In Goepp v. Comerica Bank & Trust, N.A., the settlors created inter vivos trusts and their three children were the remainder beneficiaries. No. 03-19-00485-CV, 2021 Tex. App. LEXIS 5461 (Tex. App.—Austin July 9, 2021, no pet. history). The three children became co-trustees and then had disputes. They entered into a family settlement agreement, and had a corporate trustee appointed successor trustee. The corporate trustee then filed a “First Amended Petition for Settlement of Trustee’s Final Account and Order of No Liability.” Id. One of the children objected “to the Trustee’s Petition, complaining about the timing of certain preferential distribution payments, about the calculations of interest on the distributions, and that he ‘has yet to be reimbursed the monies owed to him for out of pocket expenses of durable medical equipment purchased on behalf of Iraida.’” Id. After the trial court entered the relief requested by the corporate trustee, several of the children appealed.
discharge
Court Holds That Shareholders In Closely Held Business Do Not Owe Each Other Fiduciary Duties
By David Fowler Johnson on
Posted in Items of Interest
In In re Fritz, a bankruptcy court determined whether an exception to dischargeability was present. No. 15-347950BJH, 2017 Bankr. LEXIS 930 (N.D. Tex. Bankr. April 3, 2017). Although the state court judgment jointly awarded the plaintiffs $100,000 in damages and post-judgment interest, it did not specify which of the…
Breach of Fiduciary Duty Judgment May Be Dischargeable In Bankruptcy
By David Fowler Johnson on
Posted in Latest From Knowledge Library
It is not uncommon for a successful plaintiff in a breach of fiduciary duty case to have their collection efforts thwarted by a defendant filing for bankruptcy. The issue is whether the state court judgment is dischargeable in bankruptcy. “[T]he issue of nondischargeability [is] a matter of federal law governed…