Davoust v. Legg

2025 Ark. App. 132, 708 S.W.3d 106

• Court: Court of Appeals of Arkansas
• Decided: February 26, 2025
• Status: Published

Opinion

Cite as 2025 Ark. App. 132 ARKANSAS COURT OF APPEALS DIVISION I No. CV-23-582

JOHN ROBERT DAVOUST Opinion Delivered February 26, 2025 APPELLANT/CROSS-APPELLEE APPEAL FROM THE CARROLL COUNTY CIRCUIT COURT, V. EASTERN DISTRICT [NO. 08EPR-22-65] MARY ELIZABETH LEGG AND WILLIAM PATRICK DAVOUST HONORABLE SCOTT JACKSON, APPELLEES/CROSS-APPELLANTS JUDGE

AFFIRMED ON DIRECT APPEAL; REVERSED IN PART AND REVERSED AND REMANDED IN PART ON CROSS-APPEAL

WAYMOND M. BROWN, Judge

This appeal concerns the interpretation of the Thorpe Family Revocable Trust (Trust)

created by Robert Charles Thorpe and Mary Lee Thorpe, husband and wife, on January 11,

1996. At the time of the Trust’s creation, Robert had two children1 from a previous

marriage, and Mary had nine children2 from a previous marriage. The Trust listed Robert

and Mary as beneficiaries during their lifetime, and thereafter, all eleven children were to be

beneficiaries. Robert was listed as the trustee and Mary was listed as successor trustee.

1 Allison Dunkle and Amy Whisenant. 2 William Patrick Davoust, Deborah Durham, James Davoust, Michael Davoust, John Davoust, Philip Davoust, Michele Davoust, Mary Legg, and Paul Davoust. Appellee Mary Legg was to be trustee following Mary, and Allison was to take on the role

after Legg. Robert died on April 21, 2011. After Robert’s death, Mary became trustee. Mary

made three amendments to the trust: on May 11, 2014;3 on March 10, 2017;4 and on

October 14, 2020.5 Mary died on April 25, 2022. A probate estate was opened at which

time the information concerning the Trust and its amendments came to light, resulting in a

challenge by appellees concerning Mary’s right to amend the Trust following Robert’s death.

The Carroll County Circuit Court agreed with appellees that Mary could not amend the

Trust following Robert’s death and granted summary judgment in their favor. This

prompted appellant to file his notice of appeal. In a subsequent order, the circuit court

found that Legg and appellant were co-trustees of the Trust pending further orders of that

court or this court. It also found that appellant should be allowed to continue to live on the

Trust property without paying rent. This order led to appellees’ cross-appeal. Appellant

argues that the Trust was revocable and that Mary had the authority to modify the Trust

until her death. Alternatively, he argues that appellees’ contest of the Trust was barred by

3 In this amendment, Mary removed Robert’s children and William as beneficiaries; it removed William as Legg’s successor and replaced him with appellant; and it granted appellant one and a half shares of the Trust’s assets, St. Paul Episcopal Church one-half share of the Trust’s assets, and the rest of her children one share of the Trust’s assets. 4 This amendment named appellant as the successor trustee following Mary and named Legg as his successor; appellant was granted two shares of the Trust’s assets, and St. Paul Episcopal Church was removed as a beneficiary. 5 This amendment removed all beneficiaries except appellant.

2 the three-year statute of limitations found in Arkansas Code Annotated section 28-73-

604(a)(1).6 Appellees argue that the circuit court improperly named Legg and appellant as

co-trustees and improperly authorized appellant to live rent-free on Trust property.7 We

affirm on direct appeal; we reverse in part and reverse and remand in part on cross-appeal.

At issue is Article IX, section 9.02 of the Trust, which states:

AMENDMENT. Grantors reserve the right at any time or from time to time, without the consent of any person other than Grantors and without notice to any person other than Trustee, to amend, modify or revoke the Trust hereby created in whole or in part, to change the beneficiaries hereof, or to withdraw the whole or any part of the Trust Estate by filing written notice of such revocation, modification, change, or withdrawal with Trustee[.] Provided, however, that the terms of this Trust may not be modified by Grantors in such manner as to increase the obligations for Trustee without Trustee’s written consent. The foregoing right shall be in Grantors only, and not in any duly appointed attorney-in-fact. Upon the death, permanent disability or resignation of Grantors as Trustee, this Trust shall be irrevocable and shall not be modified in whole or in part by any person and all rights and powers of Trustee herein shall thereupon vest in and be thereafter exercised by the Successor- Trustee.

