Hickey Living Trust

979 N.W.2d 558, 2022 S.D. 53
CourtSouth Dakota Supreme Court
DecidedAugust 24, 2022
Docket29677
StatusPublished
Cited by1 cases

This text of 979 N.W.2d 558 (Hickey Living Trust) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hickey Living Trust, 979 N.W.2d 558, 2022 S.D. 53 (S.D. 2022).

Opinion

#29677-r-SRJ 2022 S.D. 53

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

IN THE MATTER OF THE SHIRLEY A. HICKEY LIVING TRUST.

APPEAL FROM THE CIRCUIT COURT OF THE SECOND JUDICIAL CIRCUIT MINNEHAHA COUNTY, SOUTH DAKOTA

THE HONORABLE JON SOGN Judge

JOHN K. NOONEY ROBERT J. GALBRAITH JARED D. NOONEY of Nooney & Solay LLP Rapid City, South Dakota Attorneys for appellants Kristina Lippert and Darren Hickey.

JACK H. HIEB of Richardson, Wyly, Wise Sauck & Hieb, LLP Aberdeen, South Dakota Attorneys for appellees Warren Hickey, Jeannine Hickey-Reuer, and Annette Jarrell.

CONSIDERED ON BRIEFS MARCH 21, 2022 OPINION FILED 08/24/22 ****

LEE SCHOENBECK of Schoenbeck & Erickson, P.C. Watertown, South Dakota Attorneys for appellees Warren Hickey and Jeannine Hickey- Reuer. #29677

JENSEN, Chief Justice

[¶1.] Bradley Hickey filed a petition challenging the validity of an

amendment to the Shirley A. Hickey Trust (Trust). Nearly a year later, Kristina

Lippert and Darren Hickey filed a motion to intervene in the petition. The circuit

court denied the motion to intervene, finding that the motion was untimely under

SDCL 15-6-24(a) because Kristina and Darren had failed to timely challenge the

validity of the Trust as required by SDCL 55-4-57(a). Kristina and Darren filed a

motion for clarification and reconsideration, requesting the court to reconsider the

denial of the motion to intervene and to clarify their ability to participate in

discovery and at trial. The circuit court denied the motion for reconsideration and

determined Kristina and Darren could not participate in the trial through the

presentation of evidence and the examination of witnesses. Kristina and Darren

appeal the denial of their motion to intervene and the denial of their motion for

clarification and reconsideration. We reverse, vacate a portion of the order denying

the motion for clarification and reconsideration, and remand for further

proceedings.

Facts and Procedural History

[¶2.] Shirley and Clifford Hickey were married in 1956. They had eight

children: Jeannine Hickey-Reuer, Vance Hickey, Bradley, Michelle Hoesing,

Terence Hickey, Warren Hickey, Darren, and Kristina. Shirley and Clifford owned

and operated several successful businesses and accumulated significant assets

during their lifetimes. Clifford died in 2007. Shirley established the Trust on

March 22, 2010, and transferred substantially all of her assets into the Trust. The

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Trust provided that upon Shirley’s death, each of her eight children would receive

an equal share in the Trust. Shirley amended the Trust several times before her

death.

[¶3.] Shirley initially amended and restated the Trust (First Amended

Trust) in September 2016. The First Amended Trust distributed some real property

to a separate trust and provided that upon Shirley’s death, the Trust corpus would

be divided equally among her eight children. The First Amended Trust named

Shirley and Kristina as co-trustees. In 2017, Kristina petitioned to place Shirley

under a guardianship and conservatorship and requested to be appointed as

Shirley’s guardian and conservator. 1 Bradley, Vance, Michelle, Terence, and

Darren also supported the petition. A circuit court judge ultimately denied

Kristina’s petition.

[¶4.] Shirley’s relationship with the children who had supported the

guardianship became strained. In January 2018, Shirley removed Kristina as a co-

trustee of the Trust. Shirley amended and restated the First Amended Trust,

creating the Second Amended Trust in February 2018. Shirley named herself and

First National Bank as the co-trustees of the Second Amended Trust. The Second

Amended Trust directed the trustee, upon Shirley’s death, to distribute $1,000 each

to Bradley, Vance, Michelle, Terence, Darren, and Kristina, and to distribute

certain real property to a separate trust. The remainder of the trust corpus was to

1. Kristina petitioned for guardianship and conservatorship after learning that Shirley, on behalf of the Trust, signed a promissory note in favor of Warren for the sum of $4,000,000.

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be divided equally into one-third shares and distributed to Warren and his wife Deb

Crawford, Jeannine, and Shirley’s sister, Annette Jarrell.

[¶5.] Shirley died on September 12, 2019. Per the terms of the Second

Amended Trust, the Trust became irrevocable and First National Bank became the

sole trustee. On September 25, 2019, First National Bank sent letters to the

beneficiaries of the Second Amended Trust, including Kristina and Darren,

providing notice of the 60-day limitation period to challenge the validity of the

Second Amended Trust under SDCL 55-4-57(a).

[¶6.] On November 22, 2019, Bradley filed a petition for court supervision of

the Trust, an accounting, protection of privacy, and a declaration of invalidity,

reformation and modification of the Trust (Petition). The Petition requested the

court to invalidate the Second Amended Trust, alleging undue influence by Warren.

Alternatively, the Petition alleged claims of mistake of fact and undue influence and

requested the court to reform or modify the Second Amended Trust to distribute the

Trust pursuant to the First Amended Trust to properly reflect Shirley’s lifelong

intent to equally divide her estate between all eight children. None of the other

siblings filed a petition challenging the validity of the Second Amended Trust.

[¶7.] The court granted the request for court supervision of the Second

Amended Trust pursuant to SDCL 21-22-9. On June 18, 2020, the court entered a

scheduling order for the litigation involving the Petition. On October 12, 2020,

Kristina and Darren filed a motion to intervene (Motion) in the Petition. The

Motion asserted that Kristina and Darren were entitled to intervene as a matter of

right pursuant to SDCL 15-6-24(a)(2). They argued that as beneficiaries of the

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Second Amended Trust they had an interest in the litigation because the Petition

sought to invalidate or reform the Trust to equally divide the Trust assets between

Shirley’s eight children. The Motion further alleged that Bradley was not

adequately protecting Kristina’s and Darren’s interests in the litigation because

they believed Warren, alone or with one or more of the other residuary

beneficiaries, was attempting to settle the Petition to the exclusion of Kristina and

Darren. Kristina and Darren also claimed that Bradley had refused to enter into an

agreement to divide any monies received from litigation evenly among the

beneficiaries who were to receive $1,000 under the Second Amended Trust and that

there was other adverse, pending litigation between the siblings.

[¶8.] Warren, Jeannine, and Annette opposed the Motion, arguing that it

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