In re Estate of Shoemaker

2017 Ohio 8699
Ohio Court of Appeals·Decided November 16, 2017·No. 17CA1039·Published·Cited by 2 cases

Opinion

IN THE COURT OF APPEALS OF OHIO FOURTH APPELLATE DISTRICT ADAMS COUNTY

IN THE MATTER OF: : Case No. 17CA1039 :

THE ESTATE OF : DECISION AND JUDGMENT JOYCE SHOEMAKER, DECEASED : ENTRY :

: Released: 11/16/17

APPEARANCES:

John H. Lawler, West Union, Ohio, for Appellant. David E. Grimes, West Union, Ohio, for Appellee.

McFarland, J.

{¶1} Jean Ann Guthrie appeals the January 5, 2017 judgment entry of the Adams County Common Pleas Court, Probate Division, which denied settlement of the Last Will and Testament of Joyce Shoemaker as being contrary to the testator’s intent. Appellant asserts the trial court erred in failing to approve the settlement agreement and in compelling the parties to proceed to litigation. Here, the record does not contain evidence that other beneficiaries were given the opportunity to be heard and, in fact, were also in agreement with the proposed settlement. However, based upon our de novo review of the record, we must overrule the assignment of error and affirm the trial court’s judgment.

Adams App. No. 17CA1039 2 FACTS

{¶2} On July 25, 2015, Ms. Joyce Shoemaker, a widow with no children, passed away. On September 10, 2015, Ms. Shoemaker’s Last Will and Testament was filed with the Adams County Probate Court. On September 14, 2015, Appellant, the designated personal representative under Shoemaker’s will, filed an Application to Probate the Will.

{¶3} Subsequent to Ms. Shoemaker’s will having been admitted to probate, her nephew-in-law and Appellee herein, Anthony Duane Drummond1, filed a Complaint to contest the validity of the will. Under the terms of the will, Appellee is a beneficiary of one-half of the residue of Ms. Shoemaker’s estate. In his complaint, Appellee alleged: (1) lack of testamentary capacity of testator; (2) improper execution of the will; (3) fraud and/or undue influence by the executrix (Appellant); and (4) breach of fiduciary duty. Appellee named Appellant, Donald Burchett2, the West Union Church of Christ and the Peebles United Methodist Church, all beneficiaries under the will, as defendants in the will contest.

{¶4} On November 18, 2015, the trial court held a review hearing pursuant to a request from Appellant’s counsel. Appellant and Appellee, through their respective counsel, advised the trial court they had reached a settlement agreement

1 Appellee’s full name is “Anthony Duane Drummond” although he was identified only as “Anthony Drummond” in the will. 2 Donald Burchett is the decedent’s brother.

which would resolve all matters within the will contest.3 The trial court’s approval of the settlement was jointly requested. The trial court then ordered counsel for the parties to brief the relevant legal authority regarding the settlement of will contests by agreement. The Court also appointed a receiver to manage Shoemaker’s estate during the pendency of the proceedings.

{¶5} Subsequently, counsel for Appellant and Appellee submitted briefs to the trial court urging approval of the settlement. On January 3, 2017, a review of the accounting by the receiver took place. At this hearing, the trial court engaged in dialogue with the parties and their counsel regarding the settlement agreement. On January 5, 2017, the trial court filed its written opinion denying approval of the parties’ settlement agreement.

{¶6} This timely appeal followed. Additional facts are set forth below where relevant. Appellant requests this court to reverse the trial court’s journal entry and remand the case with instructions to immediately approve the settlement presented to the trial court. Appellee, however, requests this court to affirm the trial court’s decision and instruct the trial court to proceed with the will contest.

ASSIGNMENTS OF ERROR

“I. THE TRIAL COURT ERRED IN DENYING LITIGANTS’

COMPLETE SETTLEMENT OF ALL ISSUES BETWEEN THEM.”

3 A summary of the settlement agreement described on the record is set forth, infra.

STANDARD OF REVIEW

{¶7} The subject of the appealed-from judgment entry is the oral settlement agreement between Appellant and Appellee. The trial court denied enforcement of the parties’ agreement to settle at the hearing on review of accounting although neither party had filed a formal written motion requesting enforcement. We therefore consider the matter before us as on denial of a joint oral motion to enforce settlement.

{¶8} “The standard of review applicable to a ruling on a motion to enforce a settlement agreement depends upon the issues disputed, and may present a mixed question of law and fact.” Mathews v. Eastern Pike Local School Dist. Bd. of Edn., 4th Dist. Pike No. 12CA831, 2013-Ohio-4437, ¶ 14, quoting Barstow v. O.U. Real Estate, III, Inc., 4th Dist. Athens No. 01CA49, 2002-Ohio-4989, ¶ 36. “If the dispute is an evidentiary one, we will not reverse the trial court's determination that a settlement exists as long as the trial court had sufficient evidence before it as to the terms of the settlement.” Id., citing Chirchiglia v. Ohio Bur. of Workers' Comp., 138 Ohio App.3d 676, 679, 742 N.E.2d 180 (7th Dist.2000). If the dispute is a question of law, we must employ a de novo review to determine whether the trial court's decision to enforce the settlement agreement is based upon an erroneous standard or a misconstruction of the law. Barstow, supra, at ¶ 36, citing Continental W. Condominium Unit Owners Assn. v. Howard E. Ferguson, Inc., 74

Ohio St.3d 501, 502, 660 N.E.2d 431 (1996). This case presents a legal issue of whether the trial court erred by refusing to enforce the settlement agreement based on the trial court’s philosophy that the testator’s intent should prevail over the parties’ presumably valid agreement.

LEGAL ANALYSIS

{¶9} Appellant directs our attention to this court’s decision in Taylor v.

Connell, 26 Ohio App.2d 253, 271 N.E.2d 305 (4th Dist.1971), for the proposition that parties may, by agreement, settle or compromise their differences and agree to voluntarily dismiss a will contest as long as there is no fraud or collusion, and as long as all interested parties are included in the agreement. Appellant also cites the well-known principle that the law favors prevention of litigation by compromise and settlement. State ex rel. Wright v. Weyandt, 50 Ohio St.2d 194, 197, 363 N.E.2d 1387 (1977). Appellant points out the agreement the parties have reached is only slightly different than the decedent’s expressed desires in her will; the remaining beneficiaries are to receive exactly what the will provides for them. Appellant also notes the outcome of further litigation is much more uncertain and costly. Finally, Appellant emphasizes that both parties to this appeal desire the court’s approval.

{¶10} In response, Appellee acknowledges that on November 18, 2015, the parties attempted to enter into a settlement agreement which would have resolved

all matters including the will contest. However, Appellee now expresses regret in attempting to enter into the settlement agreement and requests this court to affirm the trial court’s decision and remand the matter with instructions to proceed with the will contest. Appellee further notes that since the appointment of a receiver in this matter, as of January 3, 2017, $24,677.50 had been expended on behalf of the estate. Appellee concludes that settlement of the matter on the original terms as set forth in Appellant’s brief is impossible.

{¶11} At the January 3, 2017 review hearing, the trial court addressed the issue of the parties’ jointly proposed settlement. The trial court recognized the public policy in favor of settlements. However, the trial court’s opinion concluded as follows:

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