in the Estate of Marjorie A. Childs

ACCEPTED 04-15-00623-CV FOURTH COURT OF APPEALS 04-15-00623-CV SAN ANTONIO, TEXAS 10/2/2015 11:18:15 AM KEITH HOTTLE CLERK CAUSE NO. 2014–PC–0056 IN THE ESTATE OF § IN THE PROBATEFILED COURT IN 4th COURT OF APPEALS § SAN ANTONIO, TEXAS MARJORIE A. CHILDS, § NO. 2 10/2/2015 11:18:15 AM § KEITH E. HOTTLE DECEASED. § BEXAR Clerk COUNTY, TEXAS PETITION TO PERMIT AGREED INTERLOCUTORY APPEAL STRASBURGER & PRICE, L.L.P. BEN A. WALLIS LAW PC Judith R. Blakeway Ben A. Wallis, III State Bar No. 02434400 State Bar No. 24060793 Judith.Blakeway@strasburger.com 8200 IH 10 West #101 James Maverick McNeel San Antonio, Texas 78230 State Bar No. 24035491 Telephone: (210) 525–1500 James.McNeel@strasburger.com Facsimile: (210) 525–9323 David P. Stanush baw3@wallislawsa.com State Bar No.19056300 David.Stanush@strasburger.com ATTORNEYS FOR DEFENDANT Andrew L. Kerr SUSAN C. ADDISON State Bar No. 11339500 Andy.Kerr@strasburger.com Zachary C. Zurek State Bar No. 24079668 Zach.Zurek@strasburger.com 2301 Broadway San Antonio, Texas 78215 Telephone: (210) 250-6000 Facsimile: (210) 250-6100 ATTORNEYS FOR DEFENDANT PAMELA ANN CHILDS MCCASKILL 1963695.3/SPSA/34092/0101/100215 Table of Contents Table of Contents ...................................................................................................... ii Table of Authorities ................................................................................................. iii Parties ......................................................................................................................... 2 Statement of Facts ...................................................................................................... 3 Statement of Issues..................................................................................................... 5 Certificate of Service ................................................................................................. 8 ii 1963695.3/SPSA/34092/0101/100215 Table of Authorities Page(s) STATUTES TEX. CIV. PRAC. & REM. CODE § 51.014(d) ............................................................... 5 TEX. CIV. PRAC & REM. CODE § 51.014(d)(2) ........................................................... 5 TEX. CIV. PRAC. & REM. CODE § 51.014(e) ............................................................... 1 RULES TEX. R. APP. P. 25.1(d)(6) .......................................................................................... 1 TEX. R. APP. P. 28.2(c)(7) .......................................................................................... 5 TEX. R. APP. P. 28.2(c)(2) .......................................................................................... 1 TEX. R. APP. P. 28.2(c)(3) .......................................................................................... 1 TEX. R. APP. P. 28.2(e)(2) .......................................................................................... 1 TEX. R. APP. P. 28.2(f)................................................................................................ 1 TEX. R. APP. P. 28.3(c) ............................................................................................... 1 iii 1963695.3/SPSA/34092/0101/100215 PETITION TO PERMIT AGREED INTERLOCUTORY APPEAL TO THE HONORABLE COURT: 1. Defendants Pamela Ann Childs McCaskill and Susan Childs Addison desire to appeal from the interlocutory order signed by the Court on September 18, 2015. 2. The Court signed a written order granting permission to file this agreed interlocutory appeal on September 18, 2015. 3. The parties have agreed to the Court’s entering an agreed order granting permission for an interlocutory appeal. 4. Defendants appeal to the Fourth Court of Appeals. 5. The appeal of this case is an accelerated appeal. TEX. R. APP. P. 25.1(d)(6). 6. This petition to permit agreed interlocutory appeal is filed within 15 days of the date the trial court signed the order granting permission to file this appeal. TEX. R. APP. P. 28.3(c). 