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CourtListener opinion 4063996
Date unknown · US
- Extracted case name
- pending
- Extracted reporter citation
- 582 S.W.2d 883
- Docket / number
- 06-15-0041-CV
Machine-draft headnote
Machine-draft public headnote: CourtListener opinion 4063996 is included in the LexyCorpus QDRO sample set as a public CourtListener opinion with relevance to QDRO procedure / domestic relations order issues. The current annotation is conservative: it identifies source provenance, relevance signals, and evidence quotes for attorney/agent retrieval. It is not a Willie-approved legal headnote yet.
Retrieval annotation
Draft retrieval summary: this opinion has QDRO relevance score 5/5, retirement-division score 5/5, and family-law score 5/5. Use the quoted text and full opinion below before relying on the case.
Category: QDRO procedure / domestic relations order issues
Evidence quotes
QDRO“me. 1 RR 84:1-8 -16- 39. Wilder further testified that the prior action was dismissed for want of prosecution in 1993 and had no explanation for the dismissal except what appeared in the docket. 1 RR 84:12–85:5. 40. Wilder agreed that "that if a proper qualified domestic relations order had been prepared subsequent to the hearing in October 1993, that that would have disposed of all of these issues and we wouldn't be here today." 1 RR 85:9-14. 41. The trial court orally found and ruled during the hearing as follows: A. There was $306,306.00 in the retirement account when Appellant retired. 1 RR 93:16-18. B. "that it was necessary”
retirement benefits“r about August 1, 1988. 1 Supp. CR 7-13. 4. On or about December 4, 1992, Appellee, Elizabeth Holoubek, filed a Motion for Division of Property Not Divided on Divorce, by and through her attorney Clay Wilder, seeking a post-decree division of Appellant's retirement benefits from Texas Eastman Company. 1 Supp. CR 14-23. 1 This cause number controlled the action until Appellee filed a Petition for Division of Property Not Divided on Divorce on or about September 13, 2012 under a new cause number. -6- 5. The trial court took testimony and argument in a hearing on or about October 12, 1993. The court designated this as a”
domestic relations order“4:1-8 -16- 39. Wilder further testified that the prior action was dismissed for want of prosecution in 1993 and had no explanation for the dismissal except what appeared in the docket. 1 RR 84:12–85:5. 40. Wilder agreed that "that if a proper qualified domestic relations order had been prepared subsequent to the hearing in October 1993, that that would have disposed of all of these issues and we wouldn't be here today." 1 RR 85:9-14. 41. The trial court orally found and ruled during the hearing as follows: A. There was $306,306.00 in the retirement account when Appellant retired. 1 RR 93:16-18. B. "that it was necessary”
valuation/division“with the original divorce and post-decree petition filed under Rusk County Court at Law Cause No. 88- 05-260CCL. The Supplemental Clerk's Record will be cited as "[Vol #] Supp. CR [Page #s]:[Line #s]." -1- STANDARD OF REVIEW The standard of review for property division issues in family law cases is generally abuse of discretion. A trial court has broad discretion in dividing the "estate of the parties," but must confine itself to community property. Eggemeyer v. Eggemeyer, 554 S.W.2d 137, 139 (Tex.1977). The trial court's discretion to divide marital property upon divorce should be corrected on appeal only when an a”
Source and provenance
- Source type
- courtlistener_qdro_opinion_full_text
- Permissions posture
- public
- Generated status
- machine draft public v0
- Review status
- gold label pending
- Jurisdiction metadata
- US
- Deterministic extraction
- reporter: 582 S.W.2d 883 · docket: 06-15-0041-CV
- Generated at
- May 14, 2026
Related public corpus pages
Deterministic links based on shared title/citation terms and QDRO / retirement / family-law retrieval scores.
Clean opinion text
ACCEPTED
06-15-00041-CV
SIXTH COURT OF APPEALS
TEXARKANA, TEXAS
11/17/2015 12:17:02 AM
DEBBIE AUTREY
CLERK
CASE NO. 06-15-0041-CV
IN THE COURT OF APPEALS FOR THE FILED IN
6th COURT OF APPEALS
SIXTH APPELLATE DISTRICT OF TEXAS TEXARKANA, TEXAS
AT TEXARKANA, TEXAS 11/17/2015 9:00:00 AM
DEBBIE AUTREY
Clerk
GEARY H. LEE, APPELLANT
VS.
