Shawn Deane Gruss, as Independent of the Estate of Maurita J. Gallagher And Nuclear Sources and Services, Inc. v. Gary W. Gallagher, Danielle Keogh, Brent R. Caldwell, and Diversified Management Services, LLC, Individually and as Trustees of NSSI Acquisition Trust Daniel Webster Keogh NSSI Acquisition Trust And NSSIDMS Houston, LLC

CourtCourt of Appeals of Texas
DecidedFebruary 14, 2023
Docket14-21-00180-CV
StatusPublished

This text of Shawn Deane Gruss, as Independent of the Estate of Maurita J. Gallagher And Nuclear Sources and Services, Inc. v. Gary W. Gallagher, Danielle Keogh, Brent R. Caldwell, and Diversified Management Services, LLC, Individually and as Trustees of NSSI Acquisition Trust Daniel Webster Keogh NSSI Acquisition Trust And NSSIDMS Houston, LLC (Shawn Deane Gruss, as Independent of the Estate of Maurita J. Gallagher And Nuclear Sources and Services, Inc. v. Gary W. Gallagher, Danielle Keogh, Brent R. Caldwell, and Diversified Management Services, LLC, Individually and as Trustees of NSSI Acquisition Trust Daniel Webster Keogh NSSI Acquisition Trust And NSSIDMS Houston, LLC) 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
Shawn Deane Gruss, as Independent of the Estate of Maurita J. Gallagher And Nuclear Sources and Services, Inc. v. Gary W. Gallagher, Danielle Keogh, Brent R. Caldwell, and Diversified Management Services, LLC, Individually and as Trustees of NSSI Acquisition Trust Daniel Webster Keogh NSSI Acquisition Trust And NSSIDMS Houston, LLC, (Tex. Ct. App. 2023).

Opinion

Dismissed in Part and Reversed and Rendered in Part and Opinion filed February 14, 2023.

In The

Fourteenth Court of Appeals

NO. 14-21-00178-CV NO. 14-21-00179-CV NO. 14-21-00180-CV

SHAWN DEANE GRUSS, AS INDEPENDENT EXECUTOR OF THE ESTATE OF MAURITA J. GALLAGHER; AND NUCLEAR SOURCES AND SERVICES, INC., Appellants

V. GARY W. GALLAGHER, DANIELLE KEOGH, BRENT R. CALDWELL, AND DIVERSIFIED MANAGEMENT SERVICES, LLC, INDIVIDUALLY AND AS TRUSTEES OF NSSI ACQUISITION TRUST; DANIEL WEBSTER KEOGH; NSSI ACQUISITION TRUST; AND NSSIDMS HOUSTON, LLC, Appellees

On Appeal from the Probate Court No. 3 Harris County, Texas Trial Court Cause Nos. 442,656, 442,656-401, and 442,656-402

OPINION In three consolidated appeals from identical interlocutory judgments rendered in three trial court cases, we conclude we have appellate jurisdiction over paragraphs 6 and 7 of the judgments under section 51.014(a)(4) of the Civil Practice and Remedies Code. We reverse the second sentence of paragraph 6 and paragraph 7 of the judgments, declare these parts of the judgments void for failure to fix the amount of security to be given, and order them dissolved. After concluding that the trial court erred in granting a motion to dissolve temporary injunction in the first sentence of paragraph 6 of the judgments, we reverse this sentence and render judgment denying the motion to dissolve. After determining that we lack appellate jurisdiction over paragraphs 3-5 of the judgments, we dismiss the fourth, fifth, sixth, and seventh issues for lack of jurisdiction. Because judicial efficiency does not militate against requiring the appellants to file a separate original proceeding, we do not treat the appellants’ brief as a petition for writ of mandamus. I. FACTUAL AND PROCEDURAL BACKGROUND

Appellant Nuclear Sources and Services, Inc. (the “Company”) is a closely held corporation founded by Robert Gallagher, the husband of Maurita Gallagher. The Company processes nuclear and other toxic waste chemicals. Before his death Robert owned 100% of the stock of the Company. Robert died on October 8, 2014, and the assets of his estate, including the Company stock, passed under the terms of his will to his surviving spouse Maurita.

Maurita died on August 25, 2015, and the stock of the Company became an asset of Maurita’s estate. Robert’s daughter, Shawn Gruss, qualified as Independent Executor of the Estate of Maurita Gallagher. Shawn asked her brother Gary W. Gallagher (“Gary”), son of Robert and a beneficiary of Maurita’s Estate, to assist Shawn in handling the Company.

On August 16, 2016, Shawn as Independent Executor of the Estate of

2 Maurita Gallagher (the “Executor”) and Gary as Member of the Board of Trustees of NSSI Acquisition Trust (“Acquisition Trust”), an entity created for the purpose of buying 100% of the outstanding common stock of the Company (the “Shares”), signed a Stock Purchase Agreement (the “Agreement”) effective as of May 1, 2016. The Agreement provided terms and conditions for Acquisition Trust to purchase the Shares from the Executor. The Agreement was signed in the offices of Brent R. Caldwell, a lawyer who represented the Executor when the Agreement was drafted and signed. Caldwell was also a member of the Company’s Board of Directors and a trustee of Acquisition Trust.

The Agreement provided that the aggregate purchase price for the Shares was $2,405,882.50 (the “Purchase Price”). It is undisputed that to date, Acquisition Trust has not paid the Executor any part of the Purchase Price. Various disputes arose relating to the Company, including a dispute between the Executor and Acquisition Trust as to the meaning of the Agreement’s language and as to whether the Independent Executor or Acquisition Trust owns the Shares.

