PALM BEACH LITIGATION — GETTING TRUST MONEY FROM THE OTHER SIDE’S TRUST LAWYER
Okay, so you’re in the middle of some Palm Beach County trust litigation. Maybe you’re suing the trustee.
But the person you’re suing is using trust funds to pay his or her attorneys.
Q : Can you ask the Palm Beach County probate court to have the other side’s trust lawyers return the trust money ?
A recent Palm Beach County appeals case dealt with the issue of disgorgement— making the other side’s lawyers give back the attorneys fees they have been paid. Serious stuff!
Florida trust beneficiaries should take note.
There was a Palm Beach non-probate case in the Palm Beach Gardens, Florida courthouse for Palm Beach County, Florida. It was actually a Palm Beach divorce case, in front of the Palm Beach County judge who hears both Palm Beach County probate cases, as well as Palm Beach County divorce cases.
In the Palm Beach County divorce, there were allegations that one of the parties had taken his assets or cash, and paid his Palm Beach lawyer. The other side argued that the money used to pay that Palm Beach County lawyer was supposed to be before the probate court and divided between the two spouses. The Palm Beach County probate judge ordered that the Florida attorney who was paid, disgorge the attorneys fees — or give them back. The appellate court said that the attorney was required to be given proper notice and an opportunity to defend himself. This is a very important constitutional issue before a Palm Beach County court.
Q: So what does a Palm Beach County divorce have to do with a Palm Beach County probate case ?
Good question. What this recent Palm Beach County appeals case demonstrates is the important issue of notice and an opportunity to be heard. Especially when you’re trying to get a Palm Beach lawyer’s money.
Q : Why do people involved in Palm Beach County probate litigation or, Palm Beach County trust litigation, care?
Because the same thing happens in Palm Beach County probate cases as what happened in this Palm Beach County divorce case.
Palm Beach trust beneficiaries who sue Palm Beach trustees often try to prohibit the trustee from using trust funds to defend himself or herself. The Florida trust code actually has a specific section on this very issue.
The Florida trust code is found at Chapter 736 of the Florida statutes. Section 736.0802 (10) deals with a Florida trustee’s duty of loyalty versus under what circumstances the Florida trustee may use trust funds to pay for its defense when it sued by a Palm Beach County trust beneficiary.
Any trust beneficiary who is involved in trust litigation should have their trust litigator, or their Palm Beach probate litigator, review this part of the Florida trust code in depth. It provides specific guidance, procedures, and notice requirements that must be complied.
So what’s the take away? If you’re involved in Palm Beach divorce litigation, trust litigation, or estate disputes, ask your Palm Beach probate litigator who’s paying the other side’s fees, and whether you can put a stop to it or not. You will have to give the other side notice, and an opportunity to be heard, which is in essence a mini trial, or an evidentiary hearing, but you’ll get your day in probate court.