Penny Jones v. Maxine Coppinger

CourtCourt of Appeals of Texas
DecidedAugust 31, 2021
Docket08-20-00040-CV
StatusPublished

This text of Penny Jones v. Maxine Coppinger (Penny Jones v. Maxine Coppinger) 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
Penny Jones v. Maxine Coppinger, (Tex. Ct. App. 2021).

Opinion

COURT OF APPEALS EIGHTH DISTRICT OF TEXAS EL PASO, TEXAS

PENNY JONES, § No. 08-20-00040-CV

Appellant, § Appeal from the

v. § 155th District Court

MAXINE COPPINGER, § of Fayette County, Texas

Appellee. § (TC# 2018V-180)

OPINION

Appellant Penny Jones (“Jones”) and her now-deceased ex-husband, J.T. Jones (“J.T.”)

were ordered to sell their primary residence pursuant to a divorce decree. They agreed to retain

Appellee Maxine Coppinger (“Coppinger”), a licensed real estate agent, to serve as their listing

agent. Although the property sold at a price agreed upon by the parties, Jones filed the present

lawsuit against Coppinger, alleging that Coppinger failed to disclose certain information to her,

which caused Jones to agree to a lower sales price than she otherwise would have. Jones’s lawsuit

alleged four causes of action against Coppinger, all of which were based on the claimed failure to

disclose information: (1) fraud by nondisclosure; (2) breach of fiduciary duty; (3) breach of

contract; and (4) violations of the Texas Deceptive Trade Practices Act (“DTPA”). The trial court granted Coppinger’s motion for summary judgment, dismissing all four

causes of action, and further granted Coppinger’s request for an award of attorney’s fees and costs

pursuant to the parties’ contract. Although we disagree with Jones’s arguments that the trial court

erred in granting the summary judgment or in awarding attorney’s fees and costs, we agree with

Jones that the trial court erred in holding her attorney individually responsible for paying the

award, and for stating in its order that the failure to pay the award is enforceable by contempt

proceedings. We therefore strike those provisions from the attorney’s fee order, but affirm the

trial court’s judgment in all other respects.1

I. FACTUAL BACKGROUND

A. The Listing Agreement

Under the terms of their divorce decree, Jones and her then-husband, J.T. were required to

liquidate various community assets, including their primary residence, located on a 169-acre tract

of land in Fayette County (hereinafter the “property”). The decree required the parties to agree

upon a realtor who was an active member of the Multiple Listing Service (MLS) to list the property

at its fair market value no later than January 15, 2016. It further directed the parties to accept any

offer on the property within 10% of the listing price. If the property was not sold within six

months of the listing date, the parties were to work with the real estate agent to establish a

scheduled reduction in the listing price. In addition, the decree directed the parties to use a portion

of the proceeds from the sale to pay an existing IRS debt of $230,000, after which the parties were

to split any remaining profit from the sale on an equal basis. It is undisputed that Jones was

1 This case was transferred from our sister court in Austin, and we decide it in accordance with the precedent of that Court to the extent required by TEX.R.APP.P. 41.3.

2 represented by two attorneys throughout the divorce proceedings, as well as during the ensuing

real estate transaction.

The parties ultimately agreed upon Coppinger, an associate broker at Heritage Texas

Country Properties (hereinafter “Heritage”), as the listing agent. Jones and J.T. thereafter signed

a listing agreement with Heritage, which Coppinger signed in her capacity as the “broker’s

associate” and its “authorized agent,” allowing her to list the property for $1.5 million. The

agreement, which ran from March 9, 2016 to September 14, 2016, provided that Heritage was to

receive a commission of 6%, to be split with the buyer’s broker, if the property was sold during

that time. The listing agreement also contained a clause, requiring the parties to mediate any

dispute, and a provision stating that if the “seller or broker is a prevailing party” in any legal dispute

brought as a result of the listing or any transaction contemplated by the listing, the prevailing party

would be entitled to recover costs and reasonable attorney’s fees from the non-prevailing party.

B. The Sales Agreement

Although the exact date is not clear, the parties received an offer of $1.2 million on the

property on or before May 31, 2016. That same day, one of Jones’s attorneys sent an email to

Coppinger and J.T.’s attorney, Katrina Packard (“Packard”), stating that the offer was too low; he

then suggested making a counter-offer of $1.235 million, with an agreement to convey 15% of the

mineral interests on the property to the buyer, together with an agreement that Jones would be

responsible for cleaning the property prior to the sale. 2 In suggesting this amount, Jones’s

attorney pointed out that the parties had agreed to reduce the listing price by 5% if the property

did not sell within 90 days of the initial listing, which meant that the listing price would soon be

reduced to $1.425 million if this sale was not completed. And in turn, he pointed out that because

2 The record reflects that the house located on the property was in a less than pristine condition, which impaired the marketing and selling of the property.

3 the divorce decree required the parties to accept any offer that was within 10% of the listing price,

this meant that they would soon be required to accept an offer of $1.2825 million. And although

he noted that the proposed counter-offer of $1.235 million was less than that amount, he

nevertheless stated that his client was willing to accept that amount.

J.T. agreed with the proposed-counter offer which was communicated to the buyer. The

parties thereafter signed a sales agreement on June 3, 2016, which incorporated the terms of the

counteroffer and set a closing date for June 24, 2016.

C. The Disclosure of the 1031 Sales Exchange Information

Sometime prior to June 15, 2016, Coppinger contacted the buyer’s agent and the title

company to inquire if the closing date could be extended because Jones was having problems

cleaning the property, as required by the sales agreement. In response, the buyer’s agent sent

Coppinger an e-mail on June 15, 2016 at 8:45 a.m., stating that the buyer needed to close on June

24, 2016, as set forth in the sales contract, in order to be “in compliance with his 1031 exchange.”3

3 The IRS website provides the following information regarding a 1031 exchange:

Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. [. . .] To accomplish a Section 1031 exchange, there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another. [. . .] Deferred exchanges are more complex but allow flexibility. They allow you to dispose of property and subsequently acquire one or more other like-kind replacement properties.

https://www.irs.gov/pub/irs-news/fs-08-18.pdf.

There are two limits to a deferred like-kind exchange:

The first limit is that you have 45 days from the date you sell the relinquished property to identify potential replacement properties. [. . .]

4 Coppinger then sent an email to the attorneys for both parties at 11:55 a.m. that same day,

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