Haskett v. Villas at Desert Falls

In Haskett v. Villas at Desert Falls (2001) 90 Cal.App.4th 864, a lawsuit against defendants by a trustee on behalf of the trust had been dismissed for failure to prosecute. A judgment for attorney fees was entered against Haskett in his representative capacity as trustee. The defendants sought a ruling that Haskett was personally liable for the fees. The appellate court rejected the defendants' attempt to recover their attorney fee award from the trustee's personal assets because, under section 18001, "the imposition of such personal liability must . . . rest on a finding of personal fault supported by a sufficient showing that the trustee's conduct was intentional or negligent." (Id. at p. 878.) The defendants had failed to show that the dismissal of the lawsuit resulted from conduct by the trustee that was either intentional or negligent as the only facts presented were that the action was dismissed for failure to prosecute and not the circumstances behind the dismissal. (Id. at p. 878.) "Defendants argued that section 18004 provided for a trustee's liability even in the absence of such evidence. The court held that since section 18004's words 'plainly state that the enumerated types of claims "may be asserted against the trust by proceeding against the trustee in the trustee's representative capacity, whether or not the trustee is personally liable on the claim," ' its language 'plainly confers a right to proceed against the assets of the trust' and 'does not confer an absolute right to proceed against the trustee's personal assets.' (Id. at p. 880.)