ELIZABETH DEANNE HOLOUBEK, f/k/a ELIZABETH DEANNE LEE,
APPELLEE
Appeal from the County Court at Law of
Rusk County, Texas
Cause No. 2012-09-449 CCL
BRIEF OF APPELLANT
JOE SHUMATE
State Bar No. 18327500
JAMES J. ROSENTHAL
State Bar No. 24088801
107 North Main Street
P. O. Box 1915
Henderson, Texas 75653-1915
(903) 657-1416
(903) 655-8211
Attorney for Appellant
ORAL ARGUMENT REQUESTED
CERTIFICATE OF INTERESTED PARTIES
The undersigned counsel of record for Appellant certifies that the following
listed persons have an interest in the outcome of this case. These representations are
made so that this Court may evaluate possible disqualifications or recusal.
APPELLANT COUNSEL
Geary H. Lee, Appellant Joe Shumate (Lead Appellate Counsel)
State Bar No. 18327500
James J. Rosenthal (Counsel on the Brief)
State Bar No. 24088801
107 North Main Street
P. O. Box 1915
Henderson, Texas 75653
Tel: (903) 657-1416
Fax: (903) 655-8211
APPELLEE COUNSEL
Elizabeth Deanne Holubek Clay Wilder
State Bar No. 21462500
200 N. Main Street
Henderson, Texas 75652
Phone: (903) 657-0561
Fax: (903) 657-5088
TRIAL COURT JUDGE
Hon. Chad W. Dean
Rusk County Courthouse
115 North Main Street, Ste. 201
Henderson, Texas 75652
Tel: (903) 657-0344
-ii-
TABLE OF CONTENTS
CERTIFICATE OF INTERESTED PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii
TABLE OF CONTENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii
INDEX OF AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
STATEMENT OF THE CASE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
STANDARD OF REVIEW .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ISSUES PRESENTED. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1. THE TRIAL COURT ERRED AS A MATTER OF LAW IN AWARDING APPELLEE
A CONTINGENT ATTORNEY FEE IN A DOMESTIC RELATIONS CASE.
2. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT THE
ATTORNEY'S FEES AWARDED TO APPELLEE IN THE AMOUNT OF
$30,774.27 WERE REASONABLE AND NECESSARY.
3. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT RETIREMENT
FUNDS AWARDABLE TO APPELLEE WOULD HAVE GROWN IN THE AMOUNT
OF $29,660.48 BETWEEN 2006 AND 2015.
4. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT A
CONSTRUCTIVE TRUST (OR OTHER LIEN) SHOULD ATTACH TO THE
APPELLANT'S FUNDS ON DEPOSIT WITH EDWARD JONES.
STATEMENT OF FACTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SUMMARY OF ARGUMENT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
ARGUMENT AND AUTHORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
-iii-
PRAYER FOR RELIEF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
CERTIFICATE OF COMPLIANCE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
CERTIFICATE OF SERVICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
-iv-
INDEX OF AUTHORITIES
Cases: Pages
Argonaut Ins. Co. v. ABC Steel Products,
582 S.W.2d 883 (Tex.Civ.App.—Texarkana 1979, writ ref'd n.r.e.). . . . . . . . . . . 27
Arthur Anderson & Co. v. Perry Equip. Corp.,
945 S.W.2d 812, 818 (Tex.1997). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 27
Baker Botts, L.L.P. v. Cailloux, 224 S.W.3d 723, 736
(Tex.App.–San Antonio 2007, pet. denied). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Brent v. Field, 275 S.W.3d 611, 621 (Tex. App.-Amarillo 2008, no pet.) .. . . 5, 20
Brockie v. Webb, 244 S.W.3d 905, 909 -910 (Tex.App.–Dallas,2008) . . . . . . . . . 5
Buckhannon Bd. & Care Home, Inc. v. W. Va. Dep't of Health and Human Res.,
532 U.S. 598, 602, 121 S. Ct. 1835, 149 L. Ed. 2d 855 (2001) . . . . . . . . . . . . . . 21
Burnside Air Conditioning v. T.S. Young, 113 S.W.3d 889, 897–98
(Tex.App.-Dallas 2003, no pet.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26, 27
Castle Texas Prod. Ltd. P'ship v. Long Trusts,
134 S.W.3d 267, 278-79 (Tex. App.—Tyler 2003, pet. denied). . . . . . . . . . . . . . 27
Day v. Day, 603 S.W.2d 213, 215 (Tex., 1980) .. . . . . . . . . . . . . . . . . . . . . . . . . . 24
