Miller v. Lucas, No. 02-13-00298-CV, 2015 WL 2437887 (Tex. App.—Fort Worth May 21, 2015, pet denied).
Agent transferred Principal’s property to himself
using the authority granted under a durable power of attorney. After
Principal died, the distributees of Principal’s estate entered into a
family settlement agreement and assigned to Plaintiff the right to
pursue an action against Agent. The trial court granted a summary
judgment in favor of Plaintiff and ordered that the property be conveyed
to Plaintiff free of all encumbrances. Agent appealed.
The appellate court affirmed the trial court’s
finding of breach of fiduciary duty because the self-dealing was
conclusively established – Agent used the power of attorney to convey
Principal’s property to himself by deed. However, the appellate court
determined that the trial court’s remedy was excessive because it
exceeded the relief Plaintiff sought. The trial court erroneously
ordered the property conveyed free of all encumbrances, not just
those which arose after Agent sold the property to himself.
Moral: An agent should not breach fiduciary
duties by selling a principal’s property to him/herself.