Schlueter v. Schlueter

975 S.W.2d 584, 1998 WL 352933
CourtTexas Supreme Court
DecidedOctober 15, 1998
Docket96-1091
StatusPublished
Cited by343 cases

This text of 975 S.W.2d 584 (Schlueter v. Schlueter) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schlueter v. Schlueter, 975 S.W.2d 584, 1998 WL 352933 (Tex. 1998).

Opinions

GONZALEZ, Justice,

delivered the opinion of the Court,

in which ENOCH, OWEN, BAKER, ABBOTT and HANKINSON, Justices, joined.

This divorce case answers the question of what remedies are available to a spouse alleging fraud on the community committed by the other spouse. The husband transferred various community assets to his father shortly before he filed for divorce. The wife counterclaimed for divorce and brought independent tort claims against her husband and father-in-law, seeking damages for fraud, breach of fiduciary duty, and conspiracy. Based on favorable jury findings, the trial court ordered a disproportionate division of the community estate favoring the wife, and rendered judgment for the wife against the husband and his father for actual and exemplary damages. Holding that a tort cause of action for fraud on the community exists independent of a divorce proceeding, the court of appeals affirmed. 929 S.W.2d 94. We granted writ to resolve a conflict among courts of appeals. Because a wronged spouse has an adequate remedy for fraud on the community through the “just and right” property division upon divorce, we hold that there is no independent tort cause of action between spouses for damages to the community estate. Accordingly, we reverse [586]*586the judgment against the husband and remand for a new division of the marital estate. We affirm the remainder of the court of appeals’ judgment.

I

Richard and Karen Schlueter married in 1969. In December 1992, Mr. Schlueter began investing in emus. He contributed $3250 of community funds toward two pairs of the birds, but eventually sold his interest to his father, Hudson Schlueter, for $1,000. The emu business was worth at least $10,000 when the sale occurred. Mrs. Schlueter did not know the details of the business and did not find out that her husband had sold his interest to her father-in-law until after Mr. Schlueter filed for divorce.

Shortly before he filed for divorce, Mr. Schlueter accepted a $30,360.41 check from his employer as an incentive for early retirement. Mr. Schlueter turned the cheek over to his father for deposit in his father’s account. His father then wrote himself a check for $12,565, allegedly to reimburse past loans to Mr. Schlueter. About a week later, Mr. Schlueter filed for divorce.

Mrs. Schlueter counterclaimed for divorce and added independent tort claims against her husband and father-in-law for fraud, breach of fiduciary duty, and conspiracy. All of Mrs. Schlueter’s claims against her husband and father-in-law involve their depriving the Sehlueters’ community estate of assets. Mrs. Schlueter makes no claim that she was deprived of her separate property.

The jury heard the fraud and conspiracy claims in a bifurcated trial. The jury found that Mr. Schlueter committed actual and constructive fraud in dealing with the community assets, that he and his father had fraudulently transferred assets between them, and that they had engaged in a civil conspiracy to injure Mrs. Schlueter. The jury found that $12,850 would compensate the community for Mr. Schlueter’s and his father’s actions. It found that $35,000 would compensate the community for damage caused by the conspiracy. Finally, the jury found that Mr. Schlueter should pay $50,000 and his father $15,000 in exemplary damages.

At a later date, the trial court heard the divorce action without a jury, divided the marital assets, and rendered judgment on the jury verdict against Mr. Schlueter and his father jointly and severally for $12,850. In its Findings of Fact, the trial court determined that the joint and several judgment was part of the community estate. The court also awarded Mrs. Schlueter $30,000 in exemplary damages against her husband and $15,000 in exemplary damages against her father-in-law, and awarded Mrs. Schlueter $18,500 from her husband for attorney’s fees on appeal.

The court of appeals affirmed. The court held that a spouse may bring an independent tort claim against the other spouse for fraud for which exemplary damages may be awarded, even when the fraud resulted only in a depletion of community assets and not the wronged spouse’s separate estate. 929 S.W.2d at 99-100. The court of appeals based its holding on this Court’s abrogation of the doctrine of interspousal immunity in the Bounds, Pnce, and Twyman decisions, and concluded that a person may bring any cause of action against his or her spouse. 929 S.W.2d at 99-100 (construing Twyman v. Twyman, 855 S.W.2d 619, 624 (Tex.1993); Price v. Price, 732 S.W.2d 316, 319 (Tex. 1987); and Bounds v. Caudle, 560 S.W.2d 925, 927 (Tex.1977)). The court of appeals also affirmed the judgment against the father-in-law, holding that the trial court had not abused its discretion in admitting into evidence a copy of a divorce decree involving Mr. Sehlueter’s brother.

Relying on Belz v. Belz, 667 S.W.2d 240, 247 (Tex.App.—Dallas 1984, writ ref'd n.r.e.), and In re Marriage of Moore, 890 S.W.2d 821, 829 (Tex.App.—Amarillo 1994, no writ), Mr. Schlueter alleges that the court of appeals committed reversible error in recognizing a separate cause of action for fraud on the community. Mr. Schlueter and his father, in the father’s only point of error, also assert that the court of appeals erred in holding that the trial court did not abuse its discretion in admitting into evidence a copy of the decree from Mr. Schlueter’s brother’s divorce.

[587]*587II

The court of appeals reads the Twyman, Pnce, and Bounds decisions too broadly; these decisions do not control this case. In Bounds, we dealt with whether the inter-spousal immunity doctrine prevented a deceased woman’s children from suing then-stepfather for their mother’s wrongful death. Bounds, 560 S.W.2d at 925. The stepfather had allegedly shot and killed his wife. We concluded that interspousal immunity should be abolished for willful or intentional torts. Id. at 926-27. From a policy perspective, we stated that suits for willful and intentional torts such as the physical attack in that case would not disrupt domestic tranquility in “a home which has already been strained to the point where an intentional physical attack could take place.” Id. at 927.

We re-examined the doctrine in Price v. Price, 732 S.W.2d 316 (Tex.1987). A wife sued her husband for negligence in causing her injuries in a motorcycle accident. Again this Court considered and rejected the argument that “peace and harmony” in the home would be damaged by suits between spouses, commenting that “[i]t is difficult to fathom how denying a forum for the redress of any wrong could be said to encourage domestic tranquility.” Id. at 318. We followed up on our holding in Bounds by stating, “We now abolish [the interspousal immunity doctrine] completely as to any cause of action. We do not limit our holding to suits involving vehicular accidents only.” Id. at 319.

Finally, in Twyman,

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Bluebook (online)
975 S.W.2d 584, 1998 WL 352933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schlueter-v-schlueter-tex-1998.