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Understanding Trustee Liability and Reimbursement in Tort Cases

This article explores the legal principles surrounding trustee liability in tort cases, examining when trustees can be held personally liable for their own torts and those of their employees or agents. It discusses the ability of trustees to seek reimbursement or exoneration from trust property under specific circumstances, as outlined in Texas law. Additionally, it highlights the implications of charitable immunity and the role of attorneys in advising trustees on these liabilities. A comprehensive guide for trustees, beneficiaries, and legal professionals.

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Understanding Trustee Liability and Reimbursement in Tort Cases

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  1. Tort Liability

  2. Suit against Trustee personally • Trustee personally liable: • Own torts, and • Torts of employees, agents, etc. • Trustee may seek reimbursement or exoneration from the trust property in certain situations. • § 114.083 • § 114.062

  3. Suit against Trustee in representative capacity • Allowed, but only in situations where trustee would be entitled to reimbursement or exoneration.

  4. When Trustee entitled to reimbursement or exoneration • 1. Common incident tort. • 2. Strict liability. • 3. Conversion.

  5. Notice duties of tort plaintiff • Same as for contract plaintiff.

  6. Charitable Immunity • Common law = yes. • Texas as of March 9, 1966 = abolished by Texas Supreme Court opinion, but • Charitable Immunity and Liability Act limits liability in some cases.

  7. Duty of Attorney for Trustee • What should attorney recommend?

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