Larson v. Larson

687 F. App'x 695
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 27, 2017
Docket16-8065
StatusUnpublished
Cited by5 cases

This text of 687 F. App'x 695 (Larson v. Larson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson v. Larson, 687 F. App'x 695 (10th Cir. 2017).

Opinion

ORDER AND JUDGMENT *

Carolyn B. McHugh, Circuit Judge

After the death of their father, a dispute arose among Arnold N. Larson (“Arny”), Arla L. Harris, and Charles R. Larson regarding the administration of his trust. 1 Among other issues, the parties disagreed on the proper distribution of their father’s interests in the Larson Hereford Ranch Limited Partnership (“Partnership”) and a parcel of real property known as the Larson Hereford Ranch (“Ranch”). As a result of this disagreement, siblings Arny and Aria filed suit alleging that their brother, Charles, had violated the terms of their father’s trust and had breached various duties associated with his position as trustee of the trust. The parties later attended court-ordered mediation, at which they signed similar, but not identical, versions of a settlement document entitled Basic Terms of Settlement (“Basic Terms”). Shortly thereafter, the parties informed the district court that they had resolved all claims between them. They then attempted to finalize a more comprehensive settlement agreement entitled Mutual Release and Settlement. Although multiple drafts of the comprehensive settlement document were circulated, the parties ultimately reached an impasse, and Arny and Aria asked the district court to enforce either the Basic Terms or a draft of the Mutual Release and Settlement to which they believed all parties had previously agreed.

After a comprehensive evidentiary hearing, the district court granted Arny and Aria’s request and enforced the fourth draft of the Mutual Release and Settlement (“Settlement Agreement”) as the parties’ final settlement agreement. In its *698 order, the district court determined, among other things, that the Settlement Agreement applied to both the Ranch and the Partnership, and that Charles had settled and released all of his claims relating to ownership of both. Charles filed a timely appeal challenging the district court’s decision that the Settlement Agreement applies to claims of ownership in the Ranch, including his individual claim to the property. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I. BACKGROUND

A. Factual History

1. Catherine N. Larson’s Interest in the Ranch

Arnold A. Larson and Catherine N. Larson, parents of all parties to this appeal, each owned an undivided one-half interest in the Ranch as equal tenants in common. During her estate planning, Catherine created the Catherine N. Larson Revocable Trust and designated her one-half interest in the Ranch, along with other individually owned property, as property of the trust. The terms of Catherine’s trust dictated that upon her death all then-existing trust property was to be divided between two separate trusts: the “Husband’s Trust” and the “Family Trust.” Catherine predeceased Arnold A. Larson by more than thirty years, leaving him with various powers of appointment and as sole trustee of her revocable trust.

The parties dispute which sub-trust Catherine’s one-half interest in the Ranch was placed in upon her death. But, apparently believing it was transferred to the Family Trust and pursuant to his power of appointment over that trust, Arnold A. Larson included the following provision in his Last Will and Testament:

(1) LARSON HEREFORD RANCH PROPERTY. All of the interest of the FAMILY TRUST of The CATHERINE N. LARSON TRUST in any ranch real estate (including any home located thereon), cattle, horses, hay, grain, and machinery and all other customary ranch properties, shall be distributed to my son, [Amy], if he survives me.

Accordingly, after Arnold A. Larson’s death in 2012, the surviving trustees of the Catherine N. Larson Revocable Trust deeded Arny a one-half ownership interest in the Ranch.

2. Arnold A. Larson’s Interest in the Ranch

Approximately twenty-four years prior to his death, on December 27,1988, Arnold A. Larson formed the Partnership with two of his sons, Charles and David J. Larson. At the time the Partnership was created, Arnold A. Larson owned forty-eight percent of the Partnership as a General Partner and forty-eight percent as a Limited Partner. Each son owned a two percent interest as a General Partner. 2 Three days later, on December 30, 1988, Arnold A. Larson deeded his undivided one half-interest in the Ranch to “ARNOLD A. LARSON, CHARLES R. LARSON and DAVID J. LARSON and the survivors and survivor thereof, General Partners of LARSON HEREFORD RANCH[] LIMITED PARTNERSHIP.” Charles contends this deed transferred his father’s one-half interest in the Ranch, not the Partnership, but that it conveyed that *699 interest to Arnold A. Larson, Charles, and David in their personal and individual capacities. As a result, he claims he holds an individual ownership interest in the Ranch separate and apart from any interest he holds in the Partnership. Arny and Aria dispute this contention, arguing the deed transferred the one-half interest in the Ranch to the Partnership.

Over a decade later, before any dispute arose regarding the interests in the Ranch, Arny and Aria contend that Arnold A. Larson held two meetings with his children and his attorney to discuss his estate plan. At these meetings, which occurred in 2002 and 2003, Arnold A. Larson allegedly indicated his desire for the Ranch to go to Arny, and for Charles and David to receive cash gifts in return for their interests in the Partnership and Ranch. Charles notes he was not in attendance at the 2003 meeting and disputes the existence of any agreement to exchange his interests in the Partnership and Ranch for cash. And while it is undisputed that both Charles and David received cash gifts from their father, Charles asserts the gifts were not connected to any transfer of the brothers’ interests in the Partnership and Ranch.

In 2004, Arnold A. Larson executed the First Amendment to and Restatement of the Arnold A. Larson Trust (“Trust”). The terms of the amended trust provide, in relevant part:

(1) LARSON HEREFORD RANCH LIMITED PARTNERSHIP. All of the Grantor’s interest in LARSON HEREFORD RANCH LIMITED PARTNERSHIP, a Wyoming limited partnership (the “Partnership”), together with the Grantor’s interest in any ranch real estate (including the Grantor’s home located thereon), cattle, horses, hay, grain, and machinery and all other customary ranch properties, that is owned by the Grantor or this trust at the time of Grantor’s death, shall be distributed to Grantor’s son, [Arny], if he survives the Grantor.

The Trust also designates Charles and Arla as co-trustees.

Arnold A. Larson passed away in early 2012. Sometime after his father’s death, and after receiving Catherine’s one-half interest in the Ranch, Arny requested that Charles and Aria administer and distribute their father’s trust.

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687 F. App'x 695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-larson-ca10-2017.