In Estate of Richards, a probate court entered an order appointing a receiver of estate property. No. 11-23-00031-CV, 2024 Tex. App. LEXIS 8626 (Tex. App.—Eastland December 12, 2024, no pet. history). The receiver filed a motion to approve the sale of real estate due to it being unproductive. A beneficiary objected to the sale and filed a supplemental application for declaratory judgment. She also argued that the sale of a tract of real property would be improper when she had filed pleadings seeking the partition of the property and distribution of estate property. The trial court approved the sale, and the beneficiary appealed.

The court of appeals first held that the appeal was timely, in part because the notice of appeal was filed within the fifteen-day grace period after it was due. The court of appeals also held that the appeal was not moot. The appellant argued that the appeal was moot because the sale was already consummated (the appellant let the property be sold without seeking a stay of the order). The court noted:

The conveyance of property can moot an appeal. Generally, “[w]hen a party appeals an order appointing a receiver or authorizing sale of certain property and the property has been sold, the appeal of the order becomes moot.” The principle behind this general rule is that the trial court is no longer able to afford relief if the property has been conveyed to a third party that was not subject to the jurisdiction of the trial court.

Id. However, the court of appeals held that the appeal was not moot because the sale was to a beneficiary, who was a party to the suit, and that the transaction could therefore be rescinded.

The court then addressed the beneficiary’s argument that the trial court erred in ordering the sale when she had a request to distribute the estate pending. Section 360.001(a) of the Estates Code provides that:

At any time after the first anniversary of the date original letters testamentary or of administration are granted, an executor, administrator, heir, or devisee of a decedent’s estate, by written application filed in the court in which the estate is pending, may request the partition and distribution of the estate.

Id. (citing Tex. Est. Code Ann. § 360.001). “By their express terms, Sections 360.001 and 360.002 permit a designated class of individuals to request the partition and distribution of the estate or a portion of the estate.” Id. The receiver argued that this provision did not apply to an independent administration. The court of appeals did not address this issue: “We will assume without deciding that Chapter 360 is applicable to this probate proceeding.” Id. The court then held that there was evidence that supported the trial court’s order:

Leinenbach is incorrect in her interpretation of Chapter 360 and the manner in which the trial court applied it with respect to the sale of the Homeplace. Even if one assumes that Chapter 360 is applicable to this proceeding, its provisions do not compel the partition in kind of the Homeplace based upon the mere request of a devisee. Section 360.002(c) provides that the court “may distribute any portion of the estate the court considers advisable.” The emphasized language indicates that the probate court has a measure of discretion to determine whether to order the partition in kind of an item of estate property. Additionally, Section 360.102 is prefaced on the following condition: “If the court determines that the estate should be partitioned and distributed.” Furthermore, Section 360.151 only requires the appointment of commissioners to partition estate property if “the court has not previously determined that the estate is incapable of partition.” Here, the trial court found that the Homeplace “is not capable of being partitioned in kind.” This finding by the trial court is adverse to Leinenbach’s contention that she was entitled to compel the partition in kind of the Homeplace under Chapter 360. However, Leinenbach has not challenged this finding on appeal or the evidence supporting it. When an appellant does not challenge the trial court’s findings of fact, those findings are binding upon both the party and the appellate court. Accordingly, we overrule Leinenbach’s sole issue on appeal.

Id.

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Photo of David Fowler Johnson David Fowler Johnson

[email protected]
817.420.8223

David maintains an active trial and appellate practice and has consistently worked on financial institution litigation matters throughout his career. David is the primary author of the The Fiduciary Litigator blog, which reports on legal cases and issues impacting the fiduciary…

[email protected]
817.420.8223

David maintains an active trial and appellate practice and has consistently worked on financial institution litigation matters throughout his career. David is the primary author of the The Fiduciary Litigator blog, which reports on legal cases and issues impacting the fiduciary field in Texas. Read More

David’s financial institution experience includes (but is not limited to): breach of contract, foreclosure litigation, lender liability, receivership and injunction remedies upon default, non-recourse and other real estate lending, class action, RICO actions, usury, various tort causes of action, breach of fiduciary duty claims, and preference and other related claims raised by receivers.

David also has experience in estate and trust disputes including will contests, mental competency issues, undue influence, trust modification/clarification, breach of fiduciary duty and related claims, and accountings. David’s recent trial experience includes:

  • Representing a bank in federal class action suit where trust beneficiaries challenged whether the bank was the authorized trustee of over 220 trusts;
  • Representing a bank in state court regarding claims that it mismanaged oil and gas assets;
  • Representing a bank who filed suit in probate court to modify three trusts to remove a charitable beneficiary that had substantially changed operations;
  • Represented an individual executor of an estate against claims raised by a beneficiary for breach of fiduciary duty and an accounting; and
  • Represented an individual trustee against claims raised by a beneficiary for breach of fiduciary duty, mental competence of the settlor, and undue influence.

David is one of twenty attorneys in the state (of the 84,000 licensed) that has the triple Board Certification in Civil Trial Law, Civil Appellate and Personal Injury Trial Law by the Texas Board of Legal Specialization.

Additionally, David is a member of the Civil Trial Law Commission of the Texas Board of Legal Specialization. This commission writes and grades the exam for new applicants for civil trial law certification.

David maintains an active appellate practice, which includes:

  • Appeals from final judgments after pre-trial orders such as summary judgments or after jury trials;
  • Interlocutory appeals dealing with temporary injunctions, arbitration, special appearances, sealing the record, and receiverships;
  • Original proceedings such as seeking and defending against mandamus relief; and
  • Seeking emergency relief staying trial court’s orders pending appeal or mandamus.

For example, David was the lead appellate lawyer in the Texas Supreme Court in In re Weekley Homes, LP, 295 S.W.3d 309 (Tex. 2009). The Court issued a ground-breaking opinion in favor of David’s client regarding the standards that a trial court should follow in ordering the production of computers in discovery.

David previously taught Appellate Advocacy at Texas Wesleyan University School of Law located in Fort Worth. David is licensed and has practiced in the U.S. Supreme Court; the Fifth, Seventh, and Eleventh Federal Circuits; the Federal District Courts for the Northern, Eastern, and Western Districts of Texas; the Texas Supreme Court and various Texas intermediate appellate courts. David also served as an adjunct professor at Baylor University Law School, where he taught products liability and portions of health law. He has authored many legal articles and spoken at numerous legal education courses on both trial and appellate issues. His articles have been cited as authority by the Texas Supreme Court (twice) and the Texas Courts of Appeals located in Waco, Texarkana, Beaumont, Tyler and Houston (Fourteenth District), and a federal district court in Pennsylvania. David’s articles also have been cited by McDonald and Carlson in their Texas Civil Practice treatise, William v. Dorsaneo in the Texas Litigation Guide, and various authors in the Baylor Law ReviewSt. Mary’s Law JournalSouth Texas Law Review and Tennessee Law Review.

Representative Experience

  • Civil Litigation and Appellate Law