Becerra v. ShineAnnotate this Case
The Attorney General sought an accounting relating to the Trust, alleging that Shine, a trustee, failed to fulfill his duties and failed to create a charitable organization, the “Livewire Lindskog Foundation.” The court removed without prejudice Shine and the other trustees. The other trustees were later dismissed from the case. During his trial, Shine agreed to permanently step down. Addressing whether Shine should be disgorged of fees he was paid as trustee, the court found “that Shine violated most, if not all of his fiduciary responsibilities and duties.” The court nonetheless entered judgment in favor of Shine on many of the examples of his alleged breaches because the Attorney General either failed to prove that Shine was grossly negligent or failed to prove specific damages. Based on instances in which the Attorney General met its burden of proof, the court ordered Shine to reimburse the Trust for $1,421,598. The Attorney General sought (Government Code section 12598) reasonable attorney fees and costs of $1,929,757.50. The court of appeal affirmed an award of $1,654,083.65, finding that Shine is precluded from seeking indemnification from the Trust. The trial court did not abuse its discretion by declining to reduce the award based on the difference between the Attorney General’s goals and its results.