## Facts

- Joseph S. DeLuca created a trust dated October 24, 1994, whose sole asset was commercial real property on Charles Street in Boston, Massachusetts, where the family business (DeLuca’s Market) operated for decades without a written lease.
- Upon DeLuca’s death, the trust was to terminate after payment of taxes and distribute interests to four siblings: Virgil (1/7), Robert (1/7), Gerald (3/7), and Joy (2/7).
- Robert Aiello served as successor co-trustee with Bartolomeo DiPietro.
- The trust faced approximately $1.4 million in estate taxes, requiring the co-trustees to raise funds.
- Robert, while acting as co-trustee, was also a trust beneficiary and an officer/shareholder of the business operating on the trust property.
- Robert failed to obtain a mortgage to pay estate taxes despite having a cooperating lender.
- A third-party buyer made multiple purchase offers for the property in the $4.0–$4.4 million range, which Robert did not pursue.
- Robert instead entered a contract to sell the property to his brother Virgil for a lower price.
- Joy petitioned to remove Robert as co-trustee based on conflict of interest and sought declaratory relief to void Robert’s actions, including the proposed sale.
- The probate court previously found Robert had a conflict of interest and later voided the sale contract and removed Robert as co-trustee for breach of fiduciary duty.
- Robert and Virgil appealed.

## Issues

1. Whether the probate court exceeded its authority or abused its discretion by removing Robert as co-trustee when the immediate matter before the court was a motion to void the sale contract.
2. Whether Robert’s conflict of interest and conduct supported removal for breach of fiduciary duty and voiding the related-party sale contract.

## Decision

- The appellate court affirmed the probate court in all respects.
- The court held the probate court did not exceed its authority in removing Robert as co-trustee.
- The court upheld the voiding of the contract to sell the trust property to Virgil.
- The court relied on the established conflict of interest findings and Robert’s conduct showing breach of fiduciary duty affecting trust administration.

## Legal Principles

- A trustee owes fiduciary duties, including loyalty and impartial administration for the benefit of all beneficiaries.
- A trustee’s actual conflict of interest, particularly where the trustee has personal business interests tied to trust property, may justify judicial intervention when it impairs impartial administration.
- Self-interested or related-party transactions involving trust property are subject to close scrutiny and may be set aside when driven by conflicted decision-making.
- A probate court has discretion to remove a trustee for breach of trust or conflicts that threaten proper administration, and may do so within ongoing proceedings concerning the trustee’s conduct and related transactions.

## Conclusion

The court affirmed removal of a co-trustee whose conflicts and actions harmed trust administration, and it upheld voiding a below-market, related-party sale of the trust’s only asset in favor of protecting beneficiaries’ interests and proper trust management.


Aiello v. Hyland, 793 So. 2d 1150 (Fla. Dist. Ct. App. 4th Dist. 2001)