Cluck v. Mecom
401 S.W.3d 110
Tex. App.2011Background
- Ms. Mecom created The Mary Elizabeth Mecom Irrevocable Trust No. II in 1983, with Mecom as successor trustee after her death in 1996.
- Upon Mrs. Mecom’s death, the trust terminated and appellants became successor beneficiaries.
- Appellants filed suit on August 13, 2008 alleging failure to distribute, concealment of assets, conversion, theft, and breach of fiduciary duty.
- Mecom moved for no-evidence and traditional summary judgments; the trial court granted both on grounds of no-evidence and statutes of limitations.
- The appellate court affirmed on conversion and civil theft but reversed and remanded on breach of fiduciary duty due to disputed evidence and discovery-rule considerations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of fiduciary duty—no-evidence | appellants showed Mecom’s failure to disclose and self-dealing evidence | no evidence of breach; Mecom fulfilled duties or explanations were adequate | trial court erred; genuine issue of material fact remains |
| Conversion—no-evidence | Mecom exercised dominion over trust assets | no proof of wrongful dominion over property | no-evidence grant proper; no genuine issue on dominion element |
| Civil theft—no-evidence | Mecom unlawfully appropriated assets with intent to deprive | no evidence of unlawful appropriation or intent | no-evidence grant proper; no genuine issue on theft element |
| Traditional summary judgment—statute of limitations | discovery rule extends accrual; actions timely filed | accrual upon death or per statute; discovery rule unavailable | limitations issue cannot be resolved as a matter of law; remand for trial on discovery-rule applicability |
Key Cases Cited
- Priddy v. Rawson, 282 S.W.3d 588 (Tex.App.-Houston [14th Dist.] 2009) (elements of breach of fiduciary duty)
- S.V. v. R.V., 933 S.W.2d 1 (Tex.1996) (discovery rule for fiduciary misconduct; inherently undiscoverable)
- Computer Assocs. Int’l, Inc. v. Altai, Inc., 918 S.W.2d 453 (Tex.1996) (discovery rule applicable to fiduciary misconduct)
- KPMG Peat Marwick v. Harrison County Hous. Fin. Corp., 988 S.W.2d 746 (Tex.1999) (burden-shifting framework for limitations and discovery rule)
- Urena, 162 S.W.3d 547 (Tex.2005) (summary-judgment standard; no-evidence framework)
- Chappell v. Jackson Law Office, P.C., 37 S.W.3d 15 (Tex.App.-Tyler 2000) (fiduciary duties and disclosure obligations)
- Stiles v. Resolution Trust Corp., 867 S.W.2d 24 (Tex.1993) (Rule 166a(c) narrow scope of issues in summary judgment)