Surrogate Edward McCarty III
Trustee moved to bifurcate liability and damages in a trial of five contested trial accounting proceedings. Trust beneficiary, Sarah Wellington, objected to all five accounts. Co-trustee of the five trusts, JPMorgan Chase, (JPMC), sought approval of their accounts. Sarah alleged JPMC breached its fiduciary duty to her. Movant argued an expert report provided a simplified analysis of the alleged damages suffered. It also claimed the report did not address how the trusts should have been invested in the alternative, rendering it impossible for JPMC to respond with a calculation of purported damages by its own expert. JPMC sought bifurcation claiming it would limit the first phase of proceedings solely to liability, noting same was necessary due to the complexity of the damages issue. Sarah disagreed arguing the proceeding was fairly simple turning on whether JPMC failed to appropriately manage the Wellington Trusts. She also alleged that liability and damages were so intertwined as to be indistinguishable, bifurcation would also be inefficient and cause further delay. The court agreed noting JPMC failed to establish that bifurcation would lead to a more expeditious resolution of these already delayed proceedings, denying the motion.
