In the recent Texas of Marshall v. Marshall, a beneficiary initiated legal action against a trustee as well as five co-trustees of two trusts addressing claims that they had breached fiduciary duties. After the original lawsuit was filed in Texas, the trustee filed a petition seeking declaratory relief and requesting that the court declare the co-trustees were sufficiently appointed. The beneficiary obtained a temporary injunction preventing the co-trustees from receiving compensation as well as disposing of trust assets or participating in litigation.
The court of appeals reversed the litigation on the grounds that permitting the lawsuit to continue did not constitute a miscarriage of justice. The court of appeals also reversed other aspects of the temporary injunction on the grounds that there was no evidence to support that irreparable harm would occur otherwise.
The Role of Co-Trustees