Court Reverses The Appointment Of A Receiver Over Trust Property

more+
less-

Courts generally review receiverships very closely, and a party requesting one should follow all required procedures.  In Elliott v. Weatherman, parents created an irrevocable living trust and designated their three adult children as co-trustees. No. 03-12-00346-CV, 2013 Tex. App. LEXIS 1301 (Tex. App.—Austin February 8, 2013, no pet. history). The daughters sued their brother, asserting that he had violated the terms of the trust, breached his fiduciary duties, and converted trust property. Due to the discord among the co-trustees, the trial court appointed a receiver over the trust property at the request of the brother. The brother had not pled for a receivership, and there was nothing in the record suggesting that the daughters otherwise had notice prior to the hearing that the brother would request such relief. The court of appeals reversed the trial court's order appointing the receiver because the daughters were not provided a hearing after three days’ notice, which is required for a receivership. Moreover, the evidence was insufficient to justify the appointment of a receiver because there were less intrusive remedies that would have been sufficient, such as injunctive relief.

The brother should have filed a formal request for a receivership and provided sufficient notice of a hearing on same.  At the hearing, the brother should have provided specific evidence that there were no other remedies available that would have been sufficient.

 

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Winstead PC | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×