Litigation

Where a spouse could have raised the issue of fraudulent manipulation of the sale of the husband's business during the original divorce action, the lower court's distribution of the asset will stand. Rangel v. Rangel, No. 02-05-411-CV, Court of Appeals of Texas, Second District, Fort Worth, Feb. 1, 2007.

The wife moved to set aside the sale of the husband's business, a marital asset, arguing that the sale was not bona fide. However, the trial court approved and ratified the sale and denied the wife's motion to set it aside. Thereafter, the wife claimed she became aware of some facts and circumstances regarding the sale, and stated she had been deceived and defrauded. She sought a temporary restraining order against the new owners of the business, but the court granted summary judgment in favor of the new owners. The wife appealed, and the appellate court affirmed. The court held that under the theories of res judicata and collateral estoppel, the wife's claims could have been raised in the original divorce action. The court further held that the 'new facts' discovered by the wife could have been discovered during the original divorce action with reasonable diligence.