Both parties filed competing motions for summary judgment. Appellees argued that the

Trust’s plural use of grantors when addressing the right to amend, modify, or revoke the

Trust in whole or in part, to change the beneficiaries, or to withdraw the whole or any part

of the Trust estate means that both original grantors had to consent to the change; and after

Robert died, he was no longer able to consent, making Mary’s actions unauthorized and in

contradiction of the Trust. Appellant maintained that the Trust’s plural use of grantors

when addressing when the Trust becomes irrevocable supports his contention that Mary had

6 (Repl. 2005). 7 This argument is contingent on this court affirming on direct appeal.

3 the right to make changes to the Trust until her death. He also argued that Article III

sections 3.02 (life estate), 3.04B (benefit for grantor’s wife) and 3.05 (life estate to the

surviving grantor) support his contention that Mary was able to modify the Trust until her

death. Alternatively, he argued that if the Trust became irrevocable in 2011 as appellees

contend, they only had three years to contest the Trust, and this action was commenced long

after that three-year period. The circuit court held a hearing on the competing motions on

January 17, 2023. After listening to arguments presented by each side, the circuit court took

the matter under advisement. It filed an order on May 11, 2023, stating the following in

pertinent part:

1. The intent of the Grantors to the Thorpe Family Trust, Robert Charles Thorpe and Mary Lee Thorpe, was to provide for the Grantors during their lifetimes. Upon the death of the survivor of the Grantors, the remaining trust assets would be distributed to Grantors’ children in equal shares. Grantors each had children from previous marriages.

2. Pursuant to Section 9.02 of the Torpe Family Trust, the Grantors had the right “to amend, modify or revoke . . . or to change beneficiaries hereof.[”] The plural “Grantors” is consistently used in this section of the trust.

3. Based upon the Grantors stated intent and the use of the plural in Section 9.02, this court finds that in order to change the beneficiaries to this revocable trust, both Grantors must agree or the modification is ineffective.

[4.] Upon the death of Robert Charles Thorpe, the beneficiaries named in the Thorpe Family Trust became irrevocable and any subsequent modifications of the named beneficiaries by Mary Lee Thorpe were ineffective.

The circuit court granted appellees’ motion for summary judgment and denied appellant’s

motion. Appellant timely appealed.

4 Appellee Legg filed an emergency motion to be named as trustee and to require

appellant to account for trust assets on May 15. The circuit court held a hearing on Legg’s

motion on July 11. At the onset of the hearing, the circuit court admitted that the “way the

Trust document used the term Grantors was confusing at times, but the intent of the

Grantors was not confusing on the Court.” The circuit court stated that it was the intent of

the grantors that their children share equally in the remaining assets of the Trust. The circuit

court entered an order on July 12 naming Legg and appellant as co-trustees of the Trust and

allowing appellant to continue to stay on Trust property without paying rent. Appellees

timely appealed this order.

Summary judgment may be granted by a circuit court only when there are no genuine

issues of material fact to litigate and when the case can be decided as a matter of law. 8 The

purpose of summary judgment is not to try the issues but to determine whether there are

any issues to be tried.9 Normally, we determine if summary judgment is proper by deciding

whether evidentiary items presented by the moving party leave a material question of fact

unanswered, viewing all evidence in favor of the nonmoving party.10 However, in cases such

as this where the parties do not dispute the essential facts, we simply determine whether the

