Reliance Trust Co. v. Candler

The remainder beneficiaries of the revocable marital trust created by the wife of Charles Howard Candler III sued Reliance Trust Company, co-trustee of the trust, for breach of trust. They alleged that after the death of the settlor, Reliance made improper distributions from the corpus of the trust to Mr. Candler, who was the life beneficiary. The remainder beneficiaries alleged these improper distributions significantly diminished the value of the trust and thereby damaged them in an amount equal to the improper distributions. The case was tried and the jury found that while Reliance did not act in bad faith, it otherwise found in favor of the remainder beneficiaries. The trial court entered final judgment on the verdict and also awarded the remainder beneficiaries pre-judgment interest, which was affirmed by the Court of Appeals. Reliance petitioned for certiorari, contending that the Court of Appeals erred when it upheld the jury's verdict in favor of the remainder beneficiaries and when it affirmed the trial court's award of interest. Finding only that the remainder beneficiaries were entitled to interest on the damages awarded only from the state of the life beneficiary's death, the Supreme Court vacated the trial court's award of interest. The case was remanded for recalculation of interest on damages, but otherwise affirmed the trial court in all other respects. View "Reliance Trust Co. v. Candler" on Justia Law