Farmers & Merchants Trust v. First American Trust
Farmers & Merchants Trust Company (F and M), the trustee of the Violet McNaughton Family Trust (trust), appeals from an order awarding trustee and attorney fees and costs of suit to First American Trust Company, FSB (First American), the trust's former trustee. F and M contends First American incurred the fees and costs after it had resigned as trustee, a purported settlement reached before First American resigned cannot support the award because the settlement is unenforceable, and the trial court erred in failing to rule on its evidentiary objections. Court conclude First American is entitled to recover fees and litigation expenses to the extent they arose from its residual duties as trustee, but not for its participation in unrelated legal proceedings. Since the trial court awarded a lump sum for all of First American's activities, the matter must be remanded to the superior court for further proceedings.
Comments on Farmers & Merchants Trust v. First American Trust