Eggemeyer v. Eggemeyer, 554 S.W.2d 137, 139 (Tex.1977) . . . . . . . . . . . . . . . . . 2
Giles v. Cardenas, 697 S.W.2d 422, 429-430 (Tex.App. 4 Dist.,1985). . . . . . . . . 25
Hays & Martin, L.L.P. v. Ubinas–Brache, M.D.,
192 S.W.3d 631, 636 (Tex.App.-Dallas 2006, pet. denied) .. . . . . . . . . . . . . . . . . 27
Huie v. DeShazo, 922 S.W.2d 920, 927–28 (Tex.1996). . . . . . . . . . . . . . . . . . . . . 2
-v-
In re Wells, 294 Fed. Appx. 841, 845 (5th Cir. 2008) . . . . . . . . . . . . . . . . . . . . . . 25
Kostelnik v. Roberts, 680 S.W.2d 532, 534
(Tex. App.—Corpus Christi 1984), writ refused NRE (Jan. 16, 1985) .. . . . . . . . 34
Landram v. Robertson, 195 S.W.2d 170, 174
(Tex. Civ. App.—San Antonio 1946), writ refused NRE. .. . . . . . . . . . . . . . . . . . 34
Material P'ships, Inc. v. Ventura, 102 S.W.3d 252, 257
(Tex.App.– Houston [14th Dist.] 2003, pet. denied) . . . . . . . . . . . . . . . . . . . . . . . . 3
Merrell Dow Pharmaceuticals, Inc. v. Havner,
953 S.W.2d 706, 711, 40 Tex. Sup. Ct. J. 846 (Tex. 1997). . . . . . . . . . . . . . . . . . . 3
Murff v. Murff, 615 S.W.2d 696 (Tex. 1981) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Patel v. Kuciemba, 82 S.W.3d 589, 594
(Tex. App.—Corpus Christi 2002, pet. denied) .. . . . . . . . . . . . . . . . . . . . . . . . . . 31
Plas-Tex, Inc. v. U.S. Steel Corp.,
772 S.W.2d 442, 445, 32 Tex. Sup. Ct. J. 329 (Tex. 1989). . . . . . . . . . . . . . . . . . . 3
Pool v. Ford Motor Co.,
715 S.W.2d 629, 635, 29 Tex. Sup. Ct. J. 301 (Tex. 1986). . . . . . . . . . . . . . . . . . . 4
Rankin v. Naftalis, 557 S.W.2d 940, 944 (Tex. 1977). . . . . . . . . . . . . . . . . . . . . . 34
Schlueter v. Schlueter, 975 S.W.2d 584, 589 (Tex.1998) . . . . . . . . . . . . . . . . . . . . 2
Sherrick v. Wyland, 14 Tex. Civ. App. 299,
37 S.W. 345, 345 (Tex. Civ. App. 1896) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Smith v. Smith, 22 S.W.3d 140, 143–44
(Tex.App.-Houston [14th Dist.] 2000, no pet.).. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Southland Life Ins. Co. v. Norton, 5 S.W.2d 767
(Tex.Comm'n App.1928, holding approved). . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
-vi-
Tate v. Tate, 55 S.W.3d 1, 5-6 (Tex.App.– El Paso 2000, no pet.) . . . . . . . . . . . . . 2
Tony Gullo Motors I, L.P. v. Chapa, 212 S.W.3d 299, 310-11 (Tex. 2006) .. . . . 20
Wal–Mart Stores, Inc. v. Miller, 102 S.W.3d 706, 709 (Tex.2003). . . . . . . . . . . . . 3
Wittau v. Storie, 145 S.W.3d 732, 735
(Tex. App.—Fort Worth 2004, no pet.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25
Wm. Cameron & Co. v. Am. Sur. Co. of N.Y.,
55 S.W.2d 1032, 1035 (Tex. Comm'n App. 1932, judgm't adopted) . . . . . . . . . . 20
Worford v. Stamper, 801 S.W.2d 108, 109 (Tex.1990). . . . . . . . . . . . . . . . . . . . . . 2
Wuagneux Builders, Inc. v. Candlewood Builders, Inc.,
651 S.W.2d 919, 922 -923 (Tex.App. 2 Dist.,1983) . . . . . . . . . . . . . . . . . . . . . . . 27
Statutes and Rules: Pages
1. TX ST RPC Rule 1.04.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21, 22
2. TX R EVID Rule 801. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. TX R EVID Rule 802. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
4. TX R EVID Rule 803(17). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
5. Family Code § 9.205. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
-vii-
STATEMENT OF THE CASE
This is an appeal from a Judgment entered upon Petitioner's Fourth Amended
Petition for Division of Property Not Divided on Divorce, entered on May 14, 2015,
by the County Court at Law of Rusk County, Texas, the Honorable Chad W. Dean,
presiding. 1 CR 41-42. Petitioner/Appellee originally filed this instant underlying
action on or about September 13, 2012. 1 CR 5-13. Trial was conducted on April 30,
2015. 1 CR 41; 1 RR 1. The trial court made its Findings of Fact and Conclusions
of Law in response to Respondent/Appellant's request on or about July 7, 2015.
