Mary Maxey, Individually and as Initial Trustee of the Bryan Maxey Family, Trust, as Initial Trustee of the Carlotta Maxey Marital Income Trust: Exempt, as Trustee of the Carlotta Maxey Marital Income Trust: Non-Exempt, and as Trustee of the Mary Maxey Descendant's Trust v. Carolyn Maxey, Individually, as Successor Trustee of the Bryan Maxey Family Trust, as Successor Trustee of the Carlotta Maxey Marital Income Trust Exempt and as Trustee of the Carolyn Maxey Descendants Trust

CourtCourt of Appeals of Texas
DecidedDecember 29, 2020
Docket01-19-00078-CV
StatusPublished

This text of Mary Maxey, Individually and as Initial Trustee of the Bryan Maxey Family, Trust, as Initial Trustee of the Carlotta Maxey Marital Income Trust: Exempt, as Trustee of the Carlotta Maxey Marital Income Trust: Non-Exempt, and as Trustee of the Mary Maxey Descendant's Trust v. Carolyn Maxey, Individually, as Successor Trustee of the Bryan Maxey Family Trust, as Successor Trustee of the Carlotta Maxey Marital Income Trust Exempt and as Trustee of the Carolyn Maxey Descendants Trust (Mary Maxey, Individually and as Initial Trustee of the Bryan Maxey Family, Trust, as Initial Trustee of the Carlotta Maxey Marital Income Trust: Exempt, as Trustee of the Carlotta Maxey Marital Income Trust: Non-Exempt, and as Trustee of the Mary Maxey Descendant's Trust v. Carolyn Maxey, Individually, as Successor Trustee of the Bryan Maxey Family Trust, as Successor Trustee of the Carlotta Maxey Marital Income Trust Exempt and as Trustee of the Carolyn Maxey Descendants Trust) 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
Mary Maxey, Individually and as Initial Trustee of the Bryan Maxey Family, Trust, as Initial Trustee of the Carlotta Maxey Marital Income Trust: Exempt, as Trustee of the Carlotta Maxey Marital Income Trust: Non-Exempt, and as Trustee of the Mary Maxey Descendant's Trust v. Carolyn Maxey, Individually, as Successor Trustee of the Bryan Maxey Family Trust, as Successor Trustee of the Carlotta Maxey Marital Income Trust Exempt and as Trustee of the Carolyn Maxey Descendants Trust, (Tex. Ct. App. 2020).

Opinion

Opinion issued December 29, 2020

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-19-00078-CV ——————————— MARY MAXEY, INDIVIDUALLY AND AS INITIAL TRUSTEE OF THE BRYAN MAXEY FAMILY, TRUST, AS INITIAL TRUSTEE OF THE CARLOTTA MAXEY MARITAL INCOME TRUST: EXEMPT, AS TRUSTEE OF THE CARLOTTA MAXEY MARITAL INCOME TRUST: NON-EXEMPT, AND AS TRUSTEE OF THE MARY MAXEY DESCENDANT’S TRUST, Appellant V. CAROLYN MAXEY, INDIVIDUALLY, AS SUCCESSOR TRUSTEE OF THE BRYAN MAXEY FAMILY TRUST, AS SUCCESSOR TRUSTEE OF THE CARLOTTA MAXEY MARITAL INCOME TRUST: EXEMPT AND AS TRUSTEE OF THE CAROLYN MAXEY DESCENDANT’S TRUST, Appellee

On Appeal from the Probate Court No. 1 Harris County, Texas Trial Court Case No. 414,060-401 OPINION

In this dispute arising out of the probate of her mother’s estate, appellee

Carolyn Maxey sued her sister, appellant Mary Maxey, for breach of a settlement

agreement and sought specific performance of the agreement’s terms. After a jury

found that Mary breached the settlement and rejected Mary’s counterclaims, the trial

court entered judgment on the jury verdict, awarding specific performance of release

language in the settlement agreement and assessing attorney’s fees against Mary. In

three issues, Mary contends the trial court erred by (1) determining that the

settlement agreement was ambiguous and allowing in parol evidence to assist the

jury in interpreting the terms of the agreement; (2) awarding specific performance

to Carolyn because she failed to request and secure jury findings on the essential

elements of specific performance; and (3) awarding unsegregated attorney’s fees to

Carolyn.

We reverse and remand.

Background

Bryan and Carlotta Maxey had two daughters: Carolyn and Mary, the parties

to the underlying dispute. Bryan died in 1999, and in his will, he left his property to

Carlotta via three trusts. Carolyn serves as trustee for two of the trusts, and Mary

serves as trustee for the third trust. Carlotta died in 2011. Her will created two

additional trusts—the Mary Maxey Descendant’s Trust and the Carolyn Maxey

2 Descendant’s Trust—and provided that these two trusts were to be funded with the

assets of the three trusts created in Bryan’s will. Carolyn and Mary were appointed

as co-executors of Carlotta’s estate, but they could not agree on how their parents’

assets were to be distributed between the trusts. Mary filed suit against Carolyn in

2015, and Carolyn filed counterclaims against Mary.

