In Re Estate of Shawn Edward Sheeks

Shawn Sheeks (“Decedent”) and Paul Slate (“Mr. Slate”) co-owned and managed several business entities. Following Decedent’s untimely death, Mr. Slate, acting on behalf of the businesses they co-owned, filed a Verified Claim against Decedent’s estate in the Chancery Court (Probate Division) for Montgomery County seeking an accounting and damages of $382,207.48. Shortly thereafter, Janet Sheeks (“Ms. Sheeks”), Decedent’s widow and the Administratrix of the Decedent’s estate, filed a complaint in the Chancery Court for Davidson County (hereinafter “the Business Court”) on behalf of herself and Decedent’s estate against Mr. Slate seeking an accounting and to windup and dissolve the business entities. Mr. Slate filed a counterclaim against the estate and Ms. Slate, as well as cross-claims against the business entities, seeking an accounting and payment for debts allegedly owed to him. While the Claim in the Probate Court was held in abeyance, all claims by and among the parties in the Business Court were tried. In a detailed and thorough final order, the Business Court ordered dissolution of the business entities and allocated the distribution of the assets among the parties after applying offsets and credits. No one appealed the judgment from the Business Court. Thereafter, the Administratrix of the Estate filed a motion for summary judgment in this Probate Court proceeding contending the Claim should be dismissed on the ground of res judicata. The Probate Court granted the motion and summarily dismissed the Claim on the ground of res judicata finding that the Claim was not a separate and distinct cause of action from the Business Court action, that the underlying facts at issue were the same in both lawsuits, and that the Claim could have, and should have, been litigated in the Business Court action. We affirm.