Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. David Scheffler, Individually, the 2525 Brother, L.P. D/B/A Venture Holdings, Inc., and Venture Reo Services, L.P.

CourtCourt of Appeals of Texas
DecidedJanuary 30, 2024
Docket01-22-00273-CV
StatusPublished

This text of Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. David Scheffler, Individually, the 2525 Brother, L.P. D/B/A Venture Holdings, Inc., and Venture Reo Services, L.P. (Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. David Scheffler, Individually, the 2525 Brother, L.P. D/B/A Venture Holdings, Inc., and Venture Reo Services, L.P.) 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.

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Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. David Scheffler, Individually, the 2525 Brother, L.P. D/B/A Venture Holdings, Inc., and Venture Reo Services, L.P., (Tex. Ct. App. 2024).

Opinion

Opinion issued January 30, 2024

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-22-00273-CV ——————————— SANJAY KHANDUJA, INDEPENDENT ADMINISTRATOR WITH WILL ANNEXED TO THE ESTATE OF DR. R.K. DHINGRA, DECEASED, Appellant V. DAVID SCHEFFLER, INDIVIDUALLY, THE 2525 BROTHERS, L.P. D/B/A VENTURE HOMES, VENTURE HOLDINGS, INC., VENTURE REO SERVICES, L.P., AND MALACHITE VENTURE CORP., Appellees

On Appeal from Probate Court No. 1 Harris County, Texas Trial Court Case No. 396745-403 MEMORANDUM OPINION

Appellant Sanjay Khanduja, Independent Administrator with Will Annexed

to the Estate of Dr. R.K. Dhingra, Deceased (“the Estate”), filed the underlying

ancillary probate proceeding seeking to resolve various parties’ allegedly competing

interests in several parcels of real property owned by Dhingra before his death. The

proceeding eventually encompassed the Estate’s and eleven other parties’ alleged

interests in three parcels of property. Many of these other parties filed petitions in

intervention, counterclaims, and cross-claims. Five of these parties—appellees

David Scheffler, individually; The 2525 Brothers, L.P. d/b/a Venture Homes;1

Venture Holdings, Inc.; and Venture REO Services, L.P. (collectively, “the Scheffler

parties”); and Malachite Venture Corp (“Malachite”)—filed two motions for

summary judgment. The probate court signed two orders granting the Scheffler

parties’ motion and Malachite’s motion, respectively, and dismissing the Estate’s

claims against them.

The Estate attempts to appeal from these two summary judgment orders. After

notifying the parties of the Court’s intent to dismiss for want of jurisdiction and

1 The Estate’s appellate briefing mistakenly lists “The 2525 Brothers, L.P. d/b/a Venture Holdings, Inc.” as a party. The Estate’s pleadings, the Scheffler parties’ motion for summary judgment and order granting it, and the Scheffler parties’ appellate brief list as separate parties The 2525 Brothers, L.P. d/b/a Venture Homes and Venture Holdings, Inc. Accordingly, we have listed the parties as they appear in the appellate record.

2 considering the Estate’s jurisdictional response, we conclude that the two summary

judgment orders were interlocutory, not final and appealable. We therefore dismiss

the appeal for want of jurisdiction.

Background

Prior to his death in January 2010, Dhingra allegedly owned, individually or

through entities, numerous parcels of real property. Three of these properties are the

subject of this appeal, and they are referred to as Kleingreen, 13636 SH 249, and

13644 SH 249.2 The Estate alleges that after Dhingra’s death, Scheffler fraudulently

conveyed these properties to other parties without authority to do so. Scheffler

allegedly accomplished these conveyances through use of the entities comprising the

remainder of the Scheffler parties, which were allegedly wholly owned or controlled

by Scheffler.

Concerning 13636 SH 249 and 13644 SH 249, the Estate alleges that Dhingra

owned these two properties through an entity called Shiva Investment Group, which

was an “assumed name” for Dhingra. The Scheffler parties allegedly conveyed

13636 SH 249 to 249 Fireworks, LLC, Winco Fireworks International, LLC, and/or

David Collar. The Scheffler parties allegedly conveyed 13644 SH 249 to Malachite.

