In Re Public Benev. Trust of Crume

829 N.E.2d 1039, 2005 WL 1515033
CourtIndiana Court of Appeals
DecidedJune 28, 2005
Docket49A05-0409-CV-489
StatusPublished
Cited by3 cases

This text of 829 N.E.2d 1039 (In Re Public Benev. Trust of Crume) is published on Counsel Stack Legal Research, covering Indiana 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 Public Benev. Trust of Crume, 829 N.E.2d 1039, 2005 WL 1515033 (Ind. Ct. App. 2005).

Opinion

829 N.E.2d 1039 (2005)

In the Matter of the PUBLIC BENEVOLENT TRUST U/W Mary Powell CRUME, deceased; Indianapolis Humane Society, Trustee,
Norma Jean Balcom; Spay-Neuter Services of Indiana, Inc.; Alliance for Responsible Pet Ownership, Inc.; Home for Friendless Animals, Inc.; Southside Animal Shelter, Inc.; and Move to Act, Appellants-Petitioners,
v.
The Humane Society of Indianapolis, Inc. and Attorney General of Indiana, Appellees-Respondents.

No. 49A05-0409-CV-489.

Court of Appeals of Indiana.

June 28, 2005.

*1042 Veronica L. Jarnagin, Geoffrey Slaughter, Maggie L. Smith, Sommer Barnard Attorneys, P.C., Indianapolis, for Appellants.

Alan J. Irvin, Peter H. Donahoe, Hill Fulwider McDowell Funk & Matthews, P.C., Steve Carter, Attorney General of Indiana, Nicole M. Schuster, Deputy Attorney General, Indianapolis, for Appellees.

OPINION

MAY, Judge.

A coalition of animal welfare providers, including Spay-Neuter Services of Indiana, the Home for Friendless Animals, the Southside Animal Shelter, the Alliance for Responsible Pet Ownership, and Move to ACT (collectively, "the Animal Welfare Providers") appeal the dismissal for lack of standing of their complaint and their objections to a trustee's accounting. The motion to dismiss was brought by the Humane Society of Indianapolis, the sole beneficiary[1] and sole trustee of the Trust, and the Attorney General (collectively, "the Humane Society"). The Animal Welfare Providers raise a single issue on appeal, which we restate as whether they are persons "having an interest in the administration or the benefits of a trust," Ind.Code § 30-4-5-12(c), who may therefore maintain litigation relating to a public charitable trust.

We affirm.[2]

FACTS AND PROCEDURAL HISTORY

The Humane Society of Indianapolis is the sole trustee and sole beneficiary of a testamentary trust established by the will of Mary Powell Crume. The Crume Trust was docketed in 1962 as a public charitable trust and the probate court determined in 1962 that the Humane Society had the authority to

use either the principal or the income of the trust estate and property . . . to pay for buildings, equipment, salaries, or any expenses, provided that the purpose of such expenditures is for the relief of animals which may come into its care and protection, and provided that approval of this court for such expenditures is first obtained.

(Appellants' App. at 26-27.) The value of the Trust in 1962 was 1.6 million dollars.

The Trust is required to file an annual accounting. The 2003 accounting indicated the value of the Crume Trust on January 31, 2004 was about 3.4 million dollars. In March of 2004 the Humane Society petitioned the probate court to allow it to pledge 90% of the trust assets as collateral for a line of credit the Humane Society *1043 needed to fund its animal shelter. The line of credit would not exceed 50% of the value of the Trust, or 1.7 million dollars. The court granted the petition.

The Animal Welfare Providers objected to the Humane Society's accounting and its petition to allow the pledging of the trust assets. The Humane Society and the Attorney General both moved to dismiss for lack of standing and the motions were granted.[3]

DISCUSSION AND DECISION

Standard of Review

We review de novo a decision by a trial court to dismiss for lack of standing. Area Plan Comm'n, Evansville-Vanderburgh County v. Hatfield, 820 N.E.2d 696, 698 (Ind.Ct.App.2005) (whether individuals are "aggrieved persons" for the purpose of challenging a planning commission decision is a pure question of law that does not require deference to the determination of the trial court). The facts alleged in the complaint must be taken as true, and only where it appears that under no set of facts could the plaintiff be granted relief is dismissal appropriate. In re Custody of G.J., 796 N.E.2d 756, 759 (Ind.Ct.App.2003), trans. denied. The standing analysis focuses on whether the complaining party is the proper person to invoke the court's power. Scott v. Randle, 736 N.E.2d 308, 315 (Ind.Ct.App.2000), trans. denied. The standing requirement assures litigation will be actively and vigorously contested, as plaintiffs must demonstrate a personal stake in the litigation's outcome and must show they have sustained, or are in immediate danger of sustaining, a direct injury as a result of the defendant's conduct. Id.

Statutory and Common Law Standards

Ind.Code § 30-4-5-12(c) provides in pertinent part:

Upon petition by the settlor, a beneficiary or his personal representative, a person designated by the settlor to have advisory or supervisory powers over the trust, or any other person having an interest in the administration or the benefits of the trust,[4] including the attorney general in the case of a trust for a benevolent public purpose, the court may direct the trustee to file a verified written statement of accounts showing *1044 the items listed in section 13(a) of this chapter.

(Emphasis supplied) (footnote added). When a court has been requested by petition to approve a verified written statement of accounts, any person authorized by Ind.Code § 30-4-5-12(c) to petition for an accounting may file an appropriate responsive pleading. Ind.Code § 30-4-5-14(b).

Prior to the promulgation of section 30-4-5-12(c), the common-law standard for standing in an action such as this was articulated in Boice v. Mallers, 121 Ind.App. 210, 216-17, 96 N.E.2d 342, 344-45 (1950), trans. denied 229 Ind. 325, 98 N.E.2d 368 (1951). There we stated:

The law is well settled that inasmuch as the enforcement of public charities are matters of public interest the attorney general appearing as a public officer is the proper party to maintain litigation involving questions of public charitable trusts. And an individual member of the public has no right as such to maintain a suit of such character.

The Animal Welfare Providers characterize Boice as holding "only the Attorney General was authorized to" maintain litigation relating to public charitable trusts. (Br. of Appellants at 17) (emphasis added). While Boice states the Attorney General is the "proper party," it does not explicitly exclude all other parties. To the contrary, immediately before stating the Attorney General was the "proper party," the Boice court noted "the appellee, Nick Mallers, who had no interest in the trust estate, as a creditor, heir, legatee, or beneficiary,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Zoeller v. East Chicago Second Century, Inc.
904 N.E.2d 213 (Indiana Supreme Court, 2009)
J.R.W. Ex Rel. Jemerson v. Watterson
877 N.E.2d 487 (Indiana Court of Appeals, 2007)
Balcom v. Humane Society of Indianapolis, Inc.
834 N.E.2d 705 (Indiana Court of Appeals, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
829 N.E.2d 1039, 2005 WL 1515033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-public-benev-trust-of-crume-indctapp-2005.