Scholarship Fund Trustees Fight to Stalemate, Court Prohibits Restrictions on Grants
Individual trustees failed to prove that bank breached its fiduciary duty, bank trustee failed to prove that individuals breached their fiduciary duty
A federal District Court in Virginia has refused to remove the bank trustee of a scholarship fund as sought by two individual trustees and has refused to remove the individual trustees as sought by the bank, saying that neither side had shown that the other breached their fiduciary duty or otherwise failed to function properly. But it has sided with the bank on some substantive issues, including telling the trustees that they could not add conditions to the scholarship grants that are inconsistent with the provisions of the will establishing the fund. Clarence Manger Plitt signed his will in 1976 and died four months later. He named First National Bank of Maryland (which was subsequently...
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