The COVID-19 pandemic has had a significant impact on global
trade and the world's economies. Each of North America's
major stock markets have experienced their worst first quarters
since at least the 2008 housing market crash, and investment
portfolios have suffered accordingly. This dramatic downturn could
be significant for trustees who hold and invest assets on behalf of
beneficiaries of trusts or estates. What steps should a trustee
take and how can they minimize risk of liability in a time of
volatile markets?
Trustee Liability for Investment Losses
In Fales v. Canada Permanent Trust Co., [1977] 2 S.C.R.
302, the Supreme Court of Canada held that the primary duty of a
trustee is to preserve trust assets. The failure to do so could be
considered a breach of duty if the trustee's conduct did not
meet the requisite standard of care. If a trustee is found by a
Court to have breached a duty owed to the beneficiaries of the
trust, the trustee can be held personally
