Wachovia Beats Suit Alleging Self-Dealing With Trust Assets

Law360, New York (July 17, 2013, 5:12 PM EDT) -- The Seventh Circuit on Wednesday affirmed the dismissal of a suit alleging Wachovia Bank NA breached its fiduciary duty to beneficiaries of a trust, finding the trust instrument authorized the bank to proceed with an insurance transaction from which an affiliate earned a $512,000 commission.

Under the terms of the trust instrument, the appeals court said, Wachovia had “broad discretion” to invest property of the trust that Jim French, a successful Sheboygan, Wis., businessman, established to benefit his four children “without regard to conflicts of interest,...
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