James Family Charitable Foundation v. State Street Bank & Trust Co.

Hamilton James (James), a client of State Street Bank and Trust Company (State Street), wished to make a charitable gift of mutual fund shares to The James Family Charitable Foundation (foundation). The shares were in the custody of State Street pursuant to a custodianship agreement (agreement) between James and State Street that, among other things, required State Street to transfer assets when instructed to do so by James. James, through his investment agent, instructed State Street to transfer the shares to the foundation’s broker in order to effectuate his charitable gift. State Street…