Elaine T. Marshall v. Preston Marshall, 14-23-00276-CV, March 03, 2026.
On appeal from Probate Court No. 4 of Harris County, Texas.
Synopsis
The Fourteenth Court of Appeals clarified that a statutory trust accounting claim under Texas Property Code § 113.151 remains a "live controversy" for the purpose of recovering attorney’s fees even after the underlying trust has terminated or the accounting has been provided. However, the court reaffirmed a critical limitation for litigators: the statutory remedy for an accounting claim is restricted to the production of the accounting itself and does not authorize the recovery of compensatory damages.
Relevance to Family Law
In high-net-worth Texas divorces, trusts are frequently at the center of property characterization and division disputes. When a spouse is a beneficiary of a family trust, or acts as a trustee, the demand for a statutory accounting is a powerful discovery and tactical tool. This ruling confirms that a practitioner can pursue attorney's fees for a trustee’s failure to account even if the trust terminates during the pendency of the litigation—preventing a trustee from "mooting" a fee claim by simply dissolving the trust or providing a late accounting. Conversely, it warns family law litigators that they must plead separate causes of action (such as breach of fiduciary duty) if they seek monetary damages, as the accounting statute alone will not support a damages award.
Case Summary
Fact Summary
The dispute arose from a trust litigation matter where Preston Marshall sought a statutory accounting from the trustee, Elaine T. Marshall, pursuant to Texas Property Code § 113.151. The trial court previously determined that Elaine failed to comply with her statutory duty to provide said accounting and issued a pretrial order requiring her to do so. Following a final judgment and subsequent motions for rehearing, the parties sought clarification on the status of the accounting claim given three significant facts: the trust had since terminated, the trial court had already ordered the accounting, and the accounting had actually been provided. Elaine argued that the claim was effectively dead, while Preston sought to preserve the rulings for the purpose of his attorney's fee claims and potential damages.
Issues Decided
- Whether a claim for a statutory trust accounting under Texas Property Code § 113.151 becomes moot upon the termination of the trust or the provision of the accounting when a request for attorney's fees remains pending.
- Whether the statutory remedy for a failure to provide a trust accounting under Section 113.151 includes the recovery of compensatory damages.
Rules Applied
- Texas Property Code § 113.151: Provides that a beneficiary may petition a court to compel a trustee to deliver a written statement of accounts.
- Attorney's Fees and Mootness: A request for attorney's fees generally prevents a claim from becoming moot, even if the primary requested relief (the accounting) has been rendered or is no longer possible.
- Remedial Limitations: Under Williams v. Williams, No. 03-21-00109-CV (Tex. App.—Austin 2022) and Tex. State Bank v. Amaro, 87 S.W.3d 538 (Tex. 2002), the specific remedy for a statutory accounting claim is the accounting itself, not monetary compensation for the delay or failure to provide it.
Application
The court engaged in a narrow clarification of how statutory claims interact with equitable and monetary remedies. The court reasoned that although the primary objective of the claim—obtaining the accounting—had been satisfied or rendered moot by the trust's termination, the legal controversy lived on through the request for attorney's fees. The court refused to disturb the trial court's prior findings that the trustee had failed her statutory duty, as those findings serve as the necessary predicate for a fee award. However, the court drew a hard line on the issue of damages. It clarified that while the accounting claim is "live" for fees, it is not a vehicle for "compensatory damages or a declaration." The court effectively separated the procedural right to information (the accounting) from the substantive right to be made whole for financial loss (damages), noting that the latter must be tethered to a different cause of action, such as a breach of fiduciary duty.
Holding
The Court held that the trial court’s ruling regarding the trustee’s failure to provide an accounting remains intact despite the trust's termination, as the accounting claim is remanded solely for the determination of attorney’s fees. The Court further held that the remedy for a statutory accounting claim under Section 113.151 does not include compensatory damages. The motion for rehearing was denied, but the opinion was supplemented to clarify that the remanded accounting claim is limited to the issue of fees.
Practical Application
For the family law practitioner, this case provides a strategic roadmap for trust-related discovery. When a spouse-trustee refuses to provide information regarding trust assets, filing a Section 113.151 claim is an efficient way to secure a fee-shifting foothold. Even if the trustee "dumps" the documents mid-litigation or the trust expires by its own terms, the right to recover fees for the initial refusal remains viable. However, litigators must ensure their pleadings are robust; do not rely on an accounting claim to carry the weight of a damages model. If there is a suspicion that trust funds were mismanaged or diverted, a separate claim for breach of fiduciary duty must be pleaded to recover any resulting financial loss.
Checklists
Strategy for Seeking a Statutory Accounting
- Verify Standing: Ensure your client is a "beneficiary" as defined by the Texas Property Code.
- Make a Formal Demand: Document a written demand for an accounting before filing suit to strengthen the subsequent claim for attorney's fees.
- Plead Fees Explicitly: Ensure the petition specifically invokes the fee-shifting provisions associated with the Property Code.
- Separate the Claims: Always plead a statutory accounting claim in tandem with a Breach of Fiduciary Duty claim if there is any suspicion of asset dissipation.
Defending the Trustee
- Mootness Check: Determine if providing the accounting voluntarily can resolve the primary dispute, while preparing to contest the reasonableness and necessity of the opponent's attorney's fees.
- Limit the Scope: Use the Marshall holding to move for partial summary judgment or a motion to strike if the opposing party attempts to use an accounting failure as a basis for compensatory damages.
- Document Compliance: If an accounting is provided, ensure it meets the technical requirements of the Property Code to cut off the period for which attorney's fees may be claimed.
Citation
Elaine T. Marshall, as Trustee of the Marshall Grandchildren's Trust v. Preston Marshall, No. 14-23-00276-CV, 2026 WL ______ (Tex. App.—Houston [14th Dist.] Mar. 3, 2026, no pet.) (supplemental op. on reh'g).
Full Opinion
Family Law Crossover
In the context of a divorce, this ruling is a "sword and shield" for property division. If one spouse controls a trust that holds what might be argued as community property—or if trust distributions are being used to support the community—the other spouse can use § 113.151 to force transparency. Under Marshall, even if the trustee-spouse tries to shutter the trust to avoid scrutiny, they remain on the hook for the other side's legal fees incurred in chasing the data. Strategically, this allows a spouse with fewer liquid assets to aggressively pursue trust discovery, knowing that the "statutory accounting" path provides a clear avenue for a fee award, even if the "damages" for any mismanagement must be proven through more complex fiduciary litigation. ~~330aa54f-7c87-4c2b-a909-69c0c57a0a91~~
