Sankel v. Spector

Eleanor Spector established an inter vivos trust to manage and distribute certain assets. The trust’s beneficiaries were Eleanor and her two daughters, Linda Spector (defendant) and Barbara Berlin. The trust documents named Eleanor and Linda as cotrustees. If either stopped serving without appointing a successor, then Joel Sankel (plaintiff), an attorney who had performed prior legal work for Eleanor, was designated as the replacement trustee. The documents stated that after Eleanor’s death, Linda and Barbara were to receive equal monthly distributions of trust income. However, the documents also stated that any nondaughter trustee could make occasional distributions of trust principal to Linda or Barbara either equally or unequally. Eleanor died without appointing a successor. Eleven days later, Linda invited Sankel to dinner to ask him to step aside as successor trustee and allow Linda’s fiancé, Albert Jacobs, to fill the position. Linda and Jacobs claimed that Sankel agreed. However, Sankel claimed that the dinner was the first he learned of his designation as successor trustee and that he asked for a copy of the trust documents and told Linda he needed to think. Upon receiving the documents, Sankel became concerned that Linda wanted Jacobs as the independent trustee so that Jacobs could make distributions of principal to Linda, effectively disinheriting Barbara, with whom Linda had an acrimonious relationship. Linda had Jacobs execute documents purporting to appoint him as successor trustee. Sankel contacted Barbara, and she asked him to protect her interests. Sankel made several unsuccessful attempts to contact Linda, and Linda and Jacobs thwarted Sankel’s attempts to gain access to relevant bank statements and other documents. Sankel then executed an acceptance of the cotrustee position and forwarded it to Linda before promptly suing her, seeking an injunction preventing Linda from interfering with Sankel’s fiduciary duties. The trial court held in Sankel’s favor, and Linda appealed.