546 P.3d 28
Utah Ct. App.2024Background
- Evan O. Koller created a family trust in 2006 for the benefit of his six children, including Mark A. Koller, who later became trustee.
- After Mark's appointment as trustee following the grantor’s death, several siblings (Appellees) filed suit alleging Mark breached multiple fiduciary duties under the trust and state law.
- Key complaints included failure to distribute assets, improper management, lack of accounting, excessive trustee compensation, and self-dealing.
- The district court found Mark breached his duties, removed him as trustee, ordered an accounting, and imposed attorney fee/cost reimbursement obligations on Mark, but did not award traditional damages.
- Mark appealed various procedural and substantive trial rulings, including issues on witness disclosures, damages computation, expert testimony, and removal as trustee without monetary damages proven.
Issues
| Issue | Appellees' Argument | Mark's Argument | Held |
|---|---|---|---|
| Witness Disclosure Adequacy | Disclosures, while brief, and depositions gave adequate notice. | Disclosures were conclusory/insufficient under Rule 26, so testimony should be barred. | Disclosures were inadequate but error was harmless because Mark deposed witnesses and was not prejudiced. |
| Damages Computation Insufficiency | No monetary damages needed for injunctive relief; requests were for distribution/accounting. | Relief sought (for assets/revenues) needed damages computation; lack thereof should bar claims. | No error—no monetary damages required for requested injunctive relief; thus, computation not needed. |
| Admissibility of Experts’ Testimony | Expert testimony was relevant and did not improperly influence judgment. | Experts' testimony was unreliable and not sufficiently disclosed/founded. | Any error in admission was harmless; court did not rely on the disputed expert evidence for its holding. |
| Trustee Removal Without Monetary Damages | Serious breach of trust allows removal by statute without proof of damages. | Proof of damages is a required element to remove a trustee for breach of fiduciary duty. | Removal does not require damages; statute supports removal for breach alone. |
| Trustee’s Discretion Under Trust | Mark abused discretionary powers reserved for trustee. | Discretion allowed withholding of distributions to maintain farm as required by trust. | Mark abused discretion; trust required maintenance, not indefinite farming or withholding. |
Key Cases Cited
- In re Evan O. Koller Revocable Living Trust, 414 P.3d 1099 (Utah Ct. App. 2018) (affirmed appointment of Mark as trustee in earlier proceedings)
- RJW Media Inc. v. Heath, 392 P.3d 956 (Utah Ct. App. 2017) (witness and expert disclosure standards)
- Smith v. Robinson, 422 P.3d 863 (Utah 2018) (standard of appellate review for mixed questions of law and fact)