The Fifth Appellate District affirmed a probate court order. In the published portion of its opinion, the court held that a probate court properly exercised its equitable powers in ordering that attorney fees incurred by a trust in defending against a bad faith claim by trust beneficiaries be levied against the beneficiaries future trust distributions.
Philip Rudnick, Robert Rudnick, and Milton Rudnick were beneficiaries of the Rudnick Estates Trust and held a minority interest. Oscar Rudnick was the trustee. After a majority of the trust beneficiaries approved the sale of the trust’s principal asset, the Onyx Ranch, Oscar petitioned the probate court for instructions requesting approval of both the sale and the proposed distribution. Philip, Robert and Milton opposed the petition.