7. A copy of this petition to permit agreed interlocutory appeal has been served on all parties to the trial court proceeding, and a docketing statement will be filed in the court of appeals. 8. A copy of the order signed on September 18, 2015 from which appeal is taken, granting permission to appeal and staying the trial court proceedings 1963695.3/SPSA/34092/0101/100215 pending resolution of this agreed interlocutory appeal, is attached as Exhibit A. TEX. R. APP. P. 28.2(c)(2), (c)(3), (e)(2), (f); TEX. CIV. PRAC. & REM. CODE §51.014(e). Parties 9. The parties to the trial-court proceeding and their trial and appellate attorneys are the following: Attorneys for Plaintiff Mollie Allen Attorneys for Defendant Childs: Susan Kaye Childs Addison: Rudy A. Garza Ben A. Wallis, III rugar@hfgtx.com State Bar No. 24060793 Charles M. Hornberger BEN A. WALLIS LAW PC boxy@hfgtx.com 8200 IH 10 West #101 David Jed Williams San Antonio, Texas 78230 jwilliams@hfgtx.com Telephone: (210) 525–1500 Stephanie L. Curette Facsimile: (210) 525–9323 scurette@hfgtx.com baw3@wallislawsa.com HORNBERGER SHEEHAN FULLER & GARZA, INC. The Quarry Heights Building 7373 Broadway, Suite 300 San Antonio, Texas 78209 Telephone: (210) 271–1700 Facsimile: (210) 271–1730 2 1963695.3/SPSA/34092/0101/100215 Attorneys for Defendant Pamela Ann Childs McCaskill: James Maverick McNeel State Bar No. 24035491 James.McNeel@strasburger.com Judith R. Blakeway State Bar No. 02434400 Judith.Blakeway@strasburger.com David P. Stanush State Bar No.19056300 David.Stanush@strasburger.com Andrew L. Kerr State Bar No. 11339500 Andy.Kerr@strasburger.com Zachary C. Zurek State Bar No. 24079668 Zach.Zurek@strasburger.com STRASBURGER & PRICE, LLP 2301 Broadway San Antonio, Texas 78215 Telephone: (210) 250-6000 Facsimile: (210) 250-6100 10. The parties have agreed that the appeal involves controlling questions of law on which there is substantial ground for difference of opinion and that an immediate appeal may materially advance the ultimate termination of this litigation. Statement of Facts 11. Specifically, this case involves the enforcement of a contract between the parties, entered into by them as heirs of the estate of their mother (Marjorie Childs), in an effort to equalize assets they expected to receive as beneficiaries of 3 1963695.3/SPSA/34092/0101/100215 her estate. The case also involves claims against Mollie Childs in her various fiduciary roles as power of attorney, trustee and executrix. 12. The parties (three sisters) are the only beneficiaries of their mother’s estate. Prior to their mother’s death, they entered into a contract dividing up accounts created as a result of the sale of stock inherited by their mother from their grandmother. At the time the accounts were set up, they were titled as life estate accounts in hopes that the funds would be treated as part of a valid life estate, so they would not be taxable as part of Marjorie’s estate. There was considerable doubt as to the validity of the life estate, but there was an attempt to treat the funds that way, based on the intent in their grandmother’s Will and because of the tax benefits that would inure to the parties. However, the contract is not contingent on any finding that a life estate exists or not, as argued by Mollie. Rather, the material terms are a division of two accounts in a way that is different than an equal split as they might expect as heirs of the estate. 13. Mollie claims that there is insufficient consideration for the agreement—which she, as an attorney, helped draft. As shown by the evidence, Appellants disagree because the consideration is (1) forbearance from suit against Mollie; and (2) giving up certain expectancy rights as heirs of their mother’s estate in the two accounts. 