In In re Guardianship of Delp, a brother sued his sister over her actions as their mother’s power of attorney agent. No. 02-22-00300-CV, 2023 Tex. App. LEXIS 3617 (Tex. App.—Fort Worth May 25, 2023, no pet. history). The daughter had been living in her mother’s home rent free. She arranged for her mother to execute a deed transferring the home to the daughter.  Shortly after that transaction, the daughter took her mother to a new attorney, and the mother signed a new statutory durable power of attorney replacing a sister with the defendant daughter as the new agent. The defendant daughter then took control of some of the mother’s bank accounts, social-security payments, and credit cards. The plaintiff brother was then appointed the mother’s guardian, and he filed suit to remove the defendant daughter as power of attorney agent. The probate court entered a judgment that because the defendant had “breached her fiduciary duty,” the court removed her “as agent in all powers of attorney for health care and all durable powers of attorney executed by” the mother.

The court of appeals discussed the duties owned by a power of attorney agent:

Dianna does not dispute that an agent under a statutory durable power of attorney owes formal fiduciary duties to her principal and can be removed for a breach of those duties. Among them are the duties to act in good faith, to avoid conflicts, and to act loyally, which prohibits a fiduciary from using her position to benefit at the principal’s expense—that is, an agent must not engage in self-dealing. Because all transactions between a fiduciary and her principal are presumptively fraudulent, the fiduciary bears the burden to establish the validity and fairness of any particular transaction in which she is involved.

Id. The court reviewed the evidence and held that there was evidence to support at least one of the findings of breach:

If even one of these findings that underlie Dianna’s claimed fiduciary-duty breach enjoys sufficient evidentiary support, the probate court could have properly removed her as Trudy’s agent under the 2020 POA. But we need not get into the evidence supporting these findings because Dianna’s appeal fails for a more fundamental reason: she has not challenged the probate court’s additional finding that “Dianna continued to reside in Trudy’s home rent free and without paying any of the expenses for the upkeep and maintenance of the home.” Unchallenged fact-findings are entitled to the same weight as a jury’s verdict and bind an appellate court unless either the contrary is established as a matter of law or no evidence supports the finding. In other words, we defer to unchallenged fact-findings that are supported by some evidence.

The evidence showed that after Trudy moved to a nursing home in June 2021, Dianna was using Trudy’s money to pay the utilities at the Cardinal Lane home. Because the Maryanna Way property was “not habitable,” Dianna was still living in Trudy’s house and testified that she intended for her mother to keep paying the utilities. The evidence also showed that in addition to the utilities, Dianna continued to use Trudy’s money to pay for lawncare and pool servicing at Cardinal Lane.

The probate court’s unchallenged finding that Dianna continued to live on Cardinal Lane “rent free and without paying any of the expenses for the upkeep and maintenance of the home” is supported by some evidence. On this basis alone the probate court could have removed Dianna as Trudy’s agent under the 2020 POA, unless Dianna established that these expenditures were fair to Trudy. We have reviewed the record and find no point at which Dianna, a fiduciary, brought forth evidence of fairness to Trudy, her principal.

Id.

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Photo of David Fowler Johnson David Fowler Johnson

[email protected]
817.420.8223

David maintains an active trial and appellate practice and has consistently worked on financial institution litigation matters throughout his career. David is the primary author of the The Fiduciary Litigator blog, which reports on legal cases and issues impacting the fiduciary…

[email protected]
817.420.8223

David maintains an active trial and appellate practice and has consistently worked on financial institution litigation matters throughout his career. David is the primary author of the The Fiduciary Litigator blog, which reports on legal cases and issues impacting the fiduciary field in Texas. Read More

David’s financial institution experience includes (but is not limited to): breach of contract, foreclosure litigation, lender liability, receivership and injunction remedies upon default, non-recourse and other real estate lending, class action, RICO actions, usury, various tort causes of action, breach of fiduciary duty claims, and preference and other related claims raised by receivers.

David also has experience in estate and trust disputes including will contests, mental competency issues, undue influence, trust modification/clarification, breach of fiduciary duty and related claims, and accountings. David’s recent trial experience includes:

  • Representing a bank in federal class action suit where trust beneficiaries challenged whether the bank was the authorized trustee of over 220 trusts;
  • Representing a bank in state court regarding claims that it mismanaged oil and gas assets;
  • Representing a bank who filed suit in probate court to modify three trusts to remove a charitable beneficiary that had substantially changed operations;
  • Represented an individual executor of an estate against claims raised by a beneficiary for breach of fiduciary duty and an accounting; and
  • Represented an individual trustee against claims raised by a beneficiary for breach of fiduciary duty, mental competence of the settlor, and undue influence.

David is one of twenty attorneys in the state (of the 84,000 licensed) that has the triple Board Certification in Civil Trial Law, Civil Appellate and Personal Injury Trial Law by the Texas Board of Legal Specialization.

Additionally, David is a member of the Civil Trial Law Commission of the Texas Board of Legal Specialization. This commission writes and grades the exam for new applicants for civil trial law certification.

David maintains an active appellate practice, which includes:

  • Appeals from final judgments after pre-trial orders such as summary judgments or after jury trials;
  • Interlocutory appeals dealing with temporary injunctions, arbitration, special appearances, sealing the record, and receiverships;
  • Original proceedings such as seeking and defending against mandamus relief; and
  • Seeking emergency relief staying trial court’s orders pending appeal or mandamus.

For example, David was the lead appellate lawyer in the Texas Supreme Court in In re Weekley Homes, LP, 295 S.W.3d 309 (Tex. 2009). The Court issued a ground-breaking opinion in favor of David’s client regarding the standards that a trial court should follow in ordering the production of computers in discovery.

David previously taught Appellate Advocacy at Texas Wesleyan University School of Law located in Fort Worth. David is licensed and has practiced in the U.S. Supreme Court; the Fifth, Seventh, and Eleventh Federal Circuits; the Federal District Courts for the Northern, Eastern, and Western Districts of Texas; the Texas Supreme Court and various Texas intermediate appellate courts. David also served as an adjunct professor at Baylor University Law School, where he taught products liability and portions of health law. He has authored many legal articles and spoken at numerous legal education courses on both trial and appellate issues. His articles have been cited as authority by the Texas Supreme Court (twice) and the Texas Courts of Appeals located in Waco, Texarkana, Beaumont, Tyler and Houston (Fourteenth District), and a federal district court in Pennsylvania. David’s articles also have been cited by McDonald and Carlson in their Texas Civil Practice treatise, William v. Dorsaneo in the Texas Litigation Guide, and various authors in the Baylor Law ReviewSt. Mary’s Law JournalSouth Texas Law Review and Tennessee Law Review.

Representative Experience

  • Civil Litigation and Appellate Law