Breyanna Murphy v. Kaleb Shehan

CourtCourt of Appeals of Kentucky
DecidedSeptember 16, 2021
Docket2020 CA 000934
StatusUnknown

This text of Breyanna Murphy v. Kaleb Shehan (Breyanna Murphy v. Kaleb Shehan) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breyanna Murphy v. Kaleb Shehan, (Ky. Ct. App. 2021).

Opinion

RENDERED: SEPTEMBER 17, 2021; 10:00 A.M. TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals

NO. 2020-CA-0934-DG

BREYANNA MURPHY APPELLANT

ON DISCRETIONARY REVIEW FROM JEFFERSON CIRCUIT COURT v. HONORABLE CHARLES L. CUNNINGHAM, JUDGE ACTION NO. 19-XX-000077

KALEB SHEHAN; DANIEL CAMERON, IN HIS CAPACITY AS THE ATTORNEY GENERAL OF THE COMMONWEALTH OF KENTUCKY; KOSAIR CHARITIES COMMITTEE, INC.; NORTON CHILDREN’S HOSPITAL, INC., F/K/A KOSAIR CRIPPLED CHILDREN’S HOSPITAL; PNC BANK, N.A., TRUSTEE; ZACHARY SHEHAN; AND ST. JOSEPH CHILDREN’S HOME, INC., F/K/A ST. JOSEPH CATHOLIC ORPHAN HOME AND A/K/A ST. JOSEPH’S ORPHANAGE APPELLEES AND

NO. 2020-CA-0943-DG

ZACHARY SHEHAN APPELLANT

ON DISCRETIONARY REVIEW FROM JEFFERSON CIRCUIT COURT v. HONORABLE CHARLES L. CUNNINGHAM, JUDGE ACTION NO. 19-XX-000077

PNC BANK, N.A., TRUSTEE OF THE FRED M. MCCLELLAN DATED 05/13/1974 TRUST B RESIDUARY; DANIEL CAMERON, IN HIS CAPACITY AS THE ATTORNEY GENERAL FOR THE COMMONWEALTH OF KENTUCKY; KOSAIR CHARITIES COMMITTEE, INC.; BREYANNA MURPHY; NORTON CHILDREN’S HOSPITAL, INC.; KALEB SHEHAN; AND ST. JOSEPH CHILDREN’S HOME, INC. APPELLEES

OPINION AFFIRMING

** ** ** ** **

BEFORE: CALDWELL, DIXON AND L. THOMPSON, JUDGES.

-2- THOMPSON, L., JUDGE: In this consolidated action, Zachary Shehan and

Breyanna Murphy appeal from an opinion of the Jefferson Circuit Court which

reversed an opinion and order of the Jefferson District Court. This matter involves

the interpretation of a testamentary trust executed in 1974. The circuit court

determined in relevant part that Kaleb Shehan is a “descendant” of his biological

great-grandfather and trust settlor Fred M. McClellan, and is therefore entitled to

his share of the trust distribution even though Hunter Shehan legally adopted Kaleb

as a child. Appellants Zachary and Breyanna, also Mr. McClellan’s biological

great-grandchildren, now argue that Hunter Shehan’s adoption of Kaleb terminated

his status as a descendant of Mr. McClellan and his daughter Norma for purposes

of the trust distribution. For the reasons addressed below, we agree with the

Jefferson Circuit Court that Kaleb Shehan is a descendant of Norma irrespective of

Hunter’s adoption of Kaleb, and accordingly affirm the judgment on appeal.

FACTS AND PROCEDURAL HISTORY

The parties have stipulated that there are no issues of material fact.

On May 13, 1974, Fred M. McClellan executed a Last Will and Testament with

Testamentary Trust. Mr. McClellan died the following year and was survived by

his widow, Thelma McClellan, a married adult daughter, Norma McClellan

Shehan, and Norma’s son Patrick. Norma married Ted Shehan, who brought two

children from a previous marriage, Beverly Richardson and Hunter Shehan.

-3- Beverly and Hunter became Patrick’s step-siblings. Patrick later had three

children, namely the Appellants herein, Zachary Shehan and Breyanna Dickerson

(now Murphy), and Appellee Kaleb Sheehan.

