Robert v. Buck and Queen Isabella Development Joint Venture v. G. J. Palmer, Jr.
381 S.W.3d 525
| Tex. | 2012Background
- The Queen Isabella Development Joint Venture was created by Buck, Palmer, and 1629 Service to build a marina and yacht club in Port Isabel, Texas, with Buck and Palmer each owning 20% and 1629 owning 60%.
- After a settlement reduced the venture’s debt to $600,000 and transferred 1629’s interest to Palmer, giving him an 80% stake; the property value later was estimated at about $4 million.
- In 1997, Palmer sued Buck for breach of an oral agreement, Buck denied the contract’s existence, and Buck sought a declaration of his ownership and the venture’s current value.
- Palmer moved for summary judgment on dissolution and limitations, arguing Buck’s 1995 statements to dissolve showed no interest in remaining in the venture; Buck countered that he never intended to relinquish his interest and that evidence showed otherwise.
- The trial court denied Buck’s motions; the court of appeals affirmed, holding Buck’s 1995 communications conclusively evidenced dissolution; the Texas Supreme Court reversed and remanded to consider genuine issues of material fact and the limited issues of disqualification and limitations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a partner’s express intent to dissolve automatically dissolves the partnership | Buck contends the 1995 letter evidences dissolution | Palmer argues dissolution occurred automatically upon Buck’s intent | Not automatic; genuine fact issue on Buck’s dissolution intent |
| Whether Buck waived the right to disqualify Palmer’s attorney | Buck sought disqualification on conflict grounds | Delay in moving to disqualify amounts to waiver | Waiver established by Buck’s unexplained seven-month delay; appellate on the disqualification ruling affirmed |
| Whether the case should be remanded for limitations and discovery issues | Buck requested consideration of limitations and discovery | Court should resolve limits and discovery on remand | Remand to address statute of limitations and Buck’s discovery motions |
Key Cases Cited
- Woodruff v. Bryant, 558 S.W.2d 535 (Tex. Civ. App.—Corpus Christi 1977) (dissolution evidence; express desire to cease involvement considered but not dispositive)
- Thomas v. American National Bank, 704 S.W.2d 321 (Tex. 1986) (single conversation as evidence of dissolution; jury issues possible)
- Vaughan v. Walther, 875 S.W.2d 690 (Tex. 1994) (delay in motions can constitute waiver of disqualification)
