Morgan v. Morgan

657 S.W.2d 484, 1983 Tex. App. LEXIS 4907
CourtCourt of Appeals of Texas
DecidedAugust 18, 1983
Docket01-82-0596-CV
StatusPublished
Cited by42 cases

This text of 657 S.W.2d 484 (Morgan v. Morgan) 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
Morgan v. Morgan, 657 S.W.2d 484, 1983 Tex. App. LEXIS 4907 (Tex. Ct. App. 1983).

Opinion

OPINION

DUGGAN, Justice.

Appellant, the husband/respondent in this suit, appeals from that portion of the divorce decree dividing the community property, awarding attorney’s fees, and issuing a permanent injunction. He challenges the trial court’s findings of fact and conclusions of law relating to these items. The divorce, conservatorship, and child support issues were settled between the parties and approved by the court. Appellant asserts four points of error.

Appellant’s first point of error attacks the legal and factual sufficiency of the evidence to support the trial court’s Conclusion of Law No. 1 that the division of community property was just, fair and equitable.

The court found, in its Conclusion of Law No. 1, as follows:

At the time of the dissolution of the marriage, neither party was possessed of any separate property, and all property of which the parties were possessed or which they owned or otherwise had an interest was community property. The evidence is sufficient as a matter of law to justify and sustain the division of the parties’ community estate and the respective awards in and to the same, as is reflected *487 by the “Final Decree of Divorce” signed by the Court on July 2,1982, and further that the said respective awards constitute a just, fair and equitable division of the parties’ community estate in light of the approximate 18 years of marriage, the joint efforts of the parties in bringing about the growth of the community business, Morgan Machine Shop, Inc., the respective responsibilities of conservator-ship, and the disparity between the earning capabilities of the parties, now and in the future.

Appellant’s no evidence (legal insufficiency) contention was not properly preserved for review since he made no prejudgment objections or motions on this claim. Commercial Insurance Company of Newark, New Jersey v. Puente, 535 S.W.2d 948, 950 (Tex.Civ.App.—Corpus Christi 1976, writ ref’d n.r.e.). See Cornelius, Appellate Review of Sufficiency of the Evidence Challenges in Civil and Criminal Cases, 46 Tex.B.J. 439 (1983). The issue on appeal is therefore whether the trial court’s conclusion that the division was just and fair is against the great weight and preponderance of the evidence. To prevail on this point, appellant must overcome both the presumption in favor of the trial court’s judgment, Southwestern Bell Telephone Co. v. Griffith, 575 S.W.2d 92, 96 (Tex.Civ.App.—Corpus Christi 1978, writ ref’d n.r.e.), and the presumption that the trial court properly exercised its broad discretion in dividing the marital property. Murff v. Murff, 615 S.W.2d 696, 699 (Tex.1981); Price v. Price, 591 S.W.2d 601, 605 (Tex.Civ.App.—Texarkana 1979, no writ).

Appellant argues that the trial court erred by placing an excessive valuation on the couple’s business, Morgan Machine Shop, Inc. The court’s determination of the values and liabilities as to the remainder of the marital estate, all of which was community property, was primarily based upon stipulations of the parties and is not contested. The fairness of the property division turns upon the soundness of the court’s Finding of Fact No. 19, which reads:

With regard to the value, and more particularly, the “operating” value of the community business known as Morgan Machine Shop, Inc., having considered the equipment, the various exhibits offered by Petitioner and admitted into evidence, and particularly Petitioner’s exhibits 2 through 10 and 24, the testimony of the certified public accountant, Greg Frazier, admitted into evidence without objection, the Court finds that Morgan Machine Shop Inc., has an overall value of at least $450,000.00.

The appellant’s complaints regarding this finding center around the competency of the testimony of the appellee’s expert witness, a certified public accountant who stated that, in his opinion, the fair market value of the business was $567,000.00.

Appellant’s allegation that the expert’s testimony should have been excluded because the witness lacked the necessary qualifications to testify to the value of the machine shop is without merit. The qualification of a witness to testify is a matter to be determined by the court, subject to review only upon a showing of abuse of discretion. Hodges v. State, 403 S.W.2d 207, 212 (Tex.Civ.App.—Texarkana 1966, writ ref’d n.r.e.). Appellant asserts no such abuse of discretion by the court here on appeal, and he made no objection to the admission of the witness’ testimony at trial. The record indicates that the witness graduated with a bachelor of science degree in accounting and finance from Virginia Poly-tech Institute and completed graduate courses at Georgia State University; that he was employed by a firm of certified public accountants, working primarily with closely held real estate and manufacturing businesses and individuals; and that he had extensive experience as a certified public account and auditor with Touche Ross & Company, the Zapata Corporation, and an accounting firm in Atlanta, Georgia.

Appellant particularly asserts that the expert lacked the ability to properly determine the value of a machine shop, the bulk of whose business is derived from the oil and gas industry. The witness’s testimo *488 ny showed, to the contrary, his previous evaluation of two businesses similar to a machine shop in operation and his familiarity with the current status of the oil and gas industry. The witness’ qualifications are quite adequate. Moreover, the strength or weakness of a witness’ qualifications is merely a factor to be considered in weighing his testimony. Dillon v. Troublefield, 601 S.W.2d 141, 143 (Tex.Civ.App.—Austin 1980, no writ).

Appellant also claims the expert’s testimony was not “factually sufficient” to support his conclusion that the fair market value of Morgan Machine Shop, Inc., was $567,000. More specifically, he objects that the accountant determined the fair market value by the use of speculative, conjectural, and unorthodox procedures and did not try to establish a market value for the business as of the date of trial, but rather sought to use an income capitalization test based on nine-month-old data. Appellant further complains that certain “adjustments” and “further cash flow” predictions were not justified or explained as procedures customarily and usually relied on by experts in the field.

The machine shop valued by the expert is housed in two buildings, owned by the parties’ holding company, at 14434 and 14450 Chrisman in Houston, Texas. The business entity, known as Morgan Machine Shop, Inc., was incorporated in 1976 and is wholly owned by the husband and wife. The accountant’s testimony concerned only the fair market value of this operation. He testified that he based his valuation upon the company’s income tax returns for fiscal years ending September 30, 1977 through 1981, and upon unaudited financial statements prepared by Starr Thrower & Company, Certified Public Accountants, for the 1978 through 1982 fiscal years.

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Bluebook (online)
657 S.W.2d 484, 1983 Tex. App. LEXIS 4907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-morgan-texapp-1983.