Matter of the Estate of Frankie Don Ware

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The central issue at issue in this case involved a dispute between a mother and son, Carolyn Ware (“Carolyn”) and Richard Ware (“Richard”), regarding the distribution of shares of stock of three closely held corporations. The shares were being held by the estate of the deceased husband/father, Frankie Don Ware (“Frankie”). Frankie’s will directed that the shares be distributed to a testamentary trust. The bylaws of the corporations (in which Frankie, Carolyn, and Richard were the sole shareholders) required any outstanding shares of stock be offered to the corporations prior to any transfer. Carolyn, the executrix, filed a petition to close Frankie’s estate and to distribute Frankie’s assets (including the shares) to the trust. Richard filed an objection to the closing of the estate, asserting the corporate bylaws of the three corporations. Carolyn responded, arguing that Richard lacked standing to object. The chancellor found for Richard and required Carolyn to offer the shares back to each corporation prior to transferring the shares to the trust. Carolyn subsequently appealed. After review, the Mississippi Supreme Court found Richard lacked standing to object to the closing of Frankie’s estate because the injury for which he sought relief pertained to the corporations only. Therefore, the trial court's judgment was reversed and the matter remanded for further proceedings. View "Matter of the Estate of Frankie Don Ware" on Justia Law