(Code 1981, §53-12-308, enacted by Ga. L. 2010, p. 579, § 1/SB 131.)
Law reviews.- For article, "Noticing the Bankruptcy Sale: The Purchased Property May Not Be as 'Free and Clear of All Liens, Claims and Encumberances' as You Think," see 15 (No. 5) Ga. St. B.J. 12 (2010).
JUDICIAL DECISIONS
Editor's notes.
- In light of the similarity of the statutory provisions, decisions under former Civil Code 1872, § 3377, former Code 1895, § 3203, former O.C.G.A. § 53-12-154, and former O.C.G.A. § 53-12-199 of the 1991 Trust Act are included in the annotations for this Code section.
Trustee shall not incur any individual or personal liability in such action. On the contrary, the statute expressly declares: "The judgment thus rendered shall impose no personal liability on the trustee," etc. It will therefore be seen that one is a mere nominal party, so far as personal interest in the action is concerned, charged with the duty of defending the action, not in one's own behalf, but on behalf of the cestuis que trust. If one fails properly to discharge this duty, one is liable to them in damages. Wagnon v. Pease, 104 Ga. 417, 30 S.E. 895 (1898) (decided under former Code 1895, § 3203). Vason & Davis v. Gardner, 70 Ga. 517 (1883) See also.
Limitation of liability proper.
- In an action by beneficiaries of a trust to recover on a promissory note, the trial court did not err in limiting their potential counterclaim liability to the amount the beneficiaries would otherwise have received as trust beneficiaries since the beneficiaries could not be held personally liable in an action against the trust. Altama Delta Corp. v. Howell, 225 Ga. App. 78, 483 S.E.2d 127 (1997) (decided under former O.C.G.A. § 53-12-199).
Insurer's duty to defend.
- Insurer did not have a duty to defend a trustee as the real estate at issue was conveyed to the purchasers by another individual acting as attorney-in-fact for the trustee in the trustee's role as trustee, and the trustee did not allege the trustee had any interaction with the purchasers that would have created personal liability under state law, former O.C.G.A. § 53-12-199 (see O.C.G.A. § 53-12-308). Burt v. Great N. Ins. Co., 290 Fed. Appx. 297 (11th Cir. 2008)(Unpublished) (decided under former O.C.G.A. § 53-12-199).
RESEARCH REFERENCES
Am. Jur. 2d.
- 76 Am. Jur. 2d, Trusts, § 267.
ARTICLE 15 NONRESIDENTS AND FOREIGN ENTITIES ACTING AS TRUSTEES
Cross references.
- Fiduciary powers of financial institutions generally, § 7-1-310 et seq.
Foreign guardians generally, § 29-2-74 et seq.
RESEARCH REFERENCES
Am. Jur. 2d.
- 76 Am. Jur. 2d, Trusts, §§ 207, 212.
Am. Jur. Pleading and Practice Forms, Trusts, § 91.