Keith v. Keith

763 S.W.2d 950, 1989 Tex. App. LEXIS 206, 1989 WL 9020
CourtCourt of Appeals of Texas
DecidedJanuary 19, 1989
Docket2-87-243-CV
StatusPublished
Cited by30 cases

This text of 763 S.W.2d 950 (Keith v. Keith) 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
Keith v. Keith, 763 S.W.2d 950, 1989 Tex. App. LEXIS 206, 1989 WL 9020 (Tex. Ct. App. 1989).

Opinion

OPINION

HILL, Justice.

Charles N. Keith appeals from the judgment decreeing his divorce from Glenda F. Keith and dividing their community property. In seven points of error, Charles contends the trial court erred by failing to set aside professional good will in a community partnership business as his separate property, by making conflicting findings with regard to the value of the community interest in the partnership between the findings of fact and conclusions of law and the divorce decree, and by failing to use the formula in the partnership agreement in determining the market value of the partnership. He further urges there is no evidence to support the trial court’s findings that Glenda would not have signed the *952 partnership agreement if she had thought it would defeat her community interest in the partnership, no evidence to support the court’s finding that the partnership agreement was not intended to apply to the evaluation of the business in the event of the divorce of a partner, and insufficient evidence to support the trial court’s finding of the value of the horses belonging to the family business. Finally, he urges that the trial court erred by divesting the parties of title to out-of-state real property.

We reverse that portion of the judgment which purports to divide property lying outside the state because we find the court lacked the jurisdiction to make such an in rem division. We remand that portion of the judgment so the trial court may make any in personam order which it might deem appropriate in order to effectuate the division which it originally ordered. We sever and affirm the remainder of the judgment.

In point of error number one, Charles contends the trial court erred in failing to set aside as his separate property the value of professional good will, attributable to him, in a community partnership business.

In October 1984, Charles and Ty Keith, an adult son of the marriage, entered into a partnership agreement for the operation of a business known as Graphic Chemical Company. Glenda consented to the agreement. Graphic Chemical mixes, sells, and delivers chemicals used in the printing industry. Prior to starting Graphic Chemical, Charles built and repaired printing presses and operated printing presses. Glenda testified he was one of the best at what he does. She stated that Charles formulates the formulas for the chemicals and that Ty does the work. She also said that Charles does the selling and traveling in Oklahoma, Kansas, Utah, and California. She related that part of his duties included troubleshooting, that he gains and keeps customers because of his knowledge and ability. When customers call for help, he either helps with suggestions over the telephone or goes personally to the plant to help. Glenda expressed her opinion that Charles knows more about running a printing press than anybody in the nation, and that Graphic Chemical would be less without him. Glenda also gave her opinion that she was sure there are plenty of people with comparable knowledge, that “we have got lots of competitors.” She also expressed the opinion that someone else could be hired to take Charles’ place in running the company. She indicated they had a “bunch” of competitors. Charles has no college degree or special education as a chemist.

In its findings of fact and conclusions of law, the trial court found that the value of the business belonging to the community estate at the time of trial was $262,400. Charles made no request for an additional finding pursuant to rule 298 of Texas Rules of Civil Procedure as to whether the partnership had any good will or whether any such good will was professional good will attributable to him personally.

Professional good will, as opposed to the good will that may attach to a trade or business, is not property in the estate of the parties and therefore not divisible upon divorce. Nail v. Nail, 486 S.W.2d 761, 764 (Tex.1972); Rathmell v. Morrison, 732 S.W.2d 6, 17 (Tex.App.—Houston [14th Dist.] 1987, no writ). Professional good will attaches to the person of the professional man or woman as a result of confidence in his or her skill and ability; it does not possess value or constitute an asset separate and apart from the professional’s person, or from his individual ability to practice his profession; and it would be extinguished in the event of the professional’s death, retirement, or disablement. Rathmell, 732 S.W.2d at 17. It is possible that an individual may have accrued professional good will and for the business or partnership to also have good will attributable to it. Id. Good will that exists separate and apart from a professional’s personal skills, ability, and reputation, is divisible upon divorce. Id.

In essence, Charles complains of the trial court’s failure to find whether any *953 of the value of the partnership was professional good will attributable to him personally and its failure to award the value of that professional good will to him as his separate property. The failure to request additional findings of fact and conclusions of law constitutes a waiver on appeal of the trial court’s failure to make such a finding. Cortez v. Corsi, 513 S.W.2d 648, 650 (Tex.Civ.App.—Corpus Christi 1974, writ ref’d n.r.e.). We therefore find that Charles waived any error in the trial court’s failure to find that any of the partnership’s good will, if any, was professional good will attributable to him by failing to request the trial court to make such a finding. We overrule point of error number one.

Charles contends in point of error number two that the trial court erred by making conflicting findings as to the value of the. business between the findings of fact and conclusions of law and the divorce decree. In the decree, the trial court found that the partnership had a market value of $262,400. In the findings of fact and conclusions of law, the trial court found the value of this business belonging to the community estate was $262,400. The community estate owned no more than 82% of the partnership. The findings of fact, filed after the judgment, are controlling if any conflict exists with the judgment. See Law v. Law, 517 S.W.2d 379, 383 (Tex.Civ.App.—Austin 1974, writ dism’d). We overrule point of error number two.

Charles asserts in point of error number three that the trial court erred by failing to find the market value of the partnership by applying the formula set forth in the partnership agreement, since his wife, Glenda, signed the agreement stating her approval of the agreement and her acceptance of its provisions, agreeing to be bound by it.

The partnership agreement entered into between Charles and Ty provided a method for determining the value of the business in the event it was terminated due to the withdrawal, other act, or death of one of the partners. The trial court did not use the method provided in determining the value of the partnership. Since the partnership is not being terminated, we do not find this provision of the agreement has any applicability to the matter before the trial court.

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Cite This Page — Counsel Stack

Bluebook (online)
763 S.W.2d 950, 1989 Tex. App. LEXIS 206, 1989 WL 9020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keith-v-keith-texapp-1989.