Lifson v. Dorfman

491 S.W.2d 198, 1973 Tex. App. LEXIS 2313
CourtCourt of Appeals of Texas
DecidedFebruary 16, 1973
Docket4585
StatusPublished
Cited by5 cases

This text of 491 S.W.2d 198 (Lifson v. Dorfman) 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
Lifson v. Dorfman, 491 S.W.2d 198, 1973 Tex. App. LEXIS 2313 (Tex. Ct. App. 1973).

Opinion

BROWN, Justice.

Judy Lifson seeks damages for the decline in value of securities awarded her in divorce proceedings against her former husband, Sam Y. Dorfman, Jr. Dorfman filed a counterclaim against Lifson and also a third party action against R. Guy Carter and Morton Rudbert, attorneys for Lifson, for damages resulting from an alleged wrongful garnishment. At the close of all the evidence in the jury trial, instructed verdicts were granted that denied recovery for either party. Both Lifson and Dorfman appeal.

The controversy between the parties is an outgrowth of the former divorce proceeding. The judgment in the divorce action partitioned numerous properties, both real and personal, including securities. It additionally granted Lifson a money judgment against Dorfman. At that time the securities were either issued in Dorfman’s name and held for safe keeping at the office of his stockbroker or held by the broker in “street name” for Dorfman’s account. Following entry of the judgment, Dorfman perfected an appeal but being unable to agree with Lifson as to the value of the securities, he posted a supersedeas bond only as to the money judgment. Prior *200 to the posting of the bond and during the appeal, Lifson obtained a writ of execution and a writ of possession in an effort to satisfy the judgment.

Between the time of the judgment of divorce and the issuance of the writ of execution and the writ of possession, the stock market deteriorated and the securities depreciated in value. After Lifson obtained her securities, she filed a writ of garnishment against the stockbroker thereby impounding Dorfman’s half of the securities. Shortly thereafter, the supersedeas bond was filed and Dorfman intervened in the garnishment proceedings for the purpose of obtaining a dismissal.

The trial court having instructed a verdict in favor of Dorfman, to be correct, there must be no evidence having probative force upon which a jury could have made a finding in favor of Lifson. Anderson v. Moore, 448 S.W.2d 105 (Tex. Sup.1969). To make this determination all evidence must be considered in the light most favorable to Lifson and every reasonable inference deducible from the evidence is to be indulged in her favor. Seideneck v. Cal Bayreuther Associates, 451 S.W.2d 752 (Tex.Sup.1970) ; Triangle Motors of Dallas v. Richmond, 152 Tex. 354, 258 S. W.2d 60 (1953).

Lifson contends her right of recovery is supported by either one or all of three theories: (1) conversion; (2) detention of properties pending appeal; or (3) equitable estoppel. The Texas courts in defining conversion and in indicating the elements thereof have stated as follows:

“Conversion is the unlawful and wrongful exercise of dominion, ownership, or control by one person over the property of another, to the exclusion of the exercise of the same rights by the owner.” Sunray Enterprises, Inc. v. Rosenaur, 335 S.W.2d 670 (Tex.Civ.App. — Dallas 1960, writ ref’d n. r. e.).
“A conversion has been defined as any distinct act of dominion wrongfully exerted over another’s property, in denial of his right or inconsistent with it. The test is whether the wrongdoer has exercised a dominion over the property in exclusion or in defiance of the plaintiff’s rights.” Holland v. Lesesne, 350 S.W.2d 859 (Tex.Civ.App. — San Antonio 1961, writ ref’d n. r. e.).

Lifson urges the language in Fenberg v. Fenberg, 307 S.W.2d 139 (Tex.Civ.App.—Amarillo 1957, no writ hist.), where the Amarillo Court stated:

“It is not necessary to a conversion that there should be a manual taking of the thing in question by the defendant; it is not necessary that it should be shown that he applied it to his own use. Does he exercise a dominion over it in exclusion or in defiance of plaintiff’s right? If he does, this is in law a conversion.”

The uncontroverted facts show that during the eleven year marriage Dorfman acted as manager of the community estate. The divorce judgment partitioned the securities among other assets to the parties “share and share alike as tenants in common, and each of the parties hereto is hereby vested with fee simple title to and right of possession in equal undivided interest in such properties.” There is no evidence in the record that Dorfman issued any instruction to the stockbroker not to transfer the securities to Lifson nor is there any evidence that Lifson made demand for delivery of the securities. The securities remained with the stockbroker until Lifson availed herself of court process to secure possession of them.

An indispensable element of community property is a joint ownership of such property by a husband and wife. George v. Taylor, 296 S.W.2d 620 (Tex. Civ.App.—Fort Worth 1956, writ ref’d n. r. e.). The trial court partitioned the securities share and share alike as tenants in common. In Sparks v. Robertson, 203 S. W.2d 622 (Tex.Civ.App. — Austin, writ ref’d), the Court stated:

“An essential element of cotenancy is the present right of possession.”

*201 There is no evidence that Dorfman exercised a dominion over the securities in exclusion or defiance of Lifson’s rights and there is no evidence that Lifson exercised her immediate right of possession of the securities. Therefore, Lifson’s first two theories must fail.

In Barfield v. Howard M. Smith Company of Amarillo, 426 S.W.2d 834 (Tex.Sup.1968), the Texas Supreme Court stated:

“A party claiming an estoppel must have used due diligence to ascertain the truth of the matters upon which he relies in acting to his detriment. * * * One of the requirements of estoppel is that the party claiming the estoppel was without knowledge, or the means of acquiring knowledge, of the facts which the party to be estopped is alleged to have represented by his acts, conduct or silence. * * * ‘Where the real facts were known to a person or were open for his convenient ascertainment, he was not justified in relying on representation pertaining thereto and he cannot effectively say that he was misled or deceived by such representations.’ * * * ”

Lifson argues that Dorfman promised to file a supersedeas bond. A bond was filed as to the money judgment. The evidence shows that the amount of the supersedeas bond as to the securities was never agreed upon even after extended negotiations nor was the amount fixed by the court after proper hearings. There is no evidence Dorfman or his representatives ever stated a specific amount for which the bond would be posted. Lifson and her representative knew the real facts including the location of the securities.

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Cite This Page — Counsel Stack

Bluebook (online)
491 S.W.2d 198, 1973 Tex. App. LEXIS 2313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lifson-v-dorfman-texapp-1973.