OPINION
Robert R. Doggett, Florence E. Pollard, Paul R. Doggett, Paul Randolph Doggett, Jr., Mark Edward Doggett, and Matthew Joseph Doggett appeal the trial court’s summary judgment in favor of Mary Rob
BACKGROUND
I. John Doggett’s Will
John Doggett executed a will prepared by attorney John M. Robinson. John Dog-gett was married to his second wife, Sylvia, when he executed the will in 1983. John had four children from his first marriage — John III, Robert, Florence, and Paul. Sylvia had one child from a prior marriage — Beverly Longuet.
John’s will directs that Sylvia receive his personal effects and distributes his remaining assets to two trusts: the Unlimited Marital Deduction Trust (“Marital Trust”) and the Family Trust. The will names John M. Robinson as the trustee of both trusts. 1
The will directs that Marital Trust income be paid to Sylvia during her lifetime, with the principal available for her support if necessary. Section 3.4 of John’s will grants Sylvia testamentary power of appointment over the Marital Trust principal by “specific reference” in Sylvia’s will. 2 John’s will provides in section 3.6 that any unappointed Marital Trust assets will be distributed upon Sylvia’s death as specified:
John Rentz Doggett III 35%
Beverly Ann Longuet 35%
Robert Raymond Doggett 10%
Florence Emily Pollard 5%
Paul Randolph Doggett 5%
Paul Randolph Doggett, Jr. 3-1/2%
Mark Edward Doggett 3-1/2%
Matthew Joseph Doggett 3-1/2% 3
The will also states that Family Trust assets may be distributed during Sylvia’s lifetime to Sylvia or to John’s descendants as necessary for their support. In section 4.3, John’s will grants Sylvia a lifetime power of appointment over the Family Trust income and principal, as well as a testamentary power of appointment by “specific reference” in her will. 4 John’s will states that the Family Trust will terminate “when my wife dies or when no child of mine is living and under age 40, whichever is later.” John’s will directs any unappointed Family Trust assets existing upon termination to be distributed according to the same schedule as the unappointed Marital Trust assets.
With respect to both the Marital Trust and the Family Trust, John’s will places an
John Doggett died in 1987. His will was probated, and Sylvia was appointed executor of his estate. It is alleged that neither trust was funded during Sylvia’s lifetime or after her death. John M. Robinson died in 2002.
II. Sylvia Doggett’s Will
Sylvia executed a will in 2002. After she died in 2006, her will was admitted to probate and Beverly was appointed executor of Sylvia’s estate.
This appeal focuses in significant part on sections 2.1 and 2.4 of Sylvia’s will. These sections provide as follows:
2.1 I give, devise and bequeath all of my property, real, personal and mixed, of every kind and character and description, and wherever situated, and any other property over which I may have a power of appointment or power of testamentary disposition, according to the provisions of this Article II.
* * *
2.1p I give, devise and bequeath all the rest, residue, and remainder of my estate and property to my daughter, Beverly Ann Longuet.
Sylvia’s will also provides in section 2.3 for the distribution of Sylvia’s personal effects, and makes three monetary bequests in section 2.2 to persons other than John’s children, John’s grandchildren, or Beverly.
III. Suit by John Doggett’s Children and Grandchildren
John’s surviving children — Robert Dog-gett, Florence Doggett Pollard, and Paul R. Doggett — sued Beverly individually and in her capacity as executor of Sylvia’s estate in 2007. 5 They alleged, among other things, that (1) Sylvia failed to establish and operate the trusts properly; and (2) Beverly failed to provide an accounting of the assets in Sylvia’s estate and information about assets that should have been used to fund the trusts. Three of John’s grandchildren — Paul, Mark, and Matthew Doggett — filed a petition in intervention. We refer collectively to the original plaintiffs and intervenors as the “Doggett claimants.”
The Doggett claimants also sued Mary Robinson in her capacity as executor of John M. Robinson’s estate. The Doggett claimants alleged that John M. Robinson accepted appointment as trustee of the Marital Trust and the Family Trust under John’s will. They further alleged, among other things, that John M. Robinson failed to fulfill his obligations as trustee; assisted Sylvia in taking assets belonging to the trusts; failed to require assets to be segregated; made misrepresentations; and breached his fiduciary duties as trustee. The Doggett claimants contend that, as a result of this alleged conduct, Beverly improperly obtained trust property intended for them under John’s will. The Doggett claimants sought actual damages, punitive
Beverly settled with the Doggett claimants on behalf of herself and Sylvia’s estate in 2008, leaving Robinson’s estate as the only defendant.
