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Hayes v. Clark

Mother had a duty as trustee not to spend her daughter's personal injury settlement funds, since foreign state court's order that she hold the funds in trust until daughter's 18th birthday created a valid express trust.

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Helen Hayes, the adoptive mother of Sheronda Hayes now Clark, was appointed Clark’s guardian ad litem in litigation arising from an automobile collision in which both were injured. A monetary judgment in favor of Clark directed Hayes to hold the money in trust until Clark’s 18th birthday. Instead, Hayes deposited the money into her own account. When she failed to deliver the funds to Clark after she turned eighteen, Clark brought this action against Hayes for conversion of the funds.

At trial, Hayes defended on grounds that she was not financially able to support Clark without using the child’s estate. The court questioned whether the evidence showed that Hayes was not financially able to support the child. Ultimately, the court ruled that even if financial inability had been established, it would not be a defense to Hayes’s breach of her duties as trustee. After directing a verdict in Clark’s favor, the court entered judgment in the amount of $12,139.94 principal and interest. Hayes appeals. She contends that the trial court erred when it did not apply what she claims to be the controlling authority and when it found that the settlement order created an express trust. We find no error and we affirm.

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