Foundation May Sue Bank For Delay in Stock Transfer
A family foundation has standing to sue a bank for breach of its custodianship agreement between the bank and a foundation donor when the bank’s delay in transferring stock may have cost the foundation about $1.6 million in lost value. The bank had argued that the foundation had no standing to sue because it was not a party to the custodianship agreement. An appellate court in Massachusetts has ruled that the foundation was an intended beneficiary of the agreement and could pursue the case for its damages. (The James Family Charitable Foundation v.