Justia Trusts & Estates Opinion Summaries

Following mediation, a trust beneficiary and a trustee signed a document purporting to settle a bitter family litigation and referring future disputes to the mediator for resolution. The beneficiary subsequently denied that she settled and asked the mediator to resolve the issue, but the mediator concluded that the parties had reached a binding settlement. The beneficiary tried to resurrect this issue in the superior court, but the court concluded that the mediator’s decision was within the scope of the authority conferred by the parties. After review, the Alaska Supreme Court concluded the superior court did not err by confirming the mediator’s decision. Furthermore, the court did not err by denying the beneficiary’s petition to review the trustee’s compensation, or by awarding Alaska Civil Rule 82 attorney’s fees to the trustee. View "Lee v. Sheldon" on Justia Law

McKnight, a bartender, became friends with Fewlas. McKnight rented an apartment in his duplex. For 17 years, McKnight lived in this upstairs apartment with her boyfriend, Kurt. Fewlas and McKnight did not always get along. Fewlas disliked Kurt. Fewlas died, having accumulated more than $2.2 million. McKnight went on a spending spree. She withdrew over $600,000 in 171 different transactions—all in amounts less than $10,000. This suspicious conduct got the IRS’s attention; the IRS suspected that Fewlas had not left his estate to McKnight. Kurt confessed that he had forged Fewlas’s signature on a fake will, prepared by attorney Pioch. His confession resulted in multiple convictions. The Sixth Circuit affirmed in part, rejecting a Confrontation Clause claim based on the admission of Kurt’s videotaped deposition testimony. Kurt was 76 years old, in poor health, and unable to travel at the time of trial. The court also upheld the admission of testimony concerning handwriting analysis. The court remanded for reconsideration of a motion for a new trial because the court conflated the rules, repeatedly characterizing its task as evaluating the sufficiency of the evidence, rather than weighing the evidence for itself. The court vacated the sentences: the court enhanced sentencing ranges after concluding that the defendants caused financial hardship to the putative beneficiary of Fewlas’s estate but the Guidelines did not contain that enhancement at the time of the misconduct. View "United States v. Pioch" on Justia Law

Appellants Brian O'Connor and Astrid O'Connor Bassett appealed from orders: (1) declaring decedent John O'Connor's power of appointment exercised in his will complied with the requirements of Probate Code1 section 632; and (2) for probate of his will. The Court of Appeal concluded the language of decedent's will contained enough detail to discern his conscious exercise of the particular power of appointment granted to him, and thus complied with the requirements of both the granting instrument and section 632 that he make a specific reference to the power of appointment. Accordingly, the Court affirmed the orders. View "Estate of O'Connor" on Justia Law

The Supreme Court affirmed the district court’s entry of judgment as a matter of law in favor of Defendants, corporate entities and individuals, at the close of Plaintiff’s case-in-chief in the bench trial held on her claims, holding that there was no prejudicial error in the proceedings below.On the scheduled day for trial, the district court noted that Plaintiff’s claims were “not entirely clear” but understood them to constitute a derivative action seeking forced dissolution of the corporations. Plaintiff’s evidence in support of her case focused primarily on allegations of corporate records mismanagement. At the close of Plaintiff’s case-in-chief, the district court granted judgment as a matter of law for Defendants. The court then granted an individual defendant attorney fees pursuant to the equity exception to the American Rule. The Supreme Court affirmed and granted Defendants’ request to declare Plaintiff a vexatious litigant, holding (1) the district court did not err in granting judgment in favor of Defendants; (2) the district court did not err in granting attorney fees; (3) Plaintiff was not denied a fair trial; and (4) the district court did not abuse its discretion in the administration of the trial. View "McCann v. McCann" on Justia Law

The Supreme Court affirmed the district court’s dismissal of Appellant’s declaratory judgment claim challenging a codicil to Patricia Ann Britain’s will, holding that Appellant’s challenges to the codicil could not be brought through a declaratory judgment action.Appellant, the personal representative of Patricia’s estate, brought this action alleging that Patricia was not competent to execute the codicil at issue because she did not have the capacity to execute the codicil or acted under undue influence. The district court dismissed the declaratory judgment action, concluding that the personal representative of an estate was not entitled to maintain a declaratory judgment action to challenge a will codicil on the grounds that the testator lacked capacity and/or was unduly influenced. The Supreme Court affirmed, holding that the district court properly dismissed the action because a will contest is the exclusive method of testing the validity of a will when there are questions about the testator’s competence or questions about undue influence. View "Britain v. Britain" on Justia Law

