Munoz v. Sterling Trust Co.
The underlying class action lawsuit was brought by investors who lost substantial sums of money when investments selected by them and purchased on their behalf by Sterling Trust Company (Sterling) for placement into their self-directed individual retirement accounts, proved to be worthless. The investors sued Sterling for breach of contract, breach of fiduciary duty, and related causes of action, contending that Sterling breached fiduciary and contractual duties owed to them by failing to perform a proper administrative review of the selected investments which, but for Sterlings breach of duty, would not have been purchased. The trial court entered judgment in Sterlings favor upon its motion for summary adjudication, and the investors appealed. Court agree with the trial courts conclusion that Sterling owed no duty to the investors to conduct an administrative review in a manner to insure the viability or safety of the investments and thus affirm the judgment.
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