Rafert v. Meyer

Attorney Meyer (defendant), serving as trustee for a trust Rafert (coplaintiff) created for her daughters (coplaintiffs) holding $8.5 million in life insurance, listed a false out-of-state address on the insurance applications, never explained the trust's exculpatory clauses (which relieved him of duties to pay premiums or notify beneficiaries of nonpayment) to Rafert, and as a result neither he nor Rafert received notice when the policies lapsed, causing Rafert to pay another $250,000 in 2010 toward already-lapsed coverage before discovering the lapse in 2012. The trial court dismissed the beneficiaries' breach-of-fiduciary-duty suit, reasoning the exculpatory clauses excused Meyer's conduct and that his actions did not cause the loss.