The First Case In cause number 442,656 in Harris County Probate Court Number 3,1 Plaintiffs Sandra Bentley, Timothy Meyers, and Christina Meyers, beneficiaries of the Estate (the “Bentley Parties”), each individually and derivatively on behalf of the Company filed claims against the Executor, Gary, Daniel Webster Keough (Gary’s son-in-law), Danielle Keough (Gary’s daughter), Caldwell, Diversified Management Services, LLC (“Diversified”), Acquisition Trust, and NSSIDMS Houston, LLC (“NSSIDMS”). In this case (the “First Case”), the Bentley Parties asserted the following claims: (1) a declaratory judgment action against all

1 This cause number was assigned when the Executor filed an application to probate the will of Maurita Gallagher.

3 defendants seeking declarations that (a) the Agreement is void and unenforceable; (b) any purported sale of the Shares by the Executor without court approval is void; and (c) the Business Services Agreement, and Gary and Daniel’s Executive Employment Agreements are void as a matter of law; (2) breach-of-fiduciary-duty claims against Gary, Daniel, Caldwell, and Gruss; (3) waste of corporate asset claims against Gary, Daniel, and Caldwell; (4) an action to rescind certain transactions against Gary, Daniel, and Caldwell; (5) fraud claims against Gary, Acquisition Trust, and Diversified, (6) conversion claims against all defendants, (7) purported unjust enrichment claims against all defendants, (8) a request for a constructive trust against Diversified and NSSIDMS, (9) a request for appointment of a receiver for the Company, and (10) a request for the appointment of an auditor. The Executor settled the Bentley Parties’ claims against her, and the Bentley Parties assigned their claims against the other defendants to the Executor. In the First Case, the Executor also asserted a crossclaim against Caldwell, Gary, and Danielle as trustees of Acquisition Trust, seeking a declaration that the Estate of Maurita J. Gallagher (the “Estate”) is the lawful owner of the Shares. On August 13, 2019, the trial court signed a temporary injunction in the First Case enjoining Gary, Daniel, Danielle, Diversified, Acquisition Trust, and NSSIDMS from (1) holding themselves out as stockholders, officers, or directors of the Company, (2) taking any position contrary to the Company’s current Board of Directors, (3) taking any action in furtherance of a sale of the Company’s stock or assets, (4) making any withdrawals or authorizing any transfer of any funds from any bank or brokerage account of the Company, Diversified, or NSSIDMS, (5) taking any action as a shareholder of Acquisition Trust, and (6) engaging in any self-dealing transactions or transactions with interested parties under section 21.418 of the Texas Business Organizations Code. In this injunction, the trial court ordered the Company to suspend performance of all contracts with any of the 4 enjoined parties and ordered the enjoined parties not to take any action against the Company to enforce any purported contractual obligation of the Company without the trial court’s permission. The Second Case In Cause No.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

M.O. Dental Lab v. Rape
139 S.W.3d 671 (Texas Supreme Court, 2004)
CMH HOMES v. Perez
340 S.W.3d 444 (Texas Supreme Court, 2011)
Murphy v. McDaniel
20 S.W.3d 873 (Court of Appeals of Texas, 2000)
In Re Akin Gump Strauss Hauer & Feld, LLP
252 S.W.3d 480 (Court of Appeals of Texas, 2008)
Estate of Wright
676 S.W.2d 161 (Court of Appeals of Texas, 1984)
Hastings Oil Co. v. Texas Co.
234 S.W.2d 389 (Texas Supreme Court, 1950)
TEXAS STATE BOARD OF EXAMINERS IN OPTOMETRY v. Carp
343 S.W.2d 242 (Texas Supreme Court, 1961)
Cellular Marketing, Inc. v. Houston Cellular Telephone Co.
784 S.W.2d 734 (Court of Appeals of Texas, 1990)
Christensen v. Harkins
740 S.W.2d 69 (Court of Appeals of Texas, 1987)
Qwest Communications Corp. v. AT & T CORP.
24 S.W.3d 334 (Texas Supreme Court, 2000)
De Ayala v. MacKie
193 S.W.3d 575 (Texas Supreme Court, 2006)
Lehmann v. Har-Con Corp.
39 S.W.3d 191 (Texas Supreme Court, 2001)
Delta Air Lines, Inc. v. Norris
949 S.W.2d 422 (Court of Appeals of Texas, 1997)
Del Valle Independent School District v. Lopez
845 S.W.2d 808 (Texas Supreme Court, 1992)
Stary v. DeBord
967 S.W.2d 352 (Texas Supreme Court, 1998)
Crowson v. Wakeham
897 S.W.2d 779 (Texas Supreme Court, 1995)
State v. Cook United, Inc.
464 S.W.2d 105 (Texas Supreme Court, 1971)
the Office of the Attorney General of Texas v. Waddell Gordon Long
401 S.W.3d 911 (Court of Appeals of Texas, 2013)
City of Houston v. G.L.
560 S.W.3d 744 (Court of Appeals of Texas, 2018)
Estate of W. R. Durrill
570 S.W.3d 945 (Court of Appeals of Texas, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
Shawn Deane Gruss, as Independent of the Estate of Maurita J. Gallagher And Nuclear Sources and Services, Inc. v. Gary W. Gallagher, Danielle Keogh, Brent R. Caldwell, and Diversified Management Services, LLC, Individually and as Trustees of NSSI Acquisition Trust Daniel Webster Keogh NSSI Acquisition Trust And NSSIDMS Houston, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shawn-deane-gruss-as-independent-of-the-estate-of-maurita-j-gallagher-and-texapp-2023.