Respondent/Appellant, Geary H. Lee, commenced this appeal by notice filed on July
24, 2015.
For consistency and ease, the Reporter's Record will be cited as "[Vol #] RR
[Page #s]:[Line #s]," and the Clerk's Record will be cited as "[Vol #] CR [Page
#s]:[Line #s]." The Clerk's Record under the instant action– Rusk County Court at
Law Cause No. 2012-09-449CCL– contains only the recent post-decree petition. For
this reason, Appellant has requested the record be supplemented with the original
divorce and post-decree petition filed under Rusk County Court at Law Cause No. 88-
05-260CCL. The Supplemental Clerk's Record will be cited as "[Vol #] Supp. CR
[Page #s]:[Line #s]."
-1-
STANDARD OF REVIEW
The standard of review for property division issues in family law cases is
generally abuse of discretion. A trial court has broad discretion in dividing the
"estate of the parties," but must confine itself to community property. Eggemeyer v.
Eggemeyer, 554 S.W.2d 137, 139 (Tex.1977).
The trial court's discretion to divide marital property upon divorce should be
corrected on appeal only when an abuse of discretion has been shown. Murff v.
Murff, 615 S.W.2d 696 (Tex. 1981); Schlueter v. Schlueter, 975 S.W.2d 584, 589
(Tex.1998). A trial court abuses its discretion when it acts without reference to any
guiding principles or acts in an arbitrary or unreasonable manner. Worford v.
Stamper, 801 S.W.2d 108, 109 (Tex.1990). To determine whether the trial court
abused its discretion in its property division incident to divorce, the court should
engage in a two-pronged inquiry: (1) Did the trial court have sufficient information
upon which to exercise its discretion; and (2) Did the trial court err in its application
of discretion? See Tate v. Tate, 55 S.W.3d 1, 5-6 (Tex.App.– El Paso 2000, no pet.).
The trial court has no discretion in making a determination of law or in the
application of the law. Consequently, the trial court's erroneous legal conclusion,
even in an unsettled area of the law, is an abuse of discretion. Huie v. DeShazo, 922
S.W.2d 920, 927–28 (Tex.1996). The appellate court should review the trial court's
-2-
conclusions of law de novo. Smith v. Smith, 22 S.W.3d 140, 143–44
(Tex.App.-Houston [14th Dist.] 2000, no pet.). The standard of review for
conclusions of law is whether they are correct. Material P'ships, Inc. v. Ventura, 102
S.W.3d 252, 257 (Tex.App.– Houston [14th Dist.] 2003, pet. denied).
In reviewing a legal sufficiency or no-evidence point of error, an appellate
court must consider only the evidence and inferences tending to support the trial
court's finding and disregard all contrary evidence and inferences. See Wal–Mart
Stores, Inc. v. Miller, 102 S.W.3d 706, 709 (Tex.2003). An appellate court should
sustain a "no evidence" point when the record discloses one of the following: (a)
there is a complete absence of evidence of a vital fact, (b) the court is barred by rules
of law or evidence from giving weight to the only evidence offered to prove a vital
fact, (c) the evidence offered to prove a vital fact is no more than a mere scintilla of
evidence, or (d) the evidence establishes conclusively the opposite of a vital fact. See
Merrell Dow Pharmaceuticals, Inc. v. Havner, 953 S.W.2d 706, 711, 40 Tex. Sup.
Ct. J. 846 (Tex. 1997).
When conducting a factual sufficiency review, an appellate court must consider
all of the evidence, including any evidence contrary to the verdict. Plas-Tex, Inc. v.
U.S. Steel Corp., 772 S.W.2d 442, 445, 32 Tex. Sup. Ct. J. 329 (Tex. 1989).
Furthermore, an appellate court must reverse on the basis of factual insufficiency if
-3-
the trial court's finding is so against the great weight and preponderance as to be
manifestly unjust. Pool v. Ford Motor Co., 715 S.W.2d 629, 635, 29 Tex. Sup. Ct.
J. 301 (Tex. 1986).
Whether attorney's fees are awardable is generally a question of law subject to
de novo review. Brent v. Field, 275 S.W.3d 611, 621 (Tex. App.-Amarillo 2008, no
pet.) (citing Holland v. Wal-Mart Stores, Inc., 1 S.W.3d 91, 94, 95 (Tex. 1999)).
