In short: In McCormick v. Cox (Fla. 3d DCA 2013), a trustee accepted a $2.5 million valuation of a golf course, withheld accountings for four years, paid himself over $1.2 million without disclosure, then sold the land for $12 million. The court affirmed his removal, a $2.1 million surcharge, and disgorgement of fees, totaling over $5.3 million with interest.
This is one of the clearest Florida examples of what happens when a trustee treats the trust as his own.
The Facts
Robert Cox died in January 2001. His trusts’ only significant asset was a 100-acre golf course in Lynnfield, Massachusetts, valued at $2.5 million on the estate tax return. The trustee, a lawyer, knew the property had development potential; his own appraiser said its highest and best use was residential. By 2003 he listed it at $15.4 million, and in 2005 he sold it to the town for $12 million. The beneficiaries’ expert valued it at $10.5 million as of the date of death.
The Breaches
The Third District affirmed findings that the trustee:
- Accepted the low valuation despite knowing the land’s development value.
- Failed to provide accountings for four years.
- Paid himself more than $1.2 million in fees with no disclosure or court approval.
- Had his law firm participate in those breaches.
The Remedies Upheld
- Removal as trustee.
- A surcharge of $2,146,812.
- Disgorgement of about $1.348 million in fees.
With interest, the judgment exceeded $5.3 million (118 So. 3d 980, Aug. 14, 2013).
The Expert Fight
The trustee argued the beneficiaries’ appraisal was flawed. The court held its weaknesses went to weight, not admissibility. A trustee can’t defeat a breach claim simply by attacking the other side’s expert.
The Law
Florida’s Trust Code lets a court remove a trustee, compel accountings, surcharge for losses, and reduce or deny compensation (§ 736.1001). Trustees must keep beneficiaries reasonably informed and account at least annually (§ 736.0813).
Lessons
- Beneficiaries: if you aren’t getting accountings, demand them in writing now. Four years of silence was a key fact here.
- Trustees: self-paid fees without disclosure are a red flag courts will reverse.
Source: McCormick v. Cox, 118 So. 3d 980 (Fla. 3d DCA 2013).
Watch the Oral Argument
This is the recording of the actual oral argument, posted on the channel. What lawyers and judges say at argument is not the ruling; the decision is summarized above.
$2.5M Golf Course Sells for $12M — Trustee Hit With $2M+ Judgment | McCormick v. Cox, 3D12-1289
Go Deeper
- Florida Trustee Duties and Beneficiary Rights: Accountings, Self-Dealing, and the 6-Month Deadline
- What Can I Actually Do If My Florida Trustee Is Stealing or Mismanaging the Trust?
- Can a Florida Trustee Use Trust Money for Themselves? The Duty of Loyalty Under § 736.0802
Frequently Asked Questions
What happens when a Florida trustee breaches fiduciary duty?
A court can remove the trustee, surcharge losses, and reduce or deny the trustee’s compensation under § 736.1001.
Can a trustee pay himself without telling the beneficiaries?
Not safely. In McCormick v. Cox, undisclosed fees were disgorged.
How often must a Florida trustee account?
At least annually, and on termination or change of trustee (§ 736.0813).
What did the trustee owe in McCormick v. Cox?
A $2.1 million surcharge plus disgorgement of about $1.35 million in fees, over $5.3 million with interest.
Talk to a Florida trust litigation lawyer
Weidner Law, P.A. handles Florida trust disputes and probate appeals from St. Petersburg. If you need a trust litigation lawyer, call (727) 954-8752 or email weidner@mattweidnerlaw.com.
Read the law yourself, free: the full Florida Probate Code and Probate Rules and the Florida Trust Code are on floridarules.net.
This article is general information about Florida law, not legal advice about your situation. Reading it, watching the videos, or contacting the firm does not create an attorney-client relationship. Every case turns on its own facts, and past results do not guarantee a similar outcome. The hiring of a lawyer is an important decision that should not be based solely upon advertisements.
