Court Opinion

ID: 9648809
Source: CourtListenerOpinion
Date Created: 2023-08-23 14:35:31.303345+00
Date Added: 2024-06-11T18:12:05.533407
License: Public Domain

NIX, Justice,
dissenting.
In the instant appeal, the corporation fiduciary, appellee, was required to exercise the degree of care in handling the trust investment commensurate with the greater skills it asserted it possessed. While it is true that the corporate fiduciary does not act as guarantor of the investment’s success, I do not agree with the majority’s conclusion that appellee in the instant appeal “has performed according to the higher standards required of it.” (1009). The drop in price per share of the Sears & Roebuck & Co. stock which comprised a large portion of the trust corpus, did not occur suddenly, but rather took place over an extended period of time. From November, 1972 to February, 1974, the price dropped from $117 to $88 per share. Yet, in the face of the steadily increasing losses, the appellee retained the stock continuing to hope for its market recovery. These circum*515stances should have forced the conclusion that some diversification was required to attempt to offset the possible loss.1
I therefore dissent.

. Although 400 shares of the Sears stock was sold in the first year of administration, as the majority notes, this was done “primarily to cover costs of administration rather than for reinvestment purposes.” (1008).