Justia Trusts & Estates Opinion Summaries

These consolidated appellate proceedings consisted of an appeal filed by Regina Daily ("Regina") and The Daily Catch, Inc., d/b/a Gulf Shores Seafood ("The Daily Catch") (case number SC-2022-0672); a cross-appeal by Greg Esser ("Greg") (case number SC-2022-0673); and a petition for a writ of mandamus filed by Patrick Daily ("Patrick"), Regina, The Daily Catch, White Sands, Inc., d/b/a Remax of Orange Beach ("White Sands"), and Blue Palms, LLC (case number SC-2022-0992). The appeal, the cross-appeal, and the mandamus petition all involved the same underlying action filed by Greg -- in his individual capacity, in his capacity as the trustee of the Wallene R. Esser Living Trust ("the trust"), and in his capacity as an administrator ad litem of the estate of Wallene R. Esser ("the estate") -- against Patrick, Regina, The Daily Catch, White Sands, and Blue Palms. Following a bench trial, the circuit court entered a judgment awarding damages in favor of Greg and against Regina and The Daily Catch; the circuit court denied Greg's claims as to all the other defendants. Regina and The Daily Catch filed their appeal, and Greg filed his cross-appeal. Later, Patrick, Regina, The Daily Catch, White Sands, and Blue Palms petitioned for mandamus relief. Greg and Regina were Wallene's children and were beneficiaries to Wallene's estate. Generally, Greg alleged that "[t]he trust has been harmed and depleted by the acts and omissions of the defendants." Greg asserted claims of breach of fiduciary duty and unjust enrichment, requesting money damages and declaratory relief. After review, the Alabama Supreme Court affirmed the circuit court's judgment in case numbers SC-2022-0672 and SC-2022-0673, and granted the mandamus petition filed in case number SC-2022-0992. View "Daily, et al. v. Esser" on Justia Law

This case arose out of disputes over the propriety and enforceability of amendments to Thomas Tedesco’s living trust, which was conceived of as part of a family estate plan Tedesco created with his late wife, Wanda. The trust came into being following Wanda Tedesco’s death in 2002, and it was later restated. The primary beneficiaries of the restated trust were the cotrustees. For their part, the cotrustees petitioned the court to validate a 2013 amendment, and thus to establish the invalidity of a purported 2020 amendment to the restated trust. The appeal before the Court of Appeal challenged a discovery sanction for $6,000. Counsel attempted to use the sanctions order as a basis for challenging the merits of the trial court’s nonappealable order quashing appellant Debra Wear's document subpoena, and then to further use the trial court’s analysis underlying that discovery ruling into a basis for reviewing a separate order the Court of Appeal already ruled could not be appealed. The Court concluded all of this seemed to be in furtherance of counsel’s broader quest: to again collaterally attack the validity of a conservatorship over the Tedesco estate, which had been rejected by the probate and appellate courts in earlier proceedings. The Court determined its jurisdiction arose here on the limited issue of sanctions, and found Wear failed to challenge the probate court's pertinent determinations, "let alone demonstrate why the court abused its discretion in making them. We find no error in the court’s ruling." The Court affirmed the sanctions order. View "Tedesco v. White" on Justia Law

The Supreme Court denied Petitioner's petition for a writ of mandamus challenging the final approval of the settlement in the underlying class action against the State, holding that Petitioner had no right to compensation.In 1920, the federal government pledged land to native Hawaiian beneficiaries, and while Hawai'i held the homestead land in trust it breached its fiduciary duties. In the underlying class action, trust beneficiaries successfully sued the State for breach of its trustee responsibilities, and the State settled. The Supreme Court accepted a petition for a writ of mandamus, an appeal challenging final approval of the case's settlement, and held (1) because Petitioner was born beyond the statutory period to receive a payout from the settlement he had no right to compensation; and (2) because this decision ended Petitioner's appeal, the appeal before the intermediate court of appeals was moot. View "Rivera v. Honorable Cataldo" on Justia Law

In January 2018, Lichter filed a personal injury action against Christopher for injuries she suffered in a car accident in February 2016, not knowing that Christopher had died in June 2017. An estate was never opened for Christopher following his death. In April 2018, Lichter successfully moved (735 ILCS 5/2-1008(b)(2)) to appoint Carroll as the special representative of Christopher’s estate for the purpose of defending the lawsuit. Lichter subsequently filed an amended complaint, naming Carroll as the special representative of Christopher’s estate and the defendant. Counsel for Christopher’s insurer, State Farm, appeared on behalf of the defendant. In March 2020, the defendant moved to dismiss Lichter’s complaint (735 ILCS 5/2-619(a)), arguing that the action was time-barred because Lichter never moved to appoint a personal representative of Christopher’s estate before the statute of limitations expiring, as required by 735 ILCS 13- 209(c).The appellate court reversed the dismissal of the case; the Illinois Supreme Court affirmed. Subsection (b)(2), relating to the appointment of a special representative is not limited to situations where the plaintiff is aware of the defendant’s death. It was enacted to streamline the court process when there is no personal representative in place to defend a lawsuit. A plaintiff who learns of a defendant’s death after the statute of limitations has expired is not required to move to appoint a personal representative through the probate court. View "Lichter v. Porter Carroll" on Justia Law

The parents of Elliott Williams created their individual wills and joint trust after Elliott died. A wrongful death lawsuit was filed on Elliott's behalf, and the Williamses were statutory beneficiaries to proceeds from the lawsuit. Before they received any such proceeds, they attempted to transfer them into their trust for estate planning purposes. Both parents subsequently died before the proceeds were determined or distributed. The petitioner, the personal representative of Elliott's mother's estate, then sought to have Elliott's mother's share judicially determined to belong in the trust. The trial court determined they belonged in the trust. The personal representative of the father's estate appealed, and the Court of Civil Appeals affirmed. In an issue of first impression, the Oklahoma Supreme Court considered whether proceeds from a wrongful death case could be transferred into a trust before they are obtained by the trust settlor. The Court held that they can, and if they were, they belonged in the trust. View "Hamilton v. Welsh" on Justia Law

The Supreme Court affirmed the judgment of the district court issuing an order awarding the Estate of Thomas Ronan the insurance proceeds of a house that was destroyed by fire, holding that the district court did not err.When Janet Le Ora Ronan died, she left a holographic will specifically devising her interest in a farm to Thomas "with him having preference to keeping the house [and] farmstead...." After the district court adopted a stipulated settlement agreement (SSA) setting forth the terms as to how to distribute the estate the house was destroyed in a fire. Thomas later died. Appellants had previously insured the house with Janet's estate as the insurance beneficiary, and the insurance company issued $169,089 for the house and $15,250 for personal property destroyed in the fire. The district court relied on the doctrine of equitable conversion to award Thomas's estate the insurance money. The Supreme Court affirmed, holding that the district court (1) did not err in distributing the insurance proceeds according to Montana residuary law or the SSA; and (2) did not err by relying on the doctrine of equitable conversion to distribute the insurance proceeds in furtherance of Janet's intent in specifically devising the house to Thomas. View "In re Estate of Ronan" on Justia Law

The Supreme Court reversed the order of the district court denying Appellant's motion to intervene in a suit involving her husband's estate, holding that Appellant had a direct and legal interest in the litigation sufficient to support intervention under Neb. Rev. Stat. 25-238.Appellant was appointed to serve as personal representative of her deceased husband's estate. In that capacity, Appellant filed suit against the estate of her husband's brother. Thereafter, a special administrator was appointed to administer the estate of Appellant's husband, and the administrator advanced this litigation. Appellant subsequently filed a motion to intervene in this suit in her individual capacity. The district court denied the motion. The Supreme Court reversed, holding that Appellant had a direct and legal interest in the litigation and was entitled to intervene. View "Harchelroad v. Harchelroad" on Justia Law

After Nick Martino (Decedent) died intestate, his stepson from a previous marriage, Nick Zambito, petitioned to be deemed an heir. Decedent’s biological children, Tracey Martino and Joseph Martino (together, Objectors), objected. After a bench trial, the probate court determined that Decedent was Zambito’s “natural parent” under Probate Code sections 6540 and 6453, which defined the “natural parent” and child relationship for purposes of intestate succession. The Court of Appeal concluded Zambito had standing to claim natural parentage heirship even though he was not the Decedent’s biological child. The Court further concluded that Probate Code section 6454, which provided a pathway for intestate succession by stepchildren and foster children, did not operate to foreclose other available statutory methods for a stepchild to establish a right to intestate succession. In the absence of any challenge to the sufficiency of evidence to support the probate court’s factual findings under this theory, the Court concluded that Objectors failed to demonstrate any reversible error. View "Estate of Martino" on Justia Law

Noble Prestige Limited lent Paul Thomas Horn $500,000 to pursue litigation against a telecommunications company. While the litigation was pending, a conservatorship over Horn’s assets was commenced in a probate court in Denver, Colorado (the “Denver Probate Court”). The case was settled, and the proceeds were placed in the conservatorship estate, subject to Galle’s management and the ultimate custody and control of the Denver Probate Court. Noble ultimately obtained arbitral awards that required Horn to pay Noble the debt owed under the loan agreement and Galle to pay Noble costs associated with the arbitration. Noble moved to confirm the awards and sought a temporary restraining order prohibiting Galle, Horn, and Galle’s law firm. Galle and GLG (together, “Respondents”) opposed Noble’s request and moved to dismiss the action. The district court granted Noble’s request, entering what it termed a “temporary restraining order” that prohibited Galle from dissipating or transferring $10,000,000 “notwithstanding any order(s) entered by the [Denver] Probate Court.” The district court also entered an order granting Respondents’ motion to dismiss in part and denying it in part. Respondents appealed both orders.   The Eleventh Circuit dismissed Respondents’ appeal to the extent it challenged the district court’s denial of their motion to dismiss, vacated the district court’s entry of preliminary injunctive relief, and remanded the case. The court explained that Noble’s petition fails to invoke the equitable jurisdiction of the district court and, therefore, the issuance of a preliminary injunction under Rule 65 was improper. Further, the court explained that district court lacked the power to issue an order freezing the AT&T settlement funds pending judgment. View "Noble Prestige Limited v. Craig Thomas Galle, et al" on Justia Law

The parents, now deceased, established the Trust. Their daughter is the trustee. There are four other children. The Trust is a 70 percent shareholder of the Company. Each sibling owns an equal share of the remaining 30 percent. A Company shareholder agreement provides that any shareholder owning more than 50 percent of the company can take various actions in their “sole discretion,” including borrowing, lending, and transferring assets. The Trust's balance, after expenses and specific distributions, shall be distributed equally to five sub-trusts benefiting the five siblings. Among the Trust’s liabilities are outstanding loans made by the Company. Two siblings filed a petition to instruct the trustee, to take specified actions, including directing the Company to borrow substantial sums of money to pay estate taxes owed by the Trust. The Company responded to the Petition.The court held that because the Company was neither a trustee nor a beneficiary, it lacked standing to participate in proceedings on the Petition. The court of appeal remanded, finding, as a matter of statutory interpretation, that Probate Code section 1043(a), authorizes “interested persons” to respond or object at or before a hearing in a trust proceeding. The probate court must make the discretionary determination of whether the Company is an interested person. View "Colvis v. Binswanger" on Justia Law