Regions Bank, Trustee of the Section 1301 Management Trust for Samantha Lugo v. Newman Law Firm

CourtCourt of Appeals of Texas
DecidedJune 6, 2024
Docket01-22-00936-CV
StatusPublished

This text of Regions Bank, Trustee of the Section 1301 Management Trust for Samantha Lugo v. Newman Law Firm (Regions Bank, Trustee of the Section 1301 Management Trust for Samantha Lugo v. Newman Law Firm) 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
Regions Bank, Trustee of the Section 1301 Management Trust for Samantha Lugo v. Newman Law Firm, (Tex. Ct. App. 2024).

Opinion

Opinion issued June 6, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-22-00936-CV ———————————

IN THE GUARDIANSHIP OF SAMANTHA LUGO, AN INCAPACITATED PERSON

On Appeal from Probate Court No. 4 Harris County, Texas Trial Court Case No. 382193

MEMORANDUM OPINION

Appellant, Regions Bank, as Trustee of the Section 1301 Management Trust

for Samantha Lugo, an incapacitated person (the “Bank”), challenges the trial court’s

order to pay attorney’s fees to appellee, Newman Law Firm (“Newman”), in

connection with its representation of Guadalupe Lugo (“Guadalupe”), in her

application for appointment as successor guardian of Samantha’s person. In five issues, the Bank contends that the trial court erred in awarding Newman the

attorney’s fees that it incurred in representing Guadalupe.

We affirm.

Background1

Samantha is an adult who has been “completely incapacitated” since a medical

incident that occurred when “she was less than one year old.” The medical incident

left her with brain damage that caused mental and physical disabilities, “inhibit[ed]

her ability to speak,” and “cause[d] her [to have] seizures.” In “settlement of a

medical malpractice claim, Samantha received [a] substantial settlement payment”

and a lifetime annuity, which are in a trust managed by the Bank.

Samantha requires constant “supervision and care” and “will be incapacitated

for the rest of her life.” Since infancy, Samantha has lived with her mother,

Guadalupe, who is her “primary caregiver and supporter.” Guadalupe attends to

Samantha’s “daily needs, which include bathing, feeding, self-care, medication, all

activities of daily living, selection of physicians, and handling of all medical

appointments.”

1 As none of the Bank’s issues on appeal challenge the trial court’s findings of fact, we draw on them to describe the events relevant to this appeal. We note that this is not the first time that this case and the parties have been before this Court. See In re Guardianship of Lugo, No. 01-22-00438-CV, slip. op. at 1–20 (Tex. App.— Houston [1st Dist.] June __, 2024, no pet. h.) (mem. op.); In re Guardianship of Lugo, No. 01-21-00403-CV, 2022 WL 17835520, at *1–12 (Tex. App.—Houston [1st Dist.] Dec. 22, 2022, no pet.) (mem. op.). 2 On August 30, 2016, the trial court appointed Samantha’s older sister and

Guadalupe’s daughter, Guadalupe Leticia Lugo (“Tish”), “as permanent guardian”

of Samantha’s person. On June 25, 2020, the Bank filed a motion to remove Tish as

guardian of Samantha’s person. “Tish resigned as guardian,” and “[o]n December

22, 2020, Newman filed a notice of appearance on behalf of [Guadalupe].”

Guadalupe then “announced her intention to apply for the role of successor

guardian” of Samantha’s person.

Acting on behalf of Guadalupe, Newman filed an application for Guadalupe’s

appointment as successor guardian of Samantha’s person. In it, Guadalupe

“request[ed] [that she] be appointed as [s]uccessor [g]uardian” of Samantha’s

person. Guadalupe explained that she was Samantha’s mother, “live[d] with [her]

and ha[d] been providing daily care and life decisions for [Samantha] since [her]

infancy.” Guadalupe also noted that she “ha[d] priority to serve” as Samantha’s

guardian, “[wa]s qualified[,] and [wa]s not disqualified from accepting letters of

guardianship.” The application was accompanied by an affidavit executed by

Guadalupe, in which she attested that “such [a]pplication contain[ed] a correct and

complete statement of the matters to which it relate[d] and all the contents thereof

[were] true, complete and correct.”

Newman filed a motion to withdraw as counsel for Guadalupe on November

12, 2021, which the trial court granted. In March 2022, Newman filed an application

3 for payment of attorney’s fees and expenses incurred in representing Guadalupe (the

“application”). “In support of the application, Newman attached a [v]erification and

invoices supporting accrued fees and expenses totaling $135,912.37.” The Bank

filed an objection to the application but did “not file a controverting affidavit or offer

any evidence in response to the [a]pplication.”

On August 19, 2022, Ginger Lott, a paid private professional guardian who

had been appointed successor guardian of Samantha’s person, filed a response and

objection to the application. But “Lott did not file a controverting affidavit or offer

any evidence in response at the time.”

On August 22, 2022, Newman, through its counsel, filed an amended

application for attorney’s fees (the “amended application”). In the amended

application, Newman specified that it was claiming fees under Texas Estates Code

section 1155.054, and it attached affidavits to the amended application “in support

of [its] entitlement” to, “and [the] reasonableness/necessity of[,] [its] incurred

attorney[’]s fees and costs.” Newman requested payment of $135,912.37 from the

trust for attorney’s fees and expenses incurred in the period between December 15,

2020 through November 12, 2021, when Newman was representing Guadalupe.

Newman also attached to the amended application an affidavit executed by

Guadalupe, in which Guadalupe attested “to the reasons she hired [Newman] and

sought to become guardian” of Samantha’s person. “Specifically, [Guadalupe]

4 attested that she provide[d] care-giving services and supervision to Samantha” and

her intent in hiring Newman was “to help her become the official guardian for

Samantha.” Guadalupe explained that she wanted to be Samantha’s guardian

because she had “always taken care of Samantha” and wanted Samantha “to always

live with [her].”

Lott filed a supplement to her response and objection to the amended

application on September 23, 2022. On the same date, the Bank filed its first

amended objection to the amended application. The Bank asserted that

“reimbursement of attorney[’s] fees and expenses pursuant to [Texas Estates Code]

[s]ection 1155.054 would not be warranted” because Guadalupe was found to lack

standing. The Bank also alleged that some of the fees that Newman sought were

incurred in connection with Newman’s representation of Tish, and not Guadalupe,

and thus were not eligible for reimbursement. Further, the Bank maintained that the

attorney’s fees sought “to pursue the guardianship application” were not necessary

or reasonable, and the hourly rate sought was excessive.

On September 26, 2022, Guadalupe filed a joinder in Newman’s amended

application, in which she “join[ed] in, incorporate[d] by reference, and fully

adopt[ed] in its entirety the [amended application],” and she explained that she

“wanted [Newman] to be paid since she was unable” to pay Newman. Also, on that

date, Newman filed its reply in support of its amended application. In it, Newman

5 pointed out that Texas Estates Code section 1055.001(b) prohibited persons with an

adverse interest from filing an application to create a guardianship, contesting the

creation of a guardianship, contesting the appointment of a guardian, or contesting

an application for complete restoration or modification of a ward’s guardianship,

and it did not apply to an application for the appointment of a guardian.

On September 27, 2022, Regions Bank filed a supplement to its first amended

objection, and Newman filed its notice of the Bank’s failure to file controverting

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Regions Bank, Trustee of the Section 1301 Management Trust for Samantha Lugo v. Newman Law Firm, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regions-bank-trustee-of-the-section-1301-management-trust-for-samantha-texapp-2024.