Foundation must pay $1.7 million legal costs for trustees’ squabble
A scholarship foundation caught in the middle of a multi-year squabble between its trustees seeking to oust each other from their positions must pay nearly $1.7 million in legal fees and costs incurred by the trustees during their battle, a federal District Court in Maryland has ruled. It has held that Maryland state law provides that legal costs are “a necessary part of the cost of administering a trust,” including a successful defense against an effort to remove a trustee from office. The Clarence Manger and Audrey Cordero Plitt Trust was established upon the death of Clarence Plitt in 1976 to donate funds to educational institutions for scholarships for needy students. The will...
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