Where a trustee or his predecessor has incurred personal liability for a tort committed in the course of his administration, the trustee in his representative capacity may be sued and collection had from the trust property, if the court shall determine in such action:

(1) that the tort was a common incident of the kind of business activity in which the trustee or his predecessor was properly engaged for the trust; or

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Terms Used In South Dakota Codified Laws 55-4-25

  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Plaintiff: The person who files the complaint in a civil lawsuit.
  • Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: includes trustees, a corporate as well as a natural person and a successor or substitute trustee. See South Dakota Codified Laws 55-4-1

(2) that, although the tort was not a common incident of such activity, neither the trustee nor his predecessor, nor any officer or employee of the trustee or his predecessor, was guilty of personal fault in incurring the liability; or

(3) that, although the tort did not fall within classes (1) or (2) above, it increased the value of the trust property.

If the tort is within classes (1) or (2) above, collection may be had of the full amount of damage proved; and if the tort is within class (3) above, collection may be had only to the extent of the increase in the value of the trust property.

Any beneficiary may intervene in such action and contest the right of the plaintiff to recover.

Source: SL 1943, ch 308, § 14; SDC Supp 1960, § 59.0514 (1), (3).