Can I Sue a Trustee for Breach of Fiduciary Duty on Contingency

Yes, in some California trust cases, a beneficiary can hire a lawyer on a contingency basis rather than paying large hourly fees up front.

Whether a case is a good fit depends on the facts: the seriousness of the breach, the amount that could be recovered, the evidence available, and the likelihood of collecting the recovery.

At The Grossman Law Firm, Attorney Scott Grossman handles probate and trust litigation for beneficiaries throughout California, including qualifying breach-of-fiduciary-duty cases that may be offered contingency representation.

Table of Contents

• Key Takeaways
• Can I Sue a Trustee for Breach of Fiduciary Duty on Contingency in California?
• What Makes a Trustee Breach Case a Good Fit for Contingency Representation?
• What If the Trustee Controls the Money You Are Trying to Recover?
• How Does a Contingency Fee Work in California Trust Litigation?
• FAQ
• Related Resources
• How The Grossman Law Firm Can Help

• Some trustee breach cases in California can be handled on a contingency fee basis.
• Not every breach-of-fiduciary-duty case qualifies for contingency representation.
• Whether a case qualifies depends on the amount of financial harm, the available evidence, and what could realistically be recovered.
• California law offers several remedies when a trustee causes financial damage through a breach of trust.

Yes, in some cases.

California does not require beneficiaries to pay an attorney by the hour when pursuing a trustee. An attorney and client can agree to a contingency fee arrangement when appropriate.

A contingency fee must be in writing and signed by the attorney and client. Among other requirements, it must explain the agreed fee rate and how litigation costs and expenses affect the client’s recovery.

A beneficiary could then make a substantial claim against the trust without having to pay the legal fees on an hourly basis as the case goes on.

However, not every trustee dispute qualifies for contingency representation.

An attorney must first evaluate whether a legally supportable claim exists and whether a realistic path to recovering money or property exists.

No single dollar amount or formula automatically determines whether a case qualifies for contingency representation.

Instead, a trust litigation attorney may consider several factors.

Evidence of a Trustee Breach

Facts should support an actual breach of the trustee’s legal duties.

Examples may include:

• Using trust property for the trustee’s personal benefit
• Selling trust property for substantially less than its value
• Improperly transferring trust assets
• Withholding required distributions
• Failing to account for trust money
• Making unauthorized payments to themselves or others
• Causing substantial losses through improper management

A beneficiary’s frustration with a trustee is not enough on its own. The evidence must support a potential legal claim.

If you suspect your trustee isn’t acting in your best interest, don’t wait. Explore The Grossman Law Firm’s  “20 Ways Your Trustee May Be Breaching Their Fiduciary Duties” to learn common warning signs and available actions.

If a trustee is withholding a significant inheritance, mismanaging trust assets, or causing financial harm, contact The Grossman Law Firm first to determine whether the claim is strong enough to pursue and whether contingency representation may be available.

Contingency cases generally need a meaningful potential recovery.

For example, a case involving hundreds of thousands of dollars allegedly diverted from a trust may be more practical to litigate on contingency than a dispute involving a relatively small financial loss.

That does not mean every large claim qualifies or every smaller claim does not. Each case has different economics.

A Realistic Source of Recovery

An attorney may also consider where a recovery could come from.

Depending on the circumstances, that could involve trust property, property the trustee wrongfully transferred, or money the trustee may be held personally responsible for.

A strong legal claim does not necessarily mean recovering a judgment will be simple.

Imagine Daniel is supposed to receive a $500,000 distribution from his late mother’s trust.

His older sister, Melissa, is serving as trustee. More than a year has passed, but Melissa still has not distributed Daniel’s share. She offers vague explanations, refuses to provide complete financial information, and continues to control the trust assets.

Daniel begins to suspect Melissa isn’t being honest. Although he doesn’t understand the legal terminology, he knows something is wrong. Melissa is communicating less and less, and when he asks questions about the trust, he is met with vague answers. Because she isn’t being open with him, he is concerned her actions may have caused serious financial harm.

This is the type of situation where contingency representation may matter.

Under California law, the beneficiaries have several possible remedies available to them in the event of a breach by the trustee, such as recovering the losses caused by the trustee, asking the trustee to return any profits that were obtained improperly, and, where appropriate, having the trustee removed or getting back any trust property that was transferred wrongfully.

Knowing that Daniel may have a claim is one thing. Being able to afford to pursue it is another.

Daniel contacts The Grossman Law Firm. Attorney Scott Grossman reviews the trustee’s conduct, the available evidence, and the potential recovery. Daniel’s case qualified for contingency representation. The Grossman Law Firm could pursue the claim without requiring him to pay hourly attorney fees upfront.

Because the case was handled on contingency, Daniel did not have to pay hourly attorney fees as the case moved forward. After the contingency fee, Daniel still received more than $333,000 of his recovered inheritance, before litigation costs and expenses.

For Daniel, this meant the difference between walking away from a potentially valuable claim and having a realistic way to hold the trustee accountable and receive his inheritance.

Some California trust litigation cases may qualify for contingency representation.

Under a contingency arrangement, the attorney’s compensation depends on the case outcome rather than traditional hourly billing.

The specific contingency agreement explains how the attorney fee and litigation costs are handled. Under The Grossman Law Firm’s contingency arrangement, the firm takes on the financial risk of pursuing a qualifying claim. If there is no recovery, the firm does not collect an attorney fee and absorbs the time, labor, and costs advanced in pursuing the case.

For more information about contingency fees in trust litigation, read our articles, “Contingency Fee in California Probate and Trust Litigation” and  “Can’t Afford Hourly Legal Fees? How a Contingency Fee May Help.” It explains which factors can make a trustee breach case a good fit for contingency representation and how a beneficiary may pursue a substantial claim without paying hourly attorney fees upfront.

Does every trustee breach case qualify for contingency representation?

No. An attorney must evaluate the claim’s strength, potential damages, evidence, collectability, litigation risks, and other circumstances before deciding whether to accept a case on contingency.

Can I petition the California probate court against a trustee?

Yes. Probate Code § 17200 allows a beneficiary to petition the court about the trust’s internal affairs, including trustee accounts, instructions, trust information, and other issues related to trust administration.

What should I do if I cannot afford hourly trust litigation fees?

You can speak with a trust litigation attorney to see whether your claim qualifies for contingency representation. Not being able to afford substantial hourly fees does not necessarily mean you must abandon a potentially valuable claim.

• Overview of California Trust Litigation
• Beneficiary Rights in California
• Trust Litigation Costs in California
• Contingency Fee vs. Hourly Fees
• Can’t Afford a Probate or Trust Attorney in California?
• Can Siblings Hire the Same Litigation Attorney in California?

Even if a trustee controls the trust assets, you don’t have to accept financial misconduct just because hourly legal fees are out of reach.

First, find out whether there’s evidence of a breach of fiduciary duty, what you might be able to recover, and whether contingency representation fits your situation.

At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.

Call (888) 443-6590 or fill out our Get Help Now form to take the next step.

Our Intake Specialists can evaluate your case and assess your situation at no cost. We will schedule qualifying cases for a Free Phone Consultation with Attorney Scott Grossman.