Anderson v. Dussault

When Rachel Anderson (formerly Rachel Rodgers) was six years old, a horse kicked her in the face and she sustained serious injuries. Her many fractures and lacerations required multiple surgeries and she suffered severe cognitive and emotional trauma. Rachel's family hired respondent Richard McMenamin to pursue a personal injury action against the owner of the horse. In 1997, the Superior Court approved a personal injury settlement of $3 00,000.00 and the creation of the "Rachel Marguerite Rodgers Trust." McMenamin hired respondent attorney William Dussault to draw up the trust agreement. After attorney's fees and other costs, a net amount of$187,160.66 entered the trust. Respondent Wells Fargo Bank, NA served as trustee. The agreement also created a trust advisory committee (T AC) composed of petitioner's mother, Andrea Davey (formerly Andrea Rodgers) and McMenamin, were tasked with making distribution decisions for Rachel's benefit. Rachel later took issue with how her trust has been administered, alleging breach of fiduciary duties and legal malpractice. Rachel questioned several purchases with trust money that she said were never used for her benefit - a vehicle, computers and software and a house (which was purchased in the name of her mother's boyfriend). Furthermore, Rachel questioned the trustee and legal fees that were charged to the trust as excessive and at above market rates. Rachel sued her mother, McMenamin, Wells Fargo, and Dussault, alleging breach of fiduciary duties and malpractice. Motions for summary judgment were filed by Dussault, McMenamin, and Wells Fargo. The court granted their motion. The superior court then dismissed all of Rachel's remaining claims, including claims against her mother. Rachel appealed as to McMenamin, Dussault, and Wells Fargo, but chose not to appeal her claim against Andrea. The appellate court affirmed. At issue for the Supreme Court's review was whether the superior court's approval of annual accountings of Rachel's trust under the Trustees Accounting Act (TAA), chapter 11.106 RCW, barred this suit, which was timely under the Trust and Estate Dispute Resolution Act (TEDRA), chapter 11.96A RCW. The Supreme Court found that because Rachel was not represented by a guardian ad litem when the court approved the trust's annual accountings, she did not have notice of these proceedings and accordingly could bring a breach of trust action under TEDRA. Accordingly, the Court reversed the Court of Appeals, vacated its award of attorney's fees, and remanded the case for further proceedings. View "Anderson v. Dussault" on Justia Law