Justia Civil Procedure Opinion Summaries

Janice Tubbs challenged certain assets her father, Harry William Berkowitz transferred to himself after his wife passed away. Berkowitz and his wife, Janice's parents, created The Berkowitz Family Trust (the Trust). The Trust provided for the allocation of assets to a surviving spouse’s trust and a marital appointment trust (the Marital Trust) upon the death of either Berkowitz or his wife. The surviving spouse’s trust and the Marital Trust included a general power of appointment allowing the surviving spouse to designate a person who would receive the Trust assets. Under that power of appointment, the surviving spouse could designate himself or herself as the person who would receive the assets. Berkowitz exercised this power of appointment after his wife passed away and transferred all the Trust assets to himself, effectively divesting Tubbs and her children who were contingent beneficiaries. According to Tubbs, Berkowitz’s fiduciary duties as the successor trustee limited his exercise of the power of appointment. Berkowitz moved for summary judgment contending he had the right to transfer all assets to himself pursuant to the general power of appointment provisions, which allowed him to act in a nonfiduciary capacity. The court granted Berkowitz’s motion for summary judgment and found the general power of appointment provisions gave him unfettered discretion. Because the power of appointment was given to the surviving spouse, and not the trustee, the court rejected Tubbs’s contention that Berkowitz’s discretion was limited by his role as the successor trustee. On appeal, Tubbs contended the court erred because Berkowitz was bound by his fiduciary duties as trustee when he exercised the general power of appointment. Finding no error in the trial court's judgment, the Court of Appeal affirmed summary judgment. View "Tubbs v. Berkowitz" on Justia Law

Huntingdon College, a beneficiary of the Bellingrath-Morse Foundation Trust ("the Foundation"), petitioned the Alabama Supreme Court for a writ of mandamus directing the Mobile Probate Court to vacate its order denying Huntingdon's motion to dismiss an action filed by the Foundation's trustees, on behalf of the Foundation, and to enter an order dismissing the action for lack of jurisdiction. Walter Bellingrath established the Foundation, a charitable trust ("the Trust Indenture"). Mr. Bellingrath contributed to the Foundation, both at its inception, and through his will and codicil, substantial property, including the Bellingrath Gardens ("the Gardens") and his stock in the Coca-Cola Bottling Company. Beneficiaries of the Foundation included three privately supported Christian colleges: Huntingdon College, Rhodes College, and Stillman College. The Foundation’s trustees and the beneficiaries have historically disagreed as to whether the Trust Indenture contemplated the subsidy of the Gardens by the Foundation and, if so, to what extent and with what limitations, if any. The trustees had difficulty operating the Gardens based on agreed-upon caps to the Garden's subsidy, and have voted to increase the distribution amount to the Gardens. They sought declaratory relief in order to maintain a reserve for the repair and capital improvement of the Gardens, and to distribute to the Gardens, in the trustees' sole discretion, such amount of the Foundation's income they deemed necessary for the maintenance, repair and operation of the Gardens. The Alabama Supreme Court determined the the probate court lacked jurisdiction to modify the Mobile Circuit Court's final judgment approving a 2003 Amendment. The Supreme Court therefore granted the petition for a writ of mandamus and directed the probate court to dismiss the trustees' action. View "Ex parte Huntingdon College." on Justia Law

This case stemmed from Carol McCoy Brown’s petition for an elective share of her decedent husband’s augmented estate. When Michael Orion Brown (the decedent) died intestate, she discovered that he had set aside multiple payable on death (POD) accounts for his children and grandchildren from a prior marriage. Carol filed a petition to recover a portion of the POD funds as part of the decedent’s augmented estate. The decedent’s children, Dorraine Pool and Michael J. Brown (the Heirs), challenged the petition. The magistrate court denied Carol's petition, concluding that she had not met her burden of demonstrating that the POD funds were quasi-community property as required by the elective share statutes. Carol appealed to the district court, which affirmed the magistrate court’s denial of the petition, and granted the Heirs attorney fees. Still aggrieved, Carol sought certiorari review by the Idaho Supreme Court. But finding no reversible error in either of the lower courts' decisions, the Supreme Court affirmed. View "Brown v. Brown" on Justia Law

