University:
University of California, Berkeley
Course:
Law 200.2 | Civil Procedure for LL.M.Students
Academic year:

2022
Views:

453

Pages:

2
Author:

Lance Gutierrez

Name: Marsman v. Nasca Procedural History: Facts: Sarah Marsman died and set up a trust to take care of her husband Cappy. Set amount + discretion. Exculpatory clause saying no trustee is ever liable. After her death, things got tough financially for Cappy. He remarried and took out a mortgage to pay bills. He had a new will done leaving most of Cappy’s property including Sarah’s house to Margaret, his new wife. Cappy asked Farr for money and Farr, trustee and lawyer sent it to him, but discouraged him from asking again. So he didn’t. Farr never checked to see if Cappy needed money. Went into a nursing home, worse money problems. To keep up, he drew up a deed to Sally, Sarah’s daughter. Sarah told Farr Margaret would have not righ to live in the hosue if Cappy predeceased her. Sally died and her husband got the property, then Cappy died. Margaret wanted to stay in the house and the husband wants her out. Judge held that Farr failed in his duty and that Cappy would not have transferred the house to Sally if Farr had been doing his job. Issue: does a trustee, holding a discretionary power to pay principal for the “comfortable support and maintenance” of a beneficiary have a duty to inquire into the financial resources of that beneficiary so as to recognize his needs? If so, what is the remedy for such failure. Holding: Farr had a duty to inquire as to Cappy’s finances. He didn’t have absolute discretion – he had to give cappy such amounts as advisable for his comfortable support and maintenance. We hold that Sally and her husband get the hosue because the conveyance was supported by consideration and they were BFP’s with no notice. Remanded to find out where the rest of the trust 80K goes. We don’t agree with holding Farr personally liable – uphold the exculpatory clause. No other problems with the will. Plaintiff/Appellant: Defendant/Appellee: Reasoning: Dissent: Concurrence: Definitions: Notes: