§560:7-306  Personal liability of trustee to
third parties.  (a)  Unless otherwise provided in the contract, a trustee
is not personally liable on contracts entered into in the trustee's fiduciary
capacity in the course of administration of the trust estate, unless the
trustee fails to disclose the trustee's representative capacity and identify
the trust estate in the contract.



(b)  A trustee is personally liable for
obligations arising from ownership or control of property of the trust estate
or for torts committed in the course of administration of the trust estate only
if the trustee is personally at fault.



(c)  Claims based on contracts entered into by
a trustee in the trustee's fiduciary capacity, on obligations arising from
ownership or control of the trust estate, or on torts committed in the course
of trust administration may be asserted against the trust estate by proceeding
against the trustee in the trustee's fiduciary capacity, whether or not the
trustee is personally liable therefor.



(d)  Any judgment obtained against the trustee
in the trustee's fiduciary capacity may be collected against the trust estate. 
The question of liability as between the trust estate and the trustee
individually may be determined in a proceeding for accounting, surcharge or
indemnification or other appropriate proceeding. [L 1976, c 200, pt of §1; gen
ch 1985; am L 2009, c 22, §1]



 



Hawaii Legal Reporter Citations



 



  Trustees' discretion in purchase of real estate.  82-2 HLR
820643.