In the compelling case of Natalia Legg, Josh Gotlib, and Black Spruce Management, we delve into the intricate world of real estate investments and fiduciary duties. This case is a stark reminder of the importance of protecting investments and the serious implications of fiduciary breaches in real estate businesses and trusts. When such breaches occur, legal intervention becomes necessary, demanding a nuanced understanding of the complexities involved.
In a recently filed case, Natalia Legg alleges a breach of fiduciary duty by her deceased husband’s former business partner. The suit alleges that Josh Gotlieb and Oliver Legg built a real estate empire together and were 50-50 owners. Legg placed his rights to the business in a trust and appointed Gotlieb the trustee. The suit alleges that Gotlieb abused his role as trustee by, among other things, assigning the trust’s ownership of the businesses to himself and using the trust's assets to fund the business for his benefit and to the detriment of the beneficiaries.1
Legal Implications
Fiduciary Responsibility
- Fiduciary duties frequently arise as a matter of law. For example, partners in any partnership owe fiduciary duties to each other.
- Likewise, trustees owe a fiduciary duty to the trust's beneficiaries.
- Fiduciary duties can be unique to each role and carry legal obligations, but if you are a fiduciary, you must act with the utmost ethics in your role.
- If you think someone who owes you a fiduciary duty (a partner, a co-shareholder, a trustee, etc.) breached that duty, it is important to contact an attorney to discuss the issues involved.
An Attorney’s Role in Real Estate Litigation
At King & Jones, we are familiar with the complexities of real estate litigation, partnership disputes, and trust disputes. When legal complexities unravel in these areas, you should align yourself with an ally who can help redress a wrong or protect you from false accusations.
Hire a real estate litigation lawyer to avoid misunderstandings; the shareholders' agreement is the most effective way to lay the groundwork for a harmonious relationship.
1Source: https://therealdeal.com/new-york/2024/01/03/widow-accuses-black-spruces-josh-gotlib-of-fraud-in-lawsuit/