The Past Year’s Most Significant, Curious, or Downright Fascinating Fiduciary Cases* *At least it seems to me. Your mileage may vary. UPDATED NOVEMBER 2014 Dana G. Fitzsimons Jr. Principal and Fiduciary Counsel Bessemer Trust 3455 Peachtree Road, N.E., Suite 850 Atlanta, Georgia 30326-3257 Phone: (404) 965-9318
[email protected] www.bessemer.com With contributions from: Turney P. Berry & Mary Beth Anderson, Wyatt Tarrant & Combs LLP Gerard G. Brew, McCarter & English Copyright © 2015 Bessemer Trust Company, N.A. All rights reserved. The views and comments expressed herein are solely those of the authors and do not necessarily reflect the views or practices of Bessemer Trust Company, N.A. and its affiliated entities, Wyatt Tarrant & Combs LLP, or McCarter & English. These materials are for general educational and discussion purposes only and do not constitute legal advice. These materials are not intended as, and may be relied upon as, tax or legal advice by any person. No representation or warranty is made as to these materials. 1 TABLE OF CONTENTS I. INVESTMENTS. ................................................................................................................................ 14 A. Kastner v. Intrust Bank, 2014 U.S. App. LEXIS 11864 (10th Cir. Court of Appeals, 2014). Claims against trustee dismissed where beneficiary is not a “qualified beneficiary” under the Kansas Uniform Trust Code, for failure to provide expert testimony on the standard of care, and for lack of factual support. ........................................................................................................... 14 B. Greenberg v. JP Morgan Chase Bank, 2014 N.Y. Misc. LEXIS 2011 (2014). Court refuses to dismiss claims for investment losses during economic downturn, where bank rejected individual co-trustee’s and beneficiary’s requests to reallocate portfolio or liquidate equities.