DiPietro v. Casco Northern Bank

490 A.2d 215, 1985 Me. LEXIS 671
CourtSupreme Judicial Court of Maine
DecidedApril 2, 1985
StatusPublished
Cited by12 cases

This text of 490 A.2d 215 (DiPietro v. Casco Northern Bank) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DiPietro v. Casco Northern Bank, 490 A.2d 215, 1985 Me. LEXIS 671 (Me. 1985).

Opinion

WATHEN, Justice.

Defendants, Casco Northern Bank, N.A. (the “Bank”) and Franklin G. Hinckley, appeal from an order of the Superior Court (Cumberland County) denying their motion for dismissal or dissolution of ex parte attachments and trustee processes issued by the Probate Court for plaintiff, Mose C. DiPietro, against the real and personal property of the Estate of Gladys D. Chapman and the Gladys D. Chapman Revocable Trust (the “Revocable Trust”). The Bank is the executor of the Estate of Gladys D. Chapman. The Bank and Mr. Hinckley are the co-trustees of the Revocable Trust. We reverse the denial of the motion to dissolve the ex parte attachments and trustee processes.

I.

The Bank was appointed executor of the Estate of Gladys D. Chapman on April 22, 1980. Under the terms of Gladys D. Chapman’s will, her son Philip F. Chapman, Jr., was given the right:

As to my land and my buildings at 375 Spring Street, Portland, Maine, my son, Philip F. Chapman, Jr., shall have the opportunity to purchase said property at the appraised value as shown in the Probate Inventory of my estate and within six (6) months of the allowance of my will and the appointment of my executor.

The appraised value of the Spring Street property as shown in the Probate Inventory is $62,500.

Under the terms of the will, the residue of Gladys D. Chapman’s estate is given to the trustees of the Revocable Trust. The *217 Revocable Trust was created in 1965 and amended in 1977. Under the terms of the Revocable Trust, on the death of Gladys D. Chapman, the trustees are to divide the Revocable Trust into three parts: A and B which shall be equal in amount and C which shall be $15,000 less than each of A and B. Part C was for the benefit of Philip F. Chapman, Jr., Geneva B. Chapman (Philip’s ex-wife), and Courtney Chapman (Philip’s daughter). Fifteen percent of Part C was to be distributed to Geneva Chapman outright. Twenty percent was to be distributed to Courtney Chapman outright. The remaining sixty-five percent was to be held in trust for the benefit of Philip, the net income to be paid to him quarterly or more often at the discretion of the trustees. Further, the trustees are authorized to pay part, all, or none of the principal for Philip’s benefit to provide for his general welfare or to buy “real property which shall comprise part of the donor’s estate at her death.” On Philip’s death the principal is to be paid outright to Courtney.

The Revocable Trust contains the following spendthrift clause:

No principal or income payable or to become payable under any of the trusts created by this instrument shall be subject to anticipation or assignment by any beneficiary thereof, or to the interference or control of any creditors of such beneficiary or to be taken or reached by any legal or equitable process of any debt or liability of such beneficiary prior to its receipt by the beneficiary.

On January 25, 1984, plaintiff obtained a judgment in a separate action against Philip in Superior Court (Cumberland County) in the amount of $172,000. On February 21, 1984, the Probate Court (Cumberland County) appointed Courtney Chapman conservator of her father’s property. The petition for appointment of a conservator recites that Philip “has demonstrated a complete inability to take care of himself or his affairs. ... His past actions show a complete inability to handle money or any fiscal matters responsibly.” Philip appeared before the Probate Court and consented to the conservatorship.

Philip has not purchased the property at 375 Spring Street. Additionally, his conservator, Courtney Chapman, has informed the Bank that she declines to purchase the Spring Street property on his behalf. Title to the Spring Street property has never been transferred from the Estate of Gladys D. Chapman to the Revocable Trust, and the Bank states that it has neither solicited bids for the Spring Street property nor listed the property with a broker.

On May 18, 1984, plaintiff filed a complaint in Probate Court, naming as defendants: the Bank, Mr. Hinckley, the Estate of Philip F. Chapman, Jr., the Estate of Gladys D. Chapman, the Revocable Trust, and Courtney Chapman. 1 The gist of the complaint is that the named defendants have acted improperly in an attempt to prevent plaintiff from collecting his judgment against Philip. Specifically, plaintiff asserts that the named defendants have acted willfully, maliciously, and intentionally to prevent plaintiff from collecting on his judgment and in dissipating the potential assets of the conservatorship estate. Plaintiff accuses the named defendants of fraud, and asserts that the named defendants’ actions have created a resulting trust for plaintiff’s benefit.

On May 22, 1984, the Probate Court made three orders of attachment and trustee process on the ex parte motion of plaintiff. An attachment and trustee process in the amount of $199,371.45 was issued against Courtney Chapman in her capacity as conservator of her father’s estate. An attachment and trustee process was issued against Mr. Hinckley in his capacity as co-trustee of the Revocable Trust in the *218 amount of $85,000. An attachment and trustee process in a like amount was issued against the Bank in its capacity as co-trustee of the Revocable Trust and as executor of the Estate of Gladys D. Chapman.

Defendants removed the case to Superior Court, and on June 20, 1984, each defendant named in plaintiffs complaint moved to dismiss, or in the alternative, to dissolve the attachments and trustee processes. Defendants alleged that the complaint fails to state a cause of action. In the alternative, defendants requested the court to dissolve the attachments and trustee processes on the ground that plaintiff had not shown a reasonable likelihood of recovering judgment, as required by M.R.Civ.P. 4A and 4B.

Before the Superior Court plaintiff conceded that his complaint does not meet the common law requirements for pleading fraud, but he asserted that the complaint meets the requirements for pleading the tort of interference. The Superior Court denied defendants motion to dismiss or dissolve the attachments and trustee processes. The Bank and Mr. Hinckley appeal from the Superior Court’s order denying the motion to dissolve.

II.

The Superior Court’s order denying defendants’ motion to dissolve the ex parte attachments and trustee processes is ap-pealable under the “collateral order” exception to the final judgment rule. In Sprague v. Washburn, 447 A.2d 784, 786 n. 6 (Me.1982), we held that orders approving or denying an attachment, or dissolving or denying the dissolution of an attachment, or trustee process are immediately appeala-ble. The Court reasoned that because an order sustaining a trustee process impairs the owner’s rights in his property as much as the initial order approving attachment or trustee process, an order sustaining an attachment or trustee process is immediately appealable. See id.

III.

An order approving an ex parte attachment or ex parte trustee process may issue only if the court finds that there is a reasonable likelihood of success on the merits.

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Bluebook (online)
490 A.2d 215, 1985 Me. LEXIS 671, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dipietro-v-casco-northern-bank-me-1985.