Successful Defense of Corporate Trustee

• Client: Corporate Trustee of Trust Holding Closely Held Family Business
• Date: 2002
• Location: DuPage County, Illinois

Summary:

In 2002, Schiff Hardin successfully defended a fiduciary liability claim against a large corporate trustee in a nine-day bench trial in DuPage County, Illinois. The case involved a closely held business owned 100% by the fiduciary in trust. The business suffered serious declines in the first few years after the death of the settlor, its longtime owner. We successfully defended against every one of more than 30 separate claims of breach of fiduciary duty.

The fiduciary had commenced this case seeking approval of accounts. Significantly, the trial court ruled that there was no right to a jury trial with respect to breach of trust counterclaims in the accounting proceeding that were asserted against the trustee, even though the counterclaims were solely for money damages. The Illinois Appellate Court affirmed, and a petition for leave to appeal to the Illinois Supreme Court was denied. This is a decision of great significance to corporate fiduciaries in Illinois.