Where Can a Trust Be Sued? (Part 3: Jurisdiction)
As we saw in a previous article, in order to sue a trust in California (or anywhere in the United States), the suit or claim must be brought in the proper venue, before an entity (court or other body) with jurisdiction to hear the claim. Today, let’s take a closer look at jurisdiction.
Briefly stated, “jurisdiction” means the legal power or authority to hear, resolve, and render a judgment on a claim.
WHY DOES IT MATTER WHICH COURT HAS JURISDICTION OVER A TRUST?
First and foremost, a court that does not have jurisdiction over a trust does not have jurisdiction over claims and other proceedings involving that trust. In other words: if you try to sue a trust in a court that does not have jurisdiction, the court will dismiss the claim and refuse to hear it.
This is because the California (superior) court that does have jurisdiction over a trust has:
- exclusive jurisdiction over claims, lawsuits, and other legal proceedings involving the internal affairs of the trust.
- concurrent jurisdiction over lawsuits and legal proceedings involving the existence of the trust, claims against the trust by parties related to the trust (trustees, beneficiaries) or third parties (including creditors and debtors)
It’s important to note that a court not only has to have jurisdiction over the trust, but also must be able to exercise jurisdiction over all of the parties to the claim or dispute. However, where the court has jurisdiction over the trust, this often is not an issue, for the reasons discussed below.
WHICH SPECIFIC COURT HAS JURISDICTION OVER TRUST CLAIMS?
In California, the branch of the superior court that customarily has jurisdiction over trusts is the probate court. Under the probate code, a probate court has jurisdiction over all parties that can be brought before it (subject to legal and constitutional limitations), and, generally speaking, has the power to hear and rule on any dispute or claim involving a trust over which the court has jurisdiction (again, subject to also having jurisdiction over the relevant parties).
HOW DO I KNOW IF THE COURT HAS JURISDICTION OVER A TRUST, TRUSTEE, OR BENEFICIARY?
A trust that is administered in California is subject to the jurisdiction of the California courts. In addition, California courts generally have personal jurisdiction over any person or entity that serves as the trustee of a California trust (or a trust with its principal place of administration in California), and also over the beneficiaries of the trust (but only to the extent of their interests in the trust, if any) –subject to any relevant constitutional limitations.
One of the most important constitutional limitations on jurisdiction is notice of the claims or proceedings. In order for a court to have and exercise jurisdiction over the parties to a lawsuit–whether a trust, trustee, beneficiary, creditor, debtor, or other interested party, the relevant party must receive proper notice that complies with the relevant notice provisions in applicable laws.
Fortunately, if you believe you have a claim against a trust or trustee, the questions of jurisdiction–and how to give notice to interested parties–are not questions you have to answer on your own. When you consult an experienced lawyer (and be sure to do this promptly, because you may lose your claim, or your right to bring a lawsuit or receive compensation, if you delay), the lawyer will assist you with determining the proper venue, establishing jurisdiction, and providing notice to the interested parties.
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Disclaimer: THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY, AND DOES NOT CONSTITUTE LEGAL ADVICE OR CREATE AN ATTORNEY-CLIENT RELATIONSHIP BETWEEN THE AUTHOR OR ROSS LAW AND ANY PERSON. Your legal rights and experiences may vary. Never use an online article (including this one) to evaluate your legal rights or claims. Consult an experienced attorney promptly to obtain a personalized evaluation of your claims, potential damages, and the various legal rights and options available to you.
You may lose or compromise your rights if you delay in consulting legal counsel. Most legal claims (and defenses), as well as legal and court procedures, are complicated and fact-dependent. If you believe you have a claim against someone who injured you, a lawyer who represented you in a previous lawsuit, or any other legal claim, consult an experienced lawyer immediately for an evaluation of your individual rights and claims.
