Laurel Wendt v. Evalyn Wendt Moore, Amilee Wendt, and Jackie Wendt Martin

Court of Appeals of Texas·Decided October 10, 2024·No. 14-22-00263-CV·Published

Opinion

Reversed and Remanded in Part, Affirmed as Modified in Part, and Memorandum Opinion filed October 10, 2024.

In The

Fourteenth Court of Appeals

NO. 14-22-00263-CV

LAUREL WENDT, Appellant V. EVALYN WENDT MOORE, AMILEE WENDT, AND JACKIE WENDT MARTIN, Appellees

On Appeal from the 268th District Court Fort Bend County, Texas Trial Court Cause No. 18-DCV-254438

MEMORANDUM OPINION

This appeal concerns a dispute among four sisters regarding tracts of farmland given to them by their now deceased parents. In each gift deed from the parents, each of the four sisters received a 1/4 interest as cotenants in the conveyed tracts. The deeds also granted each sister a right of first refusal to purchase any property interest in a tract being sold by another sister. Disagreements arose between the sisters concerning the property and the family-owned partnership that ran farm operations, E.A.J.L. Wendt Farms. Three of the sisters (hereinafter “appellees”) sued the other sister, Laurel, and she filed counterclaims, including claims involving E.A.J.L.

Prior to trial, the parties entered into a Mediated Settlement Agreement (“the MSA”), which was filed with and subsequently approved by the court as a Rule 11 agreement. The MSA resolved several of the disputes between the parties, provided for the partition of the tracts among the sisters, required Laurel to lease the improvements on the “Headquarters Tract” to a third party, and provided that there would be a cash payment in the event the divided properties were not of equivalent value. Laurel also nonsuited her claims concerning E.A.J.L., although the trial court had ordered all possible claims regarding E.A.J.L. to be brought in the lawsuit.

The case proceeded to trial on the question of whether Laurel properly exercised her right of first refusal to purchase “Tract 15,” among other things. In its final judgment, the trial court held, among other things, that Laurel had not properly exercised her right to purchase Tract 15, ordered her to pay attorney’s fees to appellees, ordered appellees to reimburse E.A.J.L. for some of those attorney’s fees, determined the boundaries for the Headquarters Tract, and set the amount of the “true-up” payment that Laurel was required to make to the other sisters as well as the amount of the supersedeas bond should Laurel file an appeal.

In eight issues on appeal, Laurel contends that the trial court erred in (1) failing to fully incorporate the MSA into the final judgment; (2) determining that Laurel had not properly exercised her right of first refusal to purchase Tract 15; (3) ordering her to pay appellees’ attorney’s fees; (4) setting the amount of the supersedeas bond; (5) ordering appellees to reimburse E.A.J.L. out of the attorney’s fees awarded to appellees; (6) denying Laurel’s objection to E.A.J.L.’s

2 participation in the case; (7) determining the boundaries of the Headquarters Tract; and (8) determining the amount of the “true-up” payment that Laurel was required to make to the other sisters. As detailed below, we will modify the judgment in several respects, suggest a remittitur on the award of attorney’s fees, and affirm the judgment as modified.

Background

In a series of gift deeds spanning decades, Jack and Billie Wendt conveyed 15 tracts of land totaling nearly 3000 acres in Fort Bend County to their four daughters. Most of the gift deeds included a majority rule clause and a right of first refusal clause and granted each of the daughters a 1/4 interest in the property being conveyed. The daughters formed a general partnership, E.A.J.L., to run business operations related to the tracts and take ownership of improvements on the property. After many years, three of the sisters, appellees, decided that they wanted to sell the property, but the fourth daughter, Laurel, did not want to sell. Disagreements escalated from there.

In August 2018, appellees filed the present lawsuit, asserting that Laurel had refused to cooperate with the decision to sell the Wendt farm in violation of the majority rule clause contained in the gift deeds. Appellees sought declaratory relief, including a declaration that Laurel was obligated by the majority rule clause to join in a sale of the property, failure to join would be a breach of the gift deeds, and appellees were entitled to specific performance. In the alternative, appellees stated a claim for breach or anticipatory breach of contract, asserting that the gift deeds constituted a contract between the sisters and Laurel’s rejection of the attempt to sell the property was a breach or anticipatory breach thereof. Appellees again asserted that they were entitled to specific performance, or in the alternative, that Laurel should forfeit her 1/4 interest in the property, or in the alternative, that

3 appellees were entitled to damages equal to the lost sales value.

