the Staleys’ marriage, referred to as the Collin County farm.

A. Divorce Litigation

Pamela sued Thomas for divorce in 1994. She alleged that Thomas had “initiated a plan to transfer and conceal assets of the community estate” and “had transferred community assets into [certain] trusts” including interests in certain real property. Among her claims were a claim for fraudulent transfer against Thomas, a request for an inventory and appraisement of all separate and community property, and claims for fraud and breach of fiduciary duty against the community estate. That suit was dismissed.

In 1999, Pamela again sued Thomas for divorce, filing her petition in the 254th Judicial District Court, Dallas County. She made essentially the same claims as she did in 1994 regarding the creation of the trusts and transfers of community property to them without her consent. She also joined as parties the trustees of Egarg Interests and Charis Interests.

The trial court rendered a final decree of divorce on May 29, 2002. The decree awarded Thomas as his sole and separate property any “rights of interest in property put in the trusts formed during the marriage of the parties,” and divested Pamela of “all right, title, interest, and claim in and to such property.” The decree went on to state: “The trusts do not form part of the community estate created with and during the marriage of .[Thomas and Pamela].” 1

*494 The divorce decree also incorporated the CSA, which was between Pamela and her representatives and those in privity with her (called the “Releasing Parties”), and the trustees of certain trusts, including Charis Interests, and their assigns and any entity acting for them in the future (called the “Released Parties”). The CSA provided, in relevant part (quoting below):

1. [Pamela] had actual knowledge of the formation of each of the trusts, at or about the time each trust was formed.
2. The RELEASING PARTIES ... have no ownership or possessory interest in the corpus/Company Holdings of any of the trusts to the best of [Pamela]’s knowledge....
4. The trusts do not form part of the community estate created with and during the marriage of [Thomas and Pamela]. All of the trusts provide for the ultimate distribution of the Company Holdings, and not the generation of profits from the dissipation of Company Holdings....
6. [Pamela], at or about the time the 1994 divorce proceedings were initiated either knew or had reason to know about the activities of each of the ti’usts....
The RELEASING PARTIES on behalf of themselves and on behalf of their respective representatives, lawyers, and agents, do hereby agree, represent, warrant and covenant as follows:
COMPROMISE OF DISPUTED CLAIMS. This Agreement is a compromise of disputed and known and unknown past, present or future claims arising out of formation and activities of trusts formed during the marriage of [Thomas and Pamela]....

PAYMENT. The RELEASED PARTIES wih pay to RELEASING PARTIES within twelve months of this Agreement’s execution by all parties the sum of $700,000.00, by issuing the following checks to the following payees for the following time frames:

1. Within ten days of execution of this Agreement by all parties to the Agreement, $100,000.00 payable to Pamela S. Staley, and Moore & Anderson, L.L.P., said payment to be delivered to the offices of Moore & Anderson, L.L.P. ...; and
2. Within either twelve months of execution of a Joint Motion to Dismiss with Prejudice and Agreed Order of Dismissal by all parties to this agreement, by and through their respective counsel, or within ten (10) days of one of the trusts receiving proceeds from closing on the sale of a parcel of land held by one of the trusts released in this Agreement, whichever occurs first, $600,000.00 payable to Pamela S. Staley and Moore & Anderson, L.L.P., said payment to the delivered to the offices of Moore & Anderson, L.L.P....
This payment of $600,000.00 shall be secured by a deed of trust upon property in Carrollton, ... and a promissory note in the principal amount of $600,000.00. The note shall be at no interest for the six month period following execution of this Agreement. After that six month period, the note shall accrue simple interest at the prime rate....
CONDITIONS. This Agreement shall not be required to be paid, and this Agreement shall be of no force or effect, unless and until all of the following *495 events and conditions occur: (1) All parties to the Agreement have executed this Agreement; (b) A Joint Motion to Dismiss With Prejudice and an Agreed Order of Dismissal is signed by the counsel of record for the relevant RELEASED PARTIES and RELEASING PARTIES in the Lawsuit; and (c) the representation from all counsel of record for RELEASING PARTIES and RELEASED PARTIES confirming the settlement represented by this Agreement as a good faith settlement.
Upon the delivery of the RELEASED PARTIES’ initial payment of $100,000.00 as described in the PAYMENT

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Cite This Page — Counsel Stack

Bluebook (online)
320 S.W.3d 490, 2010 Tex. App. LEXIS 6213, 2010 WL 3002331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-staley-texapp-2010.