In Re Dorothy Marie Talanda Trust

CourtMichigan Court of Appeals
DecidedMay 18, 2023
Docket360176
StatusUnpublished

This text of In Re Dorothy Marie Talanda Trust (In Re Dorothy Marie Talanda Trust) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dorothy Marie Talanda Trust, (Mich. Ct. App. 2023).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

In re DOROTHY MARIE TALANDA TRUST.

CAMILLE FATH, EDMUND TALANDA, and UNPUBLISHED KATHLEEN TALANDA POTTS, May 18, 2023

Appellees,

v No. 360176 Kent Probate Court LARAINE GOETTING, MICHELE KRAFT, and LC No. 20-207551-TV DANIEL BROXUP,

Appellants,

and

TIMOTHY WAALKES, Trustee of the DOROTHY MARIE TALANDA TRUST,

Other Party.

In re EDMUND TALANDA TRUST.

CAMILLE FATH, EDMUND TALANDA, and KATHLEEN TALANDA POTTS,

v No. 360231 Kent Probate Court LARAINE GOETTING, MICHELE KRAFT, and LC No. 20-207552-TV DANIEL BROXUP,

-1- and

TIMOTHY WAALKES, Trustee of the EDMUND TALANDA TRUST,

Before: MARKEY, P.J., and MURRAY and FEENEY, JJ.

PER CURIAM.

In Docket No. 360176, appellants, Loraine Goetting, Michele Kraft, and attorney Daniel Broxup, appeal by right the probate court’s order awarding appellees, Camille Fath, Edmund Talanda, and Kathleen Talanda Potts, $51,960 in attorney fees and costs in relation to litigation regarding the administration of the Dorothy Marie Talanda Trust. The order also awarded Fath, in her capacity as former cotrustee, $13,377.50 in attorney fees and costs. The awards of attorney fees and costs were entered against the appellants jointly and severally. The exact same order concerning attorney fees and costs was also entered in the lower court file pertaining to the administration of the Edmund Talanda Trust, forming the basis of appellants’ appeal by right in Docket No. 360231. This Court consolidated the appeals “to advance the efficient administration of the appellate process.”1 On appeal, appellants pose three general arguments: (1) the probate court abused its discretion by finding that claims presented in appellants’ counterpetition were frivolous and were, in part, solely meant to harass former cotrustee Fath; (2) the probate court abused its discretion by finding that appellants engaged in discovery and procedural abuses; and (3) the probate court abused its discretion in its determination of the amount of sanctions. We affirm.

I. FACTUAL AND PROCEDURAL HISTORY

The claims in this consolidated appeal relate to issues that this Court considered in a prior appeal in In re Dorothy Marie Talanda Trust, unpublished per curiam opinion of the Court of Appeals, issued May 12, 2022 (Docket No. 356293), relative to a lakefront parcel of land (the lake lot). We note that this Court additionally issued an affiliated opinion in In re Edmund Talanda Trust, unpublished per curiam opinion of the Court of Appeals, issued June 23, 2022 (Docket No. 358074), which addressed a lakefront cottage (the cottage).

During their lifetimes, decedents Dorothy Talanda and Edmund Talanda,2 established separate revocable living trusts. Both served as the initial trustee of their respective trusts until their deaths. Dorothy Talanda died in December 2017, and Edmund Talanda died in March 2019.

1 In re Dorothy Marie Talanda Trust; In re Edmund Talanda Trust, unpublished order of the Court of Appeals, entered February 16, 2022 (Docket Nos. 360176 and 360231). 2 We will hereafter refer to decedent Edmund Talanda by his full name and to his living son and appellant Edmund Mark Talanda as “Edmund.”

-2- With the exception of successor trustee Timothy Waalkes and attorney Broxup, the parties are siblings who were beneficiaries of their parents’ trusts: Goetting, Kraft, Fath, Edmund, and Potts. Susan Minehart and Annette Talanda Brennan are also part of the group of siblings who were beneficiaries; however, they are not parties to this appeal. Fath and Brennan acted as cotrustees of the trusts after their parents’ deaths, but disagreements in regard to the distribution of trust assets arose, making it impossible to finalize the administration of the trusts.

Disputes over trust assets resulted in the development of a rift between Fath, Edmund, Potts, and Minehart on one side and Brennan, Kraft, and Goetting on the other side. This divide between siblings resulted in their decision to engage in mediation to determine the disposition of the assets held by the trusts. The parties eventually consented to having the mediator issue a proposal on issues that remained unresolved. The mediator’s proposal became a settlement agreement. And as part of that settlement agreement, Fath and Brennan agreed to resign as cotrustees. Waalkes subsequently took over as successor trustee of the two trusts. The settlement agreement addressed the sale of the lake lot, providing:

The vacant lot on Gourdneck Lake will be offered for sale by owner for 30 days, and if not sold then it will be listed for sale as directed by the Trustee of the Trust. In the event the property is listed with an agent for sale, the beneficiaries will defer to the directions of the listing agent.

Fath eventually purchased the lake lot for $325,000, after it was listed for sale with a realtor. Another pertinent portion of the settlement agreement addressed the distribution of the cottage. The agreement provided:

The interest of the Estates and Trusts in the Gourdneck Lake cottage property will be assigned to Ed Talanda, Camille Fath, Susan Talanda, and Kathleen Potts for the agreed upon price of $60,000. Ed Talanda, Camille Fath, Susan Talanda, and Kathleen Potts will take immediate and exclusive possession and pay all costs, fees, etc. Ed Talanda, Camille Fath, Susan Talanda, and Kathleen Potts have until November 28, 2019 to notify the Trust whether they want to consummate the transaction. In the event they decline, then the property will be immediately listed for sale on such terms as the Trustee of the Trust determines.

Fath, Edmund, and Potts eventually filed a petition in the probate court seeking to enforce the settlement agreement relative to the cottage and the lake lot. Goetting and Kraft, through attorney Broxup, filed a counterpetition, which sought to set aside the sale of the lake lot and disputed the contention that Fath and Edmund provided proper notice to take possession of the cottage. The parties filed cross-motions for summary disposition, and the probate court found in favor of Fath, Edmond, and Potts with respect to both the lake lot and the cottage. A panel of this Court affirmed the probate court’s decision concerning the lake lot. In re Dorothy Marie Talanda Trust, unpub op at 1.3

3 The same panel dismissed the appeal relating to the cottage for lack of jurisdiction. In re Edmund Talanda Trust, unpub op at 2.

-3- Appellees Fath, Edmund, and Potts then filed a petition for attorney fees and costs, arguing that appellants Goetting and Kraft’s claims in the counterpetition were not well grounded in fact or were brought solely for the purpose of harassing former cotrustee Fath. Moreover, appellees asserted that appellants engaged in discovery and procedural abuses during the proceedings. The probate court awarded appellees attorney fees and costs in the amount of $51,960 against appellants, jointly and severally. The probate court also ordered appellants to pay $13,377.50 in attorney fees and costs to Fath, in her capacity as a former cotrustee.

II. ANALYSIS

A. STANDARD OF REVIEW

“This Court reviews a trial court’s ruling on a motion for costs and attorney fees for an abuse of discretion.” Keinz v Keinz, 290 Mich App 137, 141; 799 NW2d 576 (2010); see also Smith v Khouri, 481 Mich 519, 526; 751 NW2d 472 (2008). “An abuse of discretion occurs when the trial court’s decision is outside the range of reasonable and principled outcomes.” Smith, 481 Mich at 526.

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Bluebook (online)
In Re Dorothy Marie Talanda Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dorothy-marie-talanda-trust-michctapp-2023.