In In re Est. of Moncrief, certain parties alleged that the decedent was mentally incompetent, was unduly influenced, and was defrauded into executing certain documents that contained arbitration clauses. 699 S.W.3d 315 (Tex. App—Fort Worth 2024, pet. filed). The trial court held that the capacity issues should be resolved by
motion to compel arbitration
Texas Supreme Court Holds That The Incorporation Of AAA Rules Can Delegate Scope Issues To The Arbitrator, Which May or May Not Impact Trust And Estate Disputes
By David Fowler Johnson on
Posted in Cases Decided, Texas Supreme Court
The Texas Supreme Court held that arbitration clauses in trust documents may be enforced regarding claims by beneficiaries against trustees. In Rachal v. Reitz, a beneficiary sued a trustee for failing to provide an accounting and otherwise breaching fiduciary duties. 403 S.W.3d 840 (Tex. 2013). The trustee filed a…
Court Affirmed Arbitration Decision Because Multiple Documents Regarding The Resignation And Appointment Of A Trustee Constituted One Large Transaction
By David Fowler Johnson on
Posted in Cases Decided, Texas Court of Appeals
In Ruff v. Ruff, a beneficiary of a trust sued a former trustee, and that dispute was sent to arbitration. No. 05-18-00326-CV, 2020 Tex. App. LEXIS 6344 (Tex. App.—Dallas August 11, 2020, no pet. history). After the arbitration ruled for the beneficiary, awarding her over $49 million, the former trustee appealed arguing that the dispute should not have been sent to arbitration.
Federal Court Holds That Trust Beneficiaries’ Claims Against Brokerage Firm Should Not Be Compelled To Arbitration
By David Fowler Johnson on
Posted in Items of Interest
In Freeman v. Fid. Brokerage Servs., LLC, the mother of the plaintiffs executed a living trust agreement. No 3:18-CV-0947-G, 2019 U.S. Dist. LEXIS 34694 (N.D. Tex. March 5, 2019). Upon her death, the trust agreement directed that the trust assets were to be divided and allocated into trusts for…
Orders Denying Arbitration Are Immediately Appealable But Parties Must Wait Until After Arbitration to Appeal Orders Granting Arbitration
By David Fowler Johnson on
Posted in Cases Decided, Texas Court of Appeals
In Fletcher v. Edward Jones Trust Co., a party sued a trust company for inappropriately distributing funds from an account, and the trial court granted the trust company’s motion to compel the dispute to arbitration. No. 11-19-00017-CV, 2019 Tex. App. LEXIS 1280 (Tex. App.—Eastland February 21, 2019, Decided; February…
The Texas Supreme Court Holds That Incorporating The AAA Rules Does Not Delegate Arbitrability Issues To The Arbitrator For Nonsignatories
By David Fowler Johnson on
Posted in Cases Decided, Texas Supreme Court
Background: Arbitration Clauses May Apply To Trust Disputes
The Texas Supreme Court held that arbitration clauses in trust documents may be enforced regarding claims by beneficiaries against trustees. In Rachal v. Reitz, a beneficiary sued a trustee for failing to provide an accounting and otherwise breaching fiduciary duties. 403…
A Party Does Not Owe a Duty to Inform Another Regarding the Meaning and Impact of an Arbitration Clause
By David Fowler Johnson on
Posted in Cases Decided, Texas Court of Appeals
In Greenberg Traurig, LLP v. Nat’l Am. Ins. Co., a client sued its attorney for malpractice. 448 S.W.3d 115 (Tex. App.—Houston [14th Dist.] 2014, no pet.). The defendant filed a motion to compel arbitration due to an arbitration clause in the parties’ engagement agreement. The plaintiff alleged that the…