Texas Fiduciary Litigator: Texas Court Rejects Trustee’s Objection To Personal Jurisdiction (March 13, 2022)

David Fowler Johnson, in his Texas Fiduciary Litigator Blog, has made available for download his article, “Texas Court Rejects Trustee’s Objection To Personal Jurisdiction”, which discusses MBM Family Trust No. 1 v. GE Oil & Gas, LLC. The article beings as follows:

In MBM Family Trust No. 1 v. GE Oil & Gas, LLC, a plaintiff filed suit against a defendant and his companies to domesticate a foreign judgment. No. 05-20-01103-CV, 2021 Tex. App. LEXIS 7698 (Tex. App.—Dallas September 17, 2021, no pet.). Later the plaintiff added a trustee of a trust that the plaintiff alleged assisted the defendant in hiding assets. The trustee filed a special appearance and objected to personal jurisdiction. The trial court denied that objection, and the trustee appealed.

The court of appeals noted that “A trust has no legal existence; thus, claims intended to recover trust assets can only be asserted against the trust’s legal representative—its trustee.” Id. The court then stated: “The Trust and Waguespack argue that Waguespack has not taken any action in her capacity as trustee purposefully directed towards Texas.” Id. The court disagreed due to the fact that the trust owed an interest in a Texas entity and made a loan to the other defendant:

To see the full article, click: “Texas Court Rejects Trustee’s Objection To Personal Jurisdiction”

Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal

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