As an alternative to either the declaratory judgment action or the breach action, appellees also pleaded a claim for a partition of the property such that appellees’ interests would be separated from Laurel’s interest so that appellees’ interests could be sold. As yet another alternative, appellees requested the property be ordered sold and the proceeds partitioned between the sisters. Under the heading “Damages,” appellees stated that they “seek monetary relief of $100,000 or more and non-monetary relief.”

In her first amended answer and special exceptions, Laurel stated a general denial as well as numerous affirmative defenses, including estoppel, waiver, ratification, laches, statute of frauds, mistake, unilateral mistake, and unclean hands. She additionally “specially except[ed] to [appellees’] pleading not providing notice of any specific conduct or factual event for which the Court will be requested to” provide relief.

In a counter-petition, Laurel raised allegations regarding an offer to purchase Tract 15 of the Wendt Farm by Frank and Nancy Stasney and Laurel’s right of first refusal to purchase the tract on the same terms as offered by the Stasneys. She additionally made claims regarding the management and alleged misuse of E.A.J.L., the family-owned partnership that ran farm operations. On the basis of such claims, she sought a declaratory judgment, injunctive relief, and attorney’s fees.

On April 29, 2021, appellees filed a motion for partial summary judgment regarding Laurel’s Tract 15 claims. Laurel filed her response on May 20, 2021, and the parties executed the MSA on May 24, 2021.

The MSA states that it was executed “in connection with the partial

4 settlement of the lawsuit.” The MSA expressly did not settle any portion of the lawsuit relating to Tract 15 but reserved that issue for resolution by the trial court. The MSA further provided for a partition of the farm properties such that Laurel would receive certain tracts and appellees would receive certain tracts. As will be discussed more fully below, the MSA required Laurel to lease “the headquarters improvements” to Frank Stasney for as long as Tract 7 was used for rice growing by appellees, their first transferee, or tenants. Additionally, the parties agreed in the MSA to obtain three appraisals from a specified appraiser with the aim that each of the four sisters would receive equivalent dollar value in the partition of the property, even if that required a cash payment from Laurel to appellees or appellees to Laurel. Laurel additionally agreed to dismiss her counterclaims related to E.A.J.L. and against appellees, with the caveat that neither Laurel nor appellees “have released any future claim for an accounting for past business operations of E.A.J.L.” Appellees agreed to pay certain money back to E.A.J.L. and also agreed to dismiss their claims against Laurel except in regard to Tract 15.

Free access — add to your briefcase to read the full text and ask questions with AI

Laurel Wendt v. Evalyn Wendt Moore, Amilee Wendt, and Jackie Wendt Martin, (Tex. Ct. App. 2024).

Laurel Wendt v. Evalyn Wendt Moore, Amilee Wendt, and Jackie Wendt Martin (Laurel Wendt v. Evalyn Wendt Moore, Amilee Wendt, and Jackie Wendt Martin) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

BMG Direct Marketing, Inc. v. Peake
178 S.W.3d 763 (Texas Supreme Court, 2005)
Marshall v. Housing Authority of San Antonio
198 S.W.3d 782 (Texas Supreme Court, 2006)
Fortis Benefits v. Cantu
234 S.W.3d 642 (Texas Supreme Court, 2007)
Villafani v. Trejo
251 S.W.3d 466 (Texas Supreme Court, 2008)
Miga v. Jensen
299 S.W.3d 98 (Texas Supreme Court, 2009)
Miga v. Jensen
96 S.W.3d 207 (Texas Supreme Court, 2002)
Maritime Overseas Corp. v. Ellis
971 S.W.2d 402 (Texas Supreme Court, 1998)
Valley Baptist Medical Center v. Gonzalez Ex Rel. M.G.
33 S.W.3d 821 (Texas Supreme Court, 2000)
Riner v. Briargrove Park Property Owners, Inc.
858 S.W.2d 370 (Texas Supreme Court, 1993)
Thompson v. Ricardo
269 S.W.3d 100 (Court of Appeals of Texas, 2008)
MBM Financial Corp. v. Woodlands Operating Co.
292 S.W.3d 660 (Texas Supreme Court, 2009)
Rasmusson v. LBC PetroUnited, Inc.
124 S.W.3d 283 (Court of Appeals of Texas, 2003)
City of Keller v. Wilson
168 S.W.3d 802 (Texas Supreme Court, 2005)
Tony Gullo Motors I, L.P. and Brien Garcia v. Nury Chapa
212 S.W.3d 299 (Texas Supreme Court, 2006)
Richard D. Crawford v. Xto Energy, Inc.
509 S.W.3d 906 (Texas Supreme Court, 2017)