In re Estate of Stone, 475 S.W.3d 370 (Tex. App.—Waco 2014, pet. denied).
Dependent Administratrix found two potential
purchasers for estate property. The court confirmed the second offer
which was financially a better deal for the estate. The person who made
the first offer two years earlier claimed the trial court’s approval of
the second offer was improper and appealed.
The appellate court affirmed. The court reviewed
the procedure Administratrix and the trial court followed and found that
the procedure was in full compliance with the applicable statutory
provisions. The court then examined the court’s decision to confirm the
second offer and held that the trial court’s action was not an abuse of
discretion. In fact, the second offer was a considerably better contract
for the estate – the purchaser offered a higher price for just the
surface rights than the first potential purchaser offered for both the
surface and mineral rights.
The court rejected the argument that the first
purchaser should prevail because had Administratrix timely filed a
request within 30 days for the court to confirm the sale as required by
the statute, the court would have done so because the offered price was
fair at that time. The court explained that it is unknown whether an
expert would have been hired to determine that the offered price for
both the surface and mineral interests was not actually fair to the
estate. After examining additional evidence, the court determined that
was no showing that the first purchaser was injured or disadvantaged by
Administratrix’s failure to file the report of sale within 30 days.
The first purchaser also claimed that
Administratrix was not following the terms of the will in disposing of
estate property. The court disposed of this argument in short order by
explaining the first purchaser lacked standing to complain about the
Administratrix’s conduct.
Moral: A potential purchaser of estate
property from a dependent personal representative needs to avoid relying
on the sale as a fait accompli until the court actually confirms the
sale.