Appellants, adult children of Decedent, who died in 2010 of mesothelioma allegedly caused by exposure to asbestos in brakes he purchased from Pep Boys, an automotive parts retailer, brought claims for wrongful death, strict liability, and negligence. The trial court rejected appellants’ wrongful death claims as untimely and a claim for punitive damages. The court awarded $213,052 as economic damages but found that amount was entirely offset by settlements with other parties. The court of appeal reversed in part, agreeing that the trial court erred in failing to award damages for the costs of providing home health services to Decedent and his wife and erred in awarding Pep Boys expert fees under section 998. The court rejected claims that the trial court abused its discretion in allowing Pep Boys to amend its answer to correct a previously-asserted statute of limitations defense; erred in granting Pep Boys’ motion for judgment under section 631.8; and erred in applying offsets to the award of economic damages based on prior settlements without allocating between estate claims and wrongful death claims. Damages recoverable in a survival action brought by a decedent’s personal representative or successor in interest are limited to damages that the decedent incurred before death and do not include “ ‘lost years’ damages” that would have been incurred had the decedent survived. View "Williams v. The Pep Boys Manny Moe & Jack of California" on Justia Law

The chancery court examined the principles underlying quantum meruit and found that Vincent Castigliola and David Kiyhet, attorneys for the estate of Dane Eubanks, should have been awarded attorneys’ fees from two minors out of a settlement they, and only they, obtained. After remand from the Mississippi Supreme Court, the chancery court again heard arguments as to whether Castigliola and Kiyhet should be awarded attorneys’ fees from the two minors based on quantum meruit out of the settlement they obtained. The remand required that the chancery court make specific findings of fact. This time, without making any findings of fact and without any contradictory evidence being introduced, the chancery court reversed course and found that the factors for quantum meruit were not met. Because the chancery court failed to follow remand instructions by failing to make findings of fact, and, because no contradictory evidence was adduced suggesting the factors for quantum meruit were suddenly not met, the Supreme Court reversed and remanded the case for a further determination of attorneys’ fees. View "In the Matter of the Estate of Dane Richard Eubanks, Deceased" on Justia Law

Brian Cole was killed in a motor vehicle accident in 2001. Brian Cole’s Estate had a court-approved contingency fee contract with Eugene Tullos, and only Eugene Tullos, to represent the Estate in wrongful death litigation. The Ferrell Group claimed this contract rendered it an interested party entitled to notice of the Estate’s final accounting under Mississippi Code Section 91-7-295. The trial court found that the Ferrell Group was not an interested party pursuant to the notice statute. Because the Ferrell Group did not probate a claim or have a contract with the Estate, or otherwise show a direct pecuniary interest in the Estate, the Mississippi Supreme Court affirmed the trial court’s judgment. View "In the Matter of the Estate of Brian K. Cole, Deceased" on Justia Law

Petitioner-appellant Christine Davidson was the court-appointed conservator of the person and estate of Lorraine Presha from 2009 to 2015. Presha died in March 2015. In June 2015, Davidson filed a combined petition for: (1) approval of the sixth and final accounting, and (2) conservator’s fees. Davidson sought conservator’s fees in the amount of $12,621.60. The probate court ordered conservator’s fees in the amount of $7,000. Davidson contended on appeal that the trial court erred by: (1) examining Davidson’s billing practices; (2) utilizing its finding that Davidson’s billing practices were improper when ruling upon Davidson’s petition for compensation; (3) vitiating the finality of prior cases for which Davidson served as the conservator; and (4) not utilizing the enumerated factors when ruling on her petition for compensation. Finding no abuse of discretion or reversible error, the Court of Appeal affirmed the judgment. View "Conservatorship of Presha" on Justia Law

After trial, the probate court approved, subject to a $93,036.75 surcharge, the first and final account and report of trustee (First Report), filed by Melodie Scott, trustee of The A’Yana McDonald Special Needs Trust (the trust). The Beneficiary, through court-appointed counsel, objected to the First Report and to the petition for settlement and termination of the trust, alleging the trustee failed to file court-mandated reports, had no supporting records for fees paid to the trustee, and that the money was not spent solely for her benefit. Beneficiary requested that Trustee be surcharged $259,309.38 for missing interest payments and for improper disbursements. The court found the beneficiary proved the trustee expended various funds without sufficient care or justification, and without reference to the text or purpose of the trust; "and once that money is gone, of course legal damages result.” The trustee raised three issues on appeal: (1) the probate court did not apply the correct legal standard (without specifying what was incorrect); (2) the trustee asserted substantial evidence does not support the finding of breach; and (3) the trustee contended the probate court erred by denying compensation for Trustee’s services. The Court of Appeal found that "given Trustee’s mismanagement of the trust estate, failure to make the required court filings, and continued service when she lacked a license, the probate court could reasonably conclude that Trustee was not entitled to compensation because any compensation for the service rendered would be inequitable due to Trustee’s multiple failures in administering the trust." The total amount of the surcharge was modified to $92,036.75. In all other respects, the judgment was affirmed. View "Scott v. McDonald" on Justia Law