Patrick lost custody of Zachary, Breyanna, and Kaleb, and he died in

2005. The following year, Hunter adopted Patrick’s son, Kaleb, who was then a

minor. Norma died in 2008. In her will, she sought to provide for Patrick’s three

children, “who might turn out not to be recipients” of her father’s will and

testamentary trust.

At the core of this proceeding is the language of Mr. McClellan’s

1974 trust, which stated at Item IX(g) that,

Upon the last to die of my wife, Thelma M. McClellan, my daughter, Norma J. McClellan, and myself, the trust estate shall terminate and the Trustee shall distribute the entire remaining assets in its hands in fee and per stirpes to my daughter, Norma J. McClellan’s descendants, if any[.]

Upon Norma’s death, Trustee PNC Bank, N.A. was tasked with

determining who the descendants of Norma were for purposes of trust distribution.

The matter was complicated by the fact that Patrick lost custody of his three

children, and that only one of them, Kaleb, was legally adopted by a third party.

On February 15, 2019, PNC Bank filed a petition for declaratory judgment1 in

1 Kentucky Revised Statutes (“KRS”) Chapter 386B.

-4- Jefferson District Court seeking a judicial determination of whether Norma had

any living descendants. Upon taking proof, the district court characterized the

issues as 1) whether the termination of Patrick’s parental rights as to his three

children barred them from benefitting from the testamentary trust, and 2) if not,

whether Hunter’s adoption of Kaleb terminated Kaleb’s right to benefit from the

trust. At first blush, the district court determined that “[t]here is no clear answer to

either issue.”

The district court then cited KRS 625.104, which states that,

[f]ollowing the entry of an order involuntarily terminating parental rights in a child, the child shall retain the right to inherit from his parent under the laws of descent and distribution until the child is adopted.

The district court concluded therefrom that while this language is

directed at descent and distribution, the legislative intent is that the child retains the

right to inherit from a parent whose parental rights have been terminated, as there

is no culpability by the child. For this reason, the district court determined that the

termination of parental rights does not terminate a child descendent from

benefitting from a testamentary trust.

The district court then considered the more difficult question of

whether Kaleb’s adoption terminated his status of a residual beneficiary. The court

looked to KRS 625.104, KRS 199.520(2), and Sluder v. Marple, 134 S.W.3d 15

(Ky. App. 2003), in concluding that adoption terminates a child’s right to inherit

-5- from his biological parents under the laws of descent and distribution. The court

then determined by way of analogy that if adoption terminates the right to inherit

under the laws of descent and distribution, adoption also terminates a child’s status

of residual beneficiary under a trust. The court then ruled that Zachary and

Breyanna, but not Kaleb, were the beneficiaries of Mr. McClellan’s trust.

Kaleb appealed that decision to the Jefferson Circuit Court. The

circuit court determined that it was bound by the plain language of the trust, and

that Mr. McClellan’s wishes were paramount. By resorting to dictionaries and the

case law, the court found that the meaning of the word “descendent” was self-

evident, that it cast a wide net, and is properly construed to include Kaleb. It also

found that Hunter Shehan’s adoption of Kaleb did not terminate Kaleb’s status of

descendant. Having determined that Kaleb was a descendent of Norma, and that

the adoption did not alter that status, the court ruled that Kaleb was a beneficiary of

the trust.

Zachary and Breyanna sought discretionary review from this Court,

which was granted. This appeal followed.

ARGUMENTS AND ANALYSIS

Zachary and Breyanna, through counsel, now argue that the Jefferson

Circuit Court committed reversible error in interpreting the term “descendent” in

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Related

Sluder v. Marple
134 S.W.3d 15 (Court of Appeals of Kentucky, 2003)
Benjamin v. JP Morgan Chase Bank, N.A.
305 S.W.3d 446 (Court of Appeals of Kentucky, 2010)
Clarke v. Kirk
795 S.W.2d 936 (Kentucky Supreme Court, 1990)
Slote v. Reiss
154 S.W. 405 (Court of Appeals of Kentucky, 1913)

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Breyanna Murphy v. Kaleb Shehan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breyanna-murphy-v-kaleb-shehan-kyctapp-2021.