Victor Antolik v. Dennis Antolik

CourtCourt of Appeals of Texas
DecidedAugust 31, 2021
Docket07-20-00281-CV
StatusPublished

This text of Victor Antolik v. Dennis Antolik (Victor Antolik v. Dennis Antolik) 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
Victor Antolik v. Dennis Antolik, (Tex. Ct. App. 2021).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo ________________________

No. 07-20-00281-CV ________________________

VICTOR ANTOLIK, APPELLANT

V.

DENNIS ANTOLIK, APPELLEE

On Appeal from the 261st District Court Travis County, Texas Trial Court No. D-1-GN-20-003056; Honorable Dustin M. Howell, Presiding

August 31, 2021

MEMORANDUM OPINION Before QUINN, C.J., and PIRTLE and DOSS, JJ.

Appellant, Victor Antolik, appeals from the trial court’s Order Granting in Part and

Denying in Part Defendant Dennis Antolik’s Rule 91a Motion to Dismiss.1 By a single

issue, he contends the trial court erred in partially granting the motion because his

1 Appellee, Dennis Antolik, passed away on November 4, 2020, and Victor filed a Suggestion of Death. Rule 7.1(a)(1) of the Texas Rules of Appellate Procedure permits the deceased party’s name to be used on all papers. TEX. R. APP. P. 7.1(a)(1). pleading demonstrates there is a basis in law under the Rule 91a standard supporting his

cause of action.2 See TEX. R. CIV. P. 91a. We affirm.

BACKGROUND

Dennis and Victor are brothers. Dennis owned and operated Cheval Manor, LLC,

a polo facility. In 2014, Cheval Manor filed for bankruptcy protection and sold its facility

to Victory Cheval Holdings, LLC, a company owned forty-nine percent by Victor and fifty-

one percent by Garrett Jennings. Pursuant to the sale, Dennis was to receive a leaseback

of the facility to operate equine activities.

After a dispute arose regarding the leaseback, Victory Cheval filed suit against

Victor and Dennis. The parties reached a settlement wherein Jennings agreed to

purchase Victor’s interest in Victory Cheval for $1.4 million. The settlement was

memorialized in a Mediation Agreement followed by an Escrow Agreement. According

to the Escrow Agreement, Jennings would pay $750,000 with certified funds and execute

a promissory note for the remaining $650,000. Dennis agreed to waive any claims against

Jennings. The Escrow Agreement was signed by both Dennis and Victor.

According to Dennis, he and Victor had an oral agreement to split the proceeds of

the $1.4 million. Dennis asserted he was to receive a total of $600,000 with an initial

installment of $200,000 and $400,000 at a later date when Jennings paid the balance

2 Originally appealed to the Third Court of Appeals, sitting in Austin, this appeal was transferred to

this court by the Texas Supreme Court pursuant to its docket equalization efforts. TEX. GOV’T CODE ANN. § 73.001 (West 2013). Should a conflict exist between precedent of the Third Court of Appeals and this court on any relevant issue, this appeal will be decided in accordance with the precedent of the transferor court. TEX. R. APP. P. 41.3.

2 due. It is undisputed that Victor paid Dennis $200,000. However, the remaining $400,000

was not paid and Dennis filed suit against Victor for the balance.

Subsequent to the sale of Victory Cheval, Victor was convicted of tax fraud and

went to prison. As part of his presentencing disclosure, he represented in a disclosure of

assets that he owed Dennis $250,000. When Dennis filed suit, Victor was incarcerated

and initially, he represented himself. He filed a motion for continuance which the trial

court denied for not being in writing nor supported by affidavit. Victor eventually obtained

counsel to represent him at trial.

The case proceeded to trial before the bench and Victor participated by phone. At

trial, Dennis introduced Plaintiff’s Exhibit 34 without any objection from Victor’s counsel.

The exhibit is a document entitled simply “Agreement.” Paragraph 3(a) provides in part,

as follows:

Jennings’ payment to Antoliks of $1.4 million, payable $750,000 in cash within thirty (30) days of exercising such option and delivery of a promissory note in the principal amount of $650,000, with interest . . . with a balloon payment of all unpaid principal and interest on the first anniversary of the note, guaranteed by Garrett Jennings . . . .

(Emphasis added). The Agreement is undated and is signed by Victor, Dennis, and

Jennings. Victor claims the Agreement is a forgery and challenges it partly because the

signature page is on a sheet of notebook paper unlike the first two pages of the

Agreement.3 Dennis claims the Agreement is in fact the Mediation Agreement that

resulted from the parties reaching a settlement. Following the presentation of evidence,

3 Victor had a handwriting expert review the Agreement but the expert’s report was not a part of the trial record.

3 judgment was rendered in favor of Dennis for $250,000 on July 2, 2018. After Victor’s

motion for new trial was denied, he appealed the judgment.

In affirming the trial court’s judgment, the Texarkana Court of Appeals found there

was sufficient evidence to show that Dennis and Victor had an enforceable oral

agreement, which Victor breached, to split the proceeds of the sale of Victory Cheval with

$600,000 payable to Dennis and $400,000 remaining unpaid. See Antolik v. Antolik, No.

06-18-00096-CV, 2019 Tex. App. LEXIS 3869, at *1 (Tex. App.—Texarkana May 15,

2019, pet. denied) (mem. op.).4 After the decision from the Texarkana Court of Appeals

became final, Victor filed his Original Petition for Bill of Review and Request for

Disclosure. Two months later, on August 21, 2020, he filed his First Amended Petition

for Bill of Review in the trial court seeking review of the July 2, 2018 judgment in favor of

Dennis. By his amended pleading and exhibits thereto, he alleged that Dennis obtained

a favorable judgment due to a fraudulent document (the Agreement) which, due to his

incarceration, he was unable to see until he obtained a copy of the appellate record. In

his amended petition for bill of review and in support of his argument that he and Dennis

did not have an agreement to split the proceeds of the sale, Victor references paragraph

4.01 of the Escrow Agreement as an incorporation clause that specifically provided “there

were no other agreements between the parties.” Section 4.01 provides, in part, as

follows:

1.04 OWNERSHIP/USE: Subject to the terms hereof, including without limitation, limitations on voluntary or involuntary use, hypothecation or transfer, the Escrow Deposit shall remain the exclusive property of the

4 The decision from the Texarkana Court of Appeals was included as an exhibit to the Rule 91a motion to dismiss.

4 Seller until disbursed in accordance with this Escrow Agreement, save and except that Seller shall be deemed the owner and holder of the $650,000 Promissory Note in the event of default by Purchaser under either the $650,000 Note or the Deed of Trust Securing same and/or in the event Seller is obliged to file suit for any default by Purchaser. The Escrow Agent shall not have the power to use, transfer, or otherwise dispose of the Escrow Deposit except as provided in this Agreement. The Escrow Agent shall not give, provide, transfer, or otherwise make available the funds in the Escrow Deposit or any other documents in escrow to any party without the express written consent of both parties, unless otherwise directed by a court of competent jurisdiction.

A. The parties agree that the funds and property in the Escrow Deposit shall not be used as collateral or security for any purpose.

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