Did a relative execute a trust in another state such as Texas, then relocated to West Palm Beach? Are you serving as trustee of a trust that was not formed under Florida law? How can you tell which law is supposed to apply? Does it matter; isn’t trust law all based on a Uniform Code? The answers may surprise you take a look at this recent case out of the Fourth District Court of Appeal that held that Texas law, not Florida law applied in Florida Courts.
Choice of Law
- Believe it or not usually you have a right to choose what state’s laws govern your trust agreement or any contract for that matter.
- There are some restrictions like the state you choose has to have some rational bearing or nexus to the documents but that is a relatively lenient standard isn’t it?
- So how can you tell which State’s law applies?
- Usually whatever State you bring a court action in will apply its own law unless you include a choice of law clause.
- Did you know a Florida court will just as easily apply Texas law to the situation?
- That can easily happen if you make sure to request it in your original agreement.
- Do you know why this could be so crucial?
- Experienced Palm Beach probate litigators know that often-different states have very different rules.
- Did you know that Texas may not give a Plaintiff as much time to bring a lawsuit as a West Palm Beach trial court would under Florida statutes?
- Those are not the only differences.
- Do you know how the Court will decide what law to apply?
Congress Park Limited Partnership v. Certain Underwriters at Lloyd’s of London
- In a very interesting case out of the Fourth District Court of Appeals, a limited partnership sued over an insurance policy.
- The defendants pointed to a choice of law clause that would change the case from one using Florida law to Texas law.
- The court ultimately held that Texas law had been chosen by the parties previously and that the courts must apply that.
- Ultimately the plaintiff lost because under Texas law the statutes of limitations had run.
- Want to learn more?
Check out the entire case by clicking here.