In Ditta v Conte, a Texas Supreme Court court case in June 2009, the Court decided the issue of what statute of limitations applies when someone attempts to remove a trustee.
The father and mother created a trust. The survivor of the two was the primary beneficiary of the trust. The son and daughter of the father and mother were the remainder beneficiaries. The father died. The wife and the two children became co-trustees of the trust. Thereafter, the mother was declared mentally incapacitated and Ditta was appointed guardian of her estate. The son managed the trust on a day to day basis. A dispute developed between the two children and many suits were filed. It was discovered that both the son and daughter were using the trust funds to pay personal expenses. The trial court removed the son as a trustee. Thereafter, the court appointed a third person as temporary trustee and suspended the daughter as a trustee. An accounting showed many irregularities.
Ditta then asked the court to remove the daughter as a trustee and appoint a new trustee. The court removed the daughter and appointed a bank as trustee. The daughter appealed on the basis that the four year statute of limitations applied. She said that the things that she did in violation of the trust occurred more than four years before Ditta asked for her removal and were barred by limitations.