Susan Jackson Holden and Terry Holden v. Charles Lyle Holden, as the Independent of the Estate of Rosie Eunice Holden
456 S.W.3d 642
Tex. App.2015Background
- Rosie died Nov 8, 2009; Rosie’s son Charles was appointed independent executor of her estate.
- Susan Holden provided primary care to Rosie May–Nov 2009; Charles claimed Cheryl’s care favored Susan and Terry.
- Susan obtained a July 13, 2009 royalty assignment to Terry; Susan later obtained a statutory durable POA and medical POA, revoking prior powers on Aug 5, 2009.
- Susan and Terry moved Rosie from her home to their residence in Aug 2009; Susan did not disclose the POA or royalty assignment.
- Susan opened a joint Bank of America account with Rosie and used funds for Rosie’s expenses and for personal expenses of Susan and Terry; a Compass Bank account was opened later for further transfers.
- Charles demanded an accounting Sept 15, 2010; accounting was provided after trial; trial court ordered sworn accounting and rendered judgment against Susan and Terry for $25,587.73 plus attorney’s fees; on appeal the court reduced damages to $11,276.24 while affirming the remainder of the judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the accounting and related documents were properly considered as evidence | Holden | Holden | Partly sustained; evidentiary consideration affirmed but damages re-evaluated. |
| Whether Charles pled a monetary claim arising from accounting and fiduciary breach properly | Holden | Holden | Pleadings sufficient to support accounting-based damages; some defects but waived by trial by consent. |
| Whether Susan breached her fiduciary duty via self-dealing and undue influence | Holden | Susan breached; Terry did not prove undue influence | Breach of fiduciary duty sustained; undue influence sustained as to Susan, not Terry. |
| Whether the conspiracy claim supported damages | Holden | No evidence of conspiracy | Conspiracy claim sustained as to breach of fiduciary duty; reversed as to Terry. |
| Whether the damages award was supported and whether joint and several liability was appropriate | Holden | Damages insufficient or misallocated; joint liability appropriate | Damages reduced to $11,276.24; joint & several liability affirmed for remedies and allocation as specified. |
Key Cases Cited
- Forrest v. Hanson, 424 S.W.2d 899 (Tex. 1968) (reopening evidence and broad discretion of trial court in justice administration)
- Lifeguard Benefit Servs., Inc. v. Direct Med. Network Solutions, Inc., 308 S.W.3d 102 (Tex. App.—Fort Worth 2010) (liberal treatment of evidence and preserve issues on appeal)
- In re S.A.A., 279 S.W.3d 853 (Tex. App.—Dallas 2009) (pleading and burden principles for trial by consent and appellate preservation)
- Horizon/CMS Healthcare Corp. v. Auld, 34 S.W.3d 887 (Tex. 2000) (liberal construction of petitions but no reading in claims not pleaded)
- Moneyhon v. Moneyhon, 278 S.W.3d 874 (Tex. App.—Houston [14th Dist.] 2009) (breach of fiduciary duty recoverable if pleaded or tried by consent)
- In re Estate of Miller, 446 S.W.3d 445 (Tex. App.—Tyler 2014) (standards for recovery of breach of fiduciary duty to refrain from self-dealing)
- Hartford Fire Ins. Co. v. City of San Antonio, 287 S.W.3d 780 (Tex. App.—San Antonio 2008) (issue raised post-trial; preservation of pleading defects in appeals)