If a governing instrument expressly permits an officeholder (as defined in § 3326 of this title) to be removed, the officeholder may be removed in accordance with the terms of the governing instrument. In addition, the Court of Chancery may remove an officeholder on the Court’s own initiative or on petition of a trustor, another officeholder, or beneficiary if:
(1) The officeholder has committed a breach of trust; or
(2) The continued service of the officeholder substantially impairs the administration of the trust; or
(3) The court, having due regard for the expressed intention of the trustor and the best interests of the beneficiaries, determines that notwithstanding the absence of a breach of trust, there exists:
a. A substantial change in circumstances;
b. Unfitness, unwillingness or inability of the officeholder to administer the trust or perform its duties properly; or
c. Hostility between the officeholder and beneficiaries or other officeholders that threatens the efficient administration of the trust.
72 Del. Laws, c. 388,
§
6;
74 Del. Laws, c. 82,
§
7;
83 Del. Laws, c. 69,
§
2;
Notes of Decisions
Paul Capital Advisors, LLC v. John A. Stahl (Del. Ch. 2022).
· cites it 5× “The matter before me is the Plaintiffs’ request to remove the “Trust Advisor” of the Exchange Trusts, under 12 Del. C. § 3327. That part of Plaintiffs’ complaint is expedited; the bulk of the complaint consists of contract claims arising under the many documents that control the…”
Paul Capital Advisors, L.L.C. v. John A. Stahl (Del. Ch. 2022).
· cites it 5× “The matter before me is the Plaintiffs’ request to remove the “Trust Advisor” of the Exchange Trusts, under 12 Del. C. § 3327. That part of Plaintiffs’ complaint is expedited; the bulk of the complaint consists of contract claims arising under the many documents that control the…”
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
· cites it 4× “In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
· cites it 4× “In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
IMO Vincent J. Tigani, Jr. Est. (Del. Ch. 2016).
· cites it 2× “129 The term “beneficiary” is undefined in the relevant chapter of the Delaware Code and the parties therefore spent a fair amount of time at the motion to dismiss stage arguing whether a contingent beneficiary fell within the meaning 129 12 Del. C. § 3327. 36 of “beneficiary”…”
Lisa M. Sweeney v. Mark Sweeney (Del. Ch. 2024).
· cites it 2× “162 See 12 Del. C. §§ 3327(2), (3)(c). 30 2. Damages “The remedies available to address a breach of trust are wide[-]ranging, but specifically may include an order ‘[c]ompelling the trustee to redress a breach of trust by paying money, restoring property, or other means.”
— 12 Del. C. § 3327(1) — 3 cases
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
“In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
“In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
— 12 Del. C. § 3327(2) — 1 case
Lisa M. Sweeney v. Mark Sweeney (Del. Ch. 2024).
“162 See 12 Del. C. §§ 3327(2), (3)(c). 30 2. Damages “The remedies available to address a breach of trust are wide[-]ranging, but specifically may include an order ‘[c]ompelling the trustee to redress a breach of trust by paying money, restoring property, or other means.”
— 12 Del. C. § 3327(3) — 4 cases
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
“In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
Douglas W. du Pont v. Wilmington Trust Co. (Del. Ch. 2017).
“In any event, Wilmington Trust’s conduct as lender and estate planner bears on its fitness vel non as trustee only insofar as such conduct affects its servicing of the Trusts or the Trusts’ property.”
Lisa M. Sweeney v. Mark Sweeney (Del. Ch. 2024).
“162 See 12 Del. C. §§ 3327(2), (3)(c). 30 2. Damages “The remedies available to address a breach of trust are wide[-]ranging, but specifically may include an order ‘[c]ompelling the trustee to redress a breach of trust by paying money, restoring property, or other means.”
— 12 Del. C. § 3327(3)(c) — 2 cases
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