Evan Gray v. P Chester L. Gray, III, Trustee

2023 DNH 146
CourtDistrict Court, D. New Hampshire
DecidedDecember 4, 2023
Docket22-cv-560-LM
StatusPublished
Cited by1 cases

This text of 2023 DNH 146 (Evan Gray v. P Chester L. Gray, III, Trustee) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evan Gray v. P Chester L. Gray, III, Trustee, 2023 DNH 146 (D.N.H. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Evan Gray

v. Civil No. 22-cv-560-LM Opinion No. 2023 DNH 146 P Chester L. Gray, III, Trustee

ORDER

Evan Gray (“Evan”) brings this action alleging that his brother, Chester L.

Gray, III (“Skip”), violated his fiduciary duties as the trustee of a trust established

by their father.1 Presently before the court is Skip’s motion to dismiss Evan’s

amended complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). See doc.

no. 30. Skip contends that Evan’s claims are untimely pursuant to RSA 564-B:10-

1005. Evan objects, arguing, inter alia, that his claims are timely under New

Hampshire’s savings statute, RSA 508:10. For the following reasons, the court

denies the motion to dismiss.2

STANDARD OF REVIEW

When evaluating a motion to dismiss for failure to state a claim under

Federal Rule of Civil Procedure 12(b)(6), the court must accept the factual

allegations in the complaint as true, construe reasonable inferences in the plaintiff’s

1 The court refers to the parties by their first names because they share a last

name in common.

2 Although Skip requested a hearing, the court does not believe oral argument

is needed. favor, and “determine whether the factual allegations in the plaintiff’s complaint set

forth a plausible claim upon which relief may be granted.” Foley v. Wells Fargo

Bank, N.A., 772 F.3d 63, 68, 71 (1st Cir. 2014) (quotation omitted). A claim is

facially plausible “when the plaintiff pleads factual content that allows the court to

draw the reasonable inference that the defendant is liable for the misconduct

alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). At the motion to dismiss stage,

the court “ordinarily may only consider facts alleged in the complaint and exhibits

attached thereto, although [the court] may also consider materials fairly

incorporated in the complaint or subject to judicial notice.” Lowe v. Mills, 68 F.4th

706, 713-14 (1st Cir. 2023) (citation and quotations omitted).

“Although a Rule 12(b)(6) analysis ordinarily tests the sufficiency of a

plaintiff’s complaint, ‘it is sometimes permissible to grant a motion to dismiss based

on an affirmative defense, such as the statute of limitations.’” Fujifilm N. Am. Corp.

v. M&R Printing Equip., Inc., 565 F. Supp. 3d 222, 237 (D.N.H. 2021) (quoting

Centro Medico del Turabo, Inc. v. Feliciano de Melecio, 406 F.3d 1, 6 (1st Cir.

2005)). “A motion to dismiss based upon a statute-of-limitations defense may be

granted ‘when the pleader’s allegations leave no doubt that an asserted claim is

time-barred.’” Id. (quoting Centro Medico, 406 F.3d at 6).

BACKGROUND

I. Factual Background

The following facts are taken from Evan’s amended complaint (doc. no. 27).

Evan and Skip are sons of Barbara and Chester Gray, Jr., both of whom are now

2 deceased. During his lifetime, Chester established trusts for the management of his

property, two of which are at issue in the present dispute. Of the two at-issue

trusts, one was established in 1996 (“the 1996 trust”) and the other was established

in 1985 (“the 1985 trust”).

Chester died in 2017. Upon his father’s death, Skip began acting as executor

of Chester’s estate and as trustee to the 1996 trust. Skip commenced an estate

proceeding to probate Chester’s assets on or about May 24, 2017. In his initial

petition, Skip did not disclose the existence of any life insurance policies among the

estate’s assets. On or about that same day, Evan, as a beneficiary of the 1996 trust,

requested that Skip identify the beneficiaries of two of Chester’s life insurance

policies that Skip had previously disclosed to Evan, one of which was with Penn

Mutual, and the other was with Phoenix.

Having not received a response to his request by October 2017, Evan

submitted a petition for full administration of Chester’s estate in the estate

proceeding. As a result of the discovery process in that proceeding, Evan obtained

several documents from Skip pertaining to the Penn Mutual and Phoenix policies.

Among these documents were letters from Penn Mutual and Phoenix to Skip—

received shortly after the filing of the initial estate petition—identifying the

beneficiaries of the life insurance policies as the trustee and successor trustees to

the 1985 trust, and identifying Barbara as the trustee of the 1985 trust. Evan

alleges that Skip failed to make a diligent search for the 1985 trust instrument, and

3 that, in any event, Skip knew or should have known that he was not the successor

trustee under that trust.

Despite Skip’s alleged knowledge, after receiving the letters from Penn

Mutual and Phoenix, Skip informed those insurance companies in July 2017 that he

had made a diligent search for the 1985 trust instrument but was unable to find it.

Then, in August 2017, and because of Skip’s representation, Penn Mutual and

Phoenix disbursed approximately $165,000 under the policies to Skip, who in turn

deposited the monies into the bank account for Chester’s estate. On October 16,

2018, Skip transferred the monies again to a separate account held by Skip’s

lawyers.3

Upon learning the foregoing information, Evan obtained a copy of the 1985

trust instrument. The 1985 trust documents identify Chester’s life insurance

policies as the trust’s primary assets, and expressly state that the executor of

Chester’s estate “shall not” receive any amounts payable under the policies. Doc. no.

27 ¶ 35. The documents also provide that Evan or his other brother, Scott Gray,

would succeed their mother Barbara as trustee to the 1985 trust.

II. Procedural History

In June 2018, Evan, proceeding pro se,4 brought suit in federal court against

Skip, alleging claims related to Skip’s actions as trustee of their parents’ trusts and

as executor of their father’s estate. See Gray v. Gray, 18-cv-522-JL, 2023 WL 35244,

3 Skip is represented by different counsel in the instant proceeding.

4 Evan is an attorney.

4 at *1 & passim (D.N.H. Jan. 4, 2023). Skip brought counterclaims against Evan and

Scott. The court resolved the claims and counterclaims in that case, largely in Skip’s

favor, and entered judgment on January 5, 2023. The court denied Evan’s motion

for reconsideration, and Evan has appealed.

While that case was pending, Evan, again proceeding pro se, brought a

second suit in this court against Skip in his capacity as trustee of the 1996 trust.

See Gray v. Gray, 20-cv-802-JL (D.N.H July 27, 2020) (“2020 Suit”). Evan alleged in

that complaint, among other things, that, in October 2018, Skip breached his

fiduciary duties as trustee when he transferred approximately $165,000 to his

lawyer’s bank account. 2020 Suit, doc. no. 1 ¶ 45. Evan alleged three claims against

Skip for breach of trust and breach of fiduciary duties, and sought compensatory

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Related

Gray v. Gray
D. New Hampshire, 2023

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