Texas Appeals Court Affirms Decision Turning Away Viatical Investor’s Claims

Texas Appeals Court Affirms Decision Turning Away Viatical Investor’s Claims

A Texas court of appeals yesterday affirmed a trial court’s decision rejecting claims, by an investor in viaticals, against life insurance agents who procured more than $70,000,000 worth of life insurance policies – investments that resulted in losses of more than $3 million.

In Jessen v. Duvall, No. 14-16-00869-CV, 2018 Tex. App. LEXIS 1369 (Tex. Ct. App. Feb. 22, 2018), the Texas Court of Appeals, Fourteenth District (Houston), held that the investor had standing to bring claims that included fraud and conspiracy based on alleged misrepresentations made prior to the investor’s establishment of trusts for the purchase of life insurance.

The appeals court also said the trial court properly granted summary judgment on fraud and other claims because, among other reasons, there was no evidence of material misrepresentations regarding either the market value of the investment or the commission structure.

The full opinion is available here.

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