The estate of Ed Young, deceased, by and through its personal representative, Fannie Pollard, appealed the grant of summary judgment entered in favor of H.C. Partnership d/b/a Hill Crest Behavioral Health Services ("Hill Crest") in a wrongful-death action alleging medical malpractice. On May 7, 2017, the estate of Ed Young sued Hill Crest alleging that Hill Crest caused Young's death on May 9, 2015, by improperly administering the antipsychotic drugs Haldol and Thorazine to Young as a chemical restraint without taking a proper medical history and evaluating him. The style of the complaint indicated that it was filed by the "Estate of Ed Young and Fannie M. Pollard as personal representative of the Estate of Ed Young." On May 8, 2017, the probate court appointed Fannie M. Pollard as administrator of Young's estate. On May 9, 2017, the two-year limitations period under Alabama's wrongful-death act expired. On June 15, 2017, the estate filed an amended complaint, adding additional claims against Hill Crest. The amended complaint listed as plaintiffs the estate and Pollard as the personal representative of the estate. The parties then engaged in discovery. In 2019, Hill Crest moved for summary judgment, arguing that Pollard was not the personal representative of the estate when the complaint was filed, and therefore she lacked capacity to bring suit. Furthermore, Hill Crest argued the complaint was a nullity and there was no properly filed underlying action to which Pollard's subsequent appointment as personal representative could relate. The Alabama Supreme Court found Hill Crest's argument regarding the relation-back doctrine as unavailing: "the relation-back doctrine 'simply recognizes and clarifies what has already occurred' in that application of the doctrine does not extend the limitations period but merely allows substitution of a party in a suit otherwise timely filed." Summary judgment was reversed and the matter remanded for further proceedings. View "Pollard v. H.C. Partnership d/b/a Hill Crest Behavioral Health Services" on Justia Law

Gary D. Foster and Stephen Foster were brothers who had a disagreement over the management of the "Foster Family 1989 Trust" ("the Trust"). Gary filed a "complaint" seeking an accounting and an inventory of the Trust and, subsequently, seeking to remove Stephen as the trustee of the Trust. The trial court entered a final judgment in favor of Gary and assessed damages. Stephen appealed. Finding no reversible error in the trial court’s decision, the Alabama Supreme Court affirmed. View "Foster v. Foster" on Justia Law

A district court dismissed Plaintiff–Appellant Lawrence Smallen and Laura Smallen Revocable Living Trust’s securities-fraud class action against Defendant–Appellee The Western Union Company and several of its current and former executive officers (collectively, “Defendants”). Following the announcements of Western Union’s settlements with regulators in January 2017 and the subsequent drop in the price of the company’s stock shares, Plaintiff filed this lawsuit on behalf of itself and other similarly situated shareholders. In its complaint, Plaintiff alleged Defendants committed securities fraud by making false or materially misleading public statements between February 24, 2012, and May 2, 2017 regarding, among other things, Western Union’s compliance with anti-money laundering and anti-fraud laws. The district court dismissed the complaint because Plaintiff failed to adequately plead scienter under the heightened standard imposed by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). While the Tenth Circuit found the complaint may have given rise to some plausible inference of culpability on Defendants' part, the Court concurred Plaintiff failed to plead particularized facts giving rise to the strong inference of scienter required to state a claim under the PSLRA, thus affirming dismissal. View "Smallen Revocable Living Trust v. Western Union Company" on Justia Law

Respondent L.N. appealed a circuit court order denying a motion to authorize removal of life support filed by her guardian. In 2018, tests indicated that L.N. had suffered a stroke. L.N. was 69 years old at the time of the orders on appeal, and had “enjoyed a full, active, independent life” prior to her stroke on September 12. Thereafter, L.N. remained in the hospital on a ventilator to assist with breathing and a nasal-gastric tube for nutrition and hydration. L.N.’s attorney informed the court in a motion for expedited hearing that “[a]fter consulting with personnel, it has been indicated that [L.N.] will probably not survive the massive stroke which precipitated this hospitalization, but there is no one with authority to act.” There was no evidence that L.N. had previously executed either a living will or a durable power of attorney for healthcare. M.C., a former co-worker, was ultimately appointed as guardian. Based upon conversations, the guardian’s sense was that L.N. “would want to be allowed to have a natural death.” Notwithstanding testimony by L.N.’s caregivers and guardian, the trial court concluded that, “in cases of doubt, the Court must assume that the patient would choose to defend life” and did “not find that [L.N.] - under the facts in this case - would choose to have life support removed and a natural death process to occur.” On appeal, L.N. argues that the probate court erred in determining that “it had jurisdiction to make a determination as to the appropriateness, or lack thereof, of the removal of life support in the case of a patient who was in a persistent vegetative state” where “no party challeng[ed] the proposed removal.” She further argued that, even if the court had the authority to exercise its discretion in this matter, its findings were unsupported by the testimony. The New Hampshire Supreme Court reversed the order denying authority to remove life support and vacated, in part, the order appointing the guardian: “Because any limitation on the guardian’s RSA 464-A:25, I(d) authority after the October 17 hearing was not supported by the statutorily-required finding that it was “desirable for the best interests of [L.N.],” RSA 464-A:25, II, we vacate that limitation. Without that limitation, the guardianship order’s grant of the ‘right and authority to determine if refusal should be made or consent should be given to any medical or other professional care, counseling, treatment, or service’ constitutes a general grant of authority that includes the authority to withdraw life-sustaining treatment in appropriate circumstances.” View "In re Guardianship of L.N." on Justia Law

