Can a trustee be removed without proof of monetary damages? Sabour v. Koller Explained

Utah trust law allows for the removal of trustees who commit serious breaches of trust even when beneficiaries cannot prove they suffered monetary damages. The Utah Court of Appeals clarified this important distinction in Sabour v. Koller, where family members successfully removed their brother as trustee despite the trial court’s finding that they failed to prove damages.

Background and Facts

Mark Koller served as trustee of his deceased father’s trust, which held approximately 5,300 acres of farmland and other significant assets for the benefit of six children. Three siblings sued Mark, alleging he breached his fiduciary duties by failing to distribute trust assets, taking excessive compensation for menial tasks like lawn mowing at $60 per hour, and refusing to rent vacant trust property. The trust agreement required farmland to be “held in trust and maintained” but did not mandate active farming operations.

Key Legal Issues

The primary issue was whether a trustee could be removed for breach of fiduciary duty without proof of monetary damages. Mark argued that damages were a necessary element, citing common-law tort precedents. The court also addressed procedural issues regarding inadequate witness disclosures and expert testimony admissibility under the Utah Rules of Civil Procedure.

Court’s Analysis and Holding

The Court of Appeals distinguished between common-law tort claims for breach of fiduciary duty and statutory trustee removal proceedings. Under Utah Code § 75-7-706(2)(a), courts may remove trustees who commit “serious breaches of trust” without requiring monetary damages. The court noted that trustees could obviously breach their duties—such as failing to make annual reports or keep adequate records—without causing economic harm. The court found Mark’s near-absolute refusal to distribute trust assets constituted an abuse of discretion under the trust terms.

Practice Implications

This decision reinforces that Utah’s trust statutes prioritize proper trust administration over proof of damages in removal proceedings. Practitioners should understand that trustee removal focuses on the seriousness of the breach rather than quantifiable harm. The ruling also demonstrates the importance of proper Rule 26(a) disclosures—while the appellees’ inadequate witness summaries were “woefully inadequate,” actual depositions prevented reversal on harmlessness grounds.