When Trustees Have the Right To Sue: A Florida Appeals Court Clarifies Standing in Trust Property Disputes

Legal disputes over property held by a trust can get tricky, especially when it comes to determining who has the right to file a lawsuit. A recent ruling from Florida’s Fourth District Court of Appeal sheds light on a key legal point: trustees can still have the right to sue, even if the property is in a revocable trust.

Our team of Tampa trust litigation attorneys at Bleakley Bavol Denman & Grace regularly guides clients through issues related to trusts, property ownership, and legal standing in civil cases. Don’t hesitate to contact us.

Background on the Dispute

This case began when homeowners hired a flooring company to purchase and install engineered wood flooring in their home. A few years later, the homeowners reported that defects were appearing in the flooring and decided to file a lawsuit for breach of contract and breach of warranty.

In response, the flooring company argued that the homeowners didn’t have the legal right to sue. They claimed that the homeowners had transferred ownership of the property to a revocable trust years earlier. Since the trust technically owned the property at the time the lawsuit was filed, the company claimed that the plaintiffs couldn’t pursue the case themselves.

The trial court accepted this argument and granted summary judgment in favor of the flooring company, finding that the plaintiffs lacked standing because they were no longer the legal owners of the property.

Understanding Standing in Civil Cases

Standing is a crucial legal requirement in civil litigation. To file a lawsuit, a person must demonstrate a significant interest in the case’s outcome. Essentially, the person bringing the lawsuit must be directly affected by the issue at hand.

In property disputes, courts often examine ownership to determine whether a party has standing. However, the situation can become more complicated when a trust holds the title to the property. Trusts are commonly used in estate planning, and many homeowners transfer property into revocable trusts to help manage assets and avoid probate. Even though the trust technically owns the property, the individuals involved with the trust may still retain important legal rights.

Appeals Court Reversed the Decision

The homeowners appealed the trial court’s ruling, and the Fourth District Court of Appeal reversed the decision. The appellate court explained that under Florida law, trustees are generally considered the “real parties in interest” when bringing legal claims involving trust property, meaning they often have the authority to pursue lawsuits related to trust assets.

In this case, the evidence showed that the homeowners had transferred their property to themselves as trustees of a revocable trust. Because they were acting in that role, the court determined they still had the authority to bring claims related to the home. The court also clarified that plaintiffs are not always required to explicitly state in their complaint that they are acting as trustees.

Another key factor involved the nature of revocable trusts. The individuals who create the trust (settlors) often remain the primary beneficiaries during their lifetimes. Because the homeowners were both the settlors and trustees, they maintained a beneficial interest in the property. The appellate court concluded that the flooring company failed to prove the homeowners lacked standing and returned the case to the trial court.

Contact Us for Legal Help

Are you involved in a trust-related property dispute? Contact our Tampa trust litigation attorneys at Bleakley Bavol Denman & Grace today to discuss your situation and learn how we can help protect your interests.

Source:

scholar.google.com/scholar_case?case=13251005628640124918&q=trustee+litigation&hl=en&scisbd=2&as_sdt=4,10,325,326,327&as_ylo=2026