Moon v. Lesika

230 S.W.3d 800 (2007)

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Nature of the Case

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Facts

P and D are brother and sister. In January 1990, their father, Woodrow V. Lesikar ('Mr. Lesikar'), established the Family Trust, naming himself and D co-trustees. Mr. Lesikar placed in the Family Trust 10,000 shares of stock in West Houston Airport Corporation. Mr. Lesikar would receive all net income from the trust assets during his lifetime. Upon Mr. Lesikar's death, the trust would become irrevocable, and separate special trusts would be created for D, P, Margie Pugh Morgan (Mr. Lesikar's wife), and his grandchildren. D's special trust was to receive all the Airport Stock, the grandchildren's trusts were to receive certain real property, and Margie's trust was to receive certain stock holdings, while the remainder was to be divided between D's special trust and P's special trust. Mr. Lesikar reserved the right to revoke the trust agreement or amend the trust by written notice to the trustee. In 1991, Mr. Lesikar revoked, in writing, part of the Family Trust, removing Margie as a beneficiary. In 1997, Mr. Lesikar decided to transfer the 10,000 shares to a trust established for Woody's children (Shelly Ann Lesikar and Stacy Jayne Lesikar Martin (S&S Trust(D))). On September 5, 1997, Mr. Lesikar wrote P explaining his decision. Mr. Lesikar also stated in that letter he was going to revise his will to provide for Margie, he was asking D to have his will redrafted, with input from P and Margie, and he might make other changes. On March 16, 1998, Mr. Lesikar signed a new trust agreement that 'modifies, amends and supersedes the Trust Agreement and any modifications and amendments previous to the date of the signing hereof.' The Amended Family Trust was effective as of December 31, 1997. The Amended Family Trust placed Margie back in as a beneficiary. Upon Mr. Lesikar's death, $250,000 would be placed into a trust, with the income payable to Margie for her lifetime. Mr. Lesikar's grandchildren would each receive $10,000; Shriner Children's Hospital would receive $50,000; and the remainder would be divided equally between P and D and distributed to their respective special trusts. The Amended Family Trust did not mention the distribution of the Airport Stock to D as the original trust had. Mr. Lesikar sold the Airport Stock to D for $ 2,000 for the benefit of the S&S Trust (D). On his 1997 federal income tax return, Mr. Lesikar claimed a $191,228 loss from the sale, which he used to offset a $1,674,203 gain from the sale of other stock. On January 28, 2001, Mr. Lesikar died thereby making the Amended Family Trust irrevocable. On January 28, 2001, Mr. Lesikar died thereby making the Amended Family Trust irrevocable. On August 19, 2003, P filed a petition for construction of trust, declaratory judgment, accounting, appointment of a receiver, and injunctive relief against the Airport Defendants. P complained that the sale of the Airport Stock to D for $ 2,000 as an inadequate price. P brought claims for negligence, breach of fiduciary duty, conversion, and civil conspiracy against D, and civil conspiracy against the S&S Trust (D). The trial court granted Ds' motions for summary judgment. The trial court ordered the portion of the case relating to the sale of the Airport Stock severed from the remainder of the case. P appealed.