Dunbar v. Dunbar CA3

CourtCalifornia Court of Appeal
DecidedApril 9, 2026
DocketC098648
StatusUnpublished

This text of Dunbar v. Dunbar CA3 (Dunbar v. Dunbar CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunbar v. Dunbar CA3, (Cal. Ct. App. 2026).

Opinion

Filed 4/9/26 Dunbar v. Dunbar CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Placer) ----

MARGARET DUNBAR, as Trustee, etc., C098648

Plaintiff and Appellant, (Super. Ct. No. S-PR-0010606) v.

CHARLES DUNBAR et al.,

Defendants and Respondents.

William J. Dunbar was the settlor and original trustee of the Dunbar Revocable Trust of 2008, as Amended and Restated August 2011 (the Trust). After his death in 2020, disputes developed between his sons, respondents Charles and Michael Dunbar, and his surviving spouse, appellant Margaret Dunbar (the sons’ stepmother), over the Trust’s provision of a special trustee for a small business that William had operated as a sole proprietorship.1 The parties filed competing petitions for instructions under Probate

1 Because of the parties’ shared last name, we occasionally refer to them by their first names. No disrespect is intended.

1 Code section 17200, and a bifurcated bench trial was held to determine the proper construction of the Trust. The trial court ruled that the Trust’s provisions were not ambiguous and that Charles was the designated special trustee with the power to manage all of the business’s assets. On appeal, appellant argues that the Trust’s terms are ambiguous and therefore the trial court should have considered extrinsic evidence purportedly showing William’s intent to designate a special trustee for the business only during his lifetime. She further contends that Charles owes her an accounting of the business’s assets. Finding no merit to these contentions, we affirm. BACKGROUND During his lifetime, William founded and operated a sole proprietorship known as Marconi Coin and Jewelry Exchange (Marconi Coin). His son, Charles, was a longtime employee of the business. William first established a trust in February 2008, naming himself as both settlor and trustee. In August 2011, he executed an amendment and restatement of the trust after marrying appellant. The Trust provided for the distribution of certain special gifts upon William’s death. For instance, the Trust gave to appellant all of William’s interest in personal effects and tangible personal property located at his residence, except for certain items specifically gifted to other individuals and except for any assets of Marconi Coin. Section 5.3 of the Trust gave Marconi Coin to Charles in the following language: “On the settlor’s death, the trustee shall distribute to CHARLES W. DUNBAR, the settlor’s son, if CHARLES survives the settlor, all of the settlor’s interest in that certain business, currently known as MARCONI COIN AND JEWELRY EXCHANGE, or any successor business (the ‘Business’), including, without limitation, the Business goodwill, inventory wherever located, Business bank account(s), and all of the settlor’s interest in the insurance on the Business. If CHARLES does not survive the settlor, or if the

2 Business has been sold or dissolved prior to the settlor’s death, this gift shall lapse. [¶] This gift shall pass subject to any liens and encumbrances, without exoneration.” The Trust designated appellant as the first successor trustee. The Trust separately named Charles as special trustee with respect to Marconi Coin, under the following terms in Section 7.4: “If the Business (defined in Section 5.3, above) is a trust asset, CHARLES W. DUNBAR shall serve as special trustee with respect to the Business if the settlor is not the trustee. If CHARLES is unable or unwilling to serve as special trustee, the then- acting acting [sic] trustee of the trust shall be special trustee. The special trustee has been designated for the sole purpose of exercising the powers of a trustee with respect to the Business. The then-acting successor trustee of the trust shall execute any documents necessary or appropriate to authorize, implement, or ratify actions taken pursuant to this section by the special trustee, as the case may be. “Net income from the operation of the Business during the life of the settlor not necessary as a reserve for operating or other reasonably foreseeable business expenses, shall be paid to the then-acting successor trustee of the trust and that net income shall be added to the other assets of the trust. On the death of the settlor, the special trustee shall distribute the Business, including any accrued but unpaid net income of the Business, to the person or persons entitled to it pursuant to the other provisions of this trust. “The purpose of this section is to provide for the continued operation of the Business, or an orderly winding up of its affairs, in the sole discretion of the special trustee. The special trustee shall have the powers to self-deal set forth in section 7.16, below, and the additional power to receive from the Business a reasonable salary and reimbursement of expenses while performing duties as the special trustee. “If the special trustee sells the Business or ceases operating the Business during the lifetime of the settlor, the special trustee shall distribute the assets of the Business or the net sales proceeds, as the case may be, to the then-acting successor trustee of the trust

3 and those assets or proceeds shall become part of the trust corpus to be held, administered and distributed pursuant to the other provisions of this instrument. “The special trustee shall have the power to hold and operate the Business on such terms and for such a time as the special trustee, in the special trustee’s discretion, deems advisable; to purchase, acquire, invest in, or otherwise participate in, any business or other enterprise on behalf of the trust; or to sell, dissolve, liquidate, or terminate any such business. The trustee shall also have the power to incorporate, reorganize, or otherwise change the form of the Business, through merger or consolidation of two or more enterprises or otherwise, and to participate in that business or enterprise as a sole proprietor, as a general or limited partner, as a shareholder, or in any other capacity. Any operation, sale, purchase, acquisition, investment in, or dissolution or liquidation of the Business, in good faith, shall be at the risk of the trust, and without liability on the part of the special trustee for any resulting losses. The special trustee shall also have the power to contribute capital or loan money to the business or enterprise on such terms and conditions as the special trustee deems advisable.” William died unexpectedly in March 2020, while still serving as trustee. In November 2020, William’s sons, Charles and Michael (both Trust beneficiaries), respondents here, filed a petition for instruction to determine the construction of the Trust’s special trustee provision and to redress numerous alleged breaches of fiduciary duty by appellant, as successor trustee. Respondents alleged that appellant had emptied and closed various Marconi Coin financial accounts, seized and removed Marconi Coin tangible property from the store’s premises, and changed the shop’s lock and alarm codes without providing notice or access to Charles. In December 2020, respondents obtained a preliminary injunction suspending any powers appellant might have with respect to Marconi Coin, granting Charles the sole power to exercise trustee powers regarding Marconi Coin pending resolution of the petition, and ordering appellant to surrender possession of Marconi Coin, including its

4 premises, assets, and accounts, to Charles.

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Dunbar v. Dunbar CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunbar-v-dunbar-ca3-calctapp-2026.