Trust Adviser Held Liable for Breach of Fiduciary Duty

In 1970 George S. Mennen created a trust with his son John Mennen and John’s four children as beneficiaries. The beneficiaries sued the co-trustees Wilmington Trust Company and John’s brother Jeffrey Mennen in connection with the trust reducing in value from $100 million to $25 million over the course of 20 years, alleging that Jeff had directed investment decisions based on personal interest that resulted in the lost assets.

In Mennen v. Wilmington Trust Company, the Delaware Court of Chancery found that Jeff breached his fiduciary duty and held him liable for the loss as an “adviser.” The ruling is a Draft Master’s Report, and exceptions have been filed.

See Morris Nichols Trusts, Estates & Tax Group, Mennen v. Wilmington Trust Company, George Jeffrey Mennen and Owen J. Roberts as Trustees, Trusts, Estates & Tax Alert, Jan. 30, 2015.