Robinson’s estate filed a traditional summary judgment motion under Rule 166a(c), arguing that it was not liable to the Dog-gett claimants because Sylvia in her will properly exercised her power of appointment in favor of Beverly. The Doggett claimants also filed a traditional summary judgment motion, arguing that (1) John’s will authorized Sylvia to exercise her power of appointment only in favor of John’s “descendants” as that term is defined in section 9.3 of John’s will; and (2) Beverly is not among John’s defined “descendants.”
The trial court granted partial summary judgment in favor of Robinson’s estate and denied the Doggett claimants’ motion. The trial court held: “As a matter of law, Sylvia Doggett validly exercised her power of appointment in favor of John Doggett’s descendant, Beverly Longuet; and ... [bjecause of the valid exercise of the power of appointment, [the Doggett claimants’] claims fail as a matter of law.” The summary judgment was interlocutory because attorney’s fees were not adjudicated.
After a one-day bench trial, the trial court signed a final judgment on November 4, 2009 that (1) incorporated its prior partial summary judgment; and (2) awarded attorney’s fees to Robinson’s estate. Robinson’s estate filed a motion to modify the final judgment, which the trial court granted in part and denied in part. The trial court signed an amended final judgment on December 1, 2009, and the Dog-gett claimants timely appealed.
ANALYSIS
This appeal turns on the interplay between John’s will and Sylvia’s will. The Doggett claimants contend that the trial court erred by denying their motion for summary judgment, and by granting summary judgment based on the trial court’s conclusion that Sylvia properly exercised her power of appointment in favor of Beverly. In their first issue, the Doggett claimants assert that Sylvia’s will did not validly exercise the power of appointment under sections 3.4 and 4.3 of John’s will. In their second issue, the Doggett claimants contend that Beverly is not among the defined “descendants” to whom Sylvia was allowed to appoint trust property under section 9.3 of John’s will. They also challenge the award of attorney’s fees in their third issue. Robinson’s estate raises one issue on cross-appeal, arguing that the trial court should have awarded costs and post-judgment interest in the final judgment.
I. Standard of Review
An appellate court applies
de novo
review to a traditional summary judgment under Rule 166a(c), using the same standard that the trial court used in the first instance.
Duerr v. Brown,
The defendant as movant must disprove at least one essential element of each of the plaintiffs causes of action in order to prevail on summary judgment.
Wright v. Greenberg, 2
S.W.3d 666, 670 (Tex.App.Houston [14th Dist.] 1999, pet. denied) (citing
Lear Siegler, Inc. v. Perez,
II. Exercise of the Appointment Power
All rules of will construction must yield to the basic intention and purpose of the testator as reflected by the entire instrument.
Wright,
A. Standards Governing Exercise of the Appointment Power
The interpretation issue addressed in this appeal focuses on a power of appointment. It is helpful to describe at the outset what the power of appointment entails.
“A power of appointment is a power of disposition given to a person over property not his own, by [someone] who directs the mode in which that power shall be exercised by a particular instrument.”
Republic Nat’l Bank of Dallas v. Fredericks,
It also is helpful to describe . what the power of appointment is
not. “A
power of appointment is neither property nor an estate, but is a mere right or power.”
Krausse v. Barton,
To exercise the appointment power granted in sections 3.4 and 4.3 of John’s will, Sylvia’s will “must refer to the power of appointment or the property subject to such power;” alternatively, Sylvia “must have owned no other property to which the will could have attached and thus the will have been a vain and useless thing except it be held to be an exercise of such power.”
Republic Nat’l Bank of Dallas,
The inquiry in this case goes beyond the mere existence of a reference to the appointment power. “The general rule is that in order for a will or deed to constitute the exercise of a power of ap
We note another hurdle that must be cleared in this particular case. Sections 3.4 and 4.3 of John’s will provide that Sylvia’s testamentary power of appointment over Marital Trust and Family Trust assets must be exercised by “specific reference.” Robinson’s estate contends that Sylvia exercised this power by “specific reference” in sections 2.1 and 2.4 of Sylvia’s will. The Doggett claimants contend that Article II’s reference to “any other property over which I may have a power of appointment” is not precise enough to be a “specific reference.”
With these standards as a backdrop, we examine whether Sylvia’s will validly exercised the appointment power granted in John’s will.
