Scanlan v. Eisenberg, No. 11-1657 (7th Cir. 2012)
Annotate this CaseThe current beneficiary of several discretionary trusts brought claims of legal malpractice and breach of fiduciary duty against the trustee and her lawyers. The district court dismissed with prejudice for lack of standing because she did not allege a likelihood that the trusts' corpus were insufficient to pay her discretionary distributions. The Seventh Circuit reversed. Looking to Illinois law, the court reasoned that plaintiff has an equitable interest in the trust property that gives her standing to enforce the trusts. There is a fiduciary relationship between her and the trustee that gives rise to equitable remedies.
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