Gorham v. Gates

This appeal presents another chapter in an ongoing probate dispute involving the disposition of Rubylien Barber Badouh’s residence. See Hale v. Badouh, 975 S.W.2d 419 (Tex. App.-Austin 1998), aff’d in part and rev’d in part, 22 S.W.3d 392 (Tex. 2000); Parker v. Gates, No. 3-00-411-CV (Tex. App.-Austin Dec. 21, 2000, pet. dism’d w.o.j.) (not designated for publication). Appellants, Charles B. Gorham (“Gorham”) and Edward Badouh, Jr. (“Badouh”), *fn1 are creditors, both asserting a lien against a house that was bequeathed by the decedent, Rubylien Barber Badouh, to her daughter, Elaine Badouh Hale (“Hale”). When Edward Badouh filed an application for a turnover order to enforce his judgment against Hale, Hale attempted to disclaim her interest in the house. However, Hale’s disclaimer was ultimately determined to be invalid. See Badouh v. Hale, 22 S.W.3d 392 (Tex. 2000). Subsequently, in response to a joint application for the sale of property filed by the administrator and the appellants, the probate court ordered the sale of the house and entered a decree confirming the report of sale. Uncertain as to who was entitled to the proceeds from the sale of the property, Robert H. Gates (“Gates”), dependent administrator of the estate, filed a motion to approve distributions and close the estate, in which he requested that the house be sold free and clear of any liens and that the proceeds of the sale be placed in the registry of the court until the court could determine how those proceeds should be distributed. The probate court granted the motion and ordered that the proceeds from the sale of the house be placed in the registry of the court and further ordered that any lien claims that appellants may have against the house shall attach to the deposited funds. Gorham and Badouh appeal this latest order of the probate court, arguing that after estate expenses are settled, the excess proceeds from the sale of the house should be immediately disbursed to them in satisfaction of their lien claims. We will overrule appellants’ issue and affirm the probate court’s order.

BACKGROUND *fn2

In 1990, Rubylien Barber Badouh (“Rubylien”) executed a will *fn3 by which she specifically bequeathed to her daughter, Hale, her home in New Braunfels (the “property”). In 1992, the guardianship of the estate of Rubylien obtained a final judgment against Hale in excess of $150,000. *fn4 On April 15, 1993, the judgment was abstracted and recorded in the official public records of Comal County. On May 6, 1998, Badouh purchased and acquired the estate’s interest in the judgment, the judgment lien, and a promissory note for $50,000. Accordingly, Badouh currently owns the judgment and lien in their entirety and they are no longer assets of the estate. The judgment remains unsatisfied.