Martin v. Martin, 363 S.W.3d 221 (Tex. App.—Texarkana 2012, no pet. h.).
Trustee who violated fiduciary duties claimed that he should escape liability because the settlor relieved Trustee of the duty of loyalty. The appellate court pointed out that under Trust Code § 114.007, trust terms attempting to relieve a trustee from the listed duties are unenforceable. In addition, § 111.0035(b)(4)(B) does not allow waiver of a trustee’s duty “to act in good faith and in accordance with the purposes of the trust.”
However, Trustee escaped liability because the appellate court found that the evidence was legally insufficient to support a jury determination that the beneficiaries suffered any damages.
Moral: A settlor may not waive the trustee’s obligation to act in good faith and in accordance with the purposes of the trust. However, a breach does not automatically result in damages. A disgruntled beneficiary must bring forward sufficient evidence to show that the breach caused damages.