Dorn v. Cohen

791 S.E.2d 313, 418 S.C. 126
CourtCourt of Appeals of South Carolina
DecidedAugust 3, 2016
DocketAppellate Case No. 2015-000659; Opinion No. 5432
StatusPublished
Cited by1 cases

This text of 791 S.E.2d 313 (Dorn v. Cohen) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dorn v. Cohen, 791 S.E.2d 313, 418 S.C. 126 (S.C. Ct. App. 2016).

Opinion

KONDUROS, J.:

Daniel Bernard Dorn and E.D., R.D., and Y.D. (collectively, Appellants) appeal the circuit court’s order dismissing as not immediately appealable their appeal of the probate court’s order adding a party after the conclusion of Dorn’s case-in-chief. Appellants contend the probate court’s order, which added Abbie llene Dorn (Abbie) as a party to Dorn’s petition to remove Abbie’s parents, Paul S. Cohen, M.D. and Susan Cohen (collectively, the Cohens), as the coconservators and cotrustees of the Abbie Dorn Special Needs Trust (the Trust), was immediately appealable because it affected Dorn’s substantial right to name his own defendant and to control the presentation of evidence at trial. We affirm the circuit court’s order.

FACTS/PROCEDURAL HISTORY

Dorn and Abbie began trying to conceive a child after marrying in 2002. Despite difficulty, Abbie conceived triplets and delivered E.D., R.D., and Y.D. (collectively, Children) at Cedars-Sinai Medical Center (Cedars-Sinai) in Los Angeles, California on June 21, 2006. During delivery, Abbie suffered catastrophic injuries that left her incapacitated.

Abbie, through Dorn and her guardian ad litem, brought and settled a medical malpractice claim against Cedars-Sinai [130]*130for $6,730,000. The settlement funded the Trust through a one-time contribution of $910,275.20. The balance of the settlement funded the purchase of a $4,333,105 annuity, which was to provide periodic payments of $31,000 per month to the Trust over the remainder of Abbie’s life. The amount of the annuity payments to the Trust was set to increase annually at a rate of 3.5%.

The Trust named Abbie as its sole primary beneficiary and Children as remainder beneficiaries after Abbie’s death.1 The Trust named the Cohens as cotrustees.2 The Trust empowered the Cohens to employ professionals, including attorneys, for estate administration purposes and to represent Abbie in legal matters. The Trust made compensation of the attorneys hired on Abbie’s behalf contingent on court approval.

The Cohens moved to California to care for Abbie so she could remain close to Children; however, after learning Abbie was unlikely to secure daily visitation with Children, the Cohens returned with Abbie to their home in Horry County. On April 1, 2008, the Horry County Probate Court transferred jurisdiction over the Trust from Kern County, California to Horry County.

Dorn informed the Cohens he wanted a divorce, and they brought a marital dissolution action on Abbie’s behalf in California in 2008. The California family court bifurcated the action and entered an order dissolving Dorn and Abbie’s marriage on September 11, 2008. The California family court decided the custody, visitation, and child support portions of Dorn and Abbie’s divorce nearly three years later in April 2011.

In November 2010, Dorn filed an emergency petition on Children’s behalf to remove the Cohens as the Trust’s cotrus-tees and sought a temporary restraining order (TRO) to [131]*131prevent the Cohens from spending Trust money on anything other than Abbie’s medical needs. Dorn alleged the Cohens abused their fiduciary responsibilities, violated the Trust’s terms, and spent a substantial portion of the Trust’s corpus on litigating the visitation portion of Dorn and Abbie’s divorce. Dorn also sought repayment of all Trust funds associated with litigating the California visitation action.

Two days later, the Cohens filed a petition to affirm $495,326.75 in legal fees paid by the Trust and to reform the Trust’s terms. The Cohens alleged the Trust’s terms created a logistical impracticability by requiring them to obtain court approval before paying attorney’s fees. The Cohens maintained the Trust empowered them to incur and pay legal fees on Abbie’s behalf; further, the Cohens sought permission to pay future legal fees with Trust funds.

The probate court held a TRO hearing on December 15, 2010, and denied Dorn’s request for a TRO. The probate court believed there was some question as to whether the Cohens were authorized to pay legal fees with Trust funds and thought Dorn’s and the Cohens’ petitions should be heard together in a single trial. Dorn stated he had no objection to the cases being heard together, and he believed the questions of fact were common to both petitions.

The probate court found Dorn should be served with the Cohens’ petition and it should be amended to name both Children and DHHS as parties. The probate court recognized a potential conflict of interest existed if Dorn were to represent Children with respect to the Cohens’ petition because of the ongoing visitation dispute between Dorn and the Cohens. To resolve any conflict of interest, the probate court announced it would appoint a guardian ad litem to independently represent Children. The probate court appointed John Kach-marsky (Children’s GAL) as attorney and guardian ad litem for Children on February 21, 2011. Contemporaneously, the probate court appointed Virginia Lee Moore as guardian ad litem (Abbie’s GAL) and Lynette Rodgers Hedgepath (Appointed Attorney) as the appointed attorney for Abbie.

The Cohens amended their petition and named DHHS and Children as parties. Abbie and Children filed separate answers to the amended petition. Children asserted a counterclaim for [132]*132breach of fiduciary duty against the Cohens, alleging the Cohens failed to exercise prudence or discretion in their pursuit of visitation with Children and dissipated the Trust’s corpus without court approval. The Cohens answered Children’s counterclaim and denied breaching their duties as cotrustees; further, the Cohens maintained Children failed to state a claim on which relief could be granted.

Trial commenced before the probate court on February 25, 2018. Dorn sought clarification regarding whether the probate court intended to hear three separate claims in a single trial, including Dorn’s petition, the Cohens’ petition, and Children’s counterclaim. The Cohens believed trying multiple cases simultaneously was impractical and suggested Dorn’s petition be heard and rebutted first, followed by the Cohens’ petition. The Cohens argued any duplicative testimony from the first trial could be incorporated into the second trial as needed. Children preferred the petitions be heard simultaneously. Neither Abbie’s GAL nor Appointed Attorney expressed a preference as to how the case should proceed.

The probate court believed the petitions were intertwined and trying the petitions together would be most effective. The probate court indicated if-the petitions were heard separately, it was extremely unlikely the probate court would issue a decision at the end of the trial on Dorn’s petition. The probate court explained Dorn would present his case first and the Cohens, Children, Appointed Attorney, and Abbie’s GAL would be given an opportunity to cross-examine Dorn’s witnesses. The probate court provided the parties would need to take that opportunity to question witnesses with respect to their own cases. The probate court stated the parties could recall witnesses later and call rebuttal witnesses to Dorn’s case when presenting their own cases.

Appointed Attorney requested Dorn provide the parties with the order in which Dorn intended to call his witnesses. Dorn explained he would do whatever the probate court asked of him but noted the Cohens, Appointed Attorney, and Abbie’s GAL had not requested Dorn’s witness list during discovery.

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Related

Dorn v. Cohen
809 S.E.2d 53 (Supreme Court of South Carolina, 2017)

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Bluebook (online)
791 S.E.2d 313, 418 S.C. 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dorn-v-cohen-scctapp-2016.