Arbitration Deals Can Apply In Trusts: Texas High Court

Law360, Dallas (May 03, 2013, 8:42 PM ET) -- The Supreme Court of Texas on Friday reversed an en banc appeals court to hold arbitration provisions contained in trusts are enforceable against beneficiaries under the Texas Arbitration Act, saying legislative intent was to enforce arbitration in agreements, not just contracts.

In a decision by Justice Eva Guzman, the Supreme Court said once a beneficiary has accepted the benefits of the trust and sued to enforce its terms, he has shown the agreement required to form an enforceable arbitration provision under the TAA, even without a...
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