DeMello v. Buckman

916 So. 2d 882, 2005 WL 2990487
CourtDistrict Court of Appeal of Florida
DecidedNovember 9, 2005
Docket4D03-3759
StatusPublished
Cited by12 cases

This text of 916 So. 2d 882 (DeMello v. Buckman) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeMello v. Buckman, 916 So. 2d 882, 2005 WL 2990487 (Fla. Ct. App. 2005).

Opinion

916 So.2d 882 (2005)

Andrea J. DeMELLO, Appellant,
v.
Joyce A. BUCKMAN, Appellee.

No. 4D03-3759.

District Court of Appeal of Florida, Fourth District.

November 9, 2005.

*884 Jay L. Kauffman and James A. Herb of Herb & Mednick, P.A., Boca Raton, for appellant.

Jay A. Schwartz and Vanessa D. Sloat of Sachs Sax Klein, Boca Raton, for appellee.

WARNER, J.

In this suit by one sister against another sister over the management of their deceased parents' inter vivos trusts, the trial court entered a final judgment removing one sister as trustee, awarding damages against her, and ordering the disposition of Connecticut property owned by the trust. We reverse the final judgment because several items of damage awarded were either unsupported by the evidence or not pled. However, the court did not abuse its discretion in removing the sister as trustee. As to the Connecticut property, we conclude that the court did not have jurisdiction to order its sale. Finally, we reverse the award of attorney's fees for reconsideration in light of our rulings.

Joyce Buckman and Andrea DeMello are sisters and sole beneficiaries of two trusts created by their parents, Jerome and Irene Adams. Except for the names of the settlers, the terms of the trusts are identical. Jerome passed away in 1998. In Jerome's trust, he designated Irene and DeMello as co-trustees. In 1999, Irene passed away. At that time, DeMello was left as the sole trustee of both trusts.

At the time of Irene's death, the assets in the trusts included: a home in Tamarac, Florida; commercial property in Connecticut which was rented to a business run by DeMello and her husband; a piece of vacant property in Cape Coral, Florida; jewelry, including a wedding set; stocks, bonds, and mutual funds; a Mercury Grand Marquis; and other items of personalty. The disputes in this case involve the car, the wedding rings, the Tamarac property, and the Connecticut property.

*885 The trust contained several provisions for distribution upon the death of the grantors. It first provided that upon the death of the parents, the trustee, DeMello, should distribute the Connecticut property to herself, provided that she pay Buckman one-half of its value upon prescribed terms. If the sisters could not agree on the terms of this allocation, then the property was to be distributed to the two sisters. Each trust agreement distributed $15,000 to DeMello, with no offsetting distribution to Buckman. After these distributions, the remaining trust assets were to be distributed in equal shares to the sisters.

Buckman and DeMello clashed from the beginning of the administration of the trust. Buckman complained that DeMello did not make distributions of trust assets or provide accountings to Buckman of the trust administration. The sisters disagreed over the value of various properties. Buckman filed suit in 2001, claiming that DeMello breached her fiduciary duty and caused her damage. She later amended the complaint to request DeMello's removal as trustee for maladministration.

At the trial of the action, Buckman claimed that in failing to act impartially, DeMello breached her fiduciary duty by improperly valuing the vehicle and a wedding ring set, selling the Tamarac property for less than its worth, engaging in self-dealing with the Connecticut property, failing to terminate the trust within a reasonable time, and making improper expense payments from the trust. The trial court found that DeMello breached her fiduciary duty and awarded $76,457.41 in damages. This figure was derived from the following: 1) the difference in value of the vehicle Buckman took from the estate and the value Buckman asserted it was worth; 2) the difference in value of the wedding ring set between what Buckman contended was the fair market value and the estate value; 3) the difference in value between the sale price of the Tamarac property and its fair market value; 4) lost mortgage payments on the Connecticut property had DeMello purchased the property in accordance with the terms of the trust; 5) foregone interest which would have been earned on the down payment that DeMello should have given Buckman on the Connecticut property; 6) foregone investment income that Buckman could have earned on her portion of the trust assets had they been distributed after a reasonable time; and 7) expenses improperly paid from the trust. In addition, the court ordered the Connecticut property to be transferred to the sisters in individual shares, and then ordered it sold, giving DeMello an opportunity to purchase Buckman's share for $150,000 cash. Finally, the court awarded attorney's fees and costs to Buckman. DeMello appeals and seeks reversal of all aspects of the final judgment.

Breach of Fiduciary Duty

DeMello contends that there was no evidence of any breach of fiduciary duty to support an award of damages or removal of her as trustee.[1] Having reviewed the entire record, we disagree. There was evidence that DeMello failed to distribute assets and terminate the trust in a timely *886 fashion and that this failure was the result of her holding the trust open to benefit her and her husband, particularly with respect to the disposition of the Connecticut property. Although the trust permitted her to purchase property from the trust, the court concluded from the evidence that decisions she made with respect to the administration of the trust and disposition of its assets were based upon her personal interests. Furthermore, there was also evidence that DeMello used the trust to pay expenses that should have been paid by her business. The trial court did not abuse its discretion in concluding that DeMello breached her fiduciary duty and removing her as trustee.

Damages

DeMello challenges the award of all items of damages. We reverse as to each of the other contested items of damage, except the $5,000 awarded on the vehicle and some of the expenses paid from the trust.

1) Jewelry

After Irene's death, Buckman and DeMello specified the pieces of their mother's jewelry that they wanted to buy. DeMello offered the wedding set to Buckman for $14,000. Buckman declined the offer and suggested that they sell it. DeMello responded that she would get everything appraised and then they would discuss the sale. DeMello obtained an estate appraisal of the wedding set for $6,325 and purchased it herself. Buckman objected, believing that the jewelry was worth $14,000. DeMello obtained two other appraisals, both less than the first. DeMello also offered Buckman the wedding set at the $6,325 value, but Buckman refused. In her suit, Buckman claimed that DeMello should have paid the $14,000 value and therefore Buckman was damaged by the difference between the appraised value and the $14,000 value, or $7,675, the award of the court. At trial, Buckman presented no evidence that the value of the wedding ring set was $14,000. Because there was no evidence that the value of the ring set exceeded the amount DeMello paid the trust for the rings, Buckman failed to prove any damage as a result of DeMello's actions. See George Hunt, Inc. v. Dorsey Young Constr., Inc., 385 So.2d 732, 733 (Fla. 4th DCA 1980) ("evidence as to the amount of damages cannot be based on speculation or conjecture, but must be proven with certainty").[2]

2) Tamarac Property

Article XII(B) of the trusts provides DeMello with the power:

To sell (and to grant options for the sale of) any real or personal property at public or private sale both within and without Florida, without order of any Court, for such prices

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Cite This Page — Counsel Stack

Bluebook (online)
916 So. 2d 882, 2005 WL 2990487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demello-v-buckman-fladistctapp-2005.