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Keywords

damagesnegligenceappealtrustwillgood faith
damagesnegligenceappealtrustwillgood faith

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Ewing v. Wm. L. Foley, Inc., 115 Tex. 222, 280 S.W. 499, 44 A.L.R. 627

Facts

T. J. Ewing, Jr., J. J. Settergast, Jr., and John S. Stewart, as independent executors and trustees of the estate of George H. Hermann, constructed an eight-story concrete building in Houston. During the excavation for the building's foundation, the agents of the trustees negligently undermined the adjacent Foley building, causing significant damage that required extensive repairs. Wm. L. Foley, Inc. subsequently sued the trustees for damages related to lost profits and injury to goodwill during the reconstruction period.

T. J. Ewing, Jr., J. J. Settergast, Jr., and John S. Stewart, as independent executors and trustees of the estate of George H. Hermann, constructed an eight-story concrete building in Houston. During the excavation for the building's foundation, the agents of the trustees negligently undermined the adjacent Foley building, causing significant damage that required extensive repairs. Wm. L. Foley, Inc. subsequently sued the trustees for damages related to lost profits and injury to goodwill during the reconstruction period.

Issue

The main legal issue was whether the trust estate could be held liable for the negligence of the agents employed by the trustees in the construction of the building.

The main legal issue was whether the trust estate could be held liable for the negligence of the agents employed by the trustees in the construction of the building.

Rule

The court applied the principle that a trustee may be held liable for the actions of their agents if they have acted with due diligence and reasonably in the management of the trust estate.

The court applied the principle that a trustee may be held liable for the actions of their agents if they have acted with due diligence and reasonably in the management of the trust estate.

Analysis

The court analyzed the actions of the trustees and determined that they had acted in good faith and without personal negligence. However, since the damage was caused by the actions of their agents during the management of the trust estate, the court concluded that the trust estate itself was liable for the damages incurred by Foley.

The court analyzed the actions of the trustees and determined that they had acted in good faith and without personal negligence. However, since the damage was caused by the actions of their agents during the management of the trust estate, the court concluded that the trust estate itself was liable for the damages incurred by Foley.

Conclusion

The court reversed the judgment of the Court of Civil Appeals and affirmed the district court's ruling in favor of Wm. L. Foley, Inc., allowing them to recover damages for lost profits and injury to goodwill.

The court reversed the judgment of the Court of Civil Appeals and affirmed the district court's ruling in favor of Wm. L. Foley, Inc., allowing them to recover damages for lost profits and injury to goodwill.

Who won?

Wm. L. Foley, Inc. prevailed in the case because the court found that the trust estate was liable for the damages caused by the negligence of the trustees' agents during the construction.

Wm. L. Foley, Inc. prevailed in the case because the court found that the trust estate was liable for the damages caused by the negligence of the trustees' agents during the construction.

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