In Re Lorice T. Wallace Revocable Trust

2009 OK 34, 219 P.3d 536, 2009 Okla. LEXIS 35, 2009 WL 1452853
Supreme Court of Oklahoma·Decided May 26, 2009·No. 104,036·Published·Cited by 19 cases

Opinion

WINCHESTER, J.

1 1 On June 80, 2006, the petitioners-appel-lees, The Trust Company of Oklahoma and Ronald Saffa, filed a pleading entitled "Application for Instructions, and Brief in Support, Regarding Conduct in Apparent Violation of the No-Contest Provisions of the Lorice T. Wallace Revocable Trust and the Lorice T. Wallace Irrevocable Trust." After a hearing the trial court found that the respondent-appellant, Mary Roma Wallace Jage, had violated the no-contest provisions included in the two trusts. 1 The trial court ordered that Ms. Jage should receive no distribution from the trusts.

12 "The subject of trusts and the control of trust estates are cognizable only by courts of equity." Peyton v. McCaslin, 1966 OK 4, ¶ 11, 417 P.2d 316, 320. In an equitable matter, the Court will examine the whole record and weigh the evidence, but the trial court's findings will not be disturbed in that review unless they are clearly against the weight of the evidence or some governing principle of law. Estate of Sneed, 1998 OK 8, 11 8, 953 P.2d 1111, 1115.

ILI. JURISDICTION

T3 Ms. Jage initially asserts that all Oklahoma state courts lost all jurisdiction when Stephen P. Wallace, the brother of Ms. Jage, and a party to the underlying trust case, notified the clerk of the Tulsa County District Court that PT 2002-56 had been removed to U.S. District Court for the District of Columbia on October 28, 2006. After the notice was filed, the trial judge heard arguments concerning whether he should stay further proceedings until the federal court decided if the case should be remanded. The judge determined that the proceedings would not be stayed.

{4 Ms. Jage cites numerous cases in an attempt to support her proposition that a state court loses all jurisdiction when a notice of removal is filed with that court. Besides cases from federal district courts, she cites cases from the Ist, 3rd, 4th, 8th, 9th, and lith federal cireuit courts. 2 As statutory *538 support, she cites 28 U.S.C. § 1446(d) (2006), which provides:

"Promptly after the filing of such notice of removal of a civil action the defendant or defendants shall give written notice thereof to all adverse parties and shall file a copy of the notice with the clerk of such State court, which shall effect the removal and the State court shall proceed no further unless and until the case is remanded."

T5 But the cases cited by Ms. Jage are distinguishable. Subsection § 1446(a) 3 requires that a defendant who desires to remove a civil action or eriminal prosecution from a state court must file in the federal district court for the district and division within which such action is pending, which in this case would be the United States District Court for the Northern District of Oklahoma.

16 The attempted removal was, as the D.C. court called it, a hybrid notice of removal and civil rights claim. 4 The issue Mr. Wallace attempted to remove involved his judgment and sentence entered by the Oklahoma district court against him for indirect contempt of court. 5 He included a complaint for violations of his civil rights. 6 Both of these were personal to Mr. Wallace, and did not involve Ms. Jage. The D.C. court observed that, "The plaintiff has wasted the time and money of all parties that have been subject to his repeated assault of unfounded and identical lawsuits, in a manner that can only be described as an attempt to harass and unduly delay the lawful proceedings of the Oklahoma courts." 7 Mr. Wallace was sanctioned by the D.C. court and enjoined from filing any lawsuits in that court of any kind concerning the actions, cireumstances, transactions, or other events against the named defendants or any related parties with respect to the trust cases. 8 In affirming his conviction for indirect contempt of court, this Court found that the attempts of Mr. Wallace to remove this case from this Court to federal courts in the District of Columbia and the Northern District of Texas were frivolous, abusive, and bad faith attempts to delay his own appeal to this Court. 9

17 Oklahoma has long recognized the power inherent in the court to control its own docket, that courts are created for the purpose of administering justice under the law, and that to accomplish that purpose a court must have the power to facilitate and expedite causes before it so long as the reasonable exercise of these inherent powers do not prejudice the rights of the parties involved. Hambright v. City of Cleveland, 1960 OK 184, ¶ 15, 360 P.2d 493, 496. There are 94 United States District Courts, and 89 districts in the 50 states." 10 If the Oklahoma district courts were required to stay proceedings while litigants filed frivolous cases in any of the federal district courts, and multiple times in the same federal courts throughout the United States, no justice would be administered. Such a scenario cannot be what Congress intended in enacting 28 U.S.C. § 1446(d) (2006). The Tulsa County District Court did not lose jurisdiction of the trust case under the federal statute when a party, not the respondent-appellant, attempted to remove his own indirect contempt of court case to a federal court outside the *539 district and division within which case number PT 2002-56 was pending.

IIL FORFEITURE

T8 Ms. Jage cites 60 0.98.2001, § 175.57(A) 11 from the Oklahoma Trust Act to support her assertion that the beneficiary to a trust has an inherent right to challenge a fiduciary's action. From this statute she concludes, as a beneficiary of the trusts, that her right to sue the fiduciaries of the trusts is a statutory right and that enforcement of "no-contest" clauses in the trusts are therefore against public policy. She cites cases to support her proposition that a beneficiary's action to oust a fiduciary or other proceedings asserting a breach of fiduciary duty in the administration of the estate did not constitute conduct within the meaning of the "no-contest" provision at issue. 12 But neither the trial court judge nor the appellees question this rule. 13

1 9 This Court has previously held that the validity of no-contest clauses has been explicitly and implicitly acknowledged by this Court and is favored by public policy. Estate of Westfahl, 1988 OK 119, ¶ 4, 674 P.2d 21, 23.

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In Re Lorice T. Wallace Revocable Trust, 2009 OK 34, 219 P.3d 536, 2009 Okla. LEXIS 35, 2009 WL 1452853 (Okla. 2009).

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