Magana v. Citibank, N.A.
454 S.W.3d 667
Tex. App.2014Background
- Philippe Rene and Ana were signatories on three New York-based Citibank/Citigroup accounts held by their father, Philippe Otto Nottebohm Dekkers (Dekkers); total deposits ≈ $4 million at his death in May 2011.
- Dekkers’ April 2011 will (probated uncontested) directed the three accounts be split equally between the two children; Ana was appointed executor.
- In May 2011, while terminally ill, Dekkers became incapacitated; Philippe Rene transmitted a May 18 note and a May 19 form seeking to remove Ana as a signatory; Citibank froze the accounts for dispute and refused removal without all owners’ signatures.
- Philippe Rene later wrote a $2.5M check to himself that was not paid; he amended his suit shortly before trial to claim the funds belonged to Mercantil Murcia, a Mexican corporation he controlled, and Mercantil Murcia intervened.
- At trial the jury found: no constructive trust in favor of Mercantil Murcia; Dekkers lacked capacity and was unduly influenced re: the May documents; Philippe Rene tortiously interfered with Ana’s inheritance; Ana awarded damages and substantial fees; court declared the checking and savings accounts joint with right of survivorship and the investment account part of the estate.
Issues
| Issue | Plaintiff's Argument (Philippe Rene / Mercantil Murcia) | Defendant's Argument (Ana / Citibank) | Held |
|---|---|---|---|
| 1. Court reporter's lost certification/new trial | Lost certification = no valid reporter’s record → new trial required | Record exists: voluminous reporter’s record certified by successor; no significant portion lost or harmful inaccuracies shown | Overruled — no new trial; appellants not harmed and remedies lay with certification board, not automatic retrial |
| 2. Admission of testimony allegedly barred by Dead Man’s Rule | Jorge Halvas’ testimony about Dekkers’ oral statements violated Rule 601(b) and was inadmissible | Evidence was cumulative (Ana’s testimony, the will) and any error was harmless | Overruled — even if error, admission was cumulative and not harmful |
| 3. Sufficiency of evidence re: constructive trust and other jury findings | Ledger and Philippe Rene’s testimony proved accounts were Mercantil Murcia’s → constructive trust; other findings erroneous | Documentary and expert evidence (W-8BENs, Mexican tax/financial records, bank witness) contradicted that theory; NY law protects joint-owner interest | Overruled — factual sufficiency supports jury verdict; constructive trust not shown; capacity/undue-influence findings immaterial to survivorship under NY law |
| 4. Misc. legal rulings: survivorship of investment account; refusal to order payment of $2.5M check; attorneys’ fees | Investment account was joint; Ana removed May 19; bank should pay check; appellants entitled to fees under Declaratory Judgment Act | Investment account governed by different agreement and trial court found it part of estate; Citibank procedures required all owners’ signatures; plaintiffs dismissed claims against Citibank; trial court equitably awarded fees to Ana | Overruled — trial court did not err: investment account not joint; Ana remained owner; no relief compelling Citibank to pay; fee award to Ana upheld as equitable and within probate authority |
Key Cases Cited
- Huffman v. Huffman, 339 S.W.2d 885 (Tex. 1960) (will controls testator intent; written will ambulatory and revocable pre-death)
- Cain v. Bain, 709 S.W.2d 175 (Tex. 1986) (standard for factual-sufficiency review)
- Golden Eagle Archery, Inc. v. Jackson, 116 S.W.3d 757 (Tex. 2003) (jury as sole judge of witness credibility)
- Brown v. Bowery Sav. Bank, 415 N.E.2d 906 (N.Y. 1980) (joint account owner obtains immediate proportionate interest; cannot be divested by unilateral removal)
- In re Covert, 761 N.E.2d 571 (N.Y. 2001) (New York law recognizing immediate interest of joint account holders)