WINSTEAD PC I ATTORNEYS
Texas Fiduciary Litigation Update: 2015-2016
DAVID F. JOHNSON
Winstead PC
dfjohnson@winstead.com
www.txfiduciarylitigator.com
300 Throckmorton St., Suite 1700
Fort Worth, TX 76102
817-420-8223
Joseph P. Regan
Winstead PC
jregan@winstead.com
www.txfiduciarylitigator.com
300 Throckmorton St., Suite 1700
Fort Worth, TX 76102
817-420-8217
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WINSTEAD PC I ATTORNEYS
Table of Contents
I. Introduction ................................................................................................ 1
II. Claims Against Trusts/Estates ................................................................... 1
A. Court Dissolves Temporary Injunction That Prevented
Actions by Trustee, But Affirms Appointment of Temporary
Co-Receivers Over Trust Assets ..................................................... 1
B. Court Reversed Transfer Of Residence To Revocable Trust
Due To Pre-Marital Agreement ........................................................ 3
C. Court Held That A Beneficiary Could Not Usurp A Trustee’s
Right To Direct Litigation And Did Not Have Standing To Sue
The Trustee On Behalf Of The Trust ............................................... 4
D. Court Affirmed Government Seizure Of Trust Asset ........................ 6
E. Court Granted Summary Judgment For A Trustee On A
Fiduciary Breach Claim Arising From Conflict-Of-Interest and
Diversification Issues ....................................................................... 7
F. Court Affirms Holding That A Trust Owns Stock That Was
Issued To The Trustee In His Individual Capacity ......................... 10
G. Court Determines Litigants Were Not “Interested Persons”
Under Trust Code and Had No Standing to Set Aside Order
Appointing Successor Trustee ....................................................... 11
III. Claims By Trusts/Estates ......................................................................... 12
A. An Estate Had No Breach of Contract Claim Against A Bank
Arising From A Joint Account Where The Estate Was Not
Damaged ....................................................................................... 12
B. Estate Did Not Own Real Estate Because Court Affirmed
Finding Of Inter Vivos Oral Gift Of Real Estate ............................. 13
C. Court Affirmed Holding That Trust Owned Real Estate And
Was Entitled To Attorney’s Fees ................................................... 14
D. Court Reverses New Trial Order After A Jury Verdict On A
Trust Dispute ................................................................................. 16
IV. Existence of Fiduciary Duties ................................................................... 17
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WINSTEAD PC I ATTORNEYS
A. Court Held That Plaintiff Stated A Claim Against Bank’s
Employees For Individual Liability Based On Alleged
Fiduciary Breaches ........................................................................ 17
B. Court Affirmed Trial Court’s Finding That A Girlfriend Did Not
Owe Fiduciary Duties To A Husband In the Context Of An
Extramarital Affair .......................................................................... 19
C. Court Affirmed Finding That No Joint Venture Existed .................. 20
D. Court Affirmed Judgment On Breach Of Fiduciary Duty
Claim Because Plaintiff Swore In Bankruptcy Filings That He
Did Not Have Any Interest In Disputed Properties ......................... 20
E. Employers Generally Do Not Owe Fiduciary Duties To
Employees ..................................................................................... 21
F. Court Dismisses Fiduciary Claim Between Mortgagor and
Mortgagee ..................................................................................... 22
G. Court Affirms Finding Of Informal Fiduciary Relationship
Between Step-Mother and Step-Son Based On Decision To
Not Resuscitate Father .................................................................. 25
H. Court Holds That An Officer Of A General Partner Does Not
Individually Owe Fiduciary Duties To The Partnership .................. 26
I. Court Reverses Trial Court And Holds That Escrow Agent
Owed Fiduciary Duties .................................................................. 27
V. Will Contest And Will Construction Issues................................................ 28
A. Court Reverses Finding Of Undue Influence In A Will
Contest .......................................................................................... 28
B. Court Addresses Common-Disaster Provision In Will.................... 30
C. Court Holds That Will Did Not Revoke Inter Vivos Trust ................ 31
D. Court Determines that “Will” Was Not a Valid Will or a Valid
Gift Deed and that Decedent Later Lacked Mental Capacity
to Deed the Property ..................................................................... 32
E. Court Concludes Spouses’ Joint Will Was a Contractual Will
and Imposes Constructive Trust to Enforce Terms of Joint
Will ................................................................................................. 34
