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Mary Kay McQuigg A/K/A Mary Katherine Carr v. Don L. Carr

Citation: Not availableDocket: 03-08-00338-CV

Court: Court of Appeals of Texas; October 2, 2009; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case concerns a partition dispute between siblings over the dissolution of their partnership and sale of jointly owned property in Texas. The court determined that the property could not be partitioned in kind and ordered a receiver sale. The property was sold to one sibling, leading to a dispute over the distribution of proceeds. The district court's ruling took into account each party's contributions and actions affecting the property's value, applying equitable principles under Texas law. The appellant challenged the court's findings, asserting that the Texas Revised Partnership Act should dictate the distribution and disputing the evidentiary basis for the court's conclusions. Despite arguments regarding the adequacy of the sale price and evidentiary insufficiency, the district court's judgment was affirmed. The court held that the appellant's purchase below market value justified offsetting her share of the proceeds, supported by evidence of conduct diminishing property value. The appellate court upheld the judgment, emphasizing equitable considerations in partition suits and the sufficiency of evidence supporting the district court's findings.

Legal Issues Addressed

Application of the Texas Revised Partnership Act (TRPA)

Application: McQuigg argued that the TRPA should guide the distribution, but the court found that equitable adjustments were permissible.

Reasoning: Equity principles remain applicable unless contradicted by the statute.

Equitable Distribution in Partition Suits

Application: The court used equitable principles to adjust the distribution of proceeds based on each party's contributions and conduct affecting the property's value.

Reasoning: The district court had the authority to adjust a partner's interest in the proceeds based on these principles.

Partition of Property under Texas Law

Application: The court determined the Junction Property could not be partitioned in kind due to equal undivided interests, necessitating a sale through a receiver.

Reasoning: A receiver was appointed to sell the property, which was sold to McQuigg for $450,000, yielding net proceeds of $414,664.67.

Receiver's Sale and Market Value

Application: The court considered evidence of McQuigg's actions impacting the property's marketability and affirmed the sale's adequacy under equitable principles.

Reasoning: The court reaffirmed that all equities must be considered in partition suits.

Sufficiency of Evidence in Partition Disputes

Application: The court evaluated the sufficiency of evidence related to the property's value and McQuigg's contributions, finding support for its conclusions.

Reasoning: The court holds discretion in evaluating conflicting evidence and making credibility assessments.