Bye v. Mula CA6

CourtCalifornia Court of Appeal
DecidedMay 15, 2023
DocketH049808
StatusUnpublished

This text of Bye v. Mula CA6 (Bye v. Mula CA6) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bye v. Mula CA6, (Cal. Ct. App. 2023).

Opinion

Filed 5/15/23 Bye v. Mula CA6 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SIXTH APPELLATE DISTRICT

PATRICIA M. BYE, as Trustee, etc., H049808, H049813, H050020, H050040 & H050043 Plaintiff and Respondent, (Santa Clara County Super. Ct. Nos. 2006-1-PR-158914 v. & 2012-1-PR-171643)

PAUL S. MULA, JR.,

Defendant and Appellant.

Appellant Paul S. Mula, Jr. (Paul) challenges the probate court’s orders granting five petitions of Patricia S. Bye, trustee of the Helene Mula Stouky Trust (Stouky Trust) and the Sarah Mula Ogier Trust (Ogier Trust) and conservator of the estate of Helene Mula Stouky. These orders authorized Bye to retain and pay attorneys to defend the two trusts, Helene Mula Stouky (Helene), Bye, the conservator of Helene’s person, the attorneys representing them, those attorneys’ law firms, and Bye’s sole proprietorship in a federal lawsuit brought against them by Paul.1 These orders also authorized Bye to retain and pay attorneys to defend against Paul’s appeals from multiple probate court orders. The last of these orders approved an accounting for the Stouky Trust that included the payment of attorney fees attributable to matters concerning the Ogier Trust.

1 For clarity, we refer to appellant as Paul and to respondents on appeal collectively as Bye. Paul contends that the probate court abused its discretion in granting Bye’s petitions because compensating attorneys defending the trusts and Helene in his federal lawsuit for their representation of any other defendants will not benefit the trusts, is not authorized by the trusts’ terms, and will result in a conflict of interest. He also contends that reversal is required for several other reasons and that the use of Stouky Trust funds for attorney fees related to the Ogier Trust does not benefit the Stouky Trust or Helene. We affirm the orders. I. FACTS AND PROCEDURAL BACKGROUND The Ogier Trust was established by Helene’s mother, Sarah Mula Ogier (Sarah Ogier) in 2000. The Ogier Trust expressly authorized the trustee to employ attorneys and to compensate them from the Ogier Trust’s assets. The primary beneficiaries of the Ogier Trust were Helene, Paul’s uncle, Alan Mula (Alan), and Paul’s now-deceased father, Paul Mula, Sr. (Paul Sr.). Helene was originally the trustee of the Ogier Trust. Her share of the Ogier Trust was to be put in a trust for her benefit, and Paul was the beneficiary of that trust if any property remained in it at Helene’s death. Sarah Ogier died in 2005. The Ogier Trust’s primary assets were real properties, but Sarah Ogier deeded these properties to Helene, Alan, and Paul Sr. before her death. Paul apparently questioned the validity of those deeds. In 2006, Paul accepted $100,000 from Sarah Ogier’s estate in return for a handwritten release stating: “I do hereby waive/release any future interest in any of the real property now held in the names of [Alan, Paul Sr., and Helene] and/or the estate of Sarah Mula Ogier.” The release expressly stated that this $100,000 was accepted “as final payment for any and all claims I have against the above parties involved.” In March 2006, the probate court issued an order confirming title to these real properties as deeded. Paul received the agreed $100,000 in May 2006 when these real properties were sold.

2 Helene created the Stouky Trust in 1997, and Paul is one of the beneficiaries of the Stouky Trust. The Stouky Trust expressly authorizes the trustee to employ attorneys to advise and assist the trustee and to compensate those attorneys from trust assets. Helene was conserved in 2012, and Bye was appointed conservator of Helene’s estate and trustee of the Stouky Trust. In 2013, Bye became the trustee of the Ogier Trust. By 2021, the Ogier Trust’s only remaining asset was a brokerage account containing just under $110,000. In 2013, the probate court issued an order expressly granting Bye authority to commence or defend litigation brought by or against Paul and to utilize Helene’s assets and funds from the Stouky Trust to pay litigation expenses for Helene, Bye, the conservator of Helene’s person, and any counsel representing them. In 2019, Paul filed multiple appeals from orders concerning the Stouky Trust.2 In 2020, Paul filed another appeal from an order concerning the Stouky Trust.3 In June 2021, Paul filed a federal lawsuit against 10 named defendants and 100 Doe defendants. The defendants named in his original complaint are Helene, the Stouky Trust, Alan, Paul Sr.’s estate, the conservator of Helene’s person (Paul’s sister, who is also a beneficiary of the Stouky Trust), Bye, Helene’s court-appointed attorney, the attorney who drafted both trusts, an attorney whom Paul consulted, and Bye’s attorney. Paul’s federal lawsuit made allegations concerning the management of both the Ogier Trust and the Stouky Trust, and Paul purported to bring the federal action on behalf of himself and the Ogier Trust. In August 2021, Bye filed two petitions (one as trustee of the Ogier Trust and one as trustee of the Stouky Trust) seeking authority to employ and compensate a law firm to

2 In case No. H047388, this court rejected Paul’s appeal from a probate court order granting a petition for substituted judgment. In case No. H049271, this court rejected Paul’s appeal from a probate court order approving the third accounting. 3 Paul abandoned his appeal in case No. H049120. 3 represent the two trusts, Helene, Bye, Helene’s attorney, Bye’s attorney, and the conservator of Helene’s person in Paul’s federal action, “whose interests are aligned” in that action. Bye explained in her petitions that she intended first to use the funds in the Ogier Trust to pay for the defense to Paul’s lawsuit, but she expected those funds to be exhausted and therefore sought authority to use funds from the Stouky Trust to pay any additional defense expenses. She specifically sought authority to pay a $50,000 retainer to a law firm to defend against Paul’s federal lawsuit. Bye sought ex parte orders due to “the exigent nature of the circumstances,” as the defendants in Paul’s federal lawsuit would have only 21 days to file an answer once he served them with his complaint. Paul opposed Bye’s petitions. He contended that defending against his federal lawsuit on behalf of these defendants would not benefit either trust and was not authorized by the trusts’ terms. Paul asserted that defending Bye in the federal lawsuit would benefit only Bye personally, not her performance of her duties as trustee. He also asserted that it would be a violation of the rules of professional conduct for one law firm to represent all of these defendants in his federal lawsuit because they had conflicting interests. Finally, he maintained that there was no exigency to justify ex parte relief. Bye’s reply asserted that the probate court’s 2013 order already authorized her to employ and compensate attorneys to represent these defendants in Paul’s federal lawsuit. She also asserted that Paul lacked standing to seek disqualification of counsel or to raise any issue concerning a conflict of interest. The September 9, 2021 hearing on these petitions was not transcribed. The court granted Bye’s petitions.4 Paul timely filed notices of appeal from the September 2021 orders.

Bye’s petitions sought authority to have the law firm also represent any 4

additional defendants “whose interests are aligned with” these defendants.

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Bye v. Mula CA6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bye-v-mula-ca6-calctapp-2023.