Wade Harvey, Ex Rel. Alexis Breanna Gladden v. Cumberland Trust And Investment Company
Case Details
- Judge(s)
- Justice Holly Kirby
- Status — whether other courts must follow this ruling
- Published
- Procedural Posture — the stage the case had reached
- Appeal to Tennessee Supreme Court; reversed Court of Appeals decision affirming trial court's order to compel arbitration
Related Laws
No specific laws identified for this ruling.
Outcome
Tennessee Supreme Court reversed the Court of Appeals and held that a trust beneficiary is bound by a predispute arbitration provision in an investment account agreement signed by the trustee, finding the trustee had authority under the Tennessee Uniform Trust Code to execute such agreements.
Excerpt
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
What This Ruling Means
This summary was generated to explain the ruling in plain English and is not legal advice.
More Rulings in This Case
Other orders and opinions in Wade Harvey, Ex Rel. Alexis Breanna Gladden v. Cumberland Trust And Investment Company from the same court.
Similar Rulings
Appellant Derinda Carr challenges the trial court's finding her neck injury did not arise primarily "out of and in the course and scope of' her employment. The appeal has been referred to the Special Workers' Compensation Appeals Panel for a hearing and a report of findings of fact and conclusions of law pursuant to Tennessee Supreme Court Rule 51. We agree with the trial court and affirm the judgment.
Bethany Shelton ("Employee") filed a petition for benefit determination against Hobbs Enterprises, LLC ("Employer") alleging an injury to her right shoulder suffered in a work- related accident on August 26, 2017. She sought temporary total, permanent partial, and continued medical benefits. Following the issuance of a dispute certification notice, Employer moved for summary judgment on the basis the only medical testimony, from the Employee's treating orthopedic surgeon, Dr. Sean Kaminsky, was insufficient as a matter of law to establish causation. The Court of Workers' Compensation Claims (the "trial court") denied the motion and denied Employer's motion to reconsider. Employer sought an expedited appeal before the Workers' Compensation Appeals Board, but then sought and was granted a dismissal of that appeal. A trial was held, after which the trial court denied Employee's claim on the ground she had failed to meet her burden to establish her right shoulder injury arose primarily out of and in the course and scope of her employment with Employer. Employee filed a motion to reconsider, which the trial court denied. She appealed directly to the Supreme Court. The appeal has been referred to the Special Workers' Compensation Appeals Panel for a hearing and a report of findings of fact and conclusions of law pursuant to Tennessee Supreme Court Rule 51. We affirm the judgment of the Court of Workers' Compensation Claims.
Browse Related
Facing something similar at work?
Court rulings like this one are useful, but every situation is different. Take 2 minutes to see which laws may protect you — it's free, private, and no account is required to start.
This ruling information is sourced from public court records via CourtListener.com. Case outcomes, claim types, and summaries are extracted using AI analysis and may be incomplete or inaccurate. It is provided for informational and educational purposes only and does not constitute legal advice.
See something wrong, or named in this ruling and want it corrected or redacted? Request a correction.