Helfand v. Gerson

105 F.3d 530, 97 Daily Journal DAR 1015, 97 Cal. Daily Op. Serv. 633, 1997 U.S. App. LEXIS 1340
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 28, 1997
DocketNos. 94-16772, 95-15672
StatusPublished
Cited by109 cases

This text of 105 F.3d 530 (Helfand v. Gerson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helfand v. Gerson, 105 F.3d 530, 97 Daily Journal DAR 1015, 97 Cal. Daily Op. Serv. 633, 1997 U.S. App. LEXIS 1340 (9th Cir. 1997).

Opinion

DAVID R. THOMPSON, Circuit Judge:

I. OVERVIEW

The widow and nephew of the late William Helfand brought a diversity action alleging legal malpractice against the attorney and law firm responsible for preparing Mr. Hel-fand’s testamentary documents. The district court held the plaintiffs were judicially es-topped from asserting their interpretation of Mr. Helfand’s testamentary documents because they had successfully advocated an inconsistent position in state court. The district court granted summary judgment for the defendants. On appeal, the plaintiffs contend the district court erred by applying judicial estoppel. They also contend the district court erred by awarding attorney fees under Hawaii Revised Statutes § 607-14 because the complaint was not “in the nature of assumpsit.” We have jurisdiction pursuant to 28 U.S.C. § 1291 and we affirm.

II. FACTS

Defendant Mervyn S. Gerson, a partner in the defendant law firm Gerson, Grekin and Wynhoff (collectively, the “defendants”), prepared a will for William T. Helfand, which Mr. Helfand executed on October 9, 1991. The will contained the following paragraph 2(b) regarding Mr. Helfand’s residence in Hawaii:

I give, devise and bequeath all my right, title and interest in and to Apartment # 1302, the Waikiki Shores, 2161 Kalia Road, Honolulu, Hawaii, together with all furniture and furnishings customarily situated therein, to my wife, RUTH C. HEL-FAND, if she survives me.

Thus, under the will, Ruth Helfand was to take Mr. Helfand’s interest in the residence if she survived him.

Mr. Gerson also prepared a revocable living trust, which Mr. Helfand executed the same day he executed his will. The trust contained the following paragraph 3.13 regarding Mr. Helfand’s principal residence:

In the event that after the Settlor’s death the Trustee holds an interest in property constituting the Settlor’s principal- residence at the Settlor’s death, the Trustee shall not dispose of such interest so long as the Settlor’s spouse desires to continue to live in said property as a principal residence, and the Trustee shall pay its proportionate share of the costs of maintaining said property and shall allow Settlor’s [533]*533surviving spouse to continue to reside therein free of all charges.

Paragraph 2.2(B) of the trust provided:

If the Settlor’s will specifically bequeaths or devises any property which at the time of the Settlor’s death is held in or receivable by the trust (and is not in the Settlor’s probate estate), the Trustee shall maJke distribution of such property as provided therein.

On November 1, 1991, the Hawaii residence was conveyed to the trust. That same day, Mr. Helfand executed an amendment to the trust which provided:

If the Settlor’s wife, RUTH C. HEL-FAND, becomes permanently institutionalized, then upon such institutionalization the Trustee shall distribute absolutely and free of the trust the Settlor’s principal residence as defined in Paragraph 3.13, presently at 2161 Kalia Road, Apartment 1302, Honolulu, Hawaii, to the Settlor’s nephew, MARK J. SEIDENBERG, if he is then living.

Mr. Helfand died on December 8,1991. A few months later, First Hawaiian Bank, the trustee, filed a Petition for Instructions in Hawaii state court. The Bank explained that paragraph 2(b) of the will and paragraph 2.2(B) of the trust seemed to require the residence to be distributed directly to Mrs. Helfand. On the other hand, paragraph 3.13 of the trust and the amendment to the trust seemed to require that the residence remain in the trust as long as Mrs. Helfand desired to live in it and as long as she was not institutionalized; upon her permanent institutionalization, however, the residence should be distributed to Mark Seidenberg.1 Although the Bank believed the residence should be distributed outright to Mrs. Hel-fand, it sought instructions from the court to avoid potential litigation.

Prior to filing a response to the Bank’s petition, Seidenberg and Mrs. Helfand attempted to obtain the defendants’ records and documents pertaining to Mr. Helfand’s will and trust. On June 3,1992, they served a subpoena duces tecum on the defendants requiring them to produce those documents. By letter, the defendants gave notice that they would not appear or produce the requested documents. They asserted that the documents were protected by the attorney-client privilege. Seidenberg and Mrs. Hel-fand did not challenge the defendants’ claim of privilege.

Seidenberg filed a response to the Bank’s petition on behalf of himself and as attorney-in-fact for Mrs. Helfand. The response stated:

Seidenberg takes no position on Petitioner’s request for instructions. Seidenberg only requests that, if the Court determines that the property should be delivered to Mrs. Helfand, ... the Court also determine whether the estate or trust of William T. Helfand remains financially responsible for the upkeep and maintenance of the property.

At the July 10th, 1992, hearing on the Bank’s petition, attorney Michael Lilly represented Seidenberg. The parties dispute whether Lilly also represented Seidenberg as attorney-in-fact for Mrs. Helfand.

At the hearing, Lilly argued that because Mrs. Helfand had expressed a desire to live in the residence, the Bank should retain it in the trust until Mrs. Helfand’s permanent institutionalization, at which point it should be distributed to Seidenberg. On March 23, 1993, the Hawaii state court adopted this position and instructed the Bank to retain the residence in the trust subject to possible distribution to Seidenberg upon Mrs. Hel-fand’s permanent institutionalization.

Several months later, on September 30, 1993, Mrs. Helfand and Seidenberg as her attorney-in-fact (the “plaintiffs”), sued the defendants in federal district court claiming they had been injured by the Bank’s retention of the residence in the trust. They argued that the residence should have been distributed directly to Mrs. Helfand and that Mrs. Helfand failed to obtain ownership of the residence due to the flawed preparation of the estate planning documents. The complaint contained four claims: negligence, [534]*534breach of contract, breach of warranty, and legal malpractice arising from the defendants’ preparation of allegedly ambiguous testamentary documents.

On June 15, 1994, the plaintiffs filed a motion for summary adjudication of some of the elements of their claims. The same day, the defendants filed a motion for summary judgment contending, in relevant part, that the plaintiffs’ claims were barred by the doctrine of judicial estoppel because they asserted a position with regard to Mr. Helfand’s testamentary intent that was inconsistent with the position they successfully asserted before the Hawaii state court.

The district court denied the plaintiffs’ motion for summary adjudication and granted the defendants’ motion for summary judgment, holding that, the plaintiffs were judicially estopped from asserting the position alleged in their complaint.

The defendants filed a motion for attorney fees and costs on September 15, 1994.

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Bluebook (online)
105 F.3d 530, 97 Daily Journal DAR 1015, 97 Cal. Daily Op. Serv. 633, 1997 U.S. App. LEXIS 1340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helfand-v-gerson-ca9-1997.