Whether the amount of attorney's fees awarded is appropriate is generally reviewed
under the abuse of discretion standard. Brockie v. Webb, 244 S.W.3d 905, 909 -910
(Tex.App.–Dallas,2008)
-4-
ISSUES PRESENTED
1. THE TRIAL COURT ERRED AS A MATTER OF LAW IN AWARDING
APPELLEE A CONTINGENT ATTORNEY FEE IN A DOMESTIC
RELATIONS MATTER.
2. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT THE
ATTORNEY'S FEES AWARDED TO APPELLEE IN THE AMOUNT OF
$30,774.27 WERE REASONABLE AND NECESSARY.
3. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT
RETIREMENT FUNDS AWARDABLE TO APPELLEE WOULD HAVE
GROWN IN THE AMOUNT OF $29,660.48 BETWEEN 2006 AND 2015.
4. THERE IS NO EVIDENCE, OR IN THE ALTERNATIVE, INSUFFICIENT
EVIDENCE, TO SUSTAIN THE TRIAL COURT'S FINDING THAT A
CONSTRUCTIVE TRUST (OR OTHER LIEN) SHOULD ATTACH TO THE
APPELLANT'S FUNDS ON DEPOSIT WITH EDWARD JONES.
-5-
STATEMENT OF FACTS
PROCEDURAL HISTORY AND BACKGROUND– CAUSE NO. 88-05-260-CCL:
1. Geary H. Lee and Elizabeth D. Holoubek (f/n/a "Lee") were married on
or about April 6, 1974, and ceased to live together as husband and wife on or about
May 11, 1988. 1 Supp. CR 4-6.
2. Geary H. Lee originally filed for divorce on or about May 31, 1988 in
the Rusk County, Texas County Court at Law, under Cause No. 88-05-260-CCL1. 1
Supp. CR 4-6.
3. The original Decree of Divorce was entered by then presiding Judge
Darrell Hyatt, on August 3, 1988, following an apparent uncontested hearing on or
about August 1, 1988. 1 Supp. CR 7-13.
4. On or about December 4, 1992, Appellee, Elizabeth Holoubek, filed a
Motion for Division of Property Not Divided on Divorce, by and through her attorney
Clay Wilder, seeking a post-decree division of Appellant's retirement benefits from
Texas Eastman Company. 1 Supp. CR 14-23.
1
This cause number controlled the action until Appellee filed a Petition for Division of
Property Not Divided on Divorce on or about September 13, 2012 under a new cause number.
-6-
5. The trial court took testimony and argument in a hearing on or about
October 12, 1993. The court designated this as a "Clarification and modification"
hearing in its docket. 1 Supp. CR 32.
6. After allowing the parties time to brief the subject, the trial court entered
the following handwritten memorandum in its docket on October 25, 1993: "Ct ruled.
Mr. Lee award 65% of retirement + Mrs. Lee awarded $35%." 1 Supp. CR 33; 1 RR
25:7-15.
7. No final order or judgment having been prepared, the post-decree
clarification and division then moved by Appellee was set for dismissal docket for
failure to prosecute on June 14, 1995. 1 Supp. CR 28, 33; 1 RR 25:16-21.
8. On or about November 25, 1997, the matter was again ordered to be set
on the dismissal docket on December 5, 1997. 1 Supp. CR 29, 33; 1 RR 25:22-25.
9. On or about December 15, 1997, the matter was ordered dismissed for
want of prosecution. 1 Supp. CR 30, 33; 1 RR 26:1-4.
10. Appellant went to work for Texas Eastman on or about August 6, 1973,
participating in the Eastman Retirement Assistance Plan Pre ‘98 from 1973 until
2006– roughly thirty-two and one half years. 1 RR 41:22–42:4; 1 RR 45:5-7; 1 RR
61:9–62:7. Between 1973 and Appellant's retirement on or about February 1, 2006,
-7-
the total value of the retirement account was $306,306.00. 1 RR 41:13–44:20; 1 RR
54:21–55:8; 1 RR 69:20–70:1.
FACTS RELATING TO THE INSTANT ACTION– CAUSE NO. 2012-09-449CCL:
11. On or about September 13, 2012– almost twenty years after the first
motion to divide was filed– Appellee filed a Petition for Division of Property Not
Divided on Divorce– this time under Cause No. 2012-09-449CCL. 1 CR 5-12.
12. After several revisions, Appellee landed on her Fourth Amended Petition
for Division of Property Not Divided on Divorce on or about April 26, 2015. 1 CR
32-36.
