(CN) – A bank breached its fiduciary duty by placing millions of dollars of accident victims’ money into slow-growing investments, the Illinois Appellate Court ruled.
Joseph and Megan Collins Lieberman were permanently injured in a car accident in 2000 that killed their father. They received a total of $22.5 million in compensation.
Northern Trust Co., as co-guardian of the children’s estates, was charged with taking care of their money until they turned 18. Northern placed half of the children’s money in an account that yielded a 1 percent return.
The trial court granted the bank’s motion to dismiss the fiduciary duty claim, but Judge McLaren overturned the decision.
“The fact that the money-market investment was a statutorily permitted investment does not immunize (the bank) from liability or limit the requirement that its investments be prudent,” McLaren wrote, remanding the case to the trial court.