The Court of Appeals of Massachusetts finds a professional trustee can be liable to trust beneficiaries under consumer protection laws. Quinton v. Gavin (Mass. Ct. of App., No. 04-P-999, October 19, 2005).
Joseph Gavin was an accountant and professional trustee who actively solicited clients. Several of the beneficiaries of the trusts he managed accused him of using trust funds for his own enrichment. They sued him under the state consumer protection statute (M.G.L. Chapter 93A).
The court found that Mr. Gavin engaged in systematic misuse of trust funds and violated the consumer protection law. Mr. Gavin appealed, arguing that the trust beneficiaries could not bring a claim under Chapter 93A because the law only applied in transactions involving trade or commerce and he had a private relationship with the beneficiaries.
The Court of Appeals of Massachusetts affirms, holding that Chapter 93A does apply. Because Mr. Gavin advertised and sold his services to the public in the ordinary course of business, the court rules, he was no different than any other business professional who is subject to consumer protection laws.
For the full text of this decision, go to: https://www.masslaw.com/signup/opinion.cfm?recID=118671.
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