Court Holds That Administrator is Not Bound by Arbitration Clause in a Will [Texas]

A Texas appeals court out of Houston has found that an administrator of an estate is not held to an arbitration clause within the will, affirming the decision of the trial court. The successor administrator sued the previous administrator for breach of fiduciary duties, and the defendant filed a motion to compel arbitration. The clause read:

“If a dispute arises between or among any of the beneficiaries of my estate, the beneficiaries of a trust created under my Will, the Executor of my estate, or the Trustee of a trust created hereunder, or any combination thereof, such dispute shall be resolved by submitting the dispute to binding arbitration. It is my desire that all disputes between such parties be resolved amicably and without the necessity of litigation.”

The appeals court held that the party asserting a right to arbitration has to prove a binding arbitration agreement, and neither administrators were signatories to the will. The court held that the plaintiff was not seeking any relief under the will, but was seeking relief under Texas statutes and common law.

The court of appeals affirmed the trial court’s order denying the motion to compel arbitration.

See David Fowler Johnson, Court Holds That Administrator is Not Bound by Arbitration Clause in a Will, Texas Fiduciary Litigator, July 20, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.