8 Smith v. St. Paul Fire & Marine Ins. Co., 76 Ark. App. 264, 64 S.W.3d 764 (2001).

9 Akers v. Butler, 2015 Ark. App. 650, 476 S.W.3d 183.

10 Selrahc Ltd. P’ship v. SEECO, Inc., 2009 Ark. App. 865, 374 S.W.3d 33.

5 moving party was entitled to judgment as a matter of law.11 When parties file cross-motions

for summary judgment, “they essentially agree that there are no material facts remaining,

and summary judgment is an appropriate means of resolving the case.”12 As to issues of law

presented, our review is de novo.13

The rule we follow with regard to the construction of a trust is that the intent of the

settlor governs, and the intent is to be determined within the four corners of the instrument,

considering the language used and giving meaning to all provisions whenever possible. 14 We

will only consider collateral evidence when there is uncertainty about the settlor’s intentions

from looking at the language of the instrument.15 The determination of whether there is an

ambiguity is a matter of law.16 We review a circuit court’s conclusion on a question of law

de novo.17

Appellant contends that until Mary’s death, the Trust was both revocable and

modifiable. However, he concedes that the portion of section 9.02 dealing with the language

11 Id.

12 Douglas Cos., Inc. v. Walther, 2020 Ark. 365, at 5, 609 S.W.3d 397, 400.

13 Id. 14 Hartsfield v. Blann, 2013 Ark. App. 487.

15 Id.

16 Id.

17 Id.

6 relied on by appellees and the circuit court required both grantors to be living. He maintains

that the portion of section 9.02 which states, “Upon death, . . . of Grantors as Trustee, this

Trust shall be irrevocable and shall not be modified in whole or in part by any person and

all rights and powers of Trustee herein shall thereupon vest in and be thereafter exercised by

the Successor-Trustee[,]” makes it clear that the Trust became irrevocable after both grantors

died. Even if the Trust was to become irrevocable upon the death of both grantors, all parties

agree that, per the Trust, both parties had to be living and consent to amend, modify, revoke,

change the beneficiaries, or withdraw any part of the Trust estate. Thus, Mary could not

amend the Trust to change the beneficiaries following Robert’s death because he could not

consent to it.18 Because Mary could not make the changes to the Trust’s beneficiaries

following Robert’s death, appellees were entitled to summary judgment as a matter of law.

We affirm.

Appellant also relies on other portions of the Trust to support his claim that the Trust

was modifiable until Mary’s death. However, those sections are inapplicable to the facts at

hand. There is no indication that Mary had any special needs, attempted to move assets of

the Trust, or deplete the Trust’s funds during her lifetime, which she had the right to do.

Therefore, appellant’s argument relying on other portions of the Trust is without merit.

18 See Id.

7 Alternatively, appellant contends that appellees’ action contesting the Trust was

barred by the three-year statute of limitations found in section 28-73-64(a)(1).19 This issue is

not preserved. Although appellant made this argument to the circuit court, he did not obtain

a ruling. It is an appellant’s responsibility to obtain a ruling to preserve an issue for appeal.20

If there is no ruling by the circuit court on an issue, there is nothing for this court to review

and determine.21

On cross-appeal, appellees contend that the circuit court erred by naming appellant

as Legg’s co-trustee. As per the Trust, Legg was to succeed Mary as trustee, and she was not

to share that role with appellant or anyone else. Therefore, the circuit court erred in naming

appellant as Legg’s co-trustee, and we reverse on that portion of the order.

Appellees also argue that the circuit court erred by allowing appellant to stay on the

Trust property, consisting of approximately 120 acres, rent-free. According to the provisions

of the Trust, all eleven beneficiaries were to equally divide the Trust assets, including the

property. The Trust did not award appellant the home. Therefore, it was erroneous for the

circuit court to allow him to remain living on the property without paying rent. We reverse

and remand for the circuit court to determine the appropriate rental value and for that value

to be deducted from appellant’s share when the Trust assets are distributed.

19 A challenge to the validity of a revocable trust must be commenced within three years of the settlor’s death.

20 Matthew v. Matthew, 2021 Ark. App. 411.

21 Peck v. Peck, 2019 Ark. App. 190, 575 S.W.3d 137.

8 Affirmed on direct appeal; reversed in part and reversed and remanded in part on

cross-appeal.

ABRAMSON and HIXSON, JJ., agree.

Matthews, Campbell, Rhoads, McClure & Thompson, P.A., by: George R. Rhoads and Sarah

L. Waddoups, for appellant/cross-appellee.

Taylor Law Partners LLP, by: Andrew J. Myers, for appellees/cross-appellants.