13. Therein, Appellee explained that this action was a continuation of the
prior post-decree division ruling in October 1993 which awarded Appellee a 35%
interest in Appellant's retirement benefits during the marriage. 1 CR 32.
14. Appellee alleged that Appellant had retired in or about February 2006,
withdrawn the funds from the retirement plan, and attempted to interfere with
Appellee's access to the funds thereafter. 1 CR 32-33.
15. The cause was set and heard, over the Appellant's request for a
continuance, on or about April 30, 2015. 1 CR 37-40.
-8-
THE JUDGMENT
16. Judgment in favor of the Appellee, Elizabeth Holoubek was entered of
record on or about May 14, 2015. 1 CR 41-42.
17. In pertinent part, the judgment awarded Appellee lump sum damages of
$75,935.68, and an additional award of $30,774.27 for Appellee's attorney fees. 1
CR 41.
18. The trial court further impressed a lien upon "those accounts standing
in the name of GEARY H. LEE, Respondent, at Edward Jones Investments to secure
payment of those amount ordered herein." 1 CR 42.
FINDINGS OF FACT AND CONCLUSIONS OF LAW
19. The following Findings of Fact were entered and approved by the trial
court:
"1. Petitioner [Appellee] was entitled to thirty-five percent (35%) of
Respondent's [Appellant's] employment/retirement benefits
accumulated during their marriage.
2. Respondent [Appellant] retired from said employment on February 1,
2006 and completely withdrew one hundred percent (100%) of all said
employment/retirement benefits, including those belonging to Petitioner.
-9-
3. Respondent [Appellant] would not deliver Petitioner [Appellee] her
share of the asset, despite her demands for payment and held it without
authority.
4. When Respondent [Appellant] retired and withdrew the accounts,
Petitioner's [Appellee's] portion thereof was $47,275.20.
5. The reasonable rate of return for the nine (9) years that Respondent
[Appellant] held Petitioner's [Appellee's] money was 5.6% per year,
which produced additional damage to her of $29,660.48.
6. Petitioner incurred reasonable and necessary attorney's fees in
connection with recovering her property." 1 CR 58.
20. The following Conclusions of Law were entered and approved by the
trial court:
"1. Petitioner [Appellee] is entitled to recover of and from the Respondent
[Appellant] the sum of $76,935.68.
2. Counsel for Petitioner [Appellee] is entitled to recover the sum of
$30,774.27 for reasonable attorney's fees, said amount payable to the
attorney.
-10-
3. The indebtedness of Respondent [Appellant] to Petitioner [Appellee]
shall bear interest at the rate of six percent (6%) from May 14, 2015, the
date of the entry of the Judgment, until paid.
4. Payment of the amounts ordered herein are secured by a lien against all
accounts standing in the name of Respondent [Appellant] at Edward
Jones Investments." 1 CR 59.
PERTINENT TESTIMONY AND EVIDENCE ADDUCED AT TRIAL
21. Appellee retained Attorney Clay Wilder to represent her in the
underlying action on a contingency fee arrangement. 1 RR 12.
22. The retainer contract at issue was entered into on or about March 26,
2013 and purports to entitle Attorney Clay Wilder to a forty percent (40%) attorney
fee on "any and all recovery obtained for Client." 2 RR 671 (Plaintiff's Exhibit No.
9).
23. Appellee and her attorney testified that they understood a forty percent
(40%) contingency fee to be a standard contingency fee amount for the recovery of
money in litigation in East Texas. 1 RR 12; 1 RR 80:16-25.
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24. Appellee and her attorney testified that they believed Appellee would
have been unable to retain Attorney Clay Wilder on an hourly basis to represent her
interests in the underlying matter. 1 RR 13:2-17; 1 RR 80:4-15.
25. After discussing the fact that her prior efforts to obtain a post-decree
division of Appellant's retirement benefits in 1993 had been dismissed for want of
prosecution, Appellee admitted that she did not ask Appellant to protect her interest
in the retirement account in any manner. 1 RR 26:22–27:11.
26. Appellee never asked Appellant to protect her interest in the retirement
account. Nor did she ask him to pay over her interest in the retirement account after
the divorce.2 1 RR 27:16-20.
27. When questioned, Appellee could identify no instance of Appellant
being "anything but cooperative" with her attempts to clarify and recover her spousal
interest in his retirement account. 1 RR 28:4–29:10.
28. As of the date of the trial of the underlying matter on April 30, 2015,
Appellee could not identify how much of Appellant's retirement account she was
entitled to, despite conferring with counsel and an accountant. 1 RR 29:11–30:14.
