Equitable Powers Are Broad in Probate Court.
Watson v. Watson, Case No. B214891 (2d Dist., Div. 6 July 19, 2011) (unpublished) confirms the broad powers granted to probate courts to award attorney’s fees against trustees that take bad faith actions against a trust. Here, trustee conveyed property to himself out of the trust without the knowledge of the trust grantor/beneficiary–the latter requesting attorney’s fees for this breach of fiduciary duty, a request granted by the lower court.
On appeal, fee award affirmed. The superior court, sitting as a probate court, has broad equitable discretion to award attorney’s fees. (Rudnick v. Rudnick, 179 Cal.App.4th 1328, 1333 (2009).) Trustee certainly breached his fiduciary duties to grantor/beneficiary of the trust, which equitably required him to pay the full cost of litigation caused by his misconduct. Soria v. Soria, 185 Cal.App.4th 780 (2010) did not compel a contrary result; a reversal there was required because the fees were awarded in a civil court action, unlike the fee award in this probate court action based on the probate court’s equitable powers.