Pickett v. Keene

47 S.W.3d 67, 2001 WL 378419
CourtCourt of Appeals of Texas
DecidedJune 28, 2001
Docket13-99-220-CV
StatusPublished
Cited by34 cases

This text of 47 S.W.3d 67 (Pickett v. Keene) 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
Pickett v. Keene, 47 S.W.3d 67, 2001 WL 378419 (Tex. Ct. App. 2001).

Opinion

OPINION

Opinion by

Justice HINOJOSA.

A jury found that appellee, Ralph Gerald Keene, owned an undivided one-half interest in the Spanish Village Cottages Motel (the “motel”) in Port Aransas and awarded him attorney’s fees. Appellants, Vera D. Pickett, individually, as the independent executrix of the estate of Sevil Lafette Pickett, and as co-trustee of the Sevil Laf-ette Pickett Residuary Trust, Mbert McWatters, co-trustee of the Sevil Lafette Pickett Residuary Trust, and the Sevil Lafette Pickett Residuary Trust, contend the trial court erred: (1) in failing to disregard the jury’s finding that Sevil and Vera Pickett orally agreed to convey a one-half interest in the motel to appellee because his claims are barred by the statute of frauds; (2) in failing to disregard the jury’s finding that an exception existed that took the agreement out of the statute of frauds because the evidence is legally and factually insufficient to support the finding; (3) in failing to submit appellants’ defense of limitations to the jury because appellee’s claim is barred by limitations; (4) in awarding attorney’s fees; and (5) in awarding appellee an undivided one-half interest in a laundromat located on motel property. We modify the judgment and, as modified, affirm.

A. Background

Because appellants assert the evidence is factually and legally insufficient to sup *71 port the jury’s finding that an exception to the statute of frauds exists, we will examine the evidence in detail. It is undisputed that property records list the Picketts as the owners of the motel since 1966, and that the Picketts paid all taxes due on the property and maintained insurance on the property at all relevant times. The following are summaries of the testimony presented at trial.

1. Testimony of Ralph Gerald Keene

Appellee testified that in February 1966, he was a twelve-year veteran of the National Guard, and that he was stationed in San Antonio. He was married to Janet Pickett Keene, daughter of Sevil and Vera Pickett. His salary was about $8500 per year, plus benefits that included medical and life insurance, 30 days of paid vacation and 30 days of paid sick leave per year, uniforms and commissary privileges. Janet earned approximately $3500 per year, working part-time for a physician. They owned their own home and made mortgage payments of about $80 per month. Mr. Pickett was a high school coach and Mrs. Pickett was a teacher in Marlow, Oklahoma.

According to appellee, in February 1966, he and Janet entered into an oral agreement with the Picketts. The four were to be joint owners of the Spanish Village Cottages Motel, which was for sale for $120,000. The Keenes were to contribute what they could toward the $20,000 down payment. Appellee borrowed against his own life insurance policy and a life insurance policy he held on his mother. He raised almost $2,000 and sent the money to the Picketts at their home in Marlow, Oklahoma via registered mail. 2 The Pick-etts borrowed money for the rest of the down payment. The Keenes and Picketts further agreed that the deed would be in the Picketts’ name. They also agreed that the Keenes would quit their jobs in San Antonio, sell their home, move into the manager’s unit at the motel, and run the motel for a salary of $400 per month with no benefits, except one week of vacation per year. They also agreed that when the loans taken out to procure the down payment had been paid off, the Picketts would deed a one-third interest in the motel to the Keenes. When the loan for the remaining $100,000 of the purchase price was paid off from motel profits, the Pick-etts would deed the Keenes a one-half interest in the motel, and when the Pick-etts decided they no longer wanted to be involved with the motel, they would either deed the rest of their interest to the Keenes or devise their interest in the motel to the Keenes in their wills.

When the down payment loans were paid off in 1971, the Keenes and Picketts agreed to wait until the mortgage was paid off before preparing a deed showing the Keenes’ ownership interest. When the mortgage was paid off in 1985, Sevil Pickett told the Keenes that if the official transfer was made at that time, it would cost approximately $70,000 in taxes. The Keenes then decided to wait and receive all of the motel by either devise or deed, as agreed in 1966. A laundry was later built on part of the property. Appellee managed both the motel and the laundry.

The Keenes made almost $5,000 in profit from the 1966 sale of their San Antonio home. They used part of this money to improve the manager’s quarters at the motel. They remodeled extensively, and *72 added a bedroom, a bathroom, a dressing room, a carport, a patio and two privacy fences. The Keenes also maintained insurance on their private quarters. After Hurricane Celia badly damaged the motel, the Picketts obtained a disaster-relief loan. Although appellee was listed as the contractor for the repairs, he was not paid for his work. In the 1980’s, the Picketts informed the Keenes that the H.E.B. grocery store chain wanted to buy the property for one million dollars, which the Picketts said they would split with the Keenes. After discussing the offer, the Picketts and Keenes decided to reject the offer.

Mr. Pickett’s physical and mental health began to fail. In February, 1994, while appellee was on an overnight trip to Laredo, Norma Coyle, 3 got into a “mishap” with employees and customers of the laundry. Coyle “accused a winter [resident] of using one of her machines so she proceeded to take all the soapy clothes out and throw them at the employees as well as the customers in the laundromat.” Norma then fired all the employees and had the laundry’s utilities cut off. She told appellee that if he “did not go along with her side of the story, that she would shut the whole place down, the cottages as well.” Mrs. Pickett told appellee that only the gas to the laundry should be shut off so that repairs to the gas line could be made. Mrs. Pickett also told him that if the motel utilities were cut off, that he should use motel proceeds to have them turned back on. However, the utilities were never turned back on because once the electricity was cut off, the entire motel had to be brought up to the current code.

The next day, Coyle delivered a handwritten, notarized letter from Mrs. Pickett to appellee, dated February 28, 1994, which stated:

Mr. Ralph G. Keene
We are unable to carry on our businesses-Spanish Village Motel at 134 N. Alister, Country Clean Washateria @ 210 N. Alister, because of our illnesses.
We have appointed Norma D. Coyle to represent us.
We shall no longer need a manager.
Please relinquish our keys, re[e]ords, money, and other possessions belonging to us as owners.
As soon as we receive these, we shall pay you your March, 1994 salary and ask that you vacate the premises by March 31,1994.

The letter was signed by Vera D. Pickett, “for Sevil L. Pickett, Owners.” When ap-pellee asked Mrs.

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Bluebook (online)
47 S.W.3d 67, 2001 WL 378419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pickett-v-keene-texapp-2001.