This section contains the nature of the case and procedural background.

H transferred various community assets to his father shortly before he filed for divorce. W counterclaimed for divorce and brought independent tort claims against H and her father in law seeking damages for breach of fiduciary duty, and conspiracy. H and W were married in 1969 and in 1992 H began investing in emus. He contributed $3,250 of community funds for a pair of the birds but eventually sold his interests to his father for $1,000. The business was worth at least $10,000. W did not learn of the details of the sale until the divorce was filed. Shortly before filing for divorce, H accepted a $30,360,41 check for taking an early retirement. H gave the check to his father, and the father wrote himself a check for $12,565 allegedly to reimburse himself for past loans to H. A week later H filed for divorce. The jury found for W, and the trial court awarded W a disproportionate division of the community estate favoring the wife and rendered judgment for W against H ($50,000) and the father in law ($15,000) for actual and exemplary damages. The court of appeals ruled that a tort cause of action for fraud on the community exists independent of a divorce proceeding. This appeal resulted.

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