Punitive Damages against Trustee

Surcharge imposed against trustee for more than $600,000 for “reimbursements” to herself, but surcharge for failure to properly invest funds denied because the testimony of the expert witness was speculative and simplistic and lacked a solid foundation.  In addition, punitive damages of more than $300,000 imposed for conduct the court found to be intentional and reckless.  Simple interest imposed at the legal rate of 6% from the date of each “distribution” the trustee made to herself.  Gansky Trust, 4 Fid.Rep.3d 330 (O.C. Montg. 2015) (opinion by Ott, J.)

On exceptions, the surcharge was recalculated, simple interest at 6% was affirmed, punitive damages were denied, and attorney fees for the objectants were denied.  Gansky Trust, 6 Fid.Rep.3d 27 (O.C. Montg. 2015) (opinion by Murphy and Ott, JJ.).

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