Court Opinion

ID: 9672046
Source: CourtListenerOpinion
Date Created: 2023-08-24 03:47:57.358165+00
Date Added: 2024-06-11T18:16:13.877004
License: Public Domain

ON REHEARING
POPE, Justice
(dissenting in part).
I respectfully dissent in part. I concur in the court’s holdings except that I disagree with its judgment remanding this cause to the court of civil appeals. We have ruled that the Knebel estate may be held liable for attorney fees upon proof that the estate benefited from the labors of the attorneys for the devisees under the will of Edmund Knebel. The court, however, remands the cause to the court of civil appeals so that court can review what is thought to be an implied finding of the trial court that the estate was not benefited.
The proof of benefit to the estate is undisputed. The devisees through their attorneys successfully challenged and nullified the original stock sale and recovered the stock for the benefit of the estate. This means that the estate must pay back the $43,349.60, plus interest, for the return of the Knebel stock. This amounts to approximately $60,000. The majority opinion expresses concern whether the stock in the estate will now be worth that much when a proper sale is made. All of the evidence shows value greatly in excess of $60,000.
We ought to dispose of this case upon the basis of the proof presented upon the trial of the case. Two witnesses testified about the value of the business. Their testimony is unchallenged. Walton Sherman, a quali*805fied broker of soft drink industries and properties, said that the “cash in fist” value of the whole business was $657,-000.00. He named five prospective purchasers who lived out of Austin and said there were two or three in Austin. Plaintiffs called Henry Kuempel, their adversary, to testify. Without repeating all of his testimony, he was asked whether he held to the view that the business was worth about $600,000. His answer was, “Yeah, I think that’s a figure that’s within reason.” No witnesses were called to question this evidence. The proof came from both sides of the contest, and both witnesses substantially agreed on the value. Tn fact, Mr. Kuempel testified during the course of the trial, that the net worth of the corporation was $730,000.00. It would have been to Mr. Kuempel’s interest to testify to a low value.
The majority opinion mentions several supposed courses of action which the executors might take in effecting a sale, and concludes that a sale of half the stock may not bring as much as a sale of all of it. It says that neither owner can force the other to sell.
The Knebel devisees have already set aside one sale because the executors sold it for too little. Surely this court is not now holding that the executors can make another sale for less than the amount the stock or the business will bring on the market. A sale is not dependent upon the consent of the stockholders. In fact, the majority opinion notes that the trial court judgment directs the executor “to assert the contract right provided in the stock option contract to have the corporation liquidated.” If the business will bring more by a sale of the business as a whole, it should be so sold.
The undisputed proof, therefore, is that the estate was substantially benefited. The case has on two prior occasions been through the total appellate process to reach this court. It should now be remanded directly to the trial court for a final disposition and for determination of the reasonable attorney fees.