Case Summaries

Probate Trusts

[06/26] Murphy v. Murphy
A probate court judgment finding plaintiff entitled to a constructive trust over one-half interest of decedent's real and personal property existing on the date of his death is reversed on collateral estoppel grounds where: 1) prior to the decedent's death, a probate court previously issued an order on behalf of decedent, authorizing the decedent's conservator to execute a living trust and pour-over will to implement an estate plan which effectively disinherited plaintiff; and 2) a careful balance of all the relevant factors supported that principles of collateral estoppel should serve to bar plaintiff's subsequent causes of action.

[06/25] Safai v. Safai
In a case involving a dispute over whether a minor's actions triggered the "no contest clause" contained in a trust instrument, the court of appeals finds that the minor's act of signing the "minor's consent" portion of an ex parte application for appointment of guardian ad litem did not equate to "voluntarily" participating in a trust contest, an act which a minor is legally incapable of pursuing by their own volition.

[06/24] IN Funeral Directors Ins. Trust v. Benefit Actuaries, Inc.
In a suit alleging violation of fiduciary duties under ERISA and breaches of common law duties to plaintiff by providing it with bad advice and failing to recommend measures that would stave off insolvency, judgment for defendant is affirmed where: 1) plaintiff did not provide evidence that defendants promised to administer the Trust in accordance with certain state law or that defendants knew the Trust would rely on it to follow the Michigan statute; 2) plaintiff failed to show that defendant assumed a duty to provide actuarial advice; 3) defendant did not breach a duty by failing to advise trustees about the risk of raising the specific stop loss deductible and about the Trust's poor financial situation; and 4) defendant did not breach a duty by failing to recommend that the Trust maintain adequate reserves.

[06/20] Talbot v. Hustwit
Judgment entered against defendants on a guaranty agreement after lender foreclosed on real property securing a loan made to a trust structured by defendants is affirmed where: 1) case law has uniformly held the requirements for a deficiency judgment under Code of Civil Procedure 580a inapplicable to guarantors; and 2) considering the manner in which defendants structured the trust arrangement to detach from debts owed by the trust, there was ample basis for finding them not principal obligors to the loan, but true guarantors.

[05/15] Miller v. Campbell
In a fees dispute brought by a law firm against the executor of an estate after the probate court refused to award a category of fees associated with services rendered for the executor's personal matters, grant of executor's motions in limine to exclude all evidence, resulting in dismissal of the case, is reversed where: 1) the doctrines of res judicata and collateral estoppel did not apply to bar the law firm's claim of fees against the executor personally; and 2) in light of the evidence, the trial court erroneously ruled that the evidence was insufficient, as a matter of law, to support the law firm's quantum meruit claim.

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