## Facts

- HCC Investments, Inc. created a charitable remainder unitrust in 2000, naming Nicholas L. Alvanos as trustee.
- In 2005, a probate court removed Alvanos as trustee and appointed Robert C. Penland as successor trustee.
- In 2006, HCC filed a probate action against Alvanos (individually and as former trustee) captioned “Breach of Trust” and designated “Non-Jury.”
- The complaint alleged breaches of fiduciary duties of care and loyalty and sought restoration to the trust of lost income, lost gains, and lost appreciation, disgorgement of commissions/profits, and an accounting.
- Alvanos filed a third-party claim against Penland seeking equitable indemnity or contribution, asserting Penland caused any losses.
- Alvanos demanded a jury trial; the probate court denied the request on the ground the action was equitable.

## Issues

1. Whether a probate action against a former trustee for breach of trust seeking restoration of trust assets, disgorgement of profits/commissions, and an accounting is legal (jury triable) or equitable (non-jury).
2. Whether the presence of monetary relief requests and a third-party indemnity/contribution claim creates a right to a jury trial.

## Decision

- The South Carolina Supreme Court affirmed the order denying Alvanos a jury trial.
- The Court held the action’s main purpose was equitable, so no constitutional jury-trial right applied.
- The third-party claim did not change the equitable character of the primary breach-of-trust action.

## Legal Principles

- The right to a civil jury trial depends on whether the action is legal or equitable; there is no jury-trial right for equitable actions.
- The legal/equitable characterization turns on the plaintiff’s “main purpose,” determined primarily from the complaint’s body and, if needed, the prayer for relief and surrounding circumstances.
- Claims to compel a trustee to restore trust property, to disgorge improper profits/commissions, and to provide an accounting are traditional equitable remedies in trust administration, even when the requested relief is expressed in monetary amounts.
- Ancillary pleadings (including equitable indemnity or contribution claims) do not convert an equitable trust action into a legal action for purposes of a jury-trial demand.

## Conclusion

Because the complaint sought traditional equitable trust remedies—restoration to the trust, disgorgement, and an accounting—the action was equitable in nature, and the former trustee had no right to a jury trial.


Verenes v. Alvanos, 387 S.C. 11, 690 S.E.2d 771 (S.C. 2010)