Nancy Hardison (Stokes) Williams v. Ernest K. Hardison, III et al.

This is a breach of trust action by a trust beneficiary, Nancy Hardison (Stokes) Williams (“Plaintiff”), against the co-trustees, Ernest K. Hardison, III, and Cumberland Trust and Investment Company (collectively “Defendants”). The issues raised in this appeal only pertain to Plaintiff’s claims against Cumberland Trust and Investment Company (“Cumberland”). Plaintiff alleged, inter alia, that Cumberland committed a breach of trust by failing to properly manage and invest trust assets resulting in the trust sustaining significant financial losses. In her effort to recover damages against Cumberland, Plaintiff also sought to declare two trust indemnity and investment agreements—which she and all qualified beneficiaries entered into with Cumberland in 2006 and 2009—void ab initio on the basis that they are unenforceable pursuant to Tennessee Code Annotated § 35-15-1008 because they violate a material purpose of the trust. She also contended that the agreements are unenforceable because they constitute “an abuse of a fiduciary or confidential relationship” pursuant to Tennessee Code Annotated § 35-15-1008(b). Upon the motion of Defendants for partial summary judgment, the trial court dismissed all of Plaintiff’s claims arising prior to July 1, 2016, as barred by the one-year statute of limitations set forth in Tennessee Code Annotated § 35-15-1005(a). Additionally, upon the finding that Plaintiff and the qualified beneficiaries had released Cumberland from liability pursuant to the indemnity and investment agreements, the trial court summarily dismissed all remaining claims against Cumberland. The court then awarded Cumberland its attorney’s fees and costs in the amount of $45,594.70 pursuant to Tennessee Code Annotated § 35-15-1004(a). This appeal followed. We affirm the trial court in all respects. We also find that Cumberland is entitled to recover the reasonable and necessary attorney’s fees and expenses it has incurred in this appeal and remand this issue to the trial court to make the appropriate award.