Noell v. Crow-Billingsley Air Park Ltd. Partnership

233 S.W.3d 408, 2007 WL 2004964
CourtCourt of Appeals of Texas
DecidedOctober 1, 2007
Docket05-06-00889-CV
StatusPublished
Cited by19 cases

This text of 233 S.W.3d 408 (Noell v. Crow-Billingsley Air Park Ltd. Partnership) 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
Noell v. Crow-Billingsley Air Park Ltd. Partnership, 233 S.W.3d 408, 2007 WL 2004964 (Tex. Ct. App. 2007).

Opinion

OPINION

Opinion by

Justice MAZZANT.

David Noell appeals the summary judgment rendered in favor of Crow-Billings-ley Air Park Limited Partnership in this suit on a promissory note. The trial court awarded appellee judgment against appellant for principal of $180,000, plus interest and attorney’s fees. Appellant brings nine issues asserting the trial court erred in granting summary judgment because (a) appellee and its general partner breached their fiduciary duties to appellant, (b) fact issues exist on appellant’s defenses, and (c) the trial court erred in striking portions of appellant’s summary judgment evidence. Appellant also contends the trial court erred in severing the suit on the promissory note from the remaining litigation and in denying appellant’s motion for new trial based on newly discovered evidence. We affirm the trial court’s judgment.

BACKGROUND

In 1965, appellant and his father, Milton Noell, formed a partnership, Air Park Associates, to develop certain real estate (the property) as a residential community with its own aircraft landing strip and aircraft facilities. In 1982, appellant purchased two lots on the property, lots 83 and 34, which had a residence built on them.

The Partnership

In 1983, Milton Noell brought in Henry Billingsley as an investor. The record before us indicates that on July 1, 1983, appellant, Milton Noell, and Billingsley restructured the ownership of the property so that it would be owned by appellee, a limited partnership in which Billingsley had a fifty percent general-partner interest and Milton Noell had a fifty percent limited-partner interest. The following transactions gave appellee title to the property: (a) appellant sold lots 33 and 34 to Milton Noell for $190,000; (b) Milton Noell transferred a half-interest in the property to Billingsley; (c) Billingsley and Milton Noel transferred their interests in the property to appellee; and (d) appellee leased the property to appellant. Thus, on July 1, 1983, appellee owned the property, Billingsley was the general partner of ap-pellee, Milton Noell was the limited partner of appellee, appellant was the lessee of the property, and appellant had $190,000 from the sale of the lots to Milton Noell.

In December 1983, Milton Noell transferred his limited partnership interest in appellee to Air Park Properties Limited, a limited partnership with Milton Noell as general partner, and appellant, appellant’s brother, and two trusts as limited partners. Milton Noell died in 1990. After that, it appears Air Park Properties Limited was no longer a limited partner of appellee. Instead, the summary judgment evidence shows appellant and his brother *412 were limited partners of appellee with each having a twenty-five percent limited-partner interest.

In 2000, the general partner of appellee became Air Park GP, L.L.C., to which Billingsley assigned a one percent general-partner interest. Billingsley then converted the remaining forty-nine percent of his general-partner interest to a limited-partner interest. Billingsley then acquired appellant’s brother’s twenty-five percent limited-partner interest. Thus, at the end of 2000, the general partner of appellee was Air Park GP, L.L.C. with a one percent general-partner interest and the limited partners were Billingsley with a seventy-four percent limited-partner interest and appellant with a twenty-five percent limited-partner interest.

The Promissory Note

In 1985, appellant was facing a significant capital-gains tax obligation from the July 1, 1983 sale of the lots to his father. To avoid that tax obligation, appellant needed to reinvest the $190,000 in a residence. Appellant approached Billingsley, appellee’s general partner, about his problem, and they agreed that appellant would repurchase lots 33 and 34 from appellee for $190,000. Appellant’s attorney and the title company prepared the documents and sent them to appellee’s attorney for his approval. The documents consisted of the deed drafted by the title company and a promissory note, option agreement, and memorandum of option drafted by appellant’s attorney. 1 On June 28, 1985, appellant paid appellee $10,000 and signed a promissory note for $180,000 payable to appellee. The note was due in fifteen years. The note stated it was “given in part payment for” lots 33 and 34 “this day conveyed to the undersigned [appellant] by a General Warranty Deed of even date herewith.” Billingsley signed a general warranty deed on behalf of appellee transferring lots 33 and 34 to appellant. According to appellant, Billingsley kept the original of the deed and gave appellant a copy. The deed was not filed until 2005. Appellant did not pay any of the principal or interest due under the note.

The Litigation

In 2004, the relationship between appellant and Billingsley deteriorated, and ap-pellee terminated the lease of the property. Appellant sued Billingsley, appellee, and other entities over matters relating to the operation of appellee, for an accounting and dissolution of appellee, and concerning the termination of the lease. In November 2004, appellee filed a supplemental counterclaim against appellant alleging breach of the promissory note. Appellant answered, asserting various defenses, including breach of fiduciary duty, failure of consideration, usury, estoppel, and that the parties had a side agreement that the note would nót be enforced. Appellee moved for partial summary judgment on the promissory note portion of the litigation. The trial court heard the motion on February 25, 2005 and granted the motion on May 12, 2005. On March 10, 2006, the trial court severed the promissory note case from the rest of the litigation and, on April 5, 2006, rendered a final judgment on the promissory note case. Appellant filed a notice of appeal in the promissory note case, and the remainder of the litigation remains pending in the trial court.

STANDARD OF REVIEW

We review the grant of summary judgment de novo. Tittizer v. Union Gas *413 Corp., 171 S.W.3d 857, 860 (Tex.2005). The standard for reviewing a motion for summary judgment under rule 166a(c) is well established. Nixon v. Mr. Prop. Mgmt. Co., 690 S.W.2d 546, 548-49 (Tex.1985). The movant has the burden of showing no genuine issue of material fact exists and it is entitled to judgment as a matter of law. Tex.R. Civ. P. 166a(c); Diversicare Gen. Partner, Inc. v. Rubio, 185 S.W.3d 842, 846 (Tex.2005). After the movant has established a right to summary judgment, the burden shifts to the nonmovant to present evidence creating a fact issue. Phan Son Van v. Pena, 990 S.W.2d 751, 753 (Tex.1999); Troxel v. Bishop, 201 S.W.3d 290, 296 (Tex.App.-Dallas 2006, no pet.). When reviewing a summary judgment, we take as true all competent evidence favorable to the non-movant, and we indulge every reasonable inference and resolve any doubts in the nonmovant’s favor. Diversicare Gen.

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Cite This Page — Counsel Stack

Bluebook (online)
233 S.W.3d 408, 2007 WL 2004964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noell-v-crow-billingsley-air-park-ltd-partnership-texapp-2007.