In the Matter of the Trust Created Under Agreement by and Between Janet E. Johnson, Settlor, and Paul Johnson, ...

CourtSupreme Court of Minnesota
DecidedSeptember 24, 2025
Docketa241189
StatusPublished

This text of In the Matter of the Trust Created Under Agreement by and Between Janet E. Johnson, Settlor, and Paul Johnson, ... (In the Matter of the Trust Created Under Agreement by and Between Janet E. Johnson, Settlor, and Paul Johnson, ...) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In the Matter of the Trust Created Under Agreement by and Between Janet E. Johnson, Settlor, and Paul Johnson, ..., (Mich. 2025).

Opinion

STATE OF MINNESOTA

IN SUPREME COURT

A24-1189

Court of Appeals Gaïtas, J.

In the Matter of the Trust Created Under Agreement by and Between Janet E. Johnson, Settlor, and Paul Johnson, Successor Trustee, dated July 15, 1998;

In the Matter of the Trust Created Under Agreement by and Between Carroll A. Johnson, Settlor, and Paul Johnson, successor Trustee, dated July 15, 1998;

Nancy Patock and Susan Gerhardt, Beneficiaries,

Respondents,

and Filed: September 24, 2025 Office of Appellate Courts Paul Johnson, Successor Trustee,

Appellant.

________________________

Cletus J. Frank, Frank Law Office, P.A., Willmar, Minnesota, for respondents.

Richard C. Landon, Amy Erickson, Kiralyn Locke, Lathrop GPM LLP, Minneapolis, Minnesota, for appellant.

1 SYLLABUS

1. The district court’s order requiring the trustee to restore real property to two

family trusts is not an order that “grants, refuses, dissolves or refuses to dissolve, an

injunction” under Minnesota Rule of Civil Appellate Procedure 103.03(b), and therefore it

is not immediately appealable under that rule.

2. The district court’s order removing the trustee from two family trusts and

appointing a successor trustee is not an order that “grants, refuses, dissolves or refuses to

dissolve, an injunction” under Minnesota Rule of Civil Appellate Procedure 103.03(b), and

therefore it is not immediately appealable under that rule.

Affirmed.

OPINION

GAÏTAS, Justice.

This case requires us to determine whether actions the district court took under

Minnesota’s Trust Code, Minnesota Statutes chapter 501C (2024), are immediately

appealable under Minnesota Rule of Civil Appellate Procedure 103.03(b), which allows

for an interlocutory appeal “from an order which grants, refuses, dissolves or refuses to

dissolve, an injunction.” Appellant Paul Johnson served as trustee of two family trusts that

were established for the benefit of Johnson and his sisters, respondents Nancy Patock and

Susan Gerhardt. In 2023, Patock and Gerhardt filed a petition in the district court seeking

a declaratory judgment that Johnson breached his duties as trustee, requesting his removal

as trustee, and demanding the return of disputed real property to the trusts. No formal

injunction was sought. After an initial order granting Patock and Gerhardt’s request for a

2 declaratory judgment, the district court issued an order removing Johnson as trustee,

naming Patock as successor trustee, and ordering Johnson to restore the disputed property

to the trusts. The district court also ordered Patock, the successor trustee, to investigate

whether Johnson made any transactions that should be reimbursed to the trusts and to

submit any reimbursement requests to the district court for approval; determined that

Patock and Gerhardt were entitled to reimbursement for costs, disbursements, and attorney

fees in bringing this action, and ordered them to submit those reimbursement requests for

approval; and ordered ongoing review hearings until the trusts are terminated. Johnson

appealed this interlocutory order, and the court of appeals dismissed the appeal as

premature. We conclude that because the district court’s order is neither an injunction nor

the functional equivalent of an injunction, it is not immediately appealable under Rule

103.03(b), and the court of appeals did not err by dismissing the appeal as premature. We

therefore affirm.

FACTS

In 1998, Carroll A. Johnson and Janet E. Johnson, husband and wife, executed

separate trust agreements in their respective names. Carroll A. Johnson, the last surviving

settlor of the trusts, died in March 2016. Son Paul Johnson and daughters Nancy Patock

and Susan Gerhardt were the surviving adult children and the beneficiaries of the trusts.

The trust agreements contained identical directions for what to do following the

death of the last surviving parent: son Paul Johnson1 would become the sole trustee of the

1 All references to Johnson hereinafter are to son Paul Johnson.

3 trusts. As trustee, Johnson would be required to divide the trusts into three equal shares,

one for each surviving child, and to distribute the income evenly among the children for

seven years. Seven years after the death of the last surviving parent, the trusts would

terminate,2 and Johnson would be required to “distribute to [each] child their share of the

entire remaining principal.” Johnson could “make no distribution of principal prior to this

date.”

The siblings’ father and last surviving parent, Carroll A. Johnson, died on March 10,

2016. At that time, Johnson became the sole trustee of his parents’ trusts, and he assumed

the responsibility of managing the trusts until March 10, 2023, when the trusts would

terminate under the trust agreements.

The trusts included a variety of assets. The principal asset was a parcel of

agricultural land in Sacred Heart, Minnesota. The trust agreements granted Johnson an

option to purchase the property after the death of the last surviving parent. According to

the trust agreements, “[u]pon the death of the Settlor and Settlor’s spouse, the Trustee shall

offer the. . . real property for sale to Paul Johnson,” and the option would “cease upon

[Johnson’s] death or in the event of his failure within sixty (60) days to purchase the

property after a written offer by the Trustee.” Johnson moved into a residence on the

property after his father’s death in 2016, but he did not seek to exercise the option to

purchase the property for several years.

2 “[A] trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.” Minn. Stat. § 501C.0410(a) (2024).

4 In December 2022, about three months before the trusts were to terminate, Johnson,

in his capacity as trustee, gave himself, in his individual capacity, notice of the option to

purchase the property. Shortly thereafter, Johnson purchased the property from the trusts

for $2,384,649. To fund the purchase, Johnson secured several mortgage loans against the

property.

About one month after Johnson purchased the property from the trusts, Patock and

Gerhardt filed a petition under Minnesota Statutes section 501C.0202 seeking various

forms of relief related to the administration of the “Janet E. Johnson Revocable Trust dated

July 15, 1998.” Later that year, Patock and Gerhardt filed an amended petition joining the

“Carroll A. Johnson Revocable Trust dated July 15, 1998.” In their petition and a related

motion, Patock and Gerhardt asked the district court to, in relevant part: (1) determine that

the purchase option granted to Johnson by the trusts terminated 60 days after the death of

the last living settlor; (2) remove Johnson as trustee and appoint an independent trustee;

and (3) order Johnson to return the agricultural property to the trusts, free of encumbrances,

or to reimburse the trusts for the value of the property.3

On March 13, 2024, the district court issued an order addressing the purchase

option. The district court found that “[t]he purchase option granted to Paul Johnson in the

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