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Allard v. Pacific National Bank

Washington Supreme Court
663 P.2d 104 (Wash. 1983)


Facts

J.T. and Georgiana Stone created a trust in favor of their children, Freeman Allard and Evelyn Orkney (plaintiffs). The Stones named Pacific National Bank (Pacific Bank) (defendant) as trustee. In 1978, the trust’s sole asset was land located in downtown Seattle. The trust language gave Pacific Bank full power to manage, sell, or exchange the property. The property was subject to a 99-year lease held by Seattle-First National Bank (Seafirst Bank). Under the lease, Seafirst Bank had the right of first refusal to purchase the property. In 1977, Seafirst Bank transferred its interest in the property to the City Credit Union of Seattle (Credit Union). In 1978, Credit Union offered to purchase the property for $200,000.00. Pacific Bank accepted the offer and gave Credit Union the deed on August 17, 1978. On September 26, 1978, Pacific Bank notified the plaintiffs of the sale. The plaintiffs brought suit in the King County Superior Court, alleging that Pacific Bank breached its fiduciary duty in managing the trust.

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Issue

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Holding and Reasoning (Dolliver, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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