Justia Trusts & Estates Opinion Summaries

James Oldrum Smith Jr. (Father) died in 2006. This appeal stemmed from his children’s disagreements over the handling of Father’s estate (Estate). These disagreements resulted in lengthy litigation. The Estate was complicated by the fact that, prior to his death, Father created a family trust (Trust); however, he died within three years from the creation of the Trust, meaning the money in the Trust became taxable to the Estate, leaving the Estate otherwise unable to pay its taxes due to liquidity issues. The Estate borrowed $2,020,000 from the Trust, secured by a promissory note and deed of trust, to help pay the taxes. Some of the siblings, who would have received a greater amount of money from the Trust than from the Estate, later took issue with the loan, specifically that the amount now owed on the loan was much greater than what the other siblings, the trustee, and the co-executors claimed. As a result, the aggrieved siblings filed several actions challenging the trustees’ and the co-executors’ decisions, particularly as related to the loan between the Trust and the Estate. The special chancellor appointed to the case determined that the trustees and co-executors did not breach any duty owed to the beneficiaries and that the loan was valid in the amount of $2,523,004.83 plus four percent interest per annum. At issue here was the result of the chancellor’s judgment, and finding no error, the Supreme Court affirmed. View "In The Matter of The Estate of James Oldrum Smith, Jr." on Justia Law

Minor Tamarcus Ewing and his mother were involved in a motor-vehicle accident. Tamarcus sustained severe injuries and his mother died. Tommy Lee Ewing, Tamarcus’s father, was appointed guardian of Tamarcus’s person and estate. Tommy filed a negligence complaint on behalf of Tamarcus. At some point, the parties settled the circuit-court case. The Chancery Court sealed the guardianship case file on stipulation and agreement of the parties and attorneys of record in the circuit-court action. Then in 2010, the chancellor removed Tommy as guardian of Tamarcus’s estate after finding that seventy-five thousand dollars in annuity payments had been redirected from a frozen guardianship account into an unfrozen account jointly owned by Tommy and Tamarcus. The court also found that Tommy had spent those funds without court approval. Chokwe Lumumba and Roy Perkins were appointed as coguardians of the estate. Tommy was not removed as the guardian of Tamarcus’s person. Tommy later sought a copy of the sealed settlement documents after he had been removed as guardian. The chancellor denied his request. But because he had access to those documents as guardian and participated in the settlement process, no purpose was served by keeping the sealed documents from him. So, the Supreme Court reversed and remanded with instructions for the chancellor to grant him access to the documents. View "Ewing, Jr. v. Neese" on Justia Law

Charlene Ivy was admitted to East Mississippi State Hospital (“EMSH”) in May 2012, and she died on July 17, 2012. Alleging medical negligence by EMSH staff, Ivy’s son Spencer sent a Notice of Claim letter via certified mail dated July 11, 2013, to EMSH Director Charles Carlisle. Carlisle signed for the letter on July 15, 2013, as evidenced by a return receipt. The definitive question in this appeal was whether Carlisle, as the Director of the East Mississippi State Hospital (“EMSH”), was the proper “chief executive officer” for notice purposes under the Mississippi Tort Claims Act (“MTCA”), as opposed to the Executive Director of the Department of Mental Health (“DMH”). The trial judge found that “proper pre-suit notice” required service “upon the executive director of [DMH], not a facility manager of one of the institutions under its jurisdiction and control.” The trial judge found further that the statute of limitations was not tolled because Ivy had “failed to comply with the mandatory provisions of Section 11-46-11(1)” and dismissed Ivy’s complaint with prejudice. The Supreme Court reversed, finding that EMSH’s Director was the CEO under the MTCA, and that Ivy provided the "proper pre-suit notice. View "Ivy v. East Mississippi State Hospital" on Justia Law

Bobby Gibson filed a legal-malpractice action against Joe Montgomery and his law firm, Williams, Williams and Montgomery, P.A. (“WWM”), alleging wrongful conduct in connection with the administration of his late wife Debbie's estate. The trial court granted summary judgment to Montgomery and WWM. The Supreme Court reversed and remanded. Bobby timely filed his Notice of Appeal and raised four issues: 1) whether the doctrines of res judicata or collateral estoppel barred his claims, 2) whether judicial estoppel precluded his malpractice action, 3) whether the thirty-day period provided in Section 11-1-39 required dismissal, and 4) whether there remains a genuine issue of material fact as to the elements of his legal-malpractice and fiduciary-duty claims. After review, the Supreme Court concluded: Bobby's claims were not precluded by the doctrines of res judicata and collateral estoppel; judicial estoppel did not preclude Bobby's legal-malpractice action; there was no merit to Montgomery's Section 11-1-39 argument; and there remained a genuine issue of material fact as to whether an attorney-client relationship existed. View "Gibson v. Williams, Williams & Montgomery, P.A." on Justia Law

The issue this case presented for the Mississippi Supreme Court's review centered on the validity of a 1995 Florida divorce decree. Sarath Sapukotana (Sarath) and Palihawadanage Ramya Chandralatha Fernando (Fernando) were married in Sri Lanka in 1992. Sarath moved to the United States a year later. In 1995, a Florida court entered an uncontested divorce decree, dissolving the marriage of Sarath and Fernando. In 2004, Sarath then married Martha Gay Weaver Sapukotana (Martha) in Mississippi. Sarath died intestate in 2008 from injuries which led to a wrongful death suit. The trial court granted Martha’s petition to be named the administratrix of the estate, over the objection of Fernando, Sarath’s first wife. This allowed Martha to file, and later to settle, the wrongful death claim. Fernando claims that the 1995 Florida divorce decree was fraudulent and void for lack of service of process, and that she instead was the rightful beneficiary to Sarath’s estate and to the proceeds of the wrongful death action. Fernando filed a motion to vacate the chancery court’s decision to appoint Martha as administratrix of Sarath’s estate. The chancery court dismissed Fernando’s motion and held that Martha was the rightful beneficiary to Sarath’s estate. Fernando appealed. The Supreme Court affirmed the chancery court, finding that the chancery court lacked authority to vacate the 1995 Florida divorce decree. View "In Re: In the Matter of the Estate of Sarath Sapukotana" on Justia Law

Following Steve Broome’s death, his ex-wife Elizabeth Strickland and his children, Stephen Broome and Jesse Broome, filed claims against Steve’s estate for child support arrears, other unpaid support obligations, and for life insurance proceeds. The chancellor dismissed all of the claims, holding that the claims were not valid because they were not reduced to a judgment before Steve’s death and that the claims were barred by res judicata. After review, the Supreme Court held that the chancellor erred in dismissing the claims, since Elizabeth, Stephen, and Jesse presented sufficient evidence to satisfy Mississippi Code Section 91-7-149. The case was reversed and remanded for further proceedings. View "Strickland v. Estate of Steve Alan Broome" on Justia Law