A. The Settlement Agreement

On the morning of the trial on their claims against each other, the sisters

executed a document entitled “Binding Irrevocable Settlement Term Sheet” (the

Settlement Agreement) on December 12, 2016. In the Settlement Agreement, the

sisters agreed to divide the properties owned by the three trusts created in Bryan’s

will. These properties were listed on two exhibits that were incorporated into the

agreement. One of these properties was approximately sixty acres of land located in

Marble Falls in Burnet County (the Marble Falls Property). The exhibit provided

that the “CAD Value” of the property was $361,914.00, and that, upon partition of

the property, both the Mary Maxey Trust and the Carolyn Maxey Trust would

receive parcels valued at $180,957.00. A notation on the exhibit stated, with respect

to this property, “Mary Maxey Trust to receive West 50% and Carolyn Maxey Trust

to receive East 50%.” The Agreement required Carolyn to partition this property and

to handle installation of a fence on the property.

3 The sisters agreed that “all property shall be deeded by” January 30, 2017.

Mary agreed to provide Carolyn a full accounting of Carlotta’s estate within sixty

days of the agreement. The sisters agreed to release all claims relating to the trusts

created in Bryan’s will and relating to his estate, but they did not agree to “release

claims relating to the administration and/or settlement of” Carlotta’s estate. The

Settlement Agreement also included the following provisions:

10. The parties will enter into a final release and settlement agreement consistent with the foregoing material terms and will submit a final judgment in Cause No. 414,060-401 [the underlying cause], consistent with this agreement that releases and discharges Carolyn and Mary as trustees of the [three trusts created in Bryan’s will]. .... 13. The parties agree that this Binding Irrevocable Settlement Term Sheet contains all material terms and that the parties shall be entitled to judgment in Texas. 14. The parties agree that time is of the essence and that they will cooperate to effectuate the terms of this agreement, including the execution of all anticipated documents, entry of all judgments and delivery of all payments, by 1/30/2017. 15. THIS BINDING IRREVOCABLE SETTLEMENT AGREEMENT IS NOT SUBJECT TO REVOCATION AND IS BINDING ON ALL PARTIES. EACH PARTY TO THIS AGREEMENT IS ENTITLED TO REQUEST JUDGMENT ON THE TERMS OF THE BINDING IRREVOCABLE SETTLEMENT AGREEMENT CONTAINED HEREIN.

4 The Agreement also included a provision stating, in all caps, that it “may not be

contradicted by evidence of prior, contemporaneous, or subsequent oral or written

agreements between or among one or more of the parties hereto.”

B. The Underlying Claims

In May 2017, Carolyn, who was originally the defendant when litigation

commenced over Carlotta’s estate, filed a first supplemental answer and

counterclaim.1 Carolyn alleged that, contrary to the terms of the Settlement

Agreement, Mary had not conveyed two properties2 to her. She also alleged that

Mary had filed incorrect tax returns for Carlotta’s estate, had not filed final tax

returns for the trust for which Mary was trustee, had not delivered an agreed order

of dismissal, and had failed to provide a sufficient accounting of Carlotta’s estate.

Carolyn sued Mary for breach of the Settlement Agreement for her failure to transfer

certain pieces of real property and sought specific performance of the agreement.

Carolyn also noted that Mary had provided Carolyn with an accounting, but Carolyn

set out ten specific objections to that accounting and claimed that the accounting was

1 During the litigation, the trial court re-aligned the parties and Carolyn became the plaintiff. 2 The Agreement also provided that Mary was to convey to Carolyn seven lots in Marble Falls known as the Collier Lots as well as a property in Galveston County known as the Kohfeldts Property. Mary transferred the Kohfeldts Property to Carolyn during the pendency of the litigation. At trial, Carolyn acknowledged that she had received a deed to the Collier Lots, and she agreed with her counsel that she had no further complaint concerning that property. 5 insufficient. Carolyn later filed an amended pleading in which she sought declaratory

relief, including a declaration that the Settlement Agreement was binding and

enforceable. Carolyn also sought attorney’s fees.

Mary generally denied the allegations in Carolyn’s amended pleading and

asserted multiple defenses and affirmative defenses. Mary also asserted multiple

causes of action against Carolyn, including breach of contract, promissory estoppel,

unjust enrichment, suit to quiet title, trespass to real property, negligent

misrepresentation, fraud, and breach of fiduciary duty. With respect to her breach of

contract cause of action, Mary alleged that Carolyn breached the Settlement

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Mary Maxey, Individually and as Initial Trustee of the Bryan Maxey Family, Trust, as Initial Trustee of the Carlotta Maxey Marital Income Trust: Exempt, as Trustee of the Carlotta Maxey Marital Income Trust: Non-Exempt, and as Trustee of the Mary Maxey Descendant's Trust v. Carolyn Maxey, Individually, as Successor Trustee of the Bryan Maxey Family Trust, as Successor Trustee of the Carlotta Maxey Marital Income Trust Exempt and as Trustee of the Carolyn Maxey Descendants Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mary-maxey-individually-and-as-initial-trustee-of-the-bryan-maxey-family-texapp-2020.