Facts

Defendant William Tomasi, an attorney in Thousand Oaks, was the attorney and trustee for plaintiff Savannah N. DeNoce Trust. The Trust filed suit against Tomasi, alleging fraud, breach of fiduciary duties and self-dealing. Tomasi filed a cross-complaint against DeNoce and cross-defendant trustee Stanley Hilton for comparative fault, declaratory relief, and indemnity for wasting trust assets.

PLAINTIFFS' CONTENTIONS:
The Trust contended that, while Tomasi was trustee, he transferred the trust's real property to himself and put a loan against it to finance the sale of his vehicle. It also alleged that despite its request, Tomasi refused to transfer the property back to the Trust.

DeNoce contended that Tomasi embezzled trust property and then claimed to have lost his files when asked to document his transactions.

DEFENDANT'S CONTENTIONS:
Tomasi contended that there was no evidence of self-dealing and that the trust did not lose a penny. Tomasi further contended that he never saw the real property in question and that it remained in DeNoce's possession at all times.

Settlement Discussions

The Trust offered to settle the case for $100,000.

Result

The court found that hypothecating trust property was a breach of duty to the sole beneficiary of the Trust. The court determined that Tomasi had slandered trust title and breached his duty to account to the Trust. The court granted summary judgment in favor of the Trust and awarded $260,000 for wrongful taking of trust property by trustee, $58,000 for return of profit on self-dealing to trust, $160,000 in attorney fees, and $11,372 in costs. The court awarded some of the damages pursuant to probate code 859, which calls for doubling the value of trust property returned to a trust. A demurrer to the cross-complaint was sustained without leave. The case is currently on appeal.

Other Information

FILING DATE: June 4, 2008.