Blunier v. Staggs

Attorney fees that are reasonably incurred while enforcing the terms of a trust deed are considered an expense of the trust.

Appellant Zwingli appealed from a trial court’s judgment of foreclosure in favor of Blunier. The court found that Zwingli did not comply with the terms of the trust deed when he failed to pay Blunier's attorney fees. Zwingli argued that he was not in violation of any terms that needed to be enforced by Blunier's attorney and that nothing in the trust deed compelled him to pay attorney fees. The Court of Appeals held that a person in possession of property commits waste when he causes the value of the property to decrease by abuse or destruction, and there was sufficient evidence at trial to show that Zwingli’s acts led to waste of the property and a violation of the trust deed. The Court also held that the language of the trust deed bound Zwingli to pay attorney fees incurred in connection with the trust, which included bringing Zwingli into compliance with the no waste requirement of the trust. Affirmed.