4 1963695.3/SPSA/34092/0101/100215 14. Secondly, Mollie claims that the contract should be rescinded because the parties were all under a mutual mistake of fact as to the existence of a life estate. Appellants disagree because there is considerable evidence to reflect that (1) if any mistake occurred, it was not mutual; (2) if there was a mistake, it was not material—not even a term of the agreement; and (3) the mistake—if there was one—is a mistake of law (the interpretation of language in a Will), not a mistake of fact. 15. Initially, the trial court denied Mollie’s motion for summary judgment. Mollie then filed a motion for reconsideration. Upon rehearing, the trial court granted Mollie Childs’ motion for summary judgment and denied Pamela Ann McCaskill Childs’ motion for summary judgment. Statement of Issues 16. The controlling questions of law presented in this appeal are (1) whether a mistake that a will created a life estate is a mistake of law or a mistake of fact, and if there is a mistake of fact, whether a contract between the parties can be rescinded by summary judgment, (2) whether there was sufficient consideration to support the validity of a contract where there was a threat of litigation and the parties negotiated away their expectancy interest as heirs of an estate, or (3) whether a fact issue exists that precludes summary judgment. 5 1963695.3/SPSA/34092/0101/100215 17. An immediate appeal may materially advance the ultimate termination of this litigation because the contract is the primary issue determining the parties' inheritance rights as beneficiaries of the estate. In addition, determination of (1) the validity of the contract and (2) whether a contract between the parties can be rescinded by summary judgment, will likely result in limiting or eliminating litigation on the remaining issues between the parties, as the funds subject to the contract are the only remaining “estate” funds in dispute. So, resolution of the contract validity could very well resolve the other pending issues in the case. TEX. R. APP. P. 28.2(c)(7); see TEX. CIV. PRAC & REM. CODE §51.014(d)(2). WHEREFORE, Defendants pray that the Court pursuant to the Civil Practice & Remedies Code §51.014(d) enter an order permitting appeal from the court’s order on the cross-motions for summary judgment. 6 1963695.3/SPSA/34092/0101/100215 RESPECTFULLY SUBMITTED, STRASBURGER & PRICE, L.L.P. BEN A. WALLIS LAW PC By: /s/ Judith R. Blakeway By: Ben A. Wallis, III Judith R. Blakeway Ben A. Wallis, III State Bar No. 02434400 State Bar No. 24060793 Judith.Blakeway@strasburger.com 8200 IH 10 West #101 James Maverick McNeel San Antonio, Texas 78230 State Bar No. 24035491 Telephone: (210) 525–1500 James.McNeel@strasburger.com Facsimile: (210) 525–9323 David P. Stanush baw3@wallislawsa.com State Bar No.19056300 David.Stanush@strasburger.com ATTORNEYS FOR DEFENDANT Andrew L. Kerr SUSAN C. ADDISON State Bar No. 11339500 Andy.Kerr@strasburger.com Zachary C. Zurek State Bar No. 24079668 Zach.Zurek@strasburger.com 2301 Broadway San Antonio, Texas 78215 Telephone: (210) 250-6000 Facsimile: (210) 250-6100 ATTORNEYS FOR DEFENDANT PAMELA ANN CHILDS MCCASKILL 7 1963695.3/SPSA/34092/0101/100215 CERTIFICATE OF SERVICE I hereby certify that on the 2d day of October, 2015, a true and correct copy of the above and foregoing Petition to Permit Agreed Interlocutory Appeal has been transmitted in accordance with the requirement of the Texas Rules of Civil Procedure, addressed as follows: Rudy A. Garza Ben A. Wallis, III rugar@hfgtx.com BEN A. WALLIS LAW PC Charles M. Hornberger 8200 IH 10 West #101 boxy@hfgtx.com San Antonio, Texas 78230 David Jed Williams baw3@wallislawsa.com jwilliams@hfgtx.com Stephanie L. Curette Attorneys for Defendant scurette@hfgtx.com Susan Kaye Childs Addison HORNBERGER SHEEHAN FULLER & GARZA, INC. The Quarry Heights Building 7373 Broadway, Suite 300 San Antonio, Texas 78209 Telephone: (210) 271–1700 Facsimile: (210) 271–1730 Attorneys for Plaintiff Mollie Allen Childs /s/ Judith R. Blakeway JUDITH R. BLAKEWAY 8 1963695.3/SPSA/34092/0101/100215