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Arnold J. Webre Jr. and Jo Kathryn Gross v. Ray Black, Jr., Guardian of the Estate of Arnold J. Webre, Sr.
458 S.W.3d 113
Tex. App.
2015
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Background

  • guardianship of Arnold J. Webre, Sr.; guardian Ray Black sought approval of a mediated settlement affecting asset characterization and fiduciary claims; trial court approved the settlement over objections; district court relied on ward’s alleged lack of personal benefit and its ability to care for him; appellants argued trial court failed to analyze whether settlement served the ward’s estate interests; this court reverses and remands.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was the settlement approval decision properly analyzed under the guardian-duty standard? Arnold, Jr. and Jo Kathryn Black No; trial court failed to properly apply fiduciary-law standards.

Key Cases Cited

  • Moore v. Texas Bank & Trust Co., 595 S.W.2d 502 (Tex. 1980) (presumes unfairness in fiduciary transactions and requires proof of fairness)
  • Lee v. Hasson, 286 S.W.3d 1 (Tex. App.—Houston [14th Dist.] 2007) (fiduciary must show good faith and fairness)
  • Collins v. Smith, 53 S.W.3d 832 (Tex. App.—Houston [1st Dist.] 2001) (burden on fiduciary to prove fairness of transactions)
  • Jelinek v. Casas, 328 S.W.3d 526 (Tex. 2010) (abuse of discretion if court misapplies law or acts arbitrarily)
  • In re Tex. Dept. of Health Servs., 278 S.W.3d 1 (Tex. App.—Austin 2008) (court must properly analyze and apply the law in guardianship matters)
  • Crouch v. Tenneco, Inc., 853 S.W.2d 643 (Tex. App.—Waco 1993) (abuse standard for settlement approvals in complex contexts)
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Case Details

Case Name: Arnold J. Webre Jr. and Jo Kathryn Gross v. Ray Black, Jr., Guardian of the Estate of Arnold J. Webre, Sr.
Court Name: Court of Appeals of Texas
Date Published: Jan 16, 2015
Citation: 458 S.W.3d 113
Docket Number: NO. 01-12-01087-CV
Court Abbreviation: Tex. App.