On May 27, 2016, the Texas Supreme Court held that an individual beneficiary of a self-directed retirement account managed by a corporate trustee had standing to bring legal malpractice claims against a law firm based on advice allegedly given regarding loans from the retirement account. Linegar v. DLA Piper US,
Corporate Trustee
Texas Supreme Court Hears Oral Argument on Legal Malpractice Case Involving Standing of Beneficiary of Trust
On February 10, 2016, the Texas Supreme Court heard argument in a case that involves the issue of legal standing to sue when a trust is injured by the actions of a third party. In DLA Piper US, LLP v. Linegar, Chris Linegar brought fraud and legal malpractice claims…
There is a Split in the Courts of Appeals Regarding the Requirements to Obtain an Injunction Preventing a Trustee From Paying Lawyers From Trust Funds
In Zaffirini v. Guerra, beneficiaries sued the trustees of a trust for breach of fiduciary duty and removal. No. 04-14-00436-CV, 2014 Tex. App. LEXIS 12761 (Tex. App.—San Antonio November 26, 2014, no pet.). The trustees paid their attorneys from the trust to defend the suit. Beneficiaries obtained a temporary…
The Presumption of Unfairness Does Not Arise Where A Corporate Trustee Has a Transaction With an Entity Related to an Employee and Not the Corporate Entity
In In re Estate of Boyle, beneficiaries sued a trustee for mismanagement for allegedly transferring trust assets to entities in which the trustee’s employees had an interest. No. 11-13-00151-CV, 2014 Tex. App. LEXIS 13553 (Tex. App.—Eastland December 19, 2014, no pet.). The court of appeals held that when a…