29. Appellant had one year of employment in at Eastman Texas in
Longview, Texas when the parties were married, fourteen years of employment at
2
This admission is directly contrary to Finding of Fact No. 3. 1 CR 58.
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Eastman Texas during the marriage (1974-1988), and another eighteen years of
employment at Eastman Texas following the divorce. 1 RR 30:15–32:2. Altogether,
Appellant worked for Texas Eastman about thirty-two and one half years. 1 RR
61:7–62: 7.
30. Because Appellee failed to segregate her portion of the retirement funds
before Appellant retired in 2006, the parties could not ascertain what her share of the
retirement funds was pursuant to the trial court's 1993 ruling without coming back
to court. 1 RR 35:20–36:6.
31. Appellant testified that, of the rollover amount deposited with Smith
Barney after his retirement in 2006, $306,306 was directly traceable to his employee
retirement plan at Texas Eastman. The other $97,400 rolled over into the Smith
Barney account was from the Eastman Investment Plan ESOP; a separate retirement
saving account which was begun after the parties divorce in 1988. 1 RR
41:13–44:20; 1 RR 54:21–55:8.
32. Appellant admits that Appellee is entitled to a thirty-five percent
fractional share of his Eastman Retirement Assistance Plan Pre ‘98 during the
marriage, which lasted for fourteen of the thirty-two and one half years that he
worked for Texas Eastman– to-wit: a thirty-five percent share of forty-four percent
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of the total amount of the funds rolled over following his retirement in 2006, or
approximately $45,000. 1 RR 61:9–63:8.
33. Petitioner's [Appellee's] trial Exhibit No. 4 summarizes the dates of
marriage, dates of employment, and retirement contributions used to calculate the
$47,275.20 judgment entered in Appellee's favor. 2 RR 640 (Marked Plaintiff's
Exhibit No. 4)
34. Appellee introduced "Plaintiff's Exhibit No. 6" at trial– a document
purporting to be a market report and commercial publication relevant "to address the
need to compound this base number [with interest] and go forward." Appellant
objected on the ground of hearsay, and was overruled. 1 RR 72:10–73:14
35. Appellee deduced from "Plaintiff's Exhibit No. 6" at trial that retirement
funds "properly invested" over the period of time between Appellant's retirement on
February 1, 2006 and the first quarter of 2015 would have earned 5.56 percent. 1 RR
73:15-22.
36. Utilizing the 5.56% growth rate, Appellee introduced a summary exhibit
purporting to show a total nine year compounded interest amount on the base rate of
$29,660.48. 1 RR 73:23–74:8; 2 RR 659-664 (Marked as "Plaintiff's Exhibit No. 7")
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36. Appellee's Attorney, the Honorable Clay Wilder ("Wilder"), testified in
support of the award of attorney fees against Appellant as costs. 1 RR 77:1– 93:6.
Mr. Wilder testified substantially as follows:
A. That he has been a licensed Texas attorney for thirty years, is
experienced and familiar with the type of work he performed on behalf
of Appellee, and is familiar with the types of fees that are charged for
this type of work. 1 RR 77:1-15.
B. The final hearing on this matter before the trial court took approximately
an hour and a half. 1 RR 77:21-23.
C. The presentation of this matter before the court "required a great deal of
work, a great deal of effort on my part, on my office's part, and on my
staff's part." 1 RR 77:24-25.
D. That but for Appellee hiring an attorney to intervene, she would never
have recovered her share of the retirement fund. 1 RR 78:1-15.
E. That records were subpoenaed and obtained from Edward Jones in St.
Louis, Missouri and Raymond James at a cost of $300. 1
RR78:20–79:18.
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F. That "multiple hour of effort"... "a great amount of time," was required
to do the work necessary to get the case ready for trial. 1 RR
79:20–80:3.
G. That "there are very standard and acceptable contingent fee rates in East
Texas to recover sums of money in litigation is 40 percent." 1 RR
80:16-25.
H. That Wilder entered a contingent representation contract in this matter
with Appellee because at his going standard rate of $200 an hour,
"would have exceeded greatly what we believe is the appropriate
amount in relation to her claim." 1 RR 80:4-7
I. That Wilder incurred $1,220.74 in litigation expenses. 1 RR 83:13-17.
J. That attorney's fees may be awarded in a post-decree division of
property pursuant to Texas Family Code 9.205.
37. On cross-examination, Wilder testified that he previously represented
Appellee in the post-decree Motion to Divide Property Not Divided in Divorce in
1993, when the trial court awarded Appellee thirty-five percent of Appellant's
retirement fund. 1 RR 84:12-16.
