Rene Peralez v. Noe Peralez

Court of Appeals of Texas·Decided June 24, 2010·No. 13-09-00259-CV·Published

Opinion

NUMBER 13-09-259-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS CORPUS CHRISTI - EDINBURG

RENE PERALEZ, Appellant, v.

NOE PERALEZ, ET AL., Appellees.

On appeal from the Probate Court of Hidalgo County, Texas.

MEMORANDUM OPINION

Before Justices Rodriguez, Benavides, and Vela Memorandum Opinion by Justice Vela

This is an appeal from a jury award in a will contest and fraud case. Appellees, Noe Peralez, Carlos Peralez, Jr. (“Charlie”), and Joel Peralez (“the brothers”), filed suit against their youngest brother, Rene Peralez, claiming that Rene unduly influenced his father,

Carlos Peralez, Sr., to prepare a will that left the bulk of his estate to Rene.1 The brothers also filed an action for fraud against Rene, pleading that Rene told them if they did not contest probating the will, he would divide the estate equally among the four of them. They claim that, by reneging on this promise, he defrauded them. The jury found that Rene had unduly influenced his father and that Rene had defrauded his brothers. The trial court set aside the will, which had been previously admitted to probate, and awarded each of the brothers $100,000 for pecuniary loss caused by the fraud, $40,000 for “actual consequential loss sustained in the past,” $25,000 for “actual emotional distress sustained in the past,” and $75,000 in exemplary damages. On appeal, Rene challenges the legal sufficiency of the jury’s findings of undue influence and fraud, and the amounts and evidentiary support for the consequential and emotional distress damage awards. He also claims lack of subject matter jurisdiction with respect to the fraud claim because its disposition was not related to the administration of the estate. We affirm, in part, and reverse and render, in part.

I. PROCEDURAL BACKGROUND

Carlos Peralez, Sr., the testator, died of cancer on March 18, 2006. He left a will that he had executed on March 7, 2006, less than two weeks before his death, giving the majority of his $391,354.45 estate to Rene, with the exception of a house, which he devised to Rene’s daughter, Sandy. He had no prior will. In the will, Carlos provided that each of his sons would receive certain EE United States Savings bonds that he had purchased for them throughout the years. The number of bonds Carlos purchased and the

1 The appellees also filed suit against Sylvia Peralez, Rene’s wife, and Sandy Peralez-Escam illa, Rene’s daughter. All claim s were disposed of prior to jury subm ission and are not the subject of this appeal.

values of the bonds were not equal. For instance, he purchased 121 bonds for Rene, worth $53,000, and only one for his son, Noe, worth $15,216. Although these were not probate assets, Richard Talbert, Carlos’s attorney, testified that he put them in the will at Carlos’s request as a way of letting his other sons know that they had not been forgotten. The will stated that Carlos was fully mindful of the fact that he had three additional sons and the disposition of his estate was not reflective of the love he had for each of his sons.

The evidence at trial showed that Rene had left his employment and was attempting day trading. The other three sons were gainfully employed. Rene and his family had always lived close to Carlos, while the other sons lived farther away. There was testimony that each of the four sons was close to his father and conflicting testimony that some of the four sons had problems with their father over various matters throughout the years. The evidence was undisputed that Carlos was a strong-willed and private man.

The brothers first read the will on March 24, 2006, and were suspicious. Rene filed the application to probate the will and request for letters testamentary on April 26, 2006. The estate was administered by April 17, 2007. He did not inform his brothers until after he had probated the will. The brothers filed their will contest on June 27, 2007. After a two week trial on the merits, the trial court entered judgment in accordance with the jury’s determination that Rene had unduly influenced his father and had defrauded his brothers.

II. UNDUE INFLUENCE

A. Trial Testimony The evidence offered at trial was conflicting and contentious. The brothers urged that Rene poisoned their father against them through lies and manipulation, inducing

Carlos, who was in a weakened condition, to leave everything to him. Rene argued that he was closest to his father throughout his life, he cared for his father during his last illness, and his father’s will reflected this close relationship.

1. Execution of the Will The following facts regarding the actual execution of the will are undisputed as Richard Talbert, Carlos’s attorney, was alone with Carlos when the initial discussion about the disposition occurred. Carlos paid two visits to Talbert shortly before his death. During the first appointment, on February 27, 2006, Carlos told Talbert that he wanted to write a will “to get his affairs in order.” Talbert said that Carlos informed him that his illness was terminal. Talbert testified that Carlos told him that he wanted the house on Georgia Street to go to his granddaughter and the rest of his assets to go to his son, Rene. His granddaughter was already living in the house. According to Talbert, Carlos knew what he wanted. Talbert had no concerns about Carlos’s judgment. Talbert said that Carlos told him that there had been different relationships with his sons since his divorce from his sons’ mother and that some of his sons had been at his house going through his documents. Talbert testified that he saw nothing to indicate that Carlos was unable to make an intelligent decision concerning his will.

On March 7, 2006, Carlos went to Talbert’s office to execute his will. At this visit, Carlos was accompanied by Alonzo Peralez, his brother. The will was executed without changes. Talbert noted that Carlos seemed weaker physically than he was the week before, but Talbert opined that Carlos was in full control of his mental faculties. Talbert testified that neither Rene nor his wife had ever contacted him prior to the execution of the will. He saw no undue influences upon Carlos. Carlos’s reputation in the community was

as a strong-willed individual. That is the person Talbert saw in his office the day the will was executed. Lupita Talbert, a witness to the will as well as Talbert’s wife and office manager, testified that when she saw Carlos at the office on February 27th, he was able to converse and was walking without assistance. He told her he needed to get his affairs in order because “some of his sons were asking about this and that.”

There was no direct testimony or circumstantial evidence suggesting that Rene was there when the will was executed. There was also no direct evidence that Rene had anything to do with the preparation of the will, including choosing Talbert as an attorney. Talbert had represented Carlos in the past in real estate matters. There was evidence that at the time Carlos executed the will he was in a weakened state and was on pain medication, and there were suggestions that it would have been difficult for Carlos to have driven himself to Talbert’s office in the condition he was in. There was no direct evidence that Rene actually participated in taking Carlos to Talbert’s office.

2. Relationships with the sons The contestant sons were surprised at Carlos’s disposition. There was testimony that each of the three contestants had a strong and close relationship with Carlos. Charlie was the oldest. He is a refrigerator mechanic, working for an appliance company in McAllen. He did not testify at trial. Noe Peralez, the second-oldest, is successfully employed by a school district. Joel, the third oldest, is an attorney.

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