2 These properties are more fully described in the Estate’s pleadings. We note that the parties’ appellate briefs state that only one or both of 13636 SH 249 and 13644 SH 249 are relevant to the merits of the Estate’s appellate issues. For purposes of determining this Court’s jurisdiction, however, allegations concerning both these properties as well as Kleingreen are relevant.

3 Pursuant to alleged criminal proceedings initiated against Scheffler concerning the

fraudulent transfers of these properties, Scheffler later conveyed 13636 SH 249 and

13644 SH 249 back to the Estate. However, the Estate alleges that 249 Fireworks

continues to occupy 13636 SH 249, and 249 Fireworks, Winco Fireworks, and

Collar claim equitable title to this property. The Estate further alleges that Malachite

continues to occupy 13644 SH 249.

Concerning the third subject property, the Estate alleges that the Scheffler

parties conveyed Kleingreen to Ashley C. Torregrossa, and Torregrossa retains

possession of Kleingreen.

Only the Estate, the Scheffler parties, and Malachite are parties to this appeal.

Several other individuals and entities are parties in the underlying probate

proceeding but are not parties to this appeal, including 249 Fireworks, Winco

Fireworks, Collar, and Torregrossa.

In October 2010, Sanjay Khanduja filed the underlying ancillary probate

proceeding on behalf of the Estate as its representative. The original petition asserted

claims only against the Scheffler parties. The petition sought a “declaration of rights,

status and ownership” in the three subject properties, as well imposition of

constructive trusts and the appointment of a receiver to manage the properties. The

Estate also asserted claims for violations of the Theft Liability Act and Uniform

4 Fraudulent Transfer Act, breach of fiduciary duty, quantum meruit, fraud, and

exemplary damages.

In January 2014, the Estate filed two additional lawsuits against additional

parties concerning the same properties. In one of these suits, the Estate asserted

claims against 249 Fireworks, Winco Fireworks, and Collar for damages arising out

of their continued possession of 13636 SH 249. In the second additional suit, the

Estate asserted claims against Malachite seeking damages for its continued

possession of 13644 SH 249. Appellees contend on appeal that these two lawsuits

were consolidated into the underlying proceeding, but the appellate record does not

contain a consolidation order. In any event, numerous other parties filed petitions in

intervention, counterclaims, and cross-claims concerning the three subject

properties.

According to the appellate record before us, when the probate court signed the

challenged summary judgment orders, the Estate’s live pleadings consisted of: (1) a

first amended petition filed in October 2015; (2) a second supplemental petition filed

in March 2018; (3) a third supplemental petition filed in September 2019; and (4) a

supplemental petition filed in June 2021.3

3 The appellate record contains references to a second amended petition filed by the Estate, but the record does not contain a second amended petition. For example, the second and third supplemental petitions state that they supplement the Estate’s second amended petition. The Estate also filed a proposed fourth supplement to a second amended petition, but the probate court struck this pleading. The record does 5 The first amended petition asserted twenty causes of action against eleven

individuals and entities. Primarily, the Estate asserted declaratory claims concerning

the rights, statuses, and ownership interests in the three subject properties; claims

for trespass to try title based on the Estate’s alleged superior title to the three subject

properties; and suits to quiet title to the three subject properties. The first amended

petition also sought imposition of a constructive trust and appointment of a receiver,

and it asserted claims against the Scheffler parties for statutory and common-law

fraud, quantum meruit, and breach of fiduciary duties. The Estate sought damages

from all the parties.

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Sanjay Khanduja, Independent Administrator With Will Annexed to the Estate of Dr. R.K. Dhingra v. David Scheffler, Individually, the 2525 Brother, L.P. D/B/A Venture Holdings, Inc., and Venture Reo Services, L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanjay-khanduja-independent-administrator-with-will-annexed-to-the-estate-texapp-2024.