Statute of limitations involving a Trustee’s breach of duties and misconduct
Pursuant to R.C. 5810.05, claims against a former trustee must be brought within four years of the trustee’s resignation or removal. Although a trustee’s improper conduct may warrant claims of fraud, the Lucas County Probate Court declined to apply the five-year statute of limitations of fraud claims against a former trustee, in a decision recently affirmed by the 6th District.
In Bonner v. Delp, the 6th District Court of appeals recently affirmed summary judgment in favor of a former trustee, finding the successor trustee’s breach of trust, breach of fiduciary duty, and fraud claims were time barred. There, the successor trustee filed claims against the former trustee related to allegedly improper transfers of a brokerage account and Class A voting shares out of the trust. However, the successor trustee’s claims were filed five years after the former trustee resigned. Although the successor trustee argued that she did not learn of the transfers until 2012, the trial court found it was undisputed that the former trustee resigned in 2010. The successor trustee further argued that the five-year statute of limitations applied to her fraud claim. Nonetheless, the trial court granted the former trustee summary judgment, finding that the successor trustee’s claims were barred by the four-year statute of limitations. Although the claims were couched as a fraud claim, the court characterized the successor trustee’s claims as breach of trust claims, and declined to apply the five-year statute of limitations. Ultimately, the 6th District affirmed.
Attorneys at Reminger have experience handling disputes and litigation involving breach of trust and breach of fiduciary duties. If you have reason to suspect wrongdoing by a trustee, we encourage you to get in touch with our Estate, Trust, and Probate Litigation team so that we can further investigate.
