TRUSTS - The trustee - Breach of trust - Duty not to profit

Law360 Canada (November 15, 2023, 6:06 AM EST) -- Action by plaintiff for damages against defendants for loss of annuity benefits. The plaintiff suffered significant injuries at birth. His parents sued the attending doctors and the hospital for malpractice. A settlement fund was approved by a Melvin Order with monthly annuity payments up until age 30, and lump sum payments at ages 19, 25, and 30 (Annuity funds) all payable to the plaintiff’s mother with the defendant as trustee. The Melvin Order was varied by way of a Macaulay Order that the Annuity funds were to be paid to the plaintiff upon him turning 19 years old or upon failure to manage his own affairs, to his committee. When the plaintiff turned 19, the Annuity payments were not directed to him but continued to be paid to his mother. His mother had never given a proper accounting of those funds. The plaintiff alleged that his monies were appropriated by his mother almost entirely for her own use and benefit and that he was unaware of his entitlement to settlement funds until he had a discussion with his father, the third party. The plaintiff claimed that the defendant mother committed a breach of trust and a breach of fiduciary duty. As against the defendant the Public Guardian and Trustee (PGT), the plaintiff pleaded that the PGT owed him a duty to take reasonable care that the Post Minority funds were to be used for his benefit once he reached the age of majority....
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