Shriners Hospitals for Crippled Children v. Gardiner

152 Ariz. 527, 733 P.2d 1110 (1987)

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Shriners Hospitals for Crippled Children v. Gardiner

Arizona Supreme Court
152 Ariz. 527, 733 P.2d 1110 (1987)

  • Written by Mary Pfotenhauer, JD
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Facts

Laurabel Gardiner created a trust, with income payable to Mary Jane, Charles, Robert, and Jean Gardiner, and the remainder passing to Shriners Hospitals for Crippled Children (Shriners). Mary Jane was appointed trustee, Charles as first alternate trustee, and Robert as second alternate trustee. Mary Jane was not an experienced investor, and placed the trust assets with a brokerage house. Charles made all of the investment decisions. Charles embezzled from the trust, and Shriners (plaintiff) petitioned the court to charge Mary Jane (defendant) for the full amount that Charles had embezzled. The trial court denied the petition. The court of appeals reversed.

Rule of Law

Issue

Holding and Reasoning (Hays, J.)

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