In Re Succession of Hollis

987 So. 2d 387, 2008 WL 2446801
CourtLouisiana Court of Appeal
DecidedJune 18, 2008
Docket43,315-CA, 43,316-CA
StatusPublished
Cited by6 cases

This text of 987 So. 2d 387 (In Re Succession of Hollis) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Succession of Hollis, 987 So. 2d 387, 2008 WL 2446801 (La. Ct. App. 2008).

Opinion

987 So.2d 387 (2008)

SUCCESSION OF Brooks Stell HOLLIS.
Succession of Ollie V. Tucker Hollis.

Nos. 43,315-CA, 43,316-CA.

Court of Appeal of Louisiana, Second Circuit.

June 18, 2008.

*389 William H. Ledbetter, Jr., Bossier City, for Appellants Judy Hollis Steeland and Robert W. Hollis.

Jerald R. Harper, Shreveport, for Appellee Michael Scott Hollis.

Before WILLIAMS, MOORE and LOLLEY, JJ.

MOORE, J.

This is an appeal of a summary judgment dismissing the plaintiffs' petition which alleged that the defendant used fraud and undue influence to purchase stock in a closely-held family business and in assisting his mother with her will. After review of the record, we affirm the judgment of the trial court.

FACTS

The matters of record indicate that Brooks Hollis and Ollie Tucker Hollis had five children who are now adults. Brooks died in 1990, and his wife, Ollie, was named administratrix of his estate; she served in that capacity until her death on May 24, 2003. One of the siblings, Judy D. Steeland, succeeded Ollie as administratrix of Brooks' estate.

While living, Brooks Hollis owned a closely-held corporation called Trailer Equipment Manufacturing, Inc. ("Trailer"). One of his sons, Michael Scott Hollis ("Scott"), continued to work in this family business after his father died. Scott advised and assisted his mother in decisions regarding the corporation and attended meetings and communicated with the attorney for the succession of his father. When Ollie died in 2003, Scott was named administrator of her succession.

In the mid-1990's, pursuant to a decision of the succession administrator, Scott purchased Trailer stock from Brooks' succession at a private sale, allegedly to pay succession debts. These purchases were approved by the heirs, who were Scott's siblings. The first purchase in May of 1995 involved 11 shares of stock for which Scott paid $2,500 per share. The second sale occurred in 1998, when Scott purchased 26 shares of Trailer stock for $2,500 per share. Scott executed a promissory note for the purchase price in the second sale, which he did not pay off until three months after his mother's death on May 24, 2003.

According to Judy Steeland, the defendant's sister, this dispute involving the stock arose shortly after the family attorney, John W. Montgomery, read to the five children an olographic will drafted by Ollie on September 23, 1997. In that will, Ollie states that during her lifetime, she donated to Scott all of the common stock that *390 she owned in Trailer, and she confirms and ratifies that donation. The will further reads that if, for any reason, the donations are deemed invalid, she bequeaths to him all the shares of the corporation. Ollie also assigned the value of the stock at the same value she assigned in the donations, and that same value would be used to determine whether Scott had received his pro rata portion. Finally, if the value of the stock donated to Scott turned out to be less than his pro rata share, he would be entitled to receive sufficient value to make up his pro rata portion.

Judy Steeland does not contest that the will is entirely in her mother's own handwriting. She contends, however, that Scott assisted or directed her in writing the will because of the provisions confirming the inter vivos donation of the stock and the bequest giving Scott the right to receive a pro rata share of the remainder of the estate if the value of her ownership in Trailer is less than the pro rata shares. She stated that her mother previously had led her to believe that she was going to leave Scott all her interest in Trailer, and the other four children would divide the remaining estate equally. Instead, she said, the will provides that Scott is entitled to an equalizing share of the remaining estate if the value of the Trailer stock she donated to him is less than the value of pro rata share inherited by the other siblings. Judy did not believe that her mother was capable of writing these provisions without instruction or direction from Scott.

On May 11, 2005, Judy Steeland and Robert Hollis filed an amended and restated petition against Scott Hollis individually and in his capacity as executor of the Succession of Ollie Tucker Hollis to (1) annul the 1995 and 1998 sale of corporate stock to Scott; (2) annul and set aside Ollie's probated olographic will; and, (3) annul and set aside the donations inter vivos.

The petition alleges that although Ollie was appointed to serve as administratrix of Brooks' succession on the advice of the family attorney, she actually lacked the capability to perform her duties as succession representative. Plaintiffs allege that Ollie was "controlled and unduly influenced" by Scott regarding company matters. They contend that Scott was the main contact person for attorney John W. Montgomery for the succession of Brooks Hollis, had numerous meetings with him alone, and that Scott accompanied Ollie when she attended meetings with the attorney relating to Brooks' succession. Mr. Montgomery, the plaintiffs allege, also represented Trailer prior to Brooks' death.

Specifically, plaintiffs allege that while Ollie was acting as administratrix in March of 1995, she and her attorney informed the plaintiffs and the other heirs that the succession was in debt for $133,182.57, and that Ollie needed to sell corporate stock to pay the debt. (At the time of Brooks' death, Scott owned only one share of stock in the corporation that he purchased from Brooks for $2,500.)[1] Accordingly, in May of 1995, Ollie sold Scott 11 shares of Trailer stock for $2,500 per share. Plaintiffs contend that the book value of the stock at this time was actually $7,018, based on a financial statement generated at the end of 1994 stating the value of the corporation.

In 1998, Ollie filed a petition to sell 26 additional shares of stock for $2,500 per share to Scott, allegedly under the pretext of needing to pay succession debts. Scott did not pay cash for the shares, but instead *391 executed a promissory note for the $65,000 purchase price and which would become due on December 31, 1998. However, Scott did not pay the note until August of 2003, two months after Ollie's death. Plaintiffs contend that the book value of the stock was actually over $8,000 per share at the time of this sale, and furthermore, the stock sale was not made to pay debts as represented by Ollie, since Scott's payment was evidenced by the promissory note.

Plaintiffs seek to rescind the sale of the stock, refund Scott his purchase price and return the stock to the succession, or alternatively, obtain a judgment awarding the succession the difference between the alleged book value of the 37 shares of stock and what Scott actually paid. They contend that Scott exercised undue influence on Ollie, and in fact, was actually handling their father's succession in Ollie's place.

Additionally, plaintiffs contest Ollie's inter vivos donation of her shares of stock that she confirmed in her will. They also seek nullification of the last will and testament confirming the donations, and that Scott be named a legatee to any remaining shares of stock owned by Ollie individually. They contend that any donations made by Ollie were due to undue influence of Scott, and that Ollie's last will and testament was not Ollie's last will and testament, but rather a will provided by Scott for Ollie to copy in her own handwriting.

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

Related

Succession of Dan "Chip" Chisholm, II
Louisiana Court of Appeal, 2021
McDonald v. Orr Motors of Little Rock, Inc.
256 So. 3d 1132 (Louisiana Court of Appeal, 2018)
Succession of Crowson
139 So. 3d 43 (Louisiana Court of Appeal, 2014)
Succession of Barattini
91 So. 3d 1091 (Louisiana Court of Appeal, 2012)
Skannal v. Bamburg
33 So. 3d 227 (Louisiana Court of Appeal, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
987 So. 2d 387, 2008 WL 2446801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-succession-of-hollis-lactapp-2008.