Bailey v. DulingAnnotate this Case
Curley Haisch and his wife Rose owned Mulehead Ranch. Joe Duling was the Haisches' financial advisor as well as a realtor and broker. When Curley was ninety years old, he decided to sell the ranch and signed a listing agreement with Joe. Approximately one year later, Joe suggested that Curley and Rose form a charitable remainder trust (Trust) into which the ranch and chattels could be gifted. Curley and Rose executed the Trust, to which the Ranch was transferred. The Trustee then sold the Ranch to Joe and Lynne Duling. Later, it was discovered that the Trust contained multiple defects. The Trustee brought suit against the Dulings, their businesses, and the Mulehead Ranch on behalf of the Trust and the Haisches. The complaint alleged negligence, negligent misrepresentation, and breach of fiduciary duties. A jury found in favor of the Trust awarded Plaintiffs $1,568,200, including punitive damages. The Supreme Court reversed in part and remanded for a new trial on damages, holding (1) the circuit court erred in failing to give a proper instruction on the statutes of limitation applicable to Plaintiffs' claims for future tax consequences related to the defects in the Trust; and (2) the court did not err in the remainder of its judgment.