Colorado § 15-10-504 Surcharge - contempt - sanctions against fiduciaries

Colorado Statutes

§ 15-10-504 — Surcharge - contempt - sanctions against fiduciaries

Colorado·Title 15 Probate,·Art. General Provisions, Definitions,

(1)Notice. Except as provided in subsection (3) of this section, notice to a fiduciary concerning any matters governed by the provisions of this section shall be provided pursuant to section 15-10-505.

(2)Surcharge.

(a)If a court, after a hearing, determines that a breach of fiduciary duty has occurred or an exercise of power by a fiduciary has been improper, after applying the standards of care applicable to each fiduciary in a proceeding, the court may surcharge the fiduciary for any damage or loss to the estate, beneficiaries, or interested persons. Such damages may include compensatory damages, interest, and attorney fees and costs. When allocating any such damages among fiduciaries, the court shall consider the standards of care applicable to the fiduciaries in the procee

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(1) Notice. Except as provided in subsection (3) of this section, notice to a fiduciary
concerning any matters governed by the provisions of this section shall be provided
pursuant to section 15-10-505.

(2) Surcharge. (a) If a court, after a hearing, determines that a breach of
fiduciary duty has occurred or an exercise of power by a fiduciary has been
improper, after applying the standards of care applicable to each fiduciary in a
proceeding, the court may surcharge the fiduciary for any damage or loss to the
estate, beneficiaries, or interested persons. Such damages may include
compensatory damages, interest, and attorney fees and costs. When allocating any
such damages among fiduciaries, the court shall consider the standards of care
applicable to the fiduciaries in the proceeding.

(b) In awarding attorney fees and costs pursuant to this section, a court may
consider the provisions of part 6 of this article 10 and shall consider the standards
of care applicable to the fiduciaries in the proceeding.

(3) Contempt proceedings against fiduciary. Nothing in this part 5 shall be
interpreted to limit or restrict a court's authority to proceed against a fiduciary for
direct contempt as provided in rule 107 of the Colorado rules of civil procedure. In
addition, if a fiduciary fails to comply with an order of a court issued pursuant to
this part 5, the court may proceed against the fiduciary for indirect contempt as
provided in rule 107 of the Colorado rules of civil procedure. A court may initiate
indirect contempt proceedings on its own motion or upon the filing of a motion
supported by affidavit as described in rule 107 of the Colorado rules of civil
procedure.

(4) Sanctions. If a court determines that a breach of fiduciary duty has
occurred or an exercise of power by a fiduciary has been improper, the court, after a
hearing, may order such other sanctions as the court deems appropriate, but the
court shall take into account the standards of care applicable to each fiduciary in
the proceeding.

(5) Remedies. If remedies are sought against a directed trustee for
complying with the direction of a trust director under the Colorado Uniform
Directed Trust Act, part 8 of article 16 of this title 15, or comparable arrangement
created under the terms of a trust, the court shall take into account the standards
of care applicable to each fiduciary in the proceeding when apportioning damages,
fees, costs, or fault among the fiduciaries.

Colorado § 15-10-504 (Surcharge - contempt - sanctions against fiduciaries) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 2008: Entire part added, p. 480, � 1, effective July 1. L. 2011: (2)(b) amended, (SB 11-083), ch. 101, p. 302, � 2, effective August 10. L. 2019: (2) and (4) amended and (5) added, (SB 19-105), ch. 51, p. 175, � 11, effective August 2.