Sheshunoff v. Sheshunoff

172 S.W.3d 686, 2005 WL 1787565
CourtCourt of Appeals of Texas
DecidedAugust 22, 2005
Docket03-04-00395-CV
StatusPublished
Cited by70 cases

This text of 172 S.W.3d 686 (Sheshunoff v. Sheshunoff) 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
Sheshunoff v. Sheshunoff, 172 S.W.3d 686, 2005 WL 1787565 (Tex. Ct. App. 2005).

Opinion

OPINION

BOB PEMBERTON, Justice.

The principal issue in this case concerns the enforceability of a marital property agreement. See Tex. Fam.Code Ann. § 4.105 (West 1998). Applying section 4.105 to the defensive theories that were timely raised in this case, we affirm the district court’s judgment enforcing the agreement.

BACKGROUND

The Marital Property Agreement

Appellant Alexander Sheshunoff and Appellee Gabrielle Sheshunoff were married in 1971. Before their marriage, the couple entered into an agreement governing various rights and obligations relating to their marital property, and they devised a new one in 1990. Beginning in 2002, the couple, each with assistance of several attorneys, accountants, and other professional advisors, began negotiating an elaborate thirty-seven page Marital Property Agreement that addressed the couple’s respective rights to their substantial marital assets. They eventually executed the Agreement in February 2003. In April 2003, Ms. Sheshunoff filed for divorce and sought the benefit of the agreed-upon property division.

The circumstances surrounding the formation of the Agreement are at the root of the present controversy. According to Mr. Sheshunoff, the Agreement shifted large amounts of the couple’s marital assets to Ms. Sheshunoff and large amounts of marital liabilities to him for tax and *689 estate planning purposes. Mr. Sheshunoff asserts that, throughout the negotiations, he had understood and intended that this arrangement was solely to achieve tax and estate planning benefits and that neither party had any intention to actually divorce. Mr. Sheshunoff claims that Ms. Sheshunoff and her lawyers misled him to believe that she shared this intent when, in fact, she was plotting to file for divorce (and avail herself of the highly favorable property division) once she persuaded him to sign the agreement. Ms. Sheshunoff denies these allegations.

Proceedings in the district court

On July 1, 2003, Ms. Sheshunoff filed a no-evidence motion for partial summary judgment to “declare the February 8, 2003, ‘Marital Property Agreement’ executed by and between the parties fully enforceable.” On July 15, Mr. Sheshunoff filed an answer 1 containing a general denial and the affirmative defenses that (1) “ALEXANDER AUSTIN SHESHU-NOFF did not sign the agreement voluntarily but under duress and fraud,” and (2) “[t]he agreement was unconscionable when it was signed” because Ms. Sheshunoffs financial obligations were not disclosed and because he was not aware that Ms. Shesh-unoff intended to file for divorce when he signed the Agreement. 2 As we discuss in detail below, involuntary execution and un-eonscionability (coupled with inadequate disclosure of marital property information) are the only two defenses to marital property agreements that are specified in the family code. See Tex. Fam.Code Ann. § 4.105(a)(1), (2). On July 23, Mr. Sheshu-noff filed a response to Ms. Sheshunoffs partial summary-judgment motion. Among other grounds for denial, he asserted (1) involuntary execution of the Marital Property Agreement; and (2) unconsciona-bility and lack of disclosure. See id. With regard to his involuntary execution defense, he claimed to offer “evidence that created a genuine issue of material fact that his consent to the Agreement was not voluntary, because it was obtained by conduct that amounted to fraud and duress.”

On September 29, the district court granted Ms. Sheshunoffs motion for partial summary judgment without specifying the grounds. 3 Several months later, in late spring of 2004, 4 Mr. Sheshunoff amended his answer to raise several new affirmative defenses against the enforcement of the Marital Property Agreement *690 and, for the first time, asserted counterclaims. He then filed a jury demand. As further amended, his pleadings ultimately stated the following affirmative defenses, in addition to his original defenses:

• want of consideration;
• breach of fiduciary duty, by inducing Mr. Sheshunoff into the Marital Property Agreement “under false pretenses”;
• fraudulent inducement into the Marital Property Agreement through misrepresentations regarding a claimed collateral agreement to convey the “Maine Property” (as defined in the Agreement) into trust for the benefit of their children;
• fraudulent inducement into the Marital Property Agreement through misrepresentations regarding a claimed collateral agreement that the Magnolia Property and Arcade Land Management Company would be Mr. Sheshu-noffs separate property and would be available as a source of payments on the Draw Note (all also as defined in the Agreement);
• fraudulent inducement into the Marital Property Agreement through misrepresentations that the Agreement was intended solely to be an estate-planning and tax-planning device;
• section 4.105 of the family code, by barring all defenses to the enforcement of the Marital Property Agreement not enumerated in that provision, violates Texas and federal constitutional protections including due process and due course of law, separate and community property, and impairment of obligations of contracts.
Mr. Sheshunoff asserted the following counterclaims:
• divorce;
• reformation, specific performance, breach of contract damages, or rescission with regard to the Maine Property;
• reformation, specific performance, breach of contract damages, or rescission with regard to the Magnolia Property and the Arcade Land Management Company;
• damages for fraudulent inducement related to an alleged representation that the Marital Property Agreement was intended solely to be an estate and tax-planning device;
• damages for breach of fiduciary duty related to an alleged representation that the Marital Property Agreement was intended solely to be an estate and tax-planning device;
• damages for fraudulent inducement regarding the Maine Property;
• damages for fraudulent inducement regarding the Magnolia Property and Arcade Land Management Company.

On May 4, 2004, Ms. Sheshunoff filed a traditional motion for summary judgment claiming that the Agreement left no community estate to be divided and that the court should render judgment in accordance with that property division.

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Cite This Page — Counsel Stack

Bluebook (online)
172 S.W.3d 686, 2005 WL 1787565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheshunoff-v-sheshunoff-texapp-2005.