B. Application of the Standards to Sylvia’s Will
According to Robinson’s estate, Article II of Sylvia’s will exercised the appointment power granted to her in sections 3.4 and 4.3 of John’s will. Robinson’s estate contends in its appellate brief that Article II of Sylvia’s will “bequeathed to her daughter ‘any other property over which I may have a power of appointment.’ ” To make this argument, Robinson’s estate reads sections 2.1 and 2.4 of Sylvia’s will together.
Section 2.1 states Sylvia’s intent to give, devise, and bequeath “all of my property ... and any other property over which I may have a power of appointment.” This language by itself does not appoint property to any identified recipient. Therefore, Robinson’s estate cannot rely solely upon section 2.1 as the vehicle by which Sylvia appointed trust property to Beverly.
Robinson combines this language from section 2.1 with language from a residuary clause in section 2.4 to formulate an appointment of trust property to Beverly. Section 2.4 states, “I give, devise and bequeath all of the rest, residue and remainder of my estate and property to my daughter, Beverly Ann Longuet.”
The formulation posited by the Robinson estate’s brief — under which Sylvia “bequeathed to her daughter ‘any other property over which I may have a power of appointment’ ” — omits section 2.4’s reference to “my estate and property.” As discussed more fully below, this omitted phrase is significant.
The Doggett claimants contend as a threshold matter that section 2.1’s language does not constitute the “specific reference” demanded by John’s will because section 2.1’s language does not explicitly refer to John’s will, the power granted in John’s will, or the trusts. We assume without deciding that Sylvia’s stated intent in section 2.1 to dispose of “any other property over which I may have a power of appointment” satisfies the “specific reference” requirement in sections 3.4 and 4.3 of John’s will. 6 But that is only the first hurdle.
Ordinary grammar and usage precepts teach that section 2.4’s reference to “my estate and property” means Sylvia’s “estate” and Sylvia’s “property.”
See McIntyre v. Ramirez,
Under this reading of “my estate and property” as Sylvia’s “estate” and Sylvia’s “property,” section 2.4’s residuary clause accomplished an appointment of trust property to Beverly if Sylvia “intended that the appointive estate become part of her residual estate, and that it pass ... under the terms of her will” to Beverly.
See Krausse,
In short, the approach illustrated by
Krausse
contemplates a two-step process. The property first is appointed to the testator’s estate and then reaches the recipient named in the residuary clause.
See id.
This court’s decision in
Wright
illustrates the same two-step process.
See Wright, 2
In regard to the Marital Trust, section 3.4 of John’s will unambiguously states: “My wife shall have the special testamentary power to appoint ... provided, however, she shall not have the power to appoint trust principal to herself [or] her estate....” In regard to the Family Trust, section 4.3 of John’s will unambiguously states: “My wife shall not appoint trust property to herself ... [or] her estate .... ”
If Sylvia could not appoint trust property to herself or to her estate, then section 2.4’s residuary clause bequeathing to Beverly “all the rest, residue and remainder” of Sylvia’s “estate” and Sylvia’s “property” could not capture the trust property. If section 2.4’s residuary clause could not capture the trust property, then that clause cannot be read in conjunction with section 2.1 of Sylvia’s will to bequeath to Beverly “any other property over which I may have a power of appointment.” Such an interpretation impermissibly contravenes the unambiguous limits in sections 3.4 and 4.3 of John’s will on Sylvia’s exercise of the appointment power.
Cfi Krausse,
To address the limits established in sections 3.4 and 4.3 of John’s will, Robinson’s estate contends in a post-argument brief that “the trust principal need not — and does not — pass through Sylvia’s estate.” Instead, “Sylvia expressed her intent that the power of appointment be exercised and the property given in the same manner as her estate property, but not that it be appointed to her estate.” Robinson’s estate further argues that “[t]here is no need to treat the trust property as part of Sylvia’s estate” when construing sections 2.1 and 2.4. 9
Without expressly saying so, this alternative argument reads the residuary clause’s key phrase — “my estate and property” — to bequeath Sylvia’s “estate” along with “property [including property over
First, the Robinson estate’s alternative argument requires this court to perform major surgery on section 2.4’s residuary clause by grafting the bracketed phrase [including property over which I have a power of appointment] onto “my estate and property.”
Cf. Krausse,
Second, the Robinson estate’s alternative argument requires choosing between multiple meanings of the word “property” when it is used in section 2.4’s residuary clause. As discussed above, the most natural reading of section 2.4 is one in which “my estate and property” means Sylvia’s “estate” and Sylvia’s “property.” Even if the Robinson estate’s interpretation is plausible, it is at best an alternative interpretation. Robinson’s estate cannot prevail merely by offering an alternative interpretation because the intent to exercise the appointment power “must be so clear that no other reasonable intent can be imputed under the will.”
