David Fowler Johnson, of Winstead, reports on Wells Fargo v. Militello, where a Texas court reviewed damaged for mental anguish, expemlary damages, and other categories for a trustee’s breach of fiduciary duty.

Mr. Fowler’s summary begins as follows:

In Wells Fargo v. Militello, a trustee appealed a judgment from a bench trial regarding a beneficiary’s claims for breach of fiduciary duty, negligence, and fraud. No. 05-15-01252-CV, 2017 Tex. App. LEXIS 5640 (Tex. App.—Dallas June 20, 2017, no pet. history). Militello was an orphan when her grandmother and great-grandmother created trusts for her. She had health issues (Lupus) that prevented her from working a normal job, and she heavily relied on the trusts. When Militello was 25 years old, one of the trusts was terminating, and it contained over 200 producing and non-producing oil and gas properties. The trustee requested that Militello leave the properties with it to manage, and she created a revocable trust allowing the trustee to remain in that position.

As Mr. Johnson also notes,”this is an interesting case because it deals with exemplary damages and mental anguish damages in the context of a breach of fiduciary duty by a trustee.”

See full summary at: Court Reviews Damages For Mental Anguish, Exemplary Damages, and Other Categories For A Trustee’s Breach Of Fiduciary Duty | Texas Fiduciary Litigator

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.