Family estate planning issues arise far too often when a child takes financial advantage of a parent who is mentally incompetent because of dementia or other mental infirmities. This is why it is so important to plan our estates while we still have our mental faculties and to put trustworthy people in charge who have
$95 Million Judgment Reversed in Breach of Corporate Fiduciary Duty Case
Introduction. In Texas, officers and directors of a corporation owe fiduciary duties to the corporation. “Three broad duties stem from the fiduciary status of corporate directors; namely, the duties of obedience, loyalty, and due care. Ubelaker at 781–82. The duty of obedience requires a director to avoid committing ultra vires acts, i.e., acts beyond
General Contractor’s Defense Costs Covered Under Subcontractor’s Commercial General Liability Insurance Policy
Introduction. In Lyda Swinerton Builders, Inc. v. Oklahoma Sur. Co., 16-20195, 2018 WL 4113795 (5th Cir. Aug. 29, 2018), the United States Firth Circuit Court of Appeals had to decide whether a subcontractor’s commercial general liability (“CGL”) insurance policy covered the defense of the general contractor named as an additional insured under the
No Contractual Relationship Required for Homeowner to Sue Builder for Defective Workmanship
Is contractual privity required for an owner to sue a builder for defective workmanship?
Construction defect lawsuits often involve claims against multiple defendants since the typical construction project involves work performed for the owner by a general contractor who in turn hires multiple subcontractors to perform the work. But what happens when the original owner
Contingent Trust Beneficiary has Standing to Sue Trustee
Contingent trust beneficiary. A contingent trust beneficiary is one who does not have the right to receive benefits under a specific trust until the occurrence of a future event. Typically, a contingent beneficiary’s right to receive benefits under the trust would vest upon the death of one or more named beneficiaries. The question often arises
Texas Durable Power of Attorney Act Amended to Limit Agency Liability
The Texas legislature made numerous changes to state laws in the estate planning area including to statutory provisions that govern wills, trusts, probate, and financial powers of attorney. One substantive change to the Durable Power of Attorney Act limits the scope of the fiduciary duties owed by the appointed agent to his principal (person granting the power) under a financial power of attorney.
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Texas Supreme Court Dismisses Libel Claim Filed Against Citizen for Facebook Posting
In 2011, the Texas legislature passed a bill that provides an expedited dismissal remedy to citizens who are wrongfully sued for speaking out about matters of public concern regarding the government or a business. Testimony in support of the bill showed that SLAPP suits — strategic lawsuits against public participation — were often filed against these citizens to chill public debate. Apparently, this was becoming more pervasive in the age of the internet. The bill that was passed is now Texas Civil Practice & Remedies Code Chapter 27, known as the Texas Citizens Participation Act. Defendants who are successful under the Act are not only entitled to a dismissal of the claim for defamation but they are also entitled to recover costs and attorney fees.
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TX Supreme Court Holds No Tortious Interference with Inheritance Cause of Action
On May 26, 2017, the Texas Supreme Court refused to recognize the existence of a cause of action for tortious interference with inheritance rights. Kinsel v Lindsey, 15-0403, 2017 WL 2324392 (Tex. May 26, 2017). Many Texas courts have long considered this to be a viable cause of action since the 1987 decision of
New Insurance Bill – Storm Loss Claims
New Insurance Bill – Storm Loss Claims
On May 19, 2017, a bill was sent by the Texas legislature to the Governor for signature relating to claims for storm loss property damage. This bill was passed to curb alleged lawsuit abuses for property damages caused by severe storms. According to House Research Organization Bill Analysis,
Texas Trade Secret Law Expanded
Modern technology is making it much more difficult for businesses to protect their trade secrets. Long gone are the days when an unscrupulous company officer or employee would have to spend hours late at night at the copy machine to copy and steal valuable trade secrets like customer lists, plans or specifications. In the digital