Cooper v. Cooper, Unpublished Decision (8-31-2000)

CourtOhio Court of Appeals
DecidedAugust 31, 2000
DocketNo. 76899.
StatusUnpublished

This text of Cooper v. Cooper, Unpublished Decision (8-31-2000) (Cooper v. Cooper, Unpublished Decision (8-31-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooper v. Cooper, Unpublished Decision (8-31-2000), (Ohio Ct. App. 2000).

Opinion

Appellants Thomas Cooper, Stephen Cooper, Karl Cooper, Abigail Cooper, and Amy Cooper appeal a decision by the trial court dismissing their declaratory judgment action against appellee Patricia Louise Cooper, individually and as administratrix of the estate of their deceased father, Dr. Alfred Cooper. In the complaint, the Coopers asked the probate court to impose a constructive trust upon Dr. Cooper's investment accounts for the benefit of the Coopers. The Coopers assign the following two errors for our review:

I. THE TRIAL COURT'S AUGUST 4, 1999 ORDER OVERRULING THE MAGISTRATE AND DISMISSING PLAINTIFF/APPELLANT'S CAUSE OF ACTION WAS ERROR.

II. THE COURT'S DENYING PLAINTIFF'S MOTION TO RECONSIDER WAS ERROR.

Having reviewed the record and the legal arguments of the parties, we affirm the decision of the trial court. The apposite facts follow.

On May 4, 1998, siblings Thomas Cooper, Stephen Cooper, Karl Cooper, Abigail Cooper, and Amy Cooper filed a declaratory judgment action against Patricia Cooper, widow of their late father, Alfred Cooper, and executrix of his estate. In their complaint, the Coopers averred that a prior action filed November 18, 1997 for suspected concealment of estate assets was voluntarily dismissed after discovery revealed that a declaratory judgment would more appropriately resolve the controversy.

The Coopers alleged that their father, Alfred Cooper, died on December 13, 1996. His will, dated December 30, 1985, was admitted to probate. The will named Patricia Cooper as executrix. The Coopers alleged that, before and after the execution of the will, both Alfred Cooper and Patricia Cooper had a verbal trust agreement that, upon Alfred Cooper's death, Patricia Cooper would acquire a life estate in several investment accounts owned by Alfred Cooper. Upon Patricia Cooper's death, the remainder interest would pass to the Coopers.

The investment accounts were set forth as follows:

Fidelity Investments Mutual Fund $154,891.04 Lincoln Financial Advisors Fund $213,725.11 Dreyfus Tax Exempt Bond $ 52,416.22 American Legacy (Unknown) TIAA/CREF $289,194.13 TIAA/CREF $ 52,687.80

The Coopers also averred that they did not fully know the exact details of the beneficiary designations on the accounts or the correct names, amounts and details of all the accounts.

The Coopers asked the court to impose a constructive trust upon the investment accounts in order to affect Alfred Cooper's intent. They also sought a declaration that the investment accounts were intended to be included within the trust agreement between Alfred Cooper and Patricia Cooper, and that the investment accounts be made a part of Alfred Cooper's estate.

On June 5, 1998, Patricia Cooper filed a Civ.R. 12(B)(6) motion to dismiss the complaint for failure to state a claim upon which relief could be granted. Patricia Cooper argued that imposing a constructive trust against her was improper since she had not committed fraud or been unjustly enriched. She also argued that Alfred Cooper's decision to name her primary beneficiary of the investment accounts reflected his intent for her to have the full enjoyment of the property. She also argued that the declaratory judgment action was premature since she had the undisputed right to the property during her lifetime. Finally, she argued that, even if Patricia Cooper verbally promised Alfred Cooper that his children would receive a share of the investment accounts upon her death, such a promise was unenforceable pursuant to R.C. 2107.04, which provides that an oral agreement to make a will or devise is unenforceable.

On August 10, 1998, the Coopers filed their brief in opposition to the motion to dismiss. They argued that they need not demonstrate wrongdoing by Patricia Cooper in order to obtain a constructive trust, only that it would be inequitable for Patricia Cooper to retain the property in question. They argued that Patricia Cooper obtained possession of the investment accounts with the knowledge and understanding that she was only entitled to income generated from the accounts during her lifetime. The Coopers cited to Patricia Cooper's deposition testimony in which she stated that The understanding between me and my husband is that the money [from the investment accounts] would go to his children. (Patricia Cooper Depo. at 36.)

The Coopers argued that Patricia Cooper's agreement with Alfred Cooper was supported by consideration Patricia Cooper's promise that she was only to use the income from the annuities during her lifetime. The Coopers urged the court to apply principles of equity to their complaint. They also argued that Alfred Cooper's designation of Patricia Cooper as primary beneficiary of the investment accounts did not override the common law constructive trust doctrine. They also argued that, pursuant to her belief that she has unrestricted ownership of the investment accounts, Patricia Cooper might completely dispose of the funds and that speedy relief is necessary to preserve the Coopers' interests in those funds.

In her reply brief, Patricia Cooper argued that under the Employment Retirement Income Securities Act (ERISA), she was the automatic joint annuitant of the retirement annuities. Under26 U.S.C. § 408(a)(6), Alfred Cooper was prohibited from designating a beneficiary other than his spouse without an express written waiver by the spouse. She also argued that, under 26 U.S.C. § 408(a)(6), spousal consent is required to name a non-spouse as a beneficiary of the Individual Retirement Account (IRA). Patricia Cooper also argued that ERISA preempts state law with respect to the designation of beneficiaries.

In response, the Coopers argued that Patricia Cooper failed to produce any evidence as to the applicability of ERISA to the case and that they were not provided with information as to the exact details of the beneficiary designations on the accounts and the correct names, amounts and details of all the investment accounts. They further argued that the parties had not conducted any formal discovery and that Patricia Cooper had not yet authorized the Coopers to obtain additional information from Patricia Cooper about the current value of the accounts or their value at the time of Alfred Cooper's death. They further alleged that they were not attempting to deprive Patricia Cooper of her lifetime income from the accounts, only to prohibit her from transferring or bequeathing the corpus of the funds to persons other than the Coopers.

On November 10, 1998, the Magistrate recommended denial of Patricia Cooper's motion to dismiss the complaint,1 concluding that defendant's motion is premature at this time for the reason that insufficient information has been provided to plaintiffs in order for them to completely respond to defendant's Motion for Summary Judgment. Patricia Cooper filed objections to the magistrate's report on November 24, 1998 alleging (1) there is no legal authority in Ohio authorizing imposition of a constructive trust under Patricia Cooper; (2) the plaintiffs were voluntarily provided with all information in Patricia Cooper's possession, neglected to procure additional information although authorized to do so, and failed to avail themselves of discovery.

On August 4, 1999, the court sustained Patricia Cooper's objections to the magistrate's report and dismissed the Coopers' complaint.

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Bluebook (online)
Cooper v. Cooper, Unpublished Decision (8-31-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooper-v-cooper-unpublished-decision-8-31-2000-ohioctapp-2000.