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Case Citations [1] (Spring 2025)

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                            THE AMERICAN


                              LAW INSTITUTE



                                    Spring 2025 Citations



                                      TRUSTS



                     CHAPTER 1. DEFINITIONS AND DISTINCTIONS

                                  TOPIC   1. DEFINITIONS

§ 1. Scope of the Restatement

D.Colo.Bkrtcy.Ct.2024. Com. (b) quot. in disc. A spendthrift trust filed a petition for relief under
Chapter 11 of the Bankruptcy Code, seeking to avoid attempts by its secured creditors to foreclose on a
luxury property that was the trust's primary asset and where the trust's sole beneficiary resided. This
court granted creditors' motion to dismiss, holding that the trust was not a business trust that was
entitled to bankruptcy protection, because, as a trust primarily intended to maintain the lifestyle of its
individual beneficiary, it had no centralized management, it was not made for a business purpose, and its
interests were not transferable without affecting the continuity of the enterprise. The court noted that,
while Restatement First of Trusts § 1 defined the term trust, it did not address the term business
trust except to specify that business trusts were excluded from its purview. In re Tiel Trust I FBO Paula
T. Douglass, 656 B.R. 810, 835.



                        CHAPTER 2. THE CREATION OF A TRUST

            TOPIC   10. THE REQUIREMENT OF A WRITTEN MEMORANDUM

§ 44. Effect of Failure of Oral Trust for the Settlor

Pa.2024. Com. (c) cit. in case quot. in disc. In an action filed by a former employee against a former
supervisor for tortiously interfering with her at-will employment contract with her former employer, this
court held, as a matter of first impression, that Pennsylvania law did not bar a claim for intentional
interference with an existing at-will employment contract under Restatement Second of Torts § 766,
reasoning that recognition of such claims was consistent with the nature of the tort and Pennsylvania
law. In making its decision, the court cited a prior decision that discussed Restatement First of Trusts §


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