O.C.G.A.
O.C.G.A.

O.C.G.A. § 51-1-19 (2019)

Negligence by person given trust or confidence for consideration

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
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When trust or confidence is reposed in a person in consideration of the payment or promise of a reward to him, negligence in the person trusted which results in injury to the other person shall give the injured party a right of action.

History

(Orig. Code 1863, § 2948; Code 1868, § 2955; Code 1873, § 3006; Code 1882, § 3006; Civil Code 1895, § 3867; Civil Code 1910, § 4463; Code 1933, § 105-1201.)

Annotations

JUDICIAL DECISIONS Standing to bring suit. - In a class action brought by a beneficiary of a trust holding a participating unit in the common trust fund of a bank, alleging that the bank made imprudent investments which resulted in losses, the class members, i.e., beneficiaries of other participating trusts, had standing, having possibly suffered injury. The bank, which had an adverse interest in the litigation, was not required to bring suit against itself. Meyer v. Citizens & S. Nat’l Bank, 106 F.R.D. 356 (M.D. Ga. 1985). Trust holding title to utility property. - The statutory provisions of former § 53-13-51, imposing a general duty to exercise ordinary care in the preservation and protection of trust property in the possession of the trustee, and of O.C.G.A.

§ 51-1-19, imposing general liability upon a compensated trustee for the trustee’s negligence, were inapplicable since the underlying purpose of the trust to hold title to certain utility property was neither to transfer to the uncompensated trustee immediate possession of the utility corporation’s property nor to impose any immediate duty on the trustee to undertake the operation and maintenance of the corporation’s water system. Smith v. Hawks, 182 Ga. App. 379, 355 S.E.2d 669 (1987). Cited in Mobley v. Phinizy, 42 Ga. App. 33, 155 S.E. 73 (1930); Citizens & S. Nat’l Bank v. Haskins, 254 Ga. 131, 327 S.E.2d 192 (1985); Benson v. McMillan, 261 Ga. App. 78, 581 S.E.2d 707 (2003).

RESEARCH REFERENCES Am. Jur. 2d. - 76 Am. Jur. 2d, Trusts, § 368 et seq. C.J.S. - 90A C.J.S., Trusts, §§ 326-334. ALR. - Individual liability of trustee or other fiduciary for injury to person or property of third person due to negligence, violation of statute or ordinance, in management of trust estate, 123 ALR 458. Employer’s liability for action of trustees or similar body administering employer’s pension plan, 54 ALR3d 189. Liability of insurance agent or broker on ground of inadequacy of liability insurance coverage procured, 72 ALR3d 704. Liability of insurance agent or broker on ground of inadequacy of life, health,

and accident insurance coverage procured, 72 ALR3d 735. Liability of insurance agent or broker on ground of inadequacy of property insurance coverage procured, 72 ALR3d 747. Liability of bank, to other than party whose financial condition is misrepresented, for erroneous credit information furnished by bank or its directors, officers, or employees, 77 ALR3d 6. Liability of estate for tort of executor, administrator, or trustee, 82 ALR3d 892. Liability of insurance agent or broker for placing insurance with insolvent carrier, 42 ALR5th 199.

Notes of Decisions
Cited in 7 cases (1 in the last 5 years), 1985–2023 · leading case: Smith v. Hawks, 355 S.E.2d 669 (Ga. Ct. App. 1987).
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Smith v. Hawks, 355 S.E.2d 669 (Ga. Ct. App. 1987). · cites it 4× “It is thus clear that the trustee's duties under a trust created pursuant to OCGA § 53-12-31 do not include any on-going obligation to possess, operate or maintain the utility for the beneficiaries and the duties that a trustee does owe to the beneficiaries are to be determined…”
Citizens & S. Nat'l Bank v. Haskins, 327 S.E.2d 192 (Ga. 1985). · cites it 2× “Also cited are cases from other jurisdictions which hold that where one is proceeding in equity only, punitive measures of damages are not allowable. See, e.”
Meyer v. Citizens & S. Nat'l Bank, 106 F.R.D. 356 (M.D. Ga. 1985). · cites it 2× “O.C.G.A. §§ 51-1-19, 53-13-51; Citizens Banking Co.”
Benson v. McMillan, 581 S.E.2d 707 (Ga. Ct. App. 2003). · cites it 2× “Although the trial court’s order did not use the phrase “confidential relationship” or “fiduciary duty,” the court repeatedly used the words “duty,” “duties,” and “negligence.”
Gray Murray v. U.S. Bank Trust Nat'l Assoc., 365 F.3d 1284 (11th Cir. 2004). “” O.C.G.A. § 51-1-19. 11 . The bondholder get the "nice try of the week” award when they claim that the trust indenture has been fully terminated as the bankruptcy court order only references U.”
Childs v. United States, 923 F. Supp. 1570 (S.D. Ga. 1996). · cites it 2× “2d 628 (1995), that there is no cause of action under O.C.G.A. § 51-1-19 for an unborn fetus’ personal injury.”
Ellis Refinance Portfolio, LLC v. NewRez, LLC (N.D. Ga. 2023). · cites it 4× “O.C.G.A. § 51-1-19; see also O.C.G.A. § 23– 2–58.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.