Firm News

Led by Partners Steve Malech and Mike Kenny, Wiggin and Dana’s Fiduciary and Probate Litigation team recently won a major decision against a trustee for breaching her fiduciary duty.

The dispute involved claims by a grandson against the trustee of a trust established by his grandfather for his grandchildren’s education expenses.  The trustee was the grandfather’s wife, and she stood to receive the trust money if she didn’t pay it out before the grandson reached a certain age. The trustee repeatedly denied the grandson’s requests for distributions for his undergraduate and graduate educational expenses, contending the trust gave her broad discretionary power to pay or not pay. 

The action was initially denied without prejudice pending examination of the trustee under oath.  At her deposition, the trustee admitted she made no effort to ascertain the grandson’s financial condition or whether he had other adequate means to pay for his education.  After discovery, the firm, led by Mr. Kenny, moved to renew the petition to compel distributions and remove the trustee. 

After two years and oral argument by Mr. Kenny before two judges, the Court issued a written decision holding in pertinent part: “Since the Respondent made no good faith effort to ascertain whether the Petitioner needed financial assistance, the Court must find that the Respondent abused their discretion as trustee here. There must be a bare minimum standard for fiduciaries to exercise good faith, even when there is absolute discretion.”  Based on this finding, the Court ordered a distribution from the trust to cover our client’s educational expenses from the trust.

The case received recognition in the New York Law Journal; click here to view the full article.