SJC: No Fiduciary Duty Owed to IRA Beneficiary
In an interview with Massachusetts Lawyers Weekly, National Trial and Appellate Attorney Robert Kaler commented on the Supreme Judicial Court's (SJC) decision that the commercial custodian owed no fiduciary duty to the beneficiary of non-discretionary individual retirement accounts. However, SJC held that the beneficiary could still sue the custodian credibly under Massachusetts General Law 93A, claiming unreasonable withholding of proceeds by the custodian.
"Taken together with the Appeals Court's prior decision reinstating the plaintiff's contract claims, the appellate courts are simply saying that the remedy is found in contract law principles governing the rights of intended third-party beneficiaries and under [Chapter] 93A, not under fiduciary duty principles," said Mr. Kaler.
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