Allard v. Pacific National Bank

663 P.2d 104 (1983)

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Nature of the Case

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Facts

Allard and Orkney (Ps) are life beneficiaries of inter vivos trusts established by their parents. Pacific Bank (D) was the trustee. The sole asset was property in downtown Seattle. The property was subject to a 99-year lease the settlers had entered into in 1952 with Seafirst Bank at a fixed rental rate for the entire period. The lessee held a right of first refusal in the event that the lessor wished to sell. In 1977 Seafirst assigned its interest to Credit Union which offered to buy the property for $139,000. D insisted on $200,000, and the deal was signed. About six weeks later, D informed Ps of the sale. This action for breach of fiduciary duty was instituted. The trial court ruled that D had acted in good faith and compliance with its duties. Ps appealed.