Beneficiary does not have standing to sue on behalf of the trust without first seeking to compel trustee to bring the claim.

Sean Swendsen filed suit individually as remainder beneficiary of the Richard I. Swendsen Trust and derivatively on behalf of the trust against the former trustee of the Trust, Richard Corey. Corey moved for dismissal for lack of standing.

The U.S. District Court for the District of Idaho granted Corey’s motion finding that Sean lacked standing for his claims on the grounds that: (1) generally a beneficiary may not sue in the name of the trust because he is not the real party in interest; (2) there is an exception that confers standing on a beneficiary only where the trustee cannot or will not enforce a valid cause of action against a third party; and (3) without having first sought judicial compulsion against the current trustee, Sean had no standing to step in the shoes of the trustee and sue on behalf of the trust.