Montana Code Annotated 1997

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     72-34-502. Trustee's liability to beneficiary for acts of agent. (1) Except as provided in subsection (2), the trustee is not liable to the beneficiary for the acts or omissions of an agent.
     (2) The trustee is liable to the beneficiary for an act or omission of an agent employed by the trustee in the administration of the trust that would be a breach of the trust if committed by the trustee under any of the following circumstances:
     (a) whenever the trustee has the power to direct the act of the agent;
     (b) whenever the trustee delegates to the agent the authority to perform an act that the trustee is under a duty not to delegate;
     (c) whenever the trustee does not use reasonable care in the selection of the agent or the retention of the agent selected by the trustee;
     (d) whenever the trustee does not exercise proper supervision over the agent's conduct in a case where the trustee has the power to supervise the agent;
     (e) whenever the trustee conceals the act of the agent; or
     (f) whenever the trustee neglects to take reasonable steps to compel the agent to redress the wrong in a case where the trustee knows of the agent's acts or omissions.
     (3) The liability of a trustee for acts or omissions of agents that occurred before October 1, 1989, is governed by prior law and not by this section.

     History: En. Sec. 152, Ch. 685, L. 1989.

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