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Mgmt 597 Case Review

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Submitted By sjdemarco
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Running Head: End-of-Chapter Questions

Case Review

September 28, 2012

Assignment

47.1 The case of Buder v. Satore (1989) deals with gifts to minors and the duties of the custodian of those gifts. Respectfully, this case arose out of an action brought by respondent on behalf of Theodore Alexander and Cori Marie Buder, then minor children of Ms. Sartire Buder and ex-husband Alexander Buder. The mother filed an action against the father based on his alleged breach of the fiduciary duty he owed the couples minor children as the custodian of gift money they had received from a grandparent. The trial court found that the father had breached his fiduciary duty and assessed damages and attorney fees. The intermediate court affirmed and added attorney fees on appeal. The court’s held that: (1) the standard of care under the Uniform Gift to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA), Colo. Rev. Stat. §§ 11-50-101 - 11-50-126 (1987), is not the same as under the general trust laws, Colo. Rev. Stat. § 15-1-304 (1973), (2) a custodian is a fiduciary, (3) the statutes contain different standards and that the standards contained in the UGMA/UTMA apply exclusively to custodians, while the standard contained in Colo. Rev. Stat. 15-1-304 applies to other fiduciaries, (4) any error in assessing the standard of care was harmless because the trial court used the lower standard under UGMA, (5) UTMA authorized the trial court to order an accounting and to assess damages, (6) attorney fees very properly awarded because it was a breach of trust case. Aforementioned, the Colorado Supreme Court held that the intermediate court properly affirmed the trial court's judgment and that the award of

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