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Jones v. Blume, 196 S.W.3d 440 (Tex. App.—Dallas 2006, no pet. h.).

Trusts

Creation

Trust Intent

Settlement Agreement

Several attorneys entered into a fee sharing agreement and after a settlement was reached, litigated the amounts to which each was entitled.  One of the attorneys claimed that a trust relationship existed between himself and one of the other attorneys.  Both the trial and appellate courts rejected this claim.  The appellate court explained that the record contained no evidence that the parties intended to create a trust with respect to the settlement proceeds and without trust intent, no trust exists.  Trust Code § 112.002.

Moral:  Courts are unwilling to transform non-trust relationships into trust relationships.

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