Jo Ann Howard and Associates v. National City Bank

PNC Bank appealed a jury verdict in favor of a special deputy receiver finding PNC liable for negligence and breach of fiduciary duty in violation of its duties as trustee of various preneed trusts created by NPS. The Eighth Circuit held that appellees' claims arose under trust law rather than tort law and appellees were thus entitled only to the damages afforded under trust law; damages to the Missouri trusts after Allegiant's trusteeship or outside of the Missouri trusts were not recoverable from PNC as Allegiant's successor; the trust beneficiaries were NPS, consumers in Missouri, and the funeral homes that were to provide services to those consumers pursuant to the consumers' preneed contract; PNC was not relieved of liability unless Allegiant ensured that Wulf was investing trust assets within the authority of a reasonably prudent trustee; appellees' trust-law claim should have been tried to the court under the general rule; and the court rejected appellees' cross-appeal. Accordingly, the court affirmed in part, reversed in part, and remanded for further proceedings. View "Jo Ann Howard and Associates v. National City Bank" on Justia Law