(This post originally appeared on Bryan Cave’s Fiduciary Litigation Team’s Blog. Please click here to see the original post.)
Effective August 1, 2011, a number of new changes went into effect changing Delaware trust law. While the amendments make a lot of changes to the Delaware trust laws, below are some of the changes that are likely to have the biggest impact on litigation concerning Delaware trusts.
Wrongdoing: The amendments have added a definition of “wrongdoing” to clarify its meaning within the definition of “wilful misconduct.” For purposes of Delaware trust law, “wilful misconduct,” means “intentional wrongdoing, not mere negligence, gross negligence or recklessness.” Apparently, there was some confusion over the meaning of “wrongdoing,” and, therefore, “wrongdoing” is now defined as “malicious conduct or conduct designed to defraud or seek an unconscionable advantage.” To the extent that previously there was a benign interpretation of