in Re M Allen Brown Revocable Trust

CourtMichigan Court of Appeals
DecidedApril 9, 2020
Docket342486
StatusUnpublished

This text of in Re M Allen Brown Revocable Trust (in Re M Allen Brown Revocable 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 M Allen Brown Revocable Trust, (Mich. Ct. App. 2020).

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 ESTATE OF MEDDIE ALLEN BROWN.

ESTATE OF MEDDIE ALLEN BROWN, by UNPUBLISHED RANDALL S. BROWN, Personal Representative, April 9, 2020

Appellee,

v No. 342485 Grand Traverse Probate Court MARK A. FARMER and BARBARA J. BROWN, LC No. 16-033711-DA

Appellants.

In re M ALLEN BROWN REVOCABLE TRUST.

M. ALLEN BROWN REVOCABLE TRUST, by RANDALL S. BROWN, Trustee,

v No. 342486 Grand Traverse Probate Court MARK A. FARMER and BARBARA J. BROWN, LC No. 17-034202-TV

Before: STEPHENS, P.J., and SERVITTO and RONAYNE KRAUSE, JJ.

PER CURIAM.

-1- In Docket Nos. 342485 and 342486, appellants Mark Farmer (Farmer) and Barbara Brown (Barbara)1 appeal by leave granted the probate court’s interlocutory orders denying Appellants’ Objection to Trustee’s Petition for Entry of Final Order Dismissing Petition and Case Pursuant to Mediation Agreement, and the probate court’s Order Dismissing Petition or Motion for Reconsideration. Docket No. 342485 appeals the orders in respect to the dismissal of the petition to remove the personal representative, and in Docket No. 342486 as it pertains to the dismissal of the petition to remove the trustee. We affirm in part, vacate in part, and remand for further proceedings.

I. BACKGROUND

The parties, Randall Brown, Barbara Brown, and Mark Farmer, are siblings whose father, the testator Meddie Allen Brown, devised for the assets of his trust to be distributed among them. Randall was appointed Personal Representative of the estate and successor trustee of the trust. Farmer petitioned the probate court in propria persona to remove Randall as personal representative and trustee because he claimed Randall failed to both answer his questions and to keep him informed about the estate. Farmer also alleged undue influence by Randall over the testator such that Farmer and Barbara called the validity of the will into question.2 The removal petition prompted court-ordered mediation. Randall and Farmer attended the mediation while Barbara did not. Randall and Farmer signed a Settlement Agreement. The Agreement awarded Barbara and Farmer $1,000,000 payments each in exchange for withdrawing their claims against the estate and trust, including dismissal of the removal petition. Randall petitioned to close the estate based on the Settlement Agreement. Barbara and Farmer, without counsel, filed an objection to the petition arguing that Barbara should not be bound to the Settlement Agreement because she was not notified about the mediation and did not sign the agreement. They further argued that the Settlement Agreement should be set aside because the asset inventory Randall filed with the court reported assets of only $1,353,617.85 which was less than the $2,000,000 payments awarded in the Agreement. Randall replied that the funds to pay appellants would come from personal funds he received as sole beneficiary of his father’s Fidelity account. This response prompted appellants to assert that the Fidelity account beneficiary form actually indicated distribution to the account owner’s descendants and not to just Randall.

Barbara retained counsel and appeared at the objection hearing. The court dismissed the appellants’ petition for removal and approved closure of the estate based on the Settlement Agreement. It determined that Barbara was bound by the actions of fiduciary Randall under MCR 5.120 where she had not previously intervened in mediation or appeared for any other court proceedings. It interpreted the Fidelity beneficiary form as the account owner identifying Randall as the primary beneficiary and found any confusion regarding that choice to be governed by the

1 To avoid confusion, appellant Barbara Brown and appellee Randall Brown are referred to by their first names. 2 While Barbara did not sign the petition for removal, her contention is that Farmer’s filing represented her same concerns.

-2- language of the form that again defaulted to Randall as primary beneficiary. The appellants moved for reconsideration that was denied.

II. THE SETTLEMENT AGREEMENT

Farmer and Barbara first argue that the Settlement Agreement should be set aside because 1) Barbara did not receive notice of or participate in the mediation and 2) the Settlement Agreement was obtained by fraud, was without adequate consideration, and was impossible to perform. We agree with the first contention, but hold that appellants only prove that the agreement should be set aside as to Barbara, not Farmer. We reject appellants’ second contention as to both appellants.

A. STANDARD OF REVIEW

“[A]ppeals from a probate court decision are on the record, not de novo.” In re Temple Marital Trust, 278 Mich App 122, 128; 748 NW2d 265 (2008). This Court reviews the probate court’s factual findings for clear error and its dispositional rulings for an abuse of discretion. In re Lundy Estate, 291 Mich App 347, 352; 804 NW2d 773 (2011). “A finding is clearly erroneous when a reviewing court is left with a definite and firm conviction that a mistake has been made, even if there is evidence to support the finding.” In re Duke Estate, 312 Mich App 574, 580-581; 887 NW2d 1 (2015) (quotation marks and citation omitted). “An abuse of discretion occurs when the decision results in an outcome falling outside the principled range of outcomes.” Radeljak v DaimlerChrysler Corp, 475 Mich 598, 603; 719 NW2d 40 (2006).

The court’s decision to enter a settlement agreement is reviewed for an abuse of discretion. Howard v Howard, 134 Mich App 391, 396-397; 352 NW2d 280 (1984). So is this Court’s review of a probate court’s decision on a petition to remove a fiduciary for an abuse of discretion. In re Conservatorship of Shirley Bittner, 312 Mich App 227; 879 NW2d 269 (2015).

We review questions of contract interpretation, including settlement agreements, de novo as questions of a law. Kloian v Domino’s Pizza LLC, 273 Mich App 449, 452; 733 NW2d 766 (2006). We also review de novo issues involving the interpretation of a court rule. Michigan Mutual Ins Co v Indiana Ins Co, 247 Mich App 480, 483; 637 NW2d 232 (2001).

B. ANALYSIS
1. NOTICE OF THE MEDIATION

The probate court found that the Settlement Agreement was binding and enforceable against Barbara under MCR 5.120, which provides:

The fiduciary represents the interested persons in a contested matter. The fiduciary must give notice to all interested persons whose addresses are known that a contested matter has been commenced and must keep such interested persons reasonably informed of the fiduciary’s actions concerning the matter. The fiduciary must inform the interested persons that they may file a petition to intervene in the matter and that failure to intervene shall result in their being bound by the actions of the fiduciary. The interested person shall be bound by the actions of the fiduciary

-3- after such notice and until the interested person notifies the fiduciary that the interested person has filed with the court a petition to intervene.

Plainly read, MCR 5.120 charges the fiduciary with the responsibility of providing notice of a contested matter to all interested persons. It further creates a continuing obligation for the fiduciary to keep the interested persons reasonably informed of the contested matter. This obligation includes notifying the interested persons of their right to file a petition to intervene in the contested matter and that they could be bound by the actions of the fiduciary.

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in Re M Allen Brown Revocable Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-m-allen-brown-revocable-trust-michctapp-2020.