Texas Fiduciary Litigator: Court Affirmed Order Granting Injunction To Allow Successor Trustees To Manage A BUsiness Owned By A Trust (March 13, 2022)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, has made available for download his article, “Court Affirmed Order Granting Injunction To Allow Successor Trustees To Manage A Business Owned By A Trust”, which discusses Clark v. Clark, where two brothers sued a third brother regarding the third brother’s ability to be trustee of a trust due to a traumatic brain injury.. The article beings as follows:

In Clark v. Clark, two brothers sued a third brother regarding the third brother’s ability to be trustee of a trust due to a traumatic brain injury. No. 14-19-00604-CV, 2021 Tex. App. LEXIS 9866 (Tex. App.—Houston [14th Dist.] December 14, 2021, no pet.). The parties’ mother created a testamentary trust that held a family business and named the third brother as the trustee. The will provided that “[i]f for any reason, SCOTT ALEXANDER CLARK, shall fail to qualify or cease to serve, for any reason, as Trustee under my Will, I designate and appoint as successor Co-trustees my sons, STEVEN WAYNE CLARK and ROBERT GEORGE CLARK.” Id. The two brothers alleged that because the third suffered a traumatic brain injury that required brain surgery, intubation, and hospitalization, he had ceased to serve or was unable to serve as trustee of the trust. They sought a preliminary order that declared that “(1) Scott had ceased to serve or was unable to serve as trustee; (2) Steven and Robert are successor co-trustees under the terms of the Will; and (3) Steven and Robert, as successor co-trustees of the Trust, are appointed to manage the assets of the Trust so long as Scott is unable to do so.” Id. The two brothers also sought a temporary restraining order and a temporary injunction prohibiting the company’s employees from interfering with their operation of the business. The trial court granted the order, and the third brother appealed.

To see the full article, click: “Court Affirmed Order Granting Injunction To Allow Successor Trustees To Manage A Business Owned By A Trust”

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal

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