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The Tennessee Supreme Court reversed the Court of Appeals and held that a trust beneficiary is bound by an arbitration provision in an investment account agreement signed by the trustee, finding the trustee had authority under the Tennessee Uniform Trust Code to enter into the arbitration agreement.
In this interlocutory appeal, the trustee of a trust executed an investment/brokerage account agreement that included a provision requiring the arbitration of disputes. The trust beneficiary filed a lawsuit asserting claims against the investment broker, and the defendant broker sought to compel arbitration under the arbitration provision in the account agreement. The trial court granted the motion to compel arbitration and granted permission for this interlocutory appeal. The Court of Appeals reversed. On appeal, we are asked to determine whether the signature of the trustee on the account agreement binds the beneficiary of the trust to the predispute arbitration provision. We hold that the Tennessee Uniform Trust Code is intended to give trustees broad authority to fulfill their duties as trustee. We also hold that the Tennessee Uniform Trust Code gives trustees the power to enter into predispute arbitration agreements, so long as doing so is not prohibited under the operative trust instrument. We hold that the trust instrument in this case gives the named trustee broad authority and does not prohibit the trustee from entering into a predispute arbitration agreement. As a result, we interpret the trust instrument as authorizing the trustee to execute the account agreement with the defendant broker, including the predispute arbitration provision therein. Thus, under both the Tennessee Uniform Trust Code and the operative trust instrument, the trustee had authority to enter into the arbitration agreement contained within the account agreement. The question of whether the trust beneficiary in this case is bound by the arbitration provision is governed by the principle that a third party who seeks the benefit of a contract must also bear its burdens. Applying this principle, the trust beneficiary in this case may be bound to arbitrate claims against the investment broker that seek to enforce the account agreement. We reverse the decision of the Court of Appeals and va
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Plaintiff brought claims against Knox County and the County Clerk based on allegedly discriminatory employment practices. The trial court determined that Plaintiff committed serious discovery violations and imposed as a sanction the exclusion of certain evidence. With this evidence excluded, the trial court granted summary judgment to the Defendants. Plaintiff appeals, challenging the discovery sanction, the trial court's conclusion under the Tennessee Human Rights Act that the continuing violation doctrine did not apply, the trial court's conclusion that the Clerk was not individually liable, and the award of attorney's fees against the Plaintiff and her attorney. We affirm.
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