Murtaugh LLP partners John Deily and Michael Grobaty recently achieved a significant trial victory in a complex trust and fiduciary litigation matter before the Orange County Superior Court.
Following a lengthy court trial, the Court found in favor of their client on multiple breach-of-trust claims and determined that the former trustee acted in bad faith within the meaning of Probate Code section 859. The dispute involved serious fiduciary misconduct, including the acquisition of a substantial closely held business interest from the trust, unauthorized trustee compensation, and improper transfers of trust assets.
The statement of decision provides for approximately $2 million in monetary awards directly in favor of the Firm’s client and approximately $9.2 million in favor of the successor trustee on behalf of the trust, exclusive of attorneys’ fees and costs. The relief also includes the return of a significant business interest to the trust and substantial enhanced damages under Probate Code section 859.
The Court also found their client to be a prevailing party and entitled to recover attorneys’ fees and costs.
The result reflects years of advocacy in a highly contested matter involving complex fiduciary, valuation, accounting, and damages issues.
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