Justia Family Law Opinion Summaries

Plaintiff and her late husband, Grant Tinker, signed a premarital agreement (PMA) that in relevant part governed the ownership and testamentary disposition of their marital home. Respondents, Larry Ginsberg and his law firm, represented plaintiff in connection with the PMA and approved the PMA as to form on her behalf. Non-attorney Sidney Tessler, Tinker's longtime accountant and business manager, negotiated terms and approved the PMA as to form on Tinker's behalf. Plaintiff, the estate, and Tinker's children subsequently litigated plaintiff's and the children's claims, which were ultimately resolved in a global settlement.Plaintiff then filed suit against Ginsberg for legal malpractice in connection with the preparation and execution of the PMA, alleging that the PMA was unenforceable due to Ginsberg’s failure to ensure that Tinker signed a waiver of legal representation. The trial court granted Ginsberg's motion for summary judgment on the ground that Tinker ratified the PMA.The Court of Appeal reversed, concluding that there is a triable issue of material fact as to the threshold issue of whether Tinker satisfied the requirements of Family Code section 1615 when he executed the PMA. The court explained that, if the factfinder determines that Tinker did not comply with section 1615, and the PMA was therefore not enforceable, the question becomes whether Tinker's subsequent amendments to his estate plan could ratify the PMA and thereby rectify the statutory violation. The court concluded that the trial court erred by concluding that they could and did. The court held that a premarital agreement that is not enforceable under section 1615 is void, not voidable, and accordingly cannot be ratified. Because none of the other grounds asserted in the summary judgment motion support the trial court's ruling, the court reversed and remanded for further proceedings on plaintiff's malpractice claim. The court denied plaintiff's request for judicial notice as moot. View "Knapp v. Ginsberg" on Justia Law

Respondent Ryanne Earley appealed a final divorce decree awarding petitioner Wm. Michael Earley part of her interest in an irrevocable life insurance trust established by her parents. She argued the trial court erred by classifying her interest in the trust as marital property subject to equitable division under RSA 458:16-a (Supp. 2020). Because the New Hampshire Supreme Court concluded the trial court’s decision was contrary to RSA 564-B:5-502 (2019), it reversed in part, vacated the remainder of the property division determination, and remanded for further proceedings. View "In the Matter of Wm. & Ryanne Earley" on Justia Law

Appellant William Pullen appealed the family court’s denial of his Family Code section 2030 motion to compel respondent Windham Bremer, the trustee of the Elizabeth Anne Wendt Trust, to pay his attorney fees stemming from his successful motion to join the trustee as a third party to the dissolution action involving Pullen and his ex-wife Elizabeth Anne Wendt. Pullen contended the family court’s ruling was an abuse of discretion as it was based on legal error, and that it effectively precluded him from further litigating the matter. Bremer counters that under California law, a trustee could not be compelled to disburse money absent a showing of bad faith. He argued that Pullen’s claim was subject to Probate Code restrictions on claims against spendthrift trusts. He also claims that payment was barred under Indiana and Illinois law, and that appellant’s underlying claim was specious. The California Court of Appeal surmised the question presented involved the administration of the trust rather than interpreting its terms, Indiana law might apply, and Illinois law was inapplicable. "However, choice of law is immaterial as both Indiana and California follow the modern interpretation regarding the liability of trusts and trustees to third parties. This modern approach allows third parties to obtain relief from the trust for matters arising out of the trust’s administration, and is not limited by spendthrift provisions." The Court found section 2030 provided for the award of attorney fees against parties other than spouses, like the trustee. Since the award of attorney fees stemmed from the administration of the trust and did not involve a claim against the beneficiary, payment from a spendthrift trust was not contingent on the bad faith of the trustee. It was an abuse of discretion for the family court to make the award of fees contingent on such a showing and its judgment was reversed and remanded for additional proceedings. View "Marriage of Wendt and Pullen" on Justia Law

Debra Wilson and David Aubert married in September 2007. They separated ten years later, in June 2017. They had no children together, but each had adult children from prior marriages. Debra filed for divorce in July 2017. At Debra’s request, the court bifurcated the divorce from the property division. In July 2018 the court entered a decree of divorce and ordered that property and debt distribution would be determined at a later trial. A month after the divorce decree, but several months before the property division trial, David died. The personal representative of his estate, his daughter Laura Aubert, substituted as a party. After trial, the superior court divided the marital property 90% to 10% in favor of the wife. The husband’s estate appealed, arguing the court improperly classified, valued, and allocated various property. In particular, the estate challenged the unequal allocation of the marital property. The Alaska Supreme Court held that, as a general matter, the superior court did not abuse its discretion in awarding a disproportionate share of the marital property to the wife in light of her greater needs. But because the superior court erred in classifying several items, the Supreme Court reversed or vacated some of its rulings and remanded for further proceedings. View "Aubert v. Wilson, f/k/a Aubert" on Justia Law

