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Texas Statutes (Last Updated: January 4, 2014) |
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PROPERTY CODE |
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Title 9. TRUSTS |
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Subtitle B. TEXAS TRUST CODE: CREATION, OPERATION, AND TERMINATION OF TRUSTS |
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Chapter 114. LIABILITIES, RIGHTS, AND REMEDIES OF TRUSTEES, BENEFICIARIES, AND THIRD PERSONS |
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Subchapter D. THIRD PERSONS |
Sec. 114.083. RIGHTS AND LIABILITIES FOR COMMITTING TORTS
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(a) A personal liability of a trustee or a predecessor trustee for a tort committed in the course of the administration of the trust may be collected from the trust property if the trustee is sued in a representative capacity and the court finds that:
(1) the trustee was properly engaged in a business activity for the trust and the tort is a common incident of that kind of activity;
(2) the trustee was properly engaged in a business activity for the trust and neither the trustee nor an officer or employee of the trustee is guilty of actionable negligence or intentional misconduct in incurring the liability; or
(3) the tort increased the value of the trust property.
(b) A trust that is liable for the trustee's tort under Subdivision (3) of Subsection (a) is liable only to the extent of the permanent increase in value of the trust property.
(c) A plaintiff in an action against the trustee as the representative of the trust does not have to prove that the trustee could have been reimbursed by the trust if the trustee had paid the claim.
(d) Subject to the rights of exoneration or reimbursement under Section 114.062, the trustee is personally liable for a tort committed by the trustee or by the trustee's agents or employees in the course of their employment.