Enforcing or Disputing an Oral Agreement to Divide Wrongful Death Proceeds — Texas

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

How to Enforce or Dispute an Oral Agreement About Dividing Wrongful Death Proceeds

Disclaimer: I am not a lawyer. This information is educational only and is not legal advice. For advice about a specific situation, consult a licensed Texas attorney.

Detailed Answer — What you need to know under Texas law

When someone dies because of another’s wrongful act, Texas law lets certain people recover wrongful death damages. The person or entity who actually brings the wrongful-death claim (often the personal representative) collects any recovery and has duties to the decedent’s beneficiaries. Because the recovery belongs to the heirs or statutory beneficiaries under Texas law, how that money will be split is often a key issue. Parties sometimes try to agree orally about who gets what. Enforcing or disputing such an oral agreement involves three separate legal layers:

  1. Who controls the claim and distribution? Under Texas wrongful-death law, the claim is prosecuted for the benefit of the decedent’s heirs and statutory beneficiaries. The governing Texas statutes and the court that approves any settlement or judgment control who can recover and how distribution occurs (see Texas Civil Practice & Remedies Code, Ch. 71: general rules for wrongful-death and survival actions: https://statutes.capitol.texas.gov/Docs/CP/htm/CP.71.htm).
  2. Are oral agreements enforceable? Generally, oral agreements can be binding in Texas. But some agreements must be written under the Texas Statute of Frauds. Whether a particular oral agreement dividing wrongful-death proceeds must be written will depend on the terms and context. For example, an oral settlement dividing money that is already in hand and performed immediately is more likely to be enforced than an oral promise requiring long-term performance that falls within the Statute of Frauds—see Texas Business & Commerce Code (Statute of Frauds): https://statutes.capitol.texas.gov/Docs/BC/htm/BC.26.htm.
  3. What steps enforce an oral agreement?
    • If the wrongful-death action has settled or produced a judgment: a party who claims an oral agreement entitling them to part of the recovery can file a breach-of-contract claim or a motion in the civil court that handled the wrongful-death matter seeking enforcement of the settlement allocation. If the civil court approved a settlement as to the claim, that court can adjudicate alleged breaches of agreements related to the settlement.
    • If the dispute concerns the personal representative’s distribution duties: beneficiaries can seek relief in probate court (or the court supervising administration) by filing for an accounting, for instructions, or to compel distribution. Remedies can include a petition to surcharge the personal representative, removal for breach of duty, or injunctions preventing improper disbursements.
    • Where an oral agreement was a contract among beneficiaries (and not a settlement with the defendant), the remedy is usually a civil action for breach of contract, or equitable remedies (specific performance, constructive trust, or unjust enrichment) depending on the proof and fairness considerations.
  4. How will a court decide? Courts look for proof of the agreement and its terms. In an oral-agreement dispute the court examines witness testimony, contemporaneous emails or texts, partial performance (for example, if one person paid or received money consistent with the oral deal), and other corroborating evidence. If a beneficiary relied to their detriment on the oral promise, doctrines like promissory estoppel may apply.
  5. Practical limits and timing:
    • Statutes of limitation: time limits apply to contract claims and to re-opening distributions. Act promptly — waiting can bar claims.
    • Court approval and releases: if the civil court approved a settlement and beneficiaries signed formal releases, it becomes much harder to contest distribution later.
    • Finality of probate orders: a probate court’s final order about distribution typically has preclusive effect; a later oral claim will face higher hurdles if the probate court already resolved the issue.

Key Texas statutory authority you may review:

  • Texas Civil Practice & Remedies Code, Chapter 71 — Wrongful-death and survival actions (general rules about who may bring the action and for whose benefit): https://statutes.capitol.texas.gov/Docs/CP/htm/CP.71.htm
  • Texas Business & Commerce Code — Statute of Frauds (examples of agreements that require written evidence): https://statutes.capitol.texas.gov/Docs/BC/htm/BC.26.htm

Because facts vary (who negotiated, whether a settlement was filed, whether a personal representative approved distribution, whether releases were signed), the correct procedural path depends on the situation. Below are typical fact-pattern steps to enforce or contest an oral agreement.

Typical steps to enforce an oral agreement

  1. Collect evidence: texts, emails, voicemails, witnesses, partial payments, bank records showing transfers, contemporaneous notes or memos that reference the agreement.
  2. Confirm whether the wrongful-death claim was settled, reduced to writing, or the court approved a distribution. If so, obtain a copy of the settlement agreement, court order, and any signed releases.
  3. Ask the personal representative for a written statement or accounting of the recovery and proposed distribution. A PR has duties to beneficiaries; a refusal can justify a court petition for an accounting.
  4. If the PR refuses or refuses to honor the oral deal, consider filing in the civil court that handled the wrongful-death claim (for breach of settlement or contract) or filing in probate court for accounting and instructions regarding distribution.
  5. If immediate action is needed to prevent dissipation of funds, ask a lawyer about emergency relief (temporary restraining order or temporary injunction) to freeze proceeds while the court resolves rights.

Typical steps to dispute an oral agreement

  1. Prepare to prove there was no meeting of the minds: gather communications that contradict the alleged oral deal.
  2. Show inconsistent behavior: if the other side acted inconsistently with the alleged agreement, point that out to the court.
  3. Argue written requirement: if the agreement’s terms fall within the Statute of Frauds, a court may find the oral agreement unenforceable.
  4. File a timely claim in the appropriate court asking for declaratory relief or claiming breach of fiduciary duty by the personal representative if they misapplied funds.

Helpful Hints

  • Get everything in writing. If parties propose a division of proceeds, ask the personal representative to document it in writing and, if necessary, seek court approval or sign a settlement agreement before money changes hands.
  • Act fast. Limitation periods and final orders can cut off claims. Don’t wait to gather evidence or consult counsel.
  • Preserve evidence. Save texts, voicemails, emails, bank statements, and any notes about conversations. Identify witnesses who heard the oral agreement.
  • Check releases. If you previously signed a release or settlement agreement, it may prevent a later claim even if you now dispute the oral allocation.
  • Consider mediation. Courts commonly encourage settlement; a mediator can help memorialize agreements in writing and prevent future disputes.
  • Understand roles. The personal representative has fiduciary duties. If a PR disburses funds wrongfully, beneficiaries can ask the court for an accounting, surcharge (financial penalty against the PR), or removal.
  • Consult a Texas attorney experienced in wrongful-death, probate, or civil litigation. These disputes can involve overlapping civil and probate procedures; a lawyer can advise whether to proceed in district court or probate court and can draft emergency motions if needed.

Next steps: If you have a current dispute about an oral agreement to divide wrongful-death proceeds, gather all communications and financial records and contact a Texas attorney promptly to evaluate deadlines and the best court to raise your claim.

Remember: this is educational information, not legal advice. For help with a specific case, consult a licensed attorney in Texas.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.