Opinion ID: 1970636
Heading Depth: 1
Heading Rank: 5

Heading: The Post-Agreement Developments:

Text: In May 1961, Gund initiated action to remove Wilmington Trust as trustee and to appoint The Cleveland Trust Company as successor trustee. Gund was then president and principal owner of The Cleveland Trust Company. He gave as his reason the fact that his eldest son was about to become 25 years of age and would then receive the income from the trust established for his benefit; that he was concerned about his son's ability to handle money; that, therefore, he wished to have the trust in the hands of his own bank. Wilmington Trust replied by pointing out the lack of necessity for such action, the facilities and services offered by its organization to beneficiaries, and the provision of the trust agreements for fees upon principal of 1% at the time of any such transfer. There followed a series of communications regarding Wilmington Trust's entitlement to the 1% fee on principal upon transfer to a successor trustee. During this discussion, Wilmington Trust offered to submit the question to the Delaware Court of Chancery for instructions or a declaratory judgment. The offer was not accepted. On November 30, 1961, Wilmington Trust was removed as trustee of all trusts and The Cleveland Trust Company was made successor trustee. Based upon 1% of the combined total principal value of all trusts in the amount of $78,202.183., the combined total principal fee charged by Wilmington Trust was the sum of $782,021.83. That amount was retained by Wilmington Trust and the balance of the corpus of each estate was transferred to The Cleveland Trust Company as successor trustee. The Cleveland Trust Company brought this action for the amount thus retained. The Chancery Court held that Wilmington Trust was entitled under the trust agreements to the commissions thus retained. The Cleveland Trust Company appeals.