Court Approves Receiver’s Report Requiring Former Trustee to Pay Trust Over $1 Million

Delaware Fiduciary Litigation Blog

Posted April 3, 2018

Marie Ann Hurd v. Leonard Hurd, Jr., Individually and as a Trustee of the Marie Ann Hurd Trust, C.A. No. 4675-MG (March 26, 2018)

       We previously blogged about this dispute in 2016, where then-Master Ayvazian recommended to the Court that it find that the trustee breached his fiduciary duties and that, among other things, require him to produce records and an accounting of the trust. By way of further background, at issue is a trust that was established to provide income for the settlor’s wife following his death. The settlor’s son, from another marriage, was the trustee of the trust. The son filed exceptions to the Master’s Report. Vice Chancellor Glasscock denied the exceptions, removed the son as trustee and appointed a receiver to perform an accounting of the trust.

       On April 26, 2017, then-Master Ayvazian held a contempt hearing concerning the son’s failure to produce the documents requested by the receiver and fined the son. On October 27, 2017 the receiver filed its report. The son objected to the receiver’s report. After reviewing the receiver’s report and the son’s objections, the Master issued its report recommending that the Court reject the son’s objections and approve the receiver’s report that the son pay the trust $611,971.44 in income and $450,559.64 in principal, as well as the value of 6,075 shares of Nucor stock. The Master did however reconsider the fines levied against the son for his failure to provide documents to the receiver, and recommended that under the circumstances, the Court vacate the fines.

Author(s)

Phillip Giordano
Associate
Gordon, Fournaris & Mammarella, P.A.