Zawideh Successfully Defends Trustee Against Claims of Fraud

Background: Twenty years ago, the Settlor established a trust for the benefit of her daughter, “Jane Doe,” Jane’s two sons, and the Settlor’s son and daughter-in-law, “John Doe” and “Mary Roe.” Jane was named successor trustee of the primary trust, while a CPA was nominated as successor trustee for the portion benefiting John and Mary.

Upon the Settlor’s death, John and Mary received two vehicles and the Settlor’s home, or proceeds from its sale to purchase another residence. Their trust was also funded with cash intended for their benefit.

Claims: Eighteen years after the Settlor’s death, Mary filed an action against the CPA trustee alleging breach of fiduciary duty regarding maintenance payments. Several months later, Mary amended the lawsuit to add Jane, alleging that Jane had “fraudulently” underfunded the trust by more than $250,000.

Kemp Klein attorney Robert Zawideh immediately noticed Mary’s deposition. During the deposition, Mary admitted that Jane owed her no fiduciary duties and acknowledged she had no evidence supporting her claims against Jane.

Outcome: Following the deposition, Mr. Zawideh informed opposing counsel that if Jane was not voluntarily dismissed from the lawsuit, sanctions would be pursued. The following day, counsel agreed to dismiss Jane from the action.

For further information regarding these matters, please contact Mr. Zawideh at 248.619.2845 or via email.