Can an Out-of-State Trustee Be Sued in Florida? Clarification From a Recent Court Decision

Trust disputes do not always stay within one state. When a trustee lives elsewhere, a big question usually comes up: Can that trustee be sued in Florida? A recent Florida appellate court decision clarified that the answer to this question depends on more than where the trust was created or which state’s law governs it.

At Bleakley Bavol Denman & Grace, our Tampa trust litigation attorneys guide trustees and beneficiaries through these tricky disputes. This recent ruling highlights why questions of jurisdiction can play a critical role in determining where a trust lawsuit can move forward.

About the Case

In this case, Dunham Trust Company, a trust company based in Nevada, served as co-trustee for a trust created by a Florida resident. A beneficiary claimed assets had been mishandled and sued Dunham in Florida for breach of fiduciary duty, unjust enrichment, and demanded an accounting.

Dunham argued that Florida courts had no personal jurisdiction over them and asked the court to dismiss the case. Indeed, the trust was set up under Florida law, but Dunham operated entirely from Nevada. They had no offices in Florida, did no business in Florida, and managed everything from Nevada.

The beneficiary argued that the trustee had sufficient ties to Florida because it accepted the appointment as co-trustee of a Florida trust and later sent account statements, invoices, and other trust-related communications to a co-trustee who had moved to Florida.

Why the Trustee Won in Court

Florida’s Fourth District Court of Appeals sided with Dunham Trust Company and threw the case out. The court explained that to sue someone in Florida, it takes more than just identifying a connection to Florida. The trustee must have deliberately created meaningful links to the state. Just accepting a co-trustee role for a Florida trust was not enough to meet that standard.

The court also ruled that sending trust documents to someone in Florida didn’t establish the necessary connection. This is because those papers ended up in Florida only because the recipient lived here and not because Dunham tried to do business in the state.

The court also emphasized that the trust company made all their decisions from Nevada. Since anything allegedly “wrong” happened outside Florida, the constitutional requirements for exercising personal jurisdiction were not satisfied.

Key Takeaways

This decision highlights that Florida courts can’t automatically hear cases against every trustee tied to a Florida trust. The trustee has to purposefully build enough connections to Florida before they can be sued here.

This ruling gives trustees peace of mind as they know they cannot be taken to a Florida court just for managing a trust here from another state. For beneficiaries, this ruling serves as a reminder that jurisdictional issues can significantly affect where a trust dispute must be filed.

In Florida, trust disputes often involve more than questions about fiduciary duties or trust administration. Procedural issues, such as where a case can be filed, may determine whether a lawsuit moves forward at all. Understanding these rules early can help trustees and beneficiaries make informed decisions and avoid unnecessary legal challenges.

Contact Us for Legal Help

If you’re in the middle of a trust dispute, our Tampa trust litigation attorneys at Bleakley Bavol Denman & Grace are ready to help. Contact us today to schedule a consultation and discuss your case.

Source:

scholar.google.com/scholar_case?case=6588264265790007499&q=trust+litigation&hl=en&as_sdt=4,10,325,326,327&as_ylo=2026