Estate of Lee Roy Hoskins Sr.
13-15-00487-CV
Tex. App.Nov 10, 2015Background
- Lee Roy “Cowboy” Hoskins, Sr.’s will created two testamentary trusts (Marital Deduction Trust and Residuary Trust) for the benefit of his wife Hazel; Hazel was originally executrix and trustee but resigned in 2014 and successor trustees were appointed.
- Multiple family members have long‑running disputes; Len (a beneficiary) pursued arbitration in which an arbitrator earlier appointed Marcus Rogers as receiver of the Trust assets; that arbitration was later abated.
- In county court, three grandchildren (Movants) moved to appoint Marcus Rogers receiver of the two Trusts, invoking Tex. Prop. Code §114.008, Tex. Civ. Prac. & Rem. Code ch. 64, and equity; they asserted trustees lacked funds to prosecute potential trust claims.
- The trial court held a hearing (no evidence was admitted; counsel argued and later filed briefs) and signed an interlocutory Order Appointing Receiver directing Rogers to prepare a report; the order did not empower Rogers to file suit absent further order.
- Appellants (Cliff Hoskins and Hoskins, Inc.) appealed, arguing the appointment was unsupported by evidence or statutory/equitable authority and that Rogers is disqualified because he was being paid by a party (Len).
Issues
| Issue | Movants' Argument | Appellants' Argument | Held (trial‑court action / posture) |
|---|---|---|---|
| Whether a receiver may be appointed without evidentiary support | Receiver appropriate based on counsel argument and perceived need (trustees lack resources; efficiency) | Appointment is an extraordinary remedy; no evidence was offered to justify it | Trial court appointed receiver after hearing where no evidence was admitted; interlocutory appeal filed contesting abuse of discretion |
| Whether Tex. Prop. Code §114.008 (remedy breach of trust) authorizes receivership | Statute allows receiver to remedy breaches of trust; receiver needed to pursue trust claims | Movants admitted current trustees are not accused of wrongdoing; §114.008 targets current trustees and is inapplicable when alleged misconduct (if any) is by former trustee | Trial court relied in part on statutory authority; appellants contend statute does not authorize relief sought |
| Whether Tex. Civ. Prac. & Rem. Code §64.001 authorizes receivership (esp. subsection (a)(3) or (a)(6)) | Chapter 64 and equity permit appointment to protect joint interests and pursue claims | No showing property is in danger of being lost/removed/injured under (a)(3); (a)(6) (equity) cannot be used to evade express statutory prerequisites | Trial court granted receivership; appellants argue failure to prove §64.001 elements and misuse of equity powers |
| Whether Marcus Rogers is disqualified because of financial interest | Movants relied on prior arbitrator appointment and asserted payment arrangement justified recognition | Appellants assert Rogers is not disinterested: he was paid by Len, creating bias and disqualification under receivership rules | Trial court appointed Rogers; appellants argue statutory disqualification and seek vacatur on that ground |
Key Cases Cited
- Bocquet v. Herring, 972 S.W.2d 19 (Tex. 1998) (abuse‑of‑discretion standard and limits on trial court discretion)
- Elliott v. Weatherman, 396 S.W.3d 224 (Tex. App.—Austin 2013) (appointment of receiver reviewed for abuse of discretion; need for evidentiary support)
- Krumnow v. Krumnow, 174 S.W.3d 820 (Tex. App.—Waco 2005) (receivership is drastic and must be supported by evidence)
- Hughes v. Marshall Nat’l Bank, 538 S.W.2d 820 (Tex. Civ. App.—Tyler 1976) (no receiver can be appointed without legal evidence of necessity)
- Grinnell v. Munson, 137 S.W.3d 706 (Tex. App.—San Antonio 2004) (beneficiaries may enforce trust claims when trustee will not or cannot)
- Interfirst Bank‑Houston, N.A. v. Quintana Petroleum Corp., 699 S.W.2d 864 (Tex. App.—Houston [1st Dist.] 1985) (duties of trustees and when beneficiaries may act)
- Spiritas v. Davidoff, 459 S.W.3d 224 (Tex. App.—Dallas 2015) (standard of review for receivership orders)
