Goodwin Procter reports on the Woodward Case, which provides guidance to trustees on their duties under the Massachusetts Prudent Investor Act.  Their report begins as follows:

On July 23, 2014, the Massachusetts Supreme Judicial Court (“SJC”), sitting in the John Adams Courthouse, issued a decision in Woodward School For Girls, Inc. v. City of Quincy, Trustee (“Woodward”). The case, involving a trust established by John Adams in 1822 of which the City of Quincy (“Quincy”) is the trustee, is the first reported case in which the SJC has reviewed a trustee’s investment duties under the 1998 Massachusetts Prudent Investor Act (“MPIA”). It is also the first SJC case since Chase v. Pevear (1981), that discusses a trustee’s investment responsibilities. In Woodward, the SJC upheld the probate court’s finding that Quincy breached its fiduciary duties by investing the trust almost entirely in fixed income instruments.

via The Woodward Case: Guidance to Trustees on Their Duties Under the Massachusetts Prudent Investor Act | Goodwin Procter LLP – JDSupra.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.