Bolger v. Merrill Lynch Ready Assets Trust

Merrill Lynch Ready Assets Trust (ML) appeals from a judgment rendered in favor of Thomas E. Bolger (Bolger) and Barbara Bolger Gehl (Gehl) and against ML. ML also appeals from the dismissal of its third-party complaint against Bolger and Gehl on the merits and with prejudice.

The dispositive issue on appeal is whether, under the undisputed facts, sec. 112.01(6), Stats., imposes liability on ML. Because ML did not have actual knowledge that the transactions engaged in by the fiduciary were for his personal benefit, we reverse.

The parties stipulated to the essential facts. Bolger is the trustee…