Lucille and Lewis Keading created a trust for the benefit of their children, Kenton and Hilja. During their lifetimes, they provided financial assistance to Kenton but not to Hilja. Kenton had been imprisoned for nine years. In 2015, Hilja returned to her parents’ home to care for them, clean their house, and organize their finances. Lewis died a few months after Lucille. Days after Lewis died, Kenton recorded a deed, transferring the property from the trust to him and his father as joint tenants. He sold Lewis’s car and kept the proceeds.After discovering that Kenton had represented himself as their father’s attorney-in-fact and had executed the deed, Hilja filed suit. A court-appointed trustee joined Hilja’s suit. The court found the transfer invalid, set aside the deed, and vested title to the property with the trustee. Meanwhile, Kenton sued Hilja for libel. The court granted Hilja’s anti-SLAPP motion, concluded Kenton was liable for elder abuse and that the property transfers resulted from elder abuse.The court of appeal affirmed the judgment that found Kenton liable for elder financial abuse through undue influence and ordered him to pay $1.5 million in damages and upheld a prejudgment right to attach order. Probate Code section 859 authorizes an award of double damages for the commission of elder financial abuse without a separate finding of bad faith. The court also upheld the dismissal of Kenton’s libel action. View "Keading v. Keading" on Justia Law

In this discretionary appeal, the Pennsylvania Supreme Court was asked to determine the burden of proof for a settlor of an irrevocable trust in order to void the trust on grounds of fraudulent inducement in the creation of the trust. The corpus of the Trust at issue here consisted of numerous assets totaling approximately $13 million, including two real estate property companies called Japen Holdings, LLC, and Japen Properties, LLP (collectively “Japen”). Although acquired during the marriage, Japen was owned 100% by Husband. Unbeknownst to Wife, among Japen’s assets were two residential properties in Florida. When presented with the Trust inventory of assets, Wife did not question its contents, which included Japen, but not a listing of its specific holdings, e.g., the Florida Properties. Approximately four months after the creation of the Trust, Wife discovered that Husband had been having an affair and that his paramour was living in one of the Florida Properties. Wife promptly filed for divorce. A month after that, she filed an emergency petition for special relief to prevent dissipation of the marital assets, including assets in the Trust. Wife argued that Husband’s motive in creating the Trust was to gain control over the marital assets and avoid equitable distribution. A family court judge accepted Wife’s argument by freezing certain accounts included in the Trust and directing Husband to collect rent from his paramour. The Supreme Court held that a settlor averring fraud in the inducement of an irrevocable trust had to prove by clear and convincing evidence the elements of common-law fraud. In doing so, the Court rejected the analysis set forth in In re Estate of Glover, 669 A.2d 1011 (Pa. Super. 1996), because it represented an inaccurate statement of the elements required to establish fraud in the inducement. The Court affirmed the Superior Court’s ruling that the complaining settlor did not prove fraud in the inducement. View "In Re: Passarelli Family Trust" on Justia Law

The Supreme Court affirmed the judgment of the circuit court awarding Tracey Martin her agreed-upon share of proceeds of John Wood's insurance policy after he committed suicide, holding that the circuit court did not err.During their divorce proceeding, Wood agreed to maintain a preexisting life insurance policy for the partial benefit of Tracey Martin. The circuit court incorporated the agreement (the agreement) into the final divorce decree. Six years later, in defiance of the court order, Wood removed Martin as a beneficiary and designated his brothers, his new wife, and a friend as beneficiaries on the policy. Wood committed suicide two days later. In a lawsuit initiated by Martin, the insurer interpleaded the policy proceeds. The circuit court awarded Martin her share of the proceeds consistent with the divorce decree. The Supreme Court affirmed, holding (1) Va. Code 38.2-3122(B) did not bar Martin's claim because the final divorce decree that ratified and incorporated the agreement created an equitable assignment; and (2) faced with competing equities, the circuit court did not err in finding Martin's beneficial interest in the interpleader proceeds to be superior to that of the new beneficiaries. View "Wood v. Martin" on Justia Law

