Estate of Shirley L. Benson
04-15-00087-CV
| Tex. App. | Mar 6, 2015Background
- Petitioner Renee Benson sought removal of her father as Trustee and asked for receivership; ex parte TRO granted but later replaced by a receivership and a temporary injunction via successive orders.
- Trial court initially suspended the Trustee and appointed two receivers without notice or evidentiary basis; later amended orders expanded to include an injunction, without proper procedural due process.
- Trust assets include Lone Star Capital Bank, Bensco, Uptown Blanco, and other real estate; Benson has managed the Trust for 35+ years and denies breach of trust.
- The court’s orders were repeatedly issued with ad hoc amendments and without proper compliance with Texas Rules, creating due process concerns.
- Petitioner appeals seeking reversal and denial of injunctive relief and receivership; the record shows no breach of trust and proper remedies exist under statute; court should reverse and render.
- The decision involves statutory schemes for breach of trust and remedies, not ordinary civil claims, and emphasizes that remedies like injunctive relief and receivership are extraordinary and require strict compliance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of trust required for injunction/receivership | Benson; breach shown | Benson; no breach proven | Abuse of discretion; no breach shown |
| Irreparable harm and less-intrusive relief | Benson; irreparable harm shown | Benson; no irreparable harm | Irreparable harm not shown; less-restrictive relief unavailable |
| Notice and Rule 683 compliance | Benson; notice required | Benson; orders valid | Second Amended Order void for lack of Rule 683 compliance |
| Facial validity and due process of orders | Benson; due process violated | Benson; orders proper | Orders facially void; due process denied |
Key Cases Cited
- Intercontinental Terminals Co., LLC v. Vopak N. Am., Inc., 354 S.W.3d 887 (Tex. App.—Houston [1st Dist.] 2011) (breach of trust remedies; no other lesser remedy suffice)
- Benefield v. State, 266 S.W.3d 25 (Tex. App.—Houston [1st Dist.] 2008) (receivership transformative remedy; standard burden on movant)
- Elliott v. Becon Const. Co., 104 S.W.3d 239 (Tex. App.—Beaumont 2003) (irreparable harm and adequacy of remedies in equitable relief)
- Elliott v. Weatherman, 396 S.W.3d 224 (Tex. App.—Austin 2013) (notice and hearing requirements for receivership appeal)
- In re Toyota Motor Sales, U.S.A., 407 S.W.3d 746 (Tex. 2013) (abuse of discretion where lack of evidence of breach/discretionary relief)
- Loftin v. Martin, 776 S.W.2d 145 (Tex. 1989) (general principle on discretionary relief and due process)
- Gonzales v. Tex. Employment Com’n, 653 S.W.2d 308 (Tex. App.—San Antonio 1983) (necessity of proper notice and grounds for relief)