Capital One settles 'mismanaged' trust case

David Yates Aug. 25, 2011, 4:39am

Following a full week of testimony, Capitol One and plaintiff Doris Garrod Teague opted to settle their case rather than let a jury decide the outcome.

The trial of Teague vs. Capital One N.A. began Aug. 15 in Judge Donald Floyd's 172nd District Court.

A week later, on Aug. 22 the parties announced they had reached a settlement, sending jurors home early.

Court records show that Teague sued Capitol One in October 2008, claiming the bank "mismanaged" the Garrod Family Trust and caused the funds to be misclassified and subject to review by the Internal Revenue Service.

Teague and her then husband, Don Garrod, created the Garrod Family Trust in 1994, funding it with $95,000 in investments securities.

In April 2006, Capitol One became the successor of the trust and was directed to form two separate trusts from the first, Trust M (the marital deduction trust) and Trust B.

Trust M, however, was not created in accord with the scheduled tax return, resulting in misclassification of assets, the lawsuit states.

As of Aug. 23, the settlement notice is not on file.

Beaumont attorney Charles Reed represented Teague.

Capital One was represented by Beaumont attorney William Yoes.

Case No. E182-514

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