Zachariah C. Manning v. Gloria B. Jones

CourtCourt of Appeals of Texas
DecidedDecember 4, 2019
Docket05-18-01140-CV
StatusPublished

This text of Zachariah C. Manning v. Gloria B. Jones (Zachariah C. Manning v. Gloria B. Jones) 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
Zachariah C. Manning v. Gloria B. Jones, (Tex. Ct. App. 2019).

Opinion

Affirm and Opinion Filed December 4, 2019

In The Court of Appeals Fifth District of Texas at Dallas No. 05-18-01140-CV

ZACHARIAH C. MANNING, Appellant V. GLORIA B. JONES, Appellee

On Appeal from the 301st Judicial District Court Dallas County, Texas Trial Court Cause No. DF-17-15897

MEMORANDUM OPINION Before Justices Pedersen, III, Reichek, and Carlyle Opinion by Justice Pedersen, III This case arose from the appointment of a receiver to maintain, and to sell, a marital asset

in connection with a divorce proceeding. The husband of the divorcing couple sued the receiver,

alleging (i) breach of a management agreement between the husband and the receiver, and

(ii) quantum meruit. The receiver filed a motion for summary judgment based on the doctrine of

derived judicial immunity, and the district court granted the motion and rendered a take-nothing

judgment against the husband. We affirm. BACKGROUND

Zachariah Manning (Manning) and Monica Fletcher (Fletcher) divorced in 2015.1 Their

divorce case was tried in Dallas County District Court. The trial focused, among other issues, on

the disposal of a multi-use building located at 110 E. Main St., Grand Prairie, Texas (the Property).

The Property was acquired during the couple’s marriage through Trans Financial, LLC, a company

that Manning started, also during the marriage.

Jones’s Appointment as Receiver

The district court determined the Property was community property and ordered that it be

sold. On June 13, 2015, Manning, on behalf of Trans Financial, hired Berkshire Hathaway

Homeservices, a real estate brokerage firm, to sell the Property. Manning refers to Berkshire

Hathaway as Penfed Realty, LLC d/b/a Prudential Penfed Realty (Penfed), and we, too, will adopt

this nomenclature. Gloria Jones, a real estate agent sponsored by Penfed, signed the listing

agreement on its behalf.2 The agreement required Penfed to list the Property at a gross sales price

of $795,000 and to sell the Property at this price or at any other price acceptable to Trans Financial.

Fletcher filed a motion for the appointment of a receiver to take charge and possession of

the Property. In connection with this motion, Manning allegedly asked Jones if she were qualified

to serve as, and had an interest in serving as, the receiver. He claims that Jones materially

misrepresented her qualifications, thereby inducing him and Fletcher to agree that Jones should

serve as the receiver. On June 17, the district court signed an order appointing Jones as receiver to

take charge and possession of the Property. See TEX. FAM. CODE ANN. § 6.502(a)(5) (permitting

court, during pendency of suit for dissolution of marriage, to render an appropriate order

appointing receiver for preservation and protection of property of parties); Shultz v. Shultz, No.

1 Fletcher took the surname Manning during the couple’s marriage, but she has since changed her surname to Fletcher. 2 Jones has known Manning and Fletcher for a long time and was their real estate agent in several transactions during their marriage.

–2– 05-18-00876-CV, 2019 WL 2511245, at *2 (Tex. App.—Dallas June 18, 2019, no pet.) (mem. op.)

(noting that a trial court’s “broad authority” to divide martial property upon dissolution of marriage

“sometimes includes the power to enlist the aid of a receiver to effectuate the . . . court’s orders

and judgments” (citing, inter alia, FAM. CODE § 7.001)). The order states that “Jones is qualified

to serve as Receiver.” It also vests her with “full power and authority” to (i) manage and maintain

the Property; (ii) collect rents; (iii) pay expenses; and (iv) take any other action that, in her

judgment, is necessary for carrying out and discharging her duties. In addition, the order notes that

“the receiver may designate Mr. Manning as the person responsible for the day to day management

of the Property.” Finally, the order requires Jones to list the Property as soon as practicable,

empowers her to sell the Property, and mandates that she distribute the net sales proceeds “in

accordance with the provisions therefor” in the divorce decree.

Efforts to Maintain, and to Sell, the Property

Pursuant to the court’s order, Jones listed the Property on the multiple listing service

(MLS). The parties focus on different aspects of the steps that Jones took, or did not take, to sell

the Property. Manning alleges that he, not Jones, handled showings and provided access to the

Property. In contrast, Jones avers that she showed the Property to buyers on several occasions but

that no one was interested in purchasing it at the price at which it was listed.

Jones and Manning also signed an agreement, pursuant to which Manning would carry out

Jones’s powers under the June 17 order to manage the Property. Under the terms of the agreement,

referred to herein as the Management Agreement, Jones would compensate Manning $1,050 per

month from the Property’s monthly rents when collected. Manning claims that, in accordance with

the Agreement, he managed and maintained the Property, collected rents, paid expenses, loaned

the Property money, and took other actions necessary for carrying out the Agreement.

–3– According to Jones, the Property’s operating income was insufficient to pay Manning’s

management fee. She attributes this lack of income to the Property’s substandard condition and its

limited available parking, which prompted tenants to leave. On May 5, 2016, Jones accepted a

$360,000 purchase offer for the Property, and the Property sold on or about July 29 of the same

year. Manning submitted his expense receipts and compensation invoices for payment pursuant to

the Management Agreement. He alleges that Jones sent an e-mail to him dated July 27, 2016,

copying Fletcher’s attorney, in which Jones agreed with the compensation and reimbursement

sought by Manning under the Agreement. Moreover, in an August 17, 2016 telegram, Jones agreed

that Manning should be reimbursed and compensated, but she also stated that there might not be

“enough funds to cover all expense[s]” given that “the rental rates declined from December 2015.”

Thereafter, in response to an objection by Fletcher, Jones purportedly retracted her agreement with

respect to the amount that Manning was owed, though she continued to acknowledge that Manning

was entitled to compensation. Manning claims that Jones then became distant and refused to return

his phone calls or text messages. After closing, Jones deducted a six percent broker’s commission

and deposited the balance of the sales proceeds into the court’s registry. In other words, she

deducted her commission but did not pay Manning. Following a hearing at which Jones testified,

the district court distributed the proceeds.

Manning’s Lawsuit

In February 2017, Manning sued (i) Jones; (ii) Penfed; and (iii) an officer of Penfed,

Richard Ray Wylie. Manning asserted three causes of action against all defendants,3 one against

Jones,4 and one against Penfed.5 These claims sounded in tort and arose from, among other acts or

3 Negligence, gross negligence, and breach of fiduciary duties. 4 Fraudulent misrepresentation. 5 Vicarious liability.

–4– omissions, Jones’s alleged misrepresentations that she was qualified to serve as receiver, the

defendants’ sale of the Property for less than its fair market value, and their failure to refrain from

engaging in conflicts of interest.

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