Parker v. Parker

897 S.W.2d 918, 1995 WL 157191
CourtCourt of Appeals of Texas
DecidedMay 11, 1995
Docket2-94-013-CV
StatusPublished
Cited by46 cases

This text of 897 S.W.2d 918 (Parker v. Parker) 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
Parker v. Parker, 897 S.W.2d 918, 1995 WL 157191 (Tex. Ct. App. 1995).

Opinion

OPINION

DAY, Justice.

James W. Parker (Parker), Parker Chiropractic Resource Foundation, Inc. (Foundation), and Share International, Inc. (Share) appeal the trial court’s disproportionate division of the community estate in favor of Patricia Shaw Parker (Shaw) and the awarding of attorney fees, actual damages, and punitive damages to Shaw. We reverse and modify in part, reverse and remand in part, and affirm in part.

In March 1983, Shaw filed for divorce from Parker and joined Parker’s two closely held corporations, Foundation and Share. In 1988, both parties reached an invalid settlement, and the trial court entered a judgment. Parker, however, appealed the final judgment of the 1988 trial court. This court upheld the divorce, but held the settlement agreement was too indefinite to be enforceable and remanded the case for a property division.

The property division trial began in June 1993, and the trial judge signed the final judgment on October 12, 1993. The judgment awarded the following amounts to Shaw:

(1) Shaw’s share of community estate $3,697,621
(2) Lost past and future contractual alimony 633,153
(3) Damages for termination of Share benefit plan 593,460
(4) Judgment against Share 593,028
(5) Electronic Eavesdropping 2,000
(6) Punitive damages 1,000,000
(7) Shaw’s attorneys fees, including appellate attorney fees 1,395,627
(8) Less credit for previously paid amount (1,850,000)

LOST PAST AND FUTURE ALIMONY

In points of error one, two, and three, Parker asserts the trial court erred in awarding Shaw $633,153 in actual damages for past and future contractual alimony based on breach of contract, fraud, or breach of a fiduciary duty. Parker agreed in the settlement agreement to pay Shaw $5,000 per month for ten years for a total of $600,000 in contractual alimony. Parker, however, only paid the contractual alimony for the first five months.

The trial court determined Parker breached the settlement agreement, committed fraud, and failed to fulfill his fiduciary duty. Based on these theories of recovery, the trial court awarded Shaw $633,153 in contractual alimony. Parker, however, asserts that the recovery of the contractual alimony could not be based on any of these three theories. We agree.

(1) LAW OF THE CASE

In point of error one, Parker argues that our reversal in the first appeal of this case precluded the 1993 trial court from awarding the contractual alimony based on a breach of the settlement agreement because of the law of the case.

The “law of the case” doctrine is defined as that principle under which questions of law decided on appeal to a court of last resort will govern the case throughout its subsequent stages.... By narrowing the issues in successive stages of the litigation, the *924 law of the case doctrine is intended to achieve uniformity of decision as well as judicial economy and efficiency.... The doctrine is based on public policy and is aimed at putting an end to litigation.

Hudson v. Wakefield, 711 S.W.2d 628, 630 (Tex.1986) (citations omitted).

In the first appeal, we held that Parker and Shaw’s settlement agreement did not constitute a complete agreement on which a final judgment could be based. Parker v. Parker, No. 2-88-170-CV (Tex.App. — Fort Worth, Nov. 22,1989, writ denied) (not designated for publication). Furthermore, we held the settlement agreement did not constitute a valid contract allowing us to modify the original court’s judgment because the settlement agreement lacked completeness and mutuality. Id. Therefore, the trial court erred by holding Parker breached the settlement agreement because we previously held the settlement agreement did not constitute a contract. We sustain point of error one.

(2) FRAUD

The trial court, however, also based the award of contractual alimony on the theory that Parker fraudulently promised to settle the divorce in 1988. 1 Thus, in point of error two, Parker argues that the trial court erred by basing the award of contractual alimony upon a theory of fraud. We agree because Shaw’s claim of fraud constituted nothing more than a claim for breach of contract.

[When t]he acts of a party may breach duties in tort or contract alone or simultaneously in both[, t]he nature of the injury most often determines which duty or duties are breached. When the injury is only the economic loss to the subject of a contract itself the action sounds in contract alone.

Southwestern Bell Tel. Co. v. DeLanney, 809 S.W.2d 493, 494-95 (Tex.1991) (citing Jim Walter Homes, Inc. v. Reed, 711 S.W.2d 617, 618 (Tex.1986)). Here, Shaw’s damages for the fraud relating to the settlement agreement equaled the amount of contractual alimony still owed under the settlement agreement. Furthermore, the only injury to Shaw by Parker’s purported fraud was the loss of the benefit of the bargain of the settlement. Therefore, Shaw’s claim of fraud constitutes nothing more than a claim for breach of contract. The settlement agreement, however, was not a valid contract. Therefore, no breach could have occurred. We sustain point of error two.

(3) FIDUCIARY DUTY

Finally, the trial court also based its award of contractual alimony on the theory that Parker breached his fiduciary duty. In point of error three, Parker argues that the trial court erred by basing the award on a breach of fiduciary duty because any fiduciary duty relating to a settlement between Shaw and Parker terminated prior to the 1988 settlement agreement. We agree.

While marriage may bring about a fiduciary relationship, such a relationship terminates in a contested divorce when a husband and wife each have independent attorneys and financial advisers. Bass v. Bass, 790 S.W.2d 113, 119 (Tex.App. — Fort Worth 1990, no writ). Here, the settlement negotiations occurred between Shaw’s CPA and Parker’s CPAs. Neither Parker nor Shaw were present during the settlement negotiations. Furthermore, Shaw’s three attorneys and CPA, and Parker’s two attorneys and two CPAs were present when the settlement agreement was read into the record. Under these facts, no basis exists for the trial court to find a fiduciary duty owed by Parker to Shaw that Parker could have breached in the settlement. Therefore, we sustain point of error three. Because no basis exists for the trial court to award the $633,153 of contractual alimony, we reverse and modify the trial court’s judgment to exclude the $633,153 of contractual alimony awarded to Shaw.

*925 COLLAPSE OF THE SHARE BENEFIT PLAN

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Cite This Page — Counsel Stack

Bluebook (online)
897 S.W.2d 918, 1995 WL 157191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-parker-texapp-1995.