When a Fiduciary Takes the Stand: Matthew G. Stein Returns for Part II of PFAC Mock Trial
A $10 million Newport Beach home. Two beneficiaries with opposing interests. A trustee caught in the middle. And allegations that her decisions crossed the line into breaches of fiduciary duty.
That was the scenario at the center of Fiduciary Takes the Stand: A Mock Trial on Breach of Fiduciary Duty Part II, presented at the Professional Fiduciary Association of California (PFAC) Southern Region Dinner Meeting on September 1.
Law Stein Anderson Partner Matthew G. Stein joined Hon. Ana Maria Luna (Ret.) and Scott Rahn, Esq., founding partner of RMO LLP, for the live, interactive mock trial designed to give professional fiduciaries a practical look at how their decisions and conduct may ultimately be evaluated in litigation.
The program continued the mock trial first presented at the PFAC Conference earlier this year, taking the fictional fiduciary dispute into its next chapter while also serving as a standalone presentation for those who did not attend Part I.
Putting the Trustee’s Decisions Under the Microscope
At the center of the fictional dispute was a trust whose primary asset was a $10 million Newport Beach home. The beneficiaries—a brother and sister—had very different ideas about what should happen to the property.
The daughter, who had lived in the home with her mother for more than 15 years and served as her primary caregiver, wanted to remain there. Her brother, who had been estranged from the family, wanted the property sold and the trust distributed.
Caught between them was Mary Ann, a longtime family friend and professional fiduciary serving as trustee.
As the administration remained at a standstill, questions arose about Mary Ann’s handling of the trust. Among the issues put under scrutiny were her decision to maintain the status quo while the beneficiaries remained in conflict, the handling of property expenses that ultimately resulted in tax liens, her annual trustee fee, and a $100,000 bequest she received from the settlor.
After 16 months without the property being listed for sale or a concrete timeline for distribution, the son sought Mary Ann’s removal as trustee, a surcharge, and the sale of the home, setting the stage for Part II of the mock trial.
Bringing Fiduciary Litigation to Life
Rather than discussing fiduciary duties solely through hypotheticals or case law, the mock trial format allowed attendees to see how these issues may actually be argued and evaluated in the courtroom.
Through testimony and competing arguments, the presentation explored whether the trustee’s actions amounted to breaches of her fiduciary duties and how seemingly individual decisions made over the course of an administration can take on new significance once litigation begins.
For professional fiduciaries in attendance, the scenario raised an important practical question: How might the decisions made during a trust administration look when they are later examined in court?
The interactive format brought together three different perspectives on that question. Judge Luna offered insight from the bench, while Stein and Rahn drew upon their experience handling contested trusts, estates, conservatorships, and fiduciary disputes.
A Litigator’s Perspective on Fiduciary Decision-Making
As a probate litigation attorney, Matt regularly represents clients in trust and will contests, breach of fiduciary duty claims, allegations of trustee wrongdoing, elder abuse matters, and other contested probate proceedings. He also advises individuals and fiduciaries on strategic planning and positioning before litigation becomes necessary.
That experience gives Matt a practical perspective on how decisions made during trust and estate administration can become the focus of a dispute, and how fiduciaries can find themselves having to explain and defend those decisions when a matter reaches the courtroom.
By bringing those issues to life through a mock trial, Stein, Judge Luna, and Rahn gave PFAC members an opportunity to view fiduciary decision-making through the lens of litigation and consider how common challenges in trust administration may ultimately play out in court.
Law Stein Anderson is proud to support educational opportunities that bring attorneys, judges, professional fiduciaries, and other professionals together to share their experience and strengthen the broader trusts and estates community.