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Trusts-Right Of Trustee To Reimbursement For Tort Liability

Michigan Law Review

The recent New York case, In re Lathers presents the question seldom before raised whether a trustee may be reimbursed from the trust estate for tort liability to a third person through his negligence in management of the estate. In that case, as a result of fire in an apartment building of the trust property, the trustee suffered judgments for $62,000 plus costs. The rooms of one apartment, rented by the trustee's agent, had been closed off by the lessee to form several small apartments. For the one subleased to the tort creditor, access to fire escapes, adequate normally, was …