in the Estate of Steven Stavron

Court of Appeals of Texas·Decided November 10, 2021·No. 02-20-00404-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-20-00404-CV

IN THE ESTATE OF STEVEN STAVRON, DECEASED

On Appeal from Probate Court No. 1 Tarrant County, Texas

Trial Court No. 2013-PR00606-1-C

Before Sudderth, C.J.; Womack and Walker, JJ.

Memorandum Opinion by Justice Womack

MEMORANDUM OPINION

I. INTRODUCTION

This is an appeal from a probate court judgment against Appellant Serafim Stavron awarding Appellee Louis Papaliodis attorney’s fees. We will affirm.

II. BACKGROUND

In March 2013, Stavron was appointed the temporary administrator of the estate of his deceased father. According to attorney Papaliodis, that same month, he and Stavron also “entered into a valid and enforceable contract,” and Papaliodis thereafter “fully performed his contractual obligations by representing Stavron and by representing the estate until Stavron ultimately located counsel to assist with his contesting of the 2013 will” of the decedent.

Stavron entered into a mediated settlement agreement in August 2014 with the proponents of the 2013 will, whereby the parties agreed to admit the 2013 will to probate and to take certain other actions with regard to the estate. However, the attorney’s fees of Papaliodis were not mentioned in the settlement agreement.

Also in August 2014, Papaliodis filed a claim—the “Account for Final Settlement”—against the estate in the amount of $76,917.47 for his attorney’s fees. Ultimately, Greg Shannon, the successor temporary administrator of the estate, rejected Papaliodis’s claim. In his “Memorandum of Rejection and Objections to Claim,” Shannon set out several reasons for rejecting the claim, including that the

attorney’s fees which were sought “reflect a prolonged legal battle, and only a portion of the fees at issue relate to the administration of the estate.”

Papaliodis ultimately filed suit against Shannon as successor temporary administrator and against Stavron “individually and as Prior Temporary Administrator,” contending that “Stavron never paid for the services he received on behalf of the estate.” Papaliodis contended that his services “were reasonable and necessary for the management, preservation, and safekeeping of the Estate, and a benefit to the Estate and to [ ] Stavron individually.” With regard to the suit against Stavron individually, Papaliodis explained that “Stavron represented to [ ] Papaliodis that if there was any problem with the estate paying for his services, that he (Stavron) would take care of it.” He alleged causes of action for his rejected claim and for quantum meruit, breach of contract, fraud, and declaratory relief. With regard to the declaratory judgment claim, Papaliodis sought “a declaration of his rights to determine his classification as a creditor of the estate.” In addition, he sought a declaration of “what effect, if any[,] the August 29, 2014 Settlement Agreement, entered into by [ ] Stavron and the proponent of the 2013 Will[,] have on his status as a creditor, and on his contractual and other claims against the estate, and against Stavron individually and against his sureties.”

Prior to trial, Papaliodis settled his claim against Shannon by entering into a compromise settlement agreement wherein Shannon agreed to approve Papaliodis’s claim in the amount of $27,000.00 in attorney’s fees and $459.97 in expenses as a class

2 claim and the amount of $23,000.00 as a class 8 claim, subject to the approval of the probate court.1 As a result of this settlement, Papaliodis filed a nonsuit as to Shannon, which the probate court later memorialized in a judgment.

The claims against Stavron then proceeded to a bench trial.2 At trial, Papaliodis and Stavron testified, and fourteen documents were offered into evidence. Ultimately, the trial court entered judgment for Papaliodis against Stavron individually in the amount of $37,712.50. No findings of fact or conclusions of law were requested or filed. Stavron appealed from the judgment, and Papaliodis filed a cross-appeal.

III. DISCUSSION

On appeal, Stavron raises three issues complaining that the probate court (1) did not have subject-matter jurisdiction over Papaliodis’s claims, (2) abused its discretion by overruling his hearsay objection to Papaliodis’s attorney billing records, and (3) without the improperly admitted billing records, had insufficient evidence to support its judgment. In his cross-appeal, Papaliodis raises four issues complaining that the probate court erred by (1) awarding an amount for attorney’s fees less than

1 See Tex. Est. Code Ann. § 355.102 (setting out claims classification and priority of payment); Hope v. Baumgartner, 111 S.W.3d 775, 778 (Tex. App.—Fort Worth 2003, no pet.) (explaining that attorney’s fees of an unsuccessful will contestant should be classified as a class 8 claim, which includes all claims not described as class 1–7 claims, as opposed to a class 2 claim, which is limited to expenses of administration and expenses incurred in the preservation, safekeeping, and management of the estate).

Although Papaliodis’s attorney began trial by telling the trial court that he was 2

proceeding on all claims, by the end he had abandoned quantum meruit.

$76,917.47, (2) not awarding prejudgment interest on the principal amount in controversy, (3) not awarding attorney’s fees on his efforts to collect his damages, and (4) failing to dispose of all parties and causes of action because the judgment did not address his request for declaratory relief. A. Stavron’s Issues 1. Jurisdiction In his first issue, Stavron contends that the probate court lacked subject-matter jurisdiction over Papaliodis’s lawsuit because it was not a probate proceeding or a matter related to a probate proceeding. We disagree.

As we have stated before, “Texas probate jurisdiction is, to say the least, somewhat complex.” Shell Cortez Pipeline Co. v. Shores, 127 S.W.3d 286, 292 (Tex. App.—Fort Worth 2004, no pet.) (citing Palmer v. Coble Wall Tr. Co., 851 S.W.2d 178, 180 n.3 (Tex. 1992)). However, in a county in which there is a statutory probate court, the statutory probate court has original jurisdiction of probate proceedings, and all “probate proceedings” must be filed and heard there. Tex. Est. Code Ann. §§ 32.001(a), .002(c). The term “probate proceeding,” as used in the Texas Estates Code, includes “an application, petition, motion, or action regarding the probate of a will or an estate administration, including a claim for money owed by the decedent.” Id. § 31.001(4); see id. § 22.029 (“The terms ‘probate matter,’ ‘probate proceedings,’ ‘proceeding in probate,’ and ‘proceedings for probate’ are synonymous and include a matter or proceeding relating to a decedent’s estate.”).

At the time Papaliodis filed his claim, the probate of Stavron’s father’s estate was pending in a statutory probate court, Probate Court No. 1 of Tarrant County. See Tex. Gov’t Code Ann. § 25.2221(c)(1); see also Narvaez v. Powell, 564 S.W.3d 49, 57 (Tex. App.—El Paso 2018, no pet.) (“In order for a probate court to assert jurisdiction over matters incident to an estate, a probate proceeding must be pending in the court.”). Papaliodis filed suit not only against Stavron but also against Shannon as successor temporary administrator. His first cause of action involved a suit on a rejected claim, which must be brought in the probate court. See Tex. Est. Code Ann. § 355.064(a) (“A claim or part of a claim that has been rejected by the personal representative is barred unless not later than the 90th day after the date of rejection the claimant commences suit on the claim in the court of original probate jurisdiction in which the estate is pending.”).

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