Per California trust law, if a trustee has committed a breach of their fiduciary duty, the court can deem them personally liable for damages. The extent of liability, ultimately, depends on the severity of their offense and your situation.
Trustees are personally liable for all decisions they take in that capacity, and their liability is not automatically limited to the value of the trust fund.
A person who files a claim in the limitation proceeding can move the court for an increase and an appraisal of the value of the owner's interest in the vessel. The shipowner may also move the court to reduce the limitation fund if it is found to be in excess of post-loss value of the vessel.
A trustee can end up having to pay taxes out of their own personal funds if they fail to take action on behalf of the estate in a timely way. Of course, they can also face criminal liability for such crimes as taking money out of a trust to pay for their own kids' college tuition.
It defines the scope and extent of the trustee's liability to the noteholders; it also dictates whether the trustee will be entitled to claim indemnity from the issuer where the trustee has suffered a loss or other liability.
It helps to remember that a Trust is a separate legal entity. The Trustees and beneficiaries are not personally liable for debts owed by the Trust. The Trustee is acting in a fiduciary capacity. The Trustee is required to gather the assets and pay the Trust debts.
Most reasonable and clearly drafted limitation of liability clauses agreed to by two parties of rela- tively equal bargaining strength are upheld when tested in court.
A limitation of liability clause is a provision within a contract that caps the amount of damages one party can claim from the other in case of a breach or other legal issue. This clause is designed to limit the financial exposure of one or both parties, thereby reducing the risk of excessive financial loss.
Examples of exclusions from limitations of liability include but aren't limited to losses and damages resulting from breaches of confidentiality, refusal of services, willful misconduct, bodily injury, death, damage to physical property, violations of applicable laws and gross negligence.
The trustee is liable, at the option of the beneficiary, to purchase other land of equal value to be settled upon the like trust, or to be charged with the proceeds of the sale with interest.
In general, creditors cannot access assets in certain types of trusts, like irrevocable trusts, because the trustor no longer owns them. However, if the trust remains revocable, creditors may claim the assets.
If the accounting is not provided in the proper form as required by the law, then after sixty days the beneficiary can file a probate court petition to seek a court order requiring the trustee to prepare the proper accounting and can request reimbursement for the fees and costs they incur in bringing the petition.
Beneficiaries have a right to sue the trustee.
That is fairly easy under California law if there is no issue with the identity of the trustee. Next, you must establish a breach of that duty.
A trustee must abide by the trust document and the California Probate Code. They are prohibited from using trust assets for personal gain and must act in the best interest of the beneficiaries. Trust assets are meant for the benefit of the trust beneficiaries and not for the personal use of the trustee.
In order for the beneficiary to hold the trustee accountable, the beneficiary must have information about what the trustee is required to do and what the trustee actually does. Thus, the trustee has a duty to account and to inform.
It is not possible to exclude or restrict liability for death or personal injury resulting from negligence.
In contract law, force majeure (/ˌfɔːrs məˈʒɜːr/ FORSS mə-ZHUR; French: [fɔʁs maʒœʁ]) is a common clause in contracts which essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, epidemic, or sudden ...
Limitation of liability is a clause that caps the financial damages you may have to pay to another party in the event of a lawsuit. Indemnity decides who will be held liable, while limitation of liability dictates the extent of the liability.
Gross negligence is the "lack of slight diligence or care" or "a conscious, voluntary act or omission in reckless disregard of a legal duty and of the consequences to another party." In some jurisdictions a person injured as a result of gross negligence may be able to recover punitive damages from the person who caused ...
In the absence of a limitation of liability, a party is liable and responsible for all of the reasonably foreseeable damages that it causes the other party.
Limitation of Liability Act: Under the "single claimant exception," if only one claim has been filed in a district court limitation proceeding, a district court is required to dissolve its injunction to permit the single claimant to pursue a separate action and jury trial if the single claimant: (1) stipulates that the ...
Trustees may be personally liable if the assets of the charity are not sufficient to meet the indemnity. But only the people who are trustees at the time the tort was committed can be made liable in this way, unless successor trustees accept the liabilities of their predecessors.
If the trustee is not paying beneficiaries accurately or on time, legal action can be taken against them.
A trustee typically has the most control in running their trust. They are granted authority by their grantor to oversee and distribute assets according to terms set out in their trust document, while beneficiaries merely reap its benefits without overseeing its operations themselves.