Texas Fiduciary Litigator: Court Upheld A Release In A Family Settlement Agreement That Protected A Former Trustee’s Estate From Claims (June 16, 2021)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, discusses Austin Trust Co. v. Houren.

In the FSA, the parties agreed that the releases contained therein generally applied to “any and all liability arising from any and all Claims,” as defined in the FSA, against the other parties or relating to “Covered Activities,” as defined in the FSA. The released claims included, but were not limited to “claims of any form of sole, contributory, concurrent, gross, or other negligence, undue influence, duress, breach of fiduciary duty, or other misconduct by the other parties, the professionals, or their affiliates[.]” The FSA defined “Covered Activities” as (1) “the formation, operation, management, or administration of the Estate, . . . or the Trusts,” (2) “the distribution (including, but not limited to, gifts or loans) (or failure to distribute) of any property or asset of or by the Mayor, the Estate, . . . or the Trusts,” (3) “any actions taken (or not taken) in reliance upon this Agreement or the facts listed in Article I,” (4) “any Claims related to, based upon, or made evident in the Disclosures,” and (5) “any Claims related to, based upon, or made evident in the facts set forth in Article I” of the FSA. We conclude that this language specifically and unambiguously released appellants’ claims asserted in their First Amended Counterclaim.

To see the full article, click: “Court Upheld A Release In A Family Settlement Agreement That Protected A Former Trustee’s Estate From Claims”

To download the full opinion, click: “Court Upheld A Release In A Family Settlement Agreement That Protected A Former Trustee’s Estate From Claims” (June 16, 2021)

Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.

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