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Trust requires Trustee to maintain a family farm unless all adult beneficiaries consent to a sale. The trust also states, "Trustee shall not be liable for mistakes in judgment made in good faith." Without seeking consent, Trustee sold the farm to an unrelated buyer for $700,000, although a pending written offer from another buyer was $820,000. Trustee did not tell the beneficiaries about the higher offer because he wanted a fast closing.
Trustee used $300,000 of the sale proceeds to buy a condominium in Trustee's own name and rented it to tenants. The remaining proceeds were placed in the trust account. After learning of the sale, the beneficiaries seek to recover the condominium or its value, recover the lost sale value, obtain the rental profits, and remove Trustee. Trustee argues that the exculpatory clause bars all claims because he made an investment judgment.
Analyze Trustee's breaches, the effect of the exculpatory clause, and the remedies available to the beneficiaries.