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Keywords

lawsuitdefendantlitigationattorneytrust

lawsuitplaintiffdefendantlitigationattorneytrialpleatrust

Related Cases

Conley v. Waite, 134 Cal.App. 505, 25 P.2d 496

Facts

Charmion Conley sued Effie C. Waite and L. K. Small to quiet title to a three–twenty–fourths undivided beneficial interest in certain real property held by Small as trustee under a trust agreement. Waite abandoned her defense, allowing Conley to take judgment as prayed. Small also stipulated to the judgment but sought reimbursement for counsel fees incurred while defending the action. The court awarded Small $150 for counsel fees, which was made a lien on Conley's interest in the property.

The trustee was joined as a party defendant, but for what reason it does not appear. The trustee filed an answer denying, on lack of information or belief, plaintiff's claim of title, and pleading, as was done in the complaint, the declaration of trust and his right to act as trustee under it.

Issue

Whether the trustee, L. K. Small, is entitled to reimbursement for counsel fees incurred in defending against the lawsuit brought by the beneficiary, Charmion Conley.

Rule

A trustee is entitled to reimbursement of all expenses actually and properly incurred in the performance of his trust, but not for attorney's fees paid out in litigation he has initiated unnecessarily. However, if an unfounded suit is brought against him by the beneficiary, attorney's fees may be allowed in defending the action and charged against the beneficiary's interest in the estate.

The rule of law applicable to the question is that a trustee is entitled to reimbursement of all expenses actually and properly incurred by him in the performance of his trust (section 2273, Civ. Code); that he is not entitled to reimbursement of attorney's fees paid out in litigation which he has inaugurated unnecessarily or without warrant.

Analysis

The court analyzed the situation by noting that the litigation was essentially between two individuals claiming conflicting interests in the trust estate. Although there was no apparent reason for the trustee's joinder as a party defendant, he was entitled to legal representation. The court found that the $150 awarded for counsel fees was reasonable given the circumstances.

The litigation here was really between two individuals claiming conflicting interests as beneficiaries of the trust estate. There does not appear to have been any reason for the joinder of the trustee as a party defendant.

Conclusion

The court affirmed the judgment, including the award of counsel fees to the trustee, L. K. Small.

The judgment is affirmed.

Who won?

L. K. Small prevailed in the case because the court upheld the award of counsel fees for his defense against the lawsuit brought by Conley.

The trial court allowed the sum of $150, and we cannot say on the record before us that such sum was unreasonable.

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