Trusts and Estates Litigation and Dispute Resolution

Sullivan & Cromwell has one of the leading trusts and estates litigation practices worldwide. Cases are often litigated in the courts of several countries simultaneously, presenting complex conflict of laws issues and requiring the coordination of litigation strategy across multiple jurisdictions. The Firm is regularly involved in disputes regarding contested wills, trust administration, challenged gifts and forced inheritance laws. S&C has a reputation for negotiating the resolution of such disputes in creative, tax-efficient ways that minimize family strife, expense and publicity.

Representative Trusts and Estates Litigation

Pritzker v. Pritzker
Representation of members of Chicago’s Pritzker family in U.S. and offshore litigation regarding U.S. and Bahamian Trusts.

Denise Rich v. Alec Hackel, et al.
Representation of Swiss trustee involved in trust litigation in New York and Switzerland.

Gianoli, et al. v. Eguiguren, et al.
Representation of Latin American family in international litigation in the courts of the U.S., Chile, Jersey, Guernsey and the Cayman Islands involving will contest, inter vivos transfers and forced heirship laws.

Matter of Donner
Representation of charitable beneficiary Mills College in objections to executors’ final accounting. Trial resulted in substantial award to Mills College, unanimously affirmed by New York State’s highest court, in a decision that has since been extensively relied on by lower courts in fiduciary removal and surcharge cases.

Matter of Lincoln First Bank, N.A. (“Matter of Janes”)
Representation of the New York Clearing House Association and the New York Bankers Association, amici curiae, in the most significant New York State Court of Appeals case regarding the duties of fiduciaries since Matter of Donner (see above).

Gallo Family Representation
Representation of Gallo family interests in estate tax litigation in which the estate’s valuation of Gallo stock — critical to the family’s overall estate plan — was upheld in the face of an I.R.S. challenge after trial in the Tax Court.

Matter of Gwyn Hughes
Successfully bringing objections on behalf of a trust beneficiary and a replacement trustee of a large trust, against the prior trustee. After trial, the Surrogate’s Court, Putnam County, State of New York, entered a verdict of criminal and civil contempt against the prior trustee, surcharged him for substantial trust losses and awarded the beneficiary and the replacement trustee their attorney’s fees.

Estate of J. Seward Johnson
Representation of preliminary executrices in probate contest. After several months of jury trial, and before verdict, case settled with the trusts under the decedent’s will dissolved and the client-beneficiary receiving approximately US$ 350 million outright.

Confidential representations include:

• Successfully defending a major New York bank against objections filed challenging the bank’s actions as an estate executor, including objections to the bank’s decisions to sell substantial real estate interests. After a three-month trial before the Surrogate’s Court, Nassau County, the objections were dismissed.
• Representation of trustees of an approximately half-billion-dollar trust, in connection with litigating changes in the terms of the trust concerning investment discretion and commissions, as well as general advice on funding of distributions provided for in the trust instrument.