Summary
The Vermont Supreme Court affirmed the denial of a Rule 59(e) motion seeking to limit the preclusive effect of an order terminating and distributing a trust. The court held that the trial court generally need not determine the res judicata effect of its judgment and that the appellants' fiduciary-breach claims were not barred because they had attempted, but were not permitted, to litigate them in the termination action. It also held that the trust-distribution formula did not preclude the appellants from seeking a different apportionment of damages in the separate fiduciary-breach action.
Holdings
- The superior court did not abuse its discretion by refusing to limit or otherwise address the preclusive effect of its termination order.
- The termination order did not preclude appellants from pursuing their fiduciary-breach claims in the separate Fiduciary Breach Action because they had sought to raise those claims in the Termination Action but were not permitted to do so.
- The trust-distribution formula did not preclude appellants from arguing in the fiduciary-breach action that they should each receive one-fifth of the value of trust assets proven to have been misappropriated.
Questions Presented
- Whether the superior court abused its discretion by denying appellants' Rule 59(e) motion to amend the trust-termination order to limit its preclusive effect.
- Whether the termination order would preclude appellants from litigating their fiduciary-breach claims in a separate action.
- Whether the trust-distribution formula would preclude appellants from seeking a different apportionment of damages for assets allegedly misappropriated by the trustee.
Disposition
affirmed
Cases Cited (10)
- Rubin v. Sterling Enters., Inc., 164 Vt. 582, 588, 674 A.2d 782, 786 (1996)(followed)
- In re Kostenblatt, 161 Vt. 292, 302, 640 A.2d 39, 45 (1994)(followed)
- Matsushita Elec. Indus. Co. v. Epstein, 516 U.S. 367, 396, 116 S. Ct. 873, 134 L. Ed. 2d 6 (1996)(followed)
- Brown v. R.J. Reynolds Tobacco Co., 576 F. Supp. 2d 1328, 1339-40 (M.D. Fla. 2008)(followed)
- Midway Motor Lodge of Elk Grove v. Innkeepers' Telemgmt. & Equip. Corp., 54 F.3d 406, 409 (7th Cir. 1995)(followed)
- Teamsters Local 282 Pension Trust Fund v. Angelos, 762 F.2d 522, 525 (7th Cir. 1985)(followed)
- Carlson v. Clark, 2009 VT 17, ¶ 13, 185 Vt. 324, 970 A.2d 1269(followed)
- Lamb v. Geovjian, 165 Vt. 375, 380, 683 A.2d 731, 734 (1996)(followed)
- In re Armitage, 2006 VT 113, ¶ 4, 181 Vt. 241, 917 A.2d 437(followed)
- Trickett v. Ochs, 2003 VT 91, ¶ 10, 176 Vt. 89, 838 A.2d 66(followed)
Cited In (0)
No citing cases on record yet.
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