Texas Fiduciary Litigator

Texas Fiduciary Litigator

The Intersection of Texas Courts and the Fiduciary field

Tag Archives: arbitration

Court Holds That Administrator Is Not Bound By Arbitration Clause In A Will

In Ali v. Smith, a successor administrator of an estate sued the former executor for breach of fiduciary duties arising from his management of the finances of the estate, converting assets of the estate, and using estate funds. No. 14-18-00003-CV, 2018 Tex. App. LEXIS 5129 (Tex. App.—Houston [14th Dist.] July 10, 2018, no pet. history).… Continue Reading

The Texas Supreme Court Holds That Incorporating The AAA Rules Does Not Delegate Arbitrability Issues To The Arbitrator For Nonsignatories

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 S.W.3d 840 (Tex. 2013). The trustee… Continue Reading

Texas Supreme Court Compels Arbitration For Lender And Disagrees With Fifth Circuit

In Henry v. Cash Biz, LP, a borrower sued a lender for the lender reporting the borrower’s bad checks to the district attorney’s office. No. 16-0854, 2018 Tex. LEXIS 164 (Tex. February 23, 2018). The borrower left checks as security for the loans. When the borrower defaulted, the lender attempted to cash the checks, and… Continue Reading

Court Enforced Forum-Selection Clause In Trust Document

In In re JP Morgan Chase Bank, N.A., trust beneficiaries sued the trustee for alleged breaches of fiduciary duty in Dallas, Texas. No. 05-17-01174-CV, 2018 Tex. App. LEXIS 1883 (Tex. App.—Dallas March 14, 2018, original proceeding). The settlor executed the trust agreement in New York, and it included the following forum-selection clause: “The validity and… Continue Reading

Court Refuses To Enforce Arbitration Clause By Financial Advisor

In Steer Wealth Mgmt., LLC v. Denson, Denson, in her individual capacity and as executor of her husband’s estate, sued Steer Wealth Management, LLC, for causes of action including breach of fiduciary duty, breach of contract and fraud arising out of the alleged improper transfer of assets from several of the Densons’ brokerage accounts. No.… Continue Reading

Court Refuses To Enforce Arbitration Clause Due To Lack Of Mental Capacity

In Oak Crest Manor Nursing Home, LLC v. Barba, a plaintiff sued a nursing home for negligently allowing a patient with mental disorders to leave the facility and jump from a bridge in an attempt to commit suicide. No. 03-16-00514-CV, 2016 Tex. App. LEXIS 12710 (Tex. App.—Austin December 1, 2016). The nursing home filed a… Continue Reading

A Party Does Not Owe a Duty to Inform Another Regarding the Meaning and Impact of an Arbitration Clause

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 arbitration clause was not enforceable because… Continue Reading
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