In re Trusteeship of Williams

James Williams's will named Robert Williams (plaintiff), Margaret Linstroth, and Norwest Bank (defendant) as co-trustees of a trust once composed almost entirely of Borden stock; after the trustees diversified about 60 percent of the Borden holdings by 1989, Linstroth and Norwest outvoted Robert's motion to sell more, and Borden's value subsequently declined significantly. When Linstroth and Norwest sought court approval of their 1990-1995 trust management, Robert objected and sought a surcharge against Norwest, which relied on the will's exculpatory clause shielding trustees from liability for other trustees' acts or good-faith errors in judgment; the district court dismissed Robert's claim.