In the summer of 2014, Mark and Jennifer Porcello sought to purchase property In Hayden Lake, Idaho. After making various pre-payments, the amount the couple was still short on a downpayment. Mark and Jennifer could not qualify for a conventional loan themselves. They hoped another property in Woodinville, Washington, owned by Mark’s parents, in which Mark and Jennifer claimed an interest, could be sold to assist in the purchase of the Hayden Lake property. In an effort to help Mark and Jennifer purchase the property, Mark’s parents, Annie and Tony Porcello, obtained financing through a non-conventional lender. "In the end, the transaction became quite complicated." Annie and Tony’s lawyer drafted a promissory note for Mark and Jennifer to sign which equaled the amount Annie and Tony borrowed. In turn, Mark signed a promissory note and deed of trust for the Hayden Lake house, in the same amount and with the same repayment terms as the loan undertaken by his parents. In mid-2016, Annie and Tony sought non-judicial foreclosure on the Hayden Lake property, claiming that the entire balance of the note was due and owing. By this time Mark and Jennifer had divorced; Jennifer still occupied the Hayden Lake home. In response to the foreclosure proceeding, Jennifer filed suit against her former in-laws seeking a declaratory judgment and an injunction, arguing that any obligation under the note had been satisfied in full when the Woodinville property sold, notwithstanding the language of the note encumbering the Hayden Lake property. Annie and Tony filed a counter-claim against Jennifer and a third-party complaint against Mark. A district court granted Jennifer’s request for a declaratory judgment. However, by this time, Annie and Tony had died and their respective estates were substituted as parties. The district court denied the estates’ request for judicial foreclosure, and dismissed their third-party claims against Mark. The district court held that the Note and Deed of Trust were latently ambiguous because the amount of the Note was more than twice the amount Mark and Jennifer needed in order to purchase the Hayden Lake property. Because the district court concluded the note and deed of trust were ambiguous, it considered parol evidence to interpret them. Ultimately, the district court found the Note and Deed of Trust conveyed the Hayden Lake property to Jennifer and Mark “free and clear” upon the sale of the Woodinville property. Annie’s and Tony’s estates timely appealed. Finding that the district court erred in finding a latent ambiguity in the Note and Deed of Trust, and that the district court's interpretation of the Note and Deed of Trust was not supported by substantial and competent evidence, the Idaho Supreme Court vacated judgment and remanded for further proceedings. View "Porcello v. Estates of Porcello" on Justia Law

In a matter of first impression, a Pennsylvania superior court held that anti-alienation provisions governing municipal pensions found in various statutes protected assets from attachment and other legal process (including a contract claim) only while those assets remained in the possession of the pension fund administrator. Specifically, the court determined that a spouse’s promise to waive her right to her husband’s pension benefits, including agreeing to transfer such benefits after receiving them from the administrator, was legally enforceable. The Pennsylvania Supreme Court determined that because the superior court’s interpretation was consistent with the plain language of the statutes, the context in which the provisions appear, and Pennsylvania precedent interpreting similar statutory language, the Supreme Court affirmed the decision of the superior court. View "Estate of M&J Benyo v. Breidenbach" on Justia Law

After six years of marriage, Michael Petelle filed a petition to dissolve his marriage to petitioner, Michelle Ersfeld-Petelle, having separated on January 27, 2017. The parties, both represented by counsel, executed a separation contract and CR 2A agreement on February 14, 2017. The contract divided assets and liabilities, contained an integration clause, and required all modifications to be in writing. In the contract, the parties agreed “to make a complete and final settlement of all their marital and property rights and obligations on the following terms and conditions.” The contract also provided that the “contract shall be final and binding upon the execution of both parties, whether or not a legal separation or decree of dissolution is obtained[,]” and, by its terms, the contract remained valid and enforceable against the estate of either party if either party died after the execution of the contract. Though the contract contained a “Full Satisfaction of All Claims” section, the right to intestate succession was not mentioned. Petitioner claimed that she and Michael were contemplating reconciliation, citing an e-mail Michael sent to his attorney requesting an extension to the “closing date” of the divorce. Before any reconciliation or dissolution occurred, Michael died intestate on May 1, 2017. The issue this case presented for the Washington Supreme Court's review centered on whether Michelle, as surviving spouse, agreed in a separation contract to give up her right to intestate succession under RCW 11.04.015. Petitioner sought reversal of a published Court of Appeals opinion reversing the trial court’s denial of a motion to terminate her right to intestate succession in Michael's estate. After review, the Supreme Court concluded that under the terms of the contract, petitioner expressly waived her right to intestate succession. View "In re Estate of Petelle" on Justia Law