A trustee found liable for breach of fiduciary duty and ordered to pay $1.6 million in attorney fees and costs is unable to recover the payments under an indemnification clause in the trust, an appellate court in California has ruled. The trustee had been found liable for failing to establish a charitable foundation as required by the trust and for other mismanagement, including making loans to friends. Under California’s Government Code, the Attorney General is entitled to recover from defendants in a charitable trust enforcement action “all reasonable attorney’s fees and actual costs …, including, but not limited to, the costs of auditors, consultants, and experts.” The trial court had...