Thompson Coburn Partners Zachary G. Newman and Stephen J. Grable secured a complete trial victory for a leading global financial institution in In re Estate of Rockefeller, a complex trust and investment dispute that challenged five decades of trust administration practices and investment decisions across changing market conditions and evolving fiduciary standards.
After a decade of intensive pre-trial proceedings, including protracted discovery and extensive expert opinions and testimony, the Thompson Coburn trial team prevailed on all counts and successfully defeated comprehensive challenges advanced by sophisticated counterparties, financial managers, and their counsel. The trial addressed numerous critical matters relevant to banking, lending, and investment firms, encompassing corporate fiduciary practices, trust administration standards, investment evaluation and management protocols, banking procedures, and regulatory compliance requirements.
The decision serves as a valuable resource for financial institutions seeking clarity on fiduciary obligations in cases involving multi-generational trusts and sophisticated investment portfolios. It also establishes important precedent regarding the application and evolution of portfolio theory in long-term trust administration, clarifying corporate fiduciary obligations when managing and presented with concentrated holdings and providing essential guidance for trust departments on discretionary investment decision-making standards and the evaluation of legacy investment strategies within evolving regulatory frameworks.
This victory comes at a critical time for the financial services industry, as trust departments nationwide grapple with increased scrutiny over investment management practices and face growing pressure to demonstrate compliance with evolving fiduciary standards. The decision provides much-needed clarity for institutional fiduciaries managing similar long-term trust relationships and establishes benchmarks for industry best practices. Financial institutions can look to this decision for practical direction on trust administration and investment management, particularly in cases involving long-term trusts and sophisticated investment strategies.
Newman, Grable, and their colleagues in Thompson Coburn’s Financial Services and Fiduciary Litigation Practice represent leading financial institutions, corporations, and trust companies in sophisticated lending and fiduciary litigation matters. Our experienced lending and fiduciary litigators have successfully represented lending, fiduciary, and investment professionals in trial, bankruptcy, and appellate courts, bringing financial and fiduciary experience to matters involving trust administration, lending, investment management, and regulatory compliance.
Newman and Grable regularly present seminars promoting professional education for their financial institutional clients, sharing insights from their extensive experience in fiduciary litigation and banking law. Their presentations focus on practical applications of fiduciary law, recent developments in trust administration, and strategies for managing fiduciary relationships. Banks, fiduciaries, and financial services companies interested in inviting Zachary Newman | Thompson Coburn LLP and Stephen J. Grable | Thompson Coburn LLP to speak to their teams or participate in professional development programs are encouraged to contact them directly.
The trial decision is available publicly HERE and on LexisNexis at In re Est. of Rockefeller, 2025 NYLJ LEXIS 2241.
