Dauray v. Mee

109 A.3d 832, 2015 WL 500832
CourtSupreme Court of Rhode Island
DecidedFebruary 6, 2015
DocketNos. 2013-135-Appeal, 2013-136-Appeal, 2013-137-Appeal
StatusPublished
Cited by13 cases

This text of 109 A.3d 832 (Dauray v. Mee) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dauray v. Mee, 109 A.3d 832, 2015 WL 500832 (R.I. 2015).

Opinion

OPINION

Justice GOLDBERG, for the Court.

The plaintiff, Mary Lou Dauray (plaintiff or Dauray), brings three separate appeals, each of which challenges the Superi- or Court’s determination that she did not have standing in each of the three cases filed in the Superior Court, resulting in the dismissal of her claims. The three appeals brought by Dauray are: (1) an appeal of a probate court order admitting the will of Dauray’s aunt, Gabrielle D. Mee (Gabr-iellé),1 claiming that the will was executed through undue influence, fraud, and mistake in the inducement;2 (2) an appeal from a suit claiming that Gabrielle was unduly influenced and fraudulently induced into giving approximately $60 million in lifetime gifts to the Legion of Christ [834]*834North America, Inc. (Legion of Christ);3 and (3) an appeal from an action alleging that Bank of America, N.A. (BOA)4 breached its fiduciary duties as the trustee of multiple trusts set up by Gabrielle and her late husband.5 A justice of the Superi- or Court granted summary judgment in all three actions in favor of the various defendants on the grounds that Dauray lacked standing to bring the claims pursuant to G.L.1956 § 33-18-17 or under the common law. The trial justice determined that Dauray was not “a person legally interested in the estate” of Gabrielle because, in her deposition testimony, Dauray expressly disavowed any recovery in these actions, and also because the instruments at issue clearly directed that all of the couple’s assets were to go to charity, thus depriving Dauray of any potential pecuniary interest. Additionally, Dauray alleges that the trial justice erred when he awarded attorneys’ fees to the defendants when Dauray sought to amend her reasons of appeal from the probate court pursuant to G.L.1956 § 33-23-l(a)(2).6 For the reasons set forth below, we affirm in part and reverse in part the judgments of the Superior Court.

Facts and Travel

A review of the record in each ease, including deposition testimony submitted at summary judgment, reveals the following facts. Gabrielle and Timothy Mee (Timothy) were devout Roman Catholics who made their life in Rhode Island. They married in 1950. They had no children.7 Throughout their marriage, the couple prayed the rosary at night and faithfully attended Mass. During their lifetime, the Mees accumulated great wealth.8

On February 8, 1982, Timothy created a charitable remainder unitrust (CRUT), for the benefit of Timothy and Gabrielle during their lifetimes, and, after their death, for the benefit of charities. The original charitable beneficiary under the CRUT was The Hope Charitable Foundation, a nonprofit entity created by Timothy in 1967. Later that year, on September 30, 1982, Gabrielle created a trust indenture (the Gabrielle Mee Revocable Trust). Under its original terms, the Gabrielle Mee Revocable Trust was to terminate upon Gabrielle’s death and pour over into The Hope Charitable Foundation, the same charitable beneficiary of the CRUT.

On January 29, 1985, Timothy established the Timothy J. Mee Foundation (the Foundation). The Foundation was “formed, and shall be exclusively administered and operated for charitable purposes.” Significantly, “[njeither the income nor the assets of [the Foundation] shall ever inure to the benefit of the [set-tlor or any other private person.” In order to fund the Foundation, Gabrielle amended the Gabrielle Mee Revocable Trust on February 18, 1985. The amendment provided that all income that Gabrielle was entitled to receive as a lifetime beneficiary from the CRUT would be paid to the Gabrielle Mee Revocable Trust and, [835]*835upon Gabrielle’s death, the Gabrielle Mee Revocable Trust would terminate and all income and principal was to be paid to the Foundation. Finally, the Gabrielle Mee Revocable Trust was amended so that upon Timothy’s death the Gabrielle Mee Revocable Trust would become irrevocable. The Gabrielle Mee Revocable Trust was amended once more, on May 3, 1985. As part of this amendment, the Gabrielle Mee Revocable Trust was to pay the remainder of the trust assets to the Foundation, unless Gabrielle had previously exercised her power of appointment. Timothy passed away later that year, on December 18,1985. Gabrielle lived for another twenty-two years.

On October 22, 1987, Gabrielle created another charitable trust, known as the Gabrielle D. Mee Trust. The Gabrielle D. Mee Trust was to pay income to the Contemplatives of Our Lady of Joy, Inc. (the Contemplatives). The Contemplatives, at the time, were a small religious order— founded by two brothers from Rhode Island — with only preliminary recognition from the Roman Catholic Church. The Gabrielle D. Mee Trust provided that the “trustees may terminate the [t]rust for any reason at any time that [the Contemplatives] has not been officially recognized by the Roman Catholic Church, or otherwise approved by the trustees in their sole and absolute discretion[.]” Gabrielle permitted the Contemplatives to live — rent-free—at her property in North Smithfield.

In or about August 1989, Gabrielle first learned of the Legion of Christ from a fellow parishioner.9 Thereafter, Gabrielle visited the Legion of Christ at their center in Cheshire, Connecticut, to learn more about them. The Legion of Christ was established in Mexico by Father Marcial Maciel Degollado (Father Maciel), who served as the General Director of the Legion of Christ until 2005. After learning more about the Legion of Christ, either personally or through trust officers who researched the organization at her behest, Gabrielle made a million-dollar donation to the Legion of Christ. Gabrielle stated that after this discovery she “caught fire” and “knew that [the Legion of Christ] was the way to go” — presumably with her charitable donations, and later with a vocation lasting for the remainder of her life.

On October 10, 1991, Gabrielle executed a will that revoked all prior wills and codicils (1991 Will). Importantly, the 1991 Will directed that 10 percent of the Gabrielle Mee Revocable Trust was to benefit Americans United for Life (AUL) and 90 percent was to go to the Legion of Christ. The residue of her estate was devised “to the trustee then serving under the [Gabrielle Mee Revocable] Trust.”

Later that year, in November 1991, Gabrielle became a consecrated woman with the Regnum Christi, an organization associated with the Legion of Christ. In order for Gabrielle to become a consecrated woman, however, certain qualifying prerequisites, including educational requirements and the “typical” path that consecrated women go through, were waived by Father Maciel.10 Another condition of becoming a consecrated woman of [836]*836the Regnum Christi was that members were expected to donate half of their assets to the organization after fifteen years and all of their assets after twenty-five years. Gabrielle began residing at the Regnum Christi facility in Wakefield, Rhode Island, at this time.11 On November 23, 1991, Father Maciel wrote to Gabrielle and encouraged Gabrielle to submit a monthly budget to priests of the Legion of Christ in order to fulfill her promise of poverty as a consecrated woman.

During her time at Regnum Christi, Gabrielle considered herself the grandmother of the younger consecrated women.12

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Bluebook (online)
109 A.3d 832, 2015 WL 500832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dauray-v-mee-ri-2015.