Hill v. Estate of Hill

23. Hill v. Estate of Hill

**Citation:** 594 F.Supp.3d 741 (N.D. Tex. 2022)

Relevant Facts

• Two trusts were created on December 28, 1935, by H.L. Hunt and his wife Lyda Bunker Hunt for their six children.

• H.L. Hunt was described as "one of the world's richest men when he died in 1974."

• On March 22, 2005, Albert G. Hill Jr. executed a disclaimer as to certain portions of his equitable interests in the MHTE.

• On May 13, 2010, the parties entered into a Global Settlement Agreement (GSA).

• On December 13, 2016, Trustees voluntarily dissolved the Hill Jr. Trusts.

• On December 20, 2020, Hill III filed a federal action alleging defendants breached the GSA by dissolving the Trusts prematurely.

Legal Issues

Whether Hill III had standing as a contingent or remainder beneficiary; whether the GSA's waiver-of-standing provision barred Hill III's claims; whether judicial estoppel applied.

Decision by the Court

Defendants' motion to dismiss was granted. Dismissal with prejudice.

Reasons for the Decision

The GSA contained an express Waiver of Standing provision. Hill III was not a current beneficiary of the Hill Jr. Trusts at the time of dissolution in 2016. Under Texas law, Hill III is judicially estopped from asserting that Hill Jr. did not have powers of appointment. The No Contest Clause explicitly ordered Hill III not to contest Hill Jr.'s Last Will and Testament.

Trustee Duties & Fiduciary Liability

Trustee Removal & Succession