Protecting assets is a primary goal of estate planning for many California residents. In many cases, this involves creating a trust to keep assets safe from a variety of scenarios, including the potentially inadvisable sale of one or more of the assets held by the trust. Such a sale is the subject of trust litigation filed against Roger Corman, a Hollywood director who is considered a legend in the industry.
Corman and his wife sold the rights to his catalog of movies, which totals approximately 270 films. Reportedly, Shout! Factory and Ace Film, the company that purchased them, intended to take advantage of merchandising opportunities and planned remakes for at least some of the movies. His two adult sons claim that those rights belong to an irrevocable trust of which they are both beneficiaries and co-trustees.
Allegedly, the transaction occurred without the consent of Corman’s two sons. The lawsuit also alleges that Corman’s wife resigned her position as a special trustee, purportedly due, at least in part, to numerous breaches of her fiduciary duty as a trustee. The sons claim that she squandered family funds at her own leisure and berated Corman into going against the provisions of the trust. Finally, Corman’s sons want the court to reverse the sale and give them sole control over the trust in the future.
Like many other instances of trust litigation here in California and elsewhere, there are a multitude of issues involved in this case. The alleged transgressions involved in many lawsuits involving trusts include breaches of fiduciary duty and the improper sale or other mismanagement of the assets in them. The complexity of these cases often requires reliance of experienced legal advocates to help increase the chances of a successful resolution.
Source: theblast.com, “‘Little Shop of Horrors’ Legend Roger Corman Sued as Sons Try to Halt Movie Deal”, Gary Trock and Mike Walters, April 3, 2018