Republic Nat’l Bank of Dallas,
It bears emphasizing that section 2.1 by itself appoints no property to Beverly or to any other identified recipient. The Robinson estate’s argument depends on combining section 2.1 with the phrase “my estate and property” in section 2.4’s residuary clause. Therefore, the burden of demonstrating a sufficiently “clear” intent to exercise the appointment power must be borne in significant part by section 2.4’s residuary clause.
Section 2.1 encompasses at least two distinct types of “property.” Sylvia refers to “my property” in section 2.1, which by definition does not include any property over which she had power of appointment.
See Krausse,
For these reasons, the trial court erred in granting summary judgment based on a conclusion that “Sylvia Doggett validly exercised her power of appointment in favor of ... Beverly Longuet.” The trial court therefore erred in granting summary judgment based on a conclusion that “[b]eeause of the valid exercise of the power of appointment, [the Doggett claimants’] claims ... fail as a matter of law.” As a matter of law, Robinson’s estate cannot establish that Sylvia validly appointed trust property to Beverly via sections 2.1 and 2.4 of Sylvia’s will. We sustain the Doggett claimants’ first issue with respect to the grant of summary judgment and the award
CONCLUSION
We reverse the trial court’s final judgment and remand this case for proceedings consistent with this opinion.
Notes
. In the trial court, Robinson’s estate disputed whether John M. Robinson acted as a trustee in connection with the matters giving rise to this litigation. The parties assume for purposes of this appeal that John M. Robinson was acting as trustee of the Marital Trust and the Family Trust, and we do so as well. We express no opinion on the merits of this issue.
. Section 3.4 states in full: "My wife shall have the special testamentary power to appoint (outright, in trust or otherwise) all or any part of the principal of this trust to any one or more of my descendants provided, however, she shall not have the power to appoint trust principal to herself, her estate, her creditors or the creditors of her estate. This power shall be exercisable only by specific reference in my wife's Will.”
. Paul Randolph Doggett, Jr., Mark Edward Doggett, and Matthew Joseph Doggett are John’s grandchildren.
. Section 4.3 states in part: "My wife shall have the special power to appoint (outright, in trust or otherwise) all or any part of the income and principal of this trust to any one or more of my descendants. Such power shall be exercisable by acknowledged instruments delivered to my Trustee during her lifetime or by specific reference in her Will_My wife shall not appoint trust property to herself, her creditors, her estate or the creditors of her estate nor shall she appoint trust property in discharge of her legal obligations of support.”
. John Rentz Doggett III died without descendants in 2006. The Marital and Family Trust provisions direct that his share pass to his survivors or be "distributed in the original proportions to the remaining heirs.” Robert and Paul Doggett were appointed successor trustees of the Marital and Family Trusts; in that capacity, they also filed a petition in intervention.
. The Doggett claimants urge this court to endorse a distinction between general and special powers of appointment.
See
Restatement (Second) of Property § 17.1 cmt. b (1986). According to the Restatement, "The donor may want to make certain that the donee does not inadvertently exercise this power; and to avoid this possibility, specific
. Both sides cite and discuss section 58c of the Texas Probate Code, entitled "Exercise of Power of Appointment,” which was adopted in 2003 after Sylvia’s will was executed. See Tex. Prob.Code Ann. § 58c (Vernon Supp. 2009). Because this provision does not apply to Sylvia’s will, we do not rely upon it.
.
Wright
did not address an additional contention that the appointment power at issue was improperly exercised because the operative language contravened a separate restriction, "which limited the power to appoint the property 'free of the trust ... in favor of his estate.' ”
Wright,
. Although Robinson’s estate references section 2.2 in its post-argument brief, we construe this argument as a contention that section 2.1 in conjunction with section 2.4 expresses "Sylvia’s intent to give the property subject to her power of appointment in the same manner as Sylvia was giving the property in her estate.” Section 2.2 of Sylvia’s will does not affect the analysis here because it addresses specific monetary bequests to three persons other than Beverly or the Doggett claimants.
. The award of attorney's fees was predicated on the partial summary judgment ruling in favor of Robinson’s estate. Because we sustained the Doggett claimants' first issue in part and reverse the partial summary judgment ruling in favor of Robinson's estate, we also reverse the award of attorney’s fees to Robinson's estate. We do not reach the Dog-gett claimants’ remaining contentions, and we do not address the Robinson estate’s cross-appeal.