Walter and Mary Van Riper transferred ownership of their marital home to a single irrevocable trust. Walter passed away shortly after transfer of the property to the trust. Six years later, after Mary passed away, the trustee distributed the property to the couple’s niece. In this appeal, the issue presented for the New Jersey Supreme Court was whether the New Jersey Division of Taxation (Division) properly taxed the full value of the home at the time of Mary’s death. Walter and Mary directed that, if sold, all proceeds from the sale of their residence would be held in trust for their benefit and would be utilized to provide housing and shelter during their lives. Walter died nineteen days after the creation of the Trust. Mary died six years later, still living in the marital residence. Mary’s inheritance tax return reported one-half of the date-of-death value of the marital residence as taxable. However, the Division conducted an audit and imposed a transfer inheritance tax assessment based upon the entire value of the residence at the time of Mary’s death. Mary’s estate paid the tax assessed but filed an administrative protest challenging the transfer inheritance tax assessment. The Division issued its final determination that the full fair market value of the marital residence held by the Trust should be included in Mary’s taxable estate for transfer inheritance tax purposes. The Appellate Division affirmed the Tax Court’s conclusion, rejecting the estate’s argument that transfer inheritance tax should only be assessed on Mary’s undivided one-half interest in the residence. The Supreme Court agreed with both the Tax Court and the Appellate Division that the Division properly taxed the entirety of the residence when both life interests were extinguished, and the remainder was transferred to Marita. The property’s transfer, in its entirety, took place “at or after” Mary’s death, and was appropriately taxed at its full value at that time. “In light of the estate-planning mechanism used here, any other holding would introduce an intolerable measure of speculation and uncertainty in an area of law in which clarity, simplicity, and ease of implementation are paramount.” View "Estate of Mary Van Riper v. Director, Division of Taxation" on Justia Law

Glenvin Albrecht (“Glen”) appealed judgment entered in favor of the Estate of Sharleen Albrecht (“Estate”) regarding certain assets in which he had an ownership interest. In February 2010, Glen sued Sharleen for divorce after nearly 50 years of marriage. Sharleen died on July 29, 2013, before a final divorce judgment was entered. The district court entered a final divorce judgment after her death, and the North Dakota Supreme Court reversed, holding Sharleen's death abated the divorce action. Sharleen had a will, and Sharleen and Glen's son, Mark Albrecht, was appointed personal representative of the Estate. In February 2017, the Estate petitioned for the return, partition, and sale of estate assets. The Estate alleged Sharleen owned a one-half interest in various farm machinery, equipment, and vehicles, which were in Glen's control. The Estate alleged a partition and sale of the assets was necessary to satisfy estate expenses. Glen objected to the petition, arguing Sharleen did not have an ownership interest in the assets. A trial was conducted in 2018, the result of which ended with judgment in favor of the estate. Glen argued on appeal that the district court erred by finding Sharleen had an interest in the assets at issue, and the court abused its discretion by allowing personal representative’s and attorney’s fees. Finding no reversible error or abuse of discretion, the North Dakota Supreme Court affirmed. View "Estate of Albrecht" on Justia Law

Zambia Player appealed two circuit court orders issued in regard to her administration of the estate of her brother, Jabari Player. Jabari died intestate in 2013, leaving as his sole heir at law his 14-year-old daughter J.C. In 2017, Zambia filed a "Petition for Letters of Administration," and, after posting a bond, she was appointed administratrix of Jabari's estate. Zambia filed an "Inventory of the Estate of Jabari Player," which showed the value of Jabari's estate to be $20,862. J.C. protested this inventory through counsel. For reasons that were not clear, a guardian ad litem was not appointed on J.C.'s behalf until four years later. For several years Zambia did nothing to close the estate or to surrender the property in the estate to J.C. Through her guardian ad litem, J.C. filed a petition to remove the estate to the Etowah Circuit Court. Following the removal of the estate, J.C. moved to compel an accounting. Zambia failed to comply with the accounting order; thereafter, J.C. moved to remove Zambia as personal representative of the estate. In response, Zambia filed a “petition for final settlement” of the estate. The circuit court still insisted on a “formal accounting.” At the hearing on J.C.’s motion to remove Zambia, Zambia appeared pro se and testified concerning her administration of the estate. Zambia essentially testified that she had relied upon her former attorney for all of her actions and that she did not mean to mismanage the estate, but Zambia essentially admitted that she had commingled estate funds and property with her personal accounts and property. The following day, the circuit court entered an order that, among other things, removed Zambia as personal representative of the estate, and it denied Zambia's petition for approval of her final accounting. The Supreme Court determined Zambia's appeal of the order removing her as personal representative of Jabari's estate was not timely; therefore that part of Zambia's appeal was not properly before the Supreme Court and was dismissed. Zambia also did not demonstrate that the circuit court erred in its order assessing damages against her for malfeasance in administering the estate. Therefore, that order was affirmed. View "Player v. J. C." on Justia Law