38. Wilder further testified that Appellee was aware that she was awarded
a portion of the Appellant's retirement account at that time. 1 RR 84:1-8
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39. Wilder further testified that the prior action was dismissed for want of
prosecution in 1993 and had no explanation for the dismissal except what appeared
in the docket. 1 RR 84:12–85:5.
40. Wilder agreed that "that if a proper qualified domestic relations order
had been prepared subsequent to the hearing in October 1993, that that would have
disposed of all of these issues and we wouldn't be here today." 1 RR 85:9-14.
41. The trial court orally found and ruled during the hearing as follows:
A. There was $306,306.00 in the retirement account when Appellant
retired. 1 RR 93:16-18.
B. "that it was necessary that Appellee have to employ an attorney to sort
it all out... so I'm going to award the attorney's fees. 1 RR 94:12-17.
C. That, "based on the circumstances in this case, and other factors required
under the Anderson matter, as well as Section 9.205 of the Family
Code," attorney's fees of forty percent are justified. 1 RR 94:18-22.
D. That judgment in favor of Appellee for $76,935.68, which are traceable
to an Edward Jones' account upon which Appellee is granted a lien. 1
RR 94:23–95:2.
E. That an award of attorney fees in the amount of $30,774.27, enforceable
directly by the attorney is appropriate. 1 RR 95:2-5.
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SUMMARY OF THE ARGUMENT
Appellant asserts several arguments in opposition to award of contingent
attorney fees in the amount of $30,774.27 herein. As an overriding matter, Appellant
believes that the trial court lacked the authority to enter the award of contingent
attorney fees as a matter of law for three reasons. First, because such fees are
generally not awardable in family law cases. Second, Appellee's petition was a post-
decree petition for division of undivided property– subject to the attorney's fee
provisions of Family Code § 9.205– in name only, because, the property had in fact
already been divided in 1993. And, third, because further action seeking an award
of attorney fees for the post-decree division of undivided property was barred by res
judicata. Moreover, from an equitable perspective, the Appellee's cause of action to
identify and encumber funds attributable to the 1993 order of division was only
necessary because of Appellee's severe neglect of her own legal interests. Had
Appellee not waited almost twenty years to attempt to enter a qualified domestic
relations order or otherwise protect her share of the retirement funds, this suit would
have been unnecessary.
Furthermore, Appellant asserts that Appellee failed to present sufficient
evidence in support of the contingent attorney fee as reasonable and necessary.
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Appellant does not appeal the trial court's findings or conclusions in relation
to the establishment of the amount awardable to the Appellee from Appellant's
retirement account. Appellant does, however, appeal the finding that Appellee's
share of the retirement account would have experienced compound growth of 5.56%
per year for the nine years after Appellant retired until Appellee sought to claim her
share of the funds. Such a finding could only be based upon conclusions which were
either not in evidence, or not supported by admissible evidence. In particular,
Appellant argues that the trial court erred in admitting an alleged "market
report/commercial publication" which purported to establish the growth rate of the
fund in the abstract, in the absence of expert testimony to qualify the material under
the hearsay exception.
Finally, the Appellant asserts, that even should the judgment be upheld in all
other respects, there is no basis in equity to impose a constructive trust upon
Appellant's Edward Jones account simply because the funds are traceable to the
account. There being no pre-existing fiduciary duty or special relationship imposing
an obligation upon the Appellant to safeguard the Appellee's funds– as could have
existed by reason of an order from the court had the Appellee not abandoned the 1993
action– there was no lawful basis for imposing such a special remedy.
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ARGUMENT AND AUTHORITIES
ISSUES PRESENTED
1. THE TRIAL COURT ABUSED ITS DISCRETION IN AWARDING
APPELLEE A CONTINGENT ATTORNEY FEE IN A DOMESTIC
RELATIONS MATTER.
Whether a party may recover reasonable attorney's fees is a question of law for
the trial court which appellate courts review de novo. Brent v. Field, 275 S.W.3d 611,
621 (Tex. App.-Amarillo 2008, no pet.) (citing Holland v. Wal-Mart Stores, Inc., 1
S.W.3d 91, 94, 95 (Tex. 1999)). It has long been the rule in Texas that attorney's fees
paid to prosecute or defend a lawsuit cannot be recovered in that suit absent a statute
or contract that allows for their recovery. See Tony Gullo Motors I, L.P. v. Chapa,
212 S.W.3d 299, 310-11 (Tex. 2006) (\Absent a contract or statute