Luebke v. Luebke

143 P.3d 1088, 2006 Colo. App. LEXIS 535, 2006 WL 1028934
CourtColorado Court of Appeals
DecidedApril 20, 2006
DocketNo. 04CA2276
StatusPublished

This text of 143 P.3d 1088 (Luebke v. Luebke) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Luebke v. Luebke, 143 P.3d 1088, 2006 Colo. App. LEXIS 535, 2006 WL 1028934 (Colo. Ct. App. 2006).

Opinion

CARPARELLI, J.

Plaintiff, William M. Luebke (beneficiary), appeals the probate court’s order dismissing his complaint against defendants, Ronald L. Luebke, U.S. Bank, N.A., Stephen M. Fisher, and Foley & Lardner, LLP (collectively trustees), pursuant to § 15-16-203, C.R.S.2005. We affirm.

I.

Beneficiary, a Colorado resident, is the disabled beneficiary of an irrevocable trust established by his father in 1986. Trustees assumed their duties as successor trustees of the trust in 1989. Since then, the trust has been administered exclusively in Milwaukee County, Wisconsin. Nonetheless, pursuant to a provision in the trust, Florida trust law governs the agreement.

In May 2004, beneficiary filed a complaint in Denver District Court seeking damages for trustees’ alleged mismanagement of the trust. Beneficiary alleged claims for common law professional negligence, general negligence, and willful breach of fiduciary duties of reasonable care and loyalty. Beneficiary also raised a statutory claim under Florida trust law.

Trustees moved to dismiss the complaint for lack of subject matter jurisdiction under §§ 13-9-103 and 15-16-201, C.R.S.2005, contending the probate court had exclusive jurisdiction over the action. Unlike other jurisdictions, Denver Probate Court is separate from Denver District Court. Before the district court ruled, beneficiary filed an unopposed motion to transfer the case to Denver Probate Court, which the district court granted in August 2004.

Soon after the case was transferred to probate court, trustees filed an objection to the proceedings based on § 15-16-203. Trustees included affidavits establishing Wisconsin as the state of the trust’s administration and consenting to the jurisdiction of the appropriate Wisconsin court, but objecting to the jurisdiction of the Denver Probate Court.

Beneficiary argued that (1) trustees waived their right to object to the jurisdiction of the probate court, (2) dismissal would seriously impair the interests of justice, and (3) his constitutional right of access to the courts would be violated. Beneficiary submitted an affidavit, stating he would be unable to pursue the case in Wisconsin because of his disability, his modest income, and the unwillingness of his counsel to represent him in Wisconsin.

The probate court dismissed the complaint pursuant to § 15-16-203, stating it was not persuaded “that the interests of justice would be seriously impaired if [beneficiary’s] present Colorado counsel were unable to continue to represent him.”

[1091]*1091II.

Beneficiary contends that by applying § 15-16-203 to dismiss his complaint, the probate court denied him access to Colorado courts, contrary to article II, § 6 of the state constitution. We disagree.

A.

Both the United States and Colorado Constitutions guarantee a procedural right of access to the courts. U.S. Const, amend. XIV, § 1; Colo. Const. art. II, § 6; see also Boddie v. Connecticut, 401 U.S. 371, 91 S.Ct. 780, 28 L.Ed.2d 113 (1971); In re Marriage of Hartley, 886 P.2d 665 (Colo.1994).

However, the constitutional right to access does not create substantive rights. Instead, it provides a procedural right to a judicial remedy whenever the General Assembly has created a substantive right and a cause of action. In re Marriage of Hartley, supra, 886 P.2d at 675; Allison v. Indus. Claim Appeals Office, 884 P.2d 1113 (Colo.1994); O’Quinn v. Walt Disney Prods., Inc., 177 Colo. 190, 195 493 P.2d 344 (1972).

Although reasonable burdens on the right of access are permissible, denying a resident plaintiff the choice of a Colorado forum is typically considered an unreasonable burden. See Firelock Inc. v. Dist. Court, 776 P.2d 1090 (Colo.1989); McDonnell-Douglas Corp. v. Lohn, 192 Colo. 200, 557 P.2d 373 (1976).

B.

Section 15-16-203 provides:

The court will not, over the objection of a party, entertain proceedings under section 15-16-201 involving a trust registered or having its principal place of administration in another state, except when all appropriate parties could not be bound by litigation in the courts of the state where the trust is registered or has its principal place of administration, or when the interests of justice otherwise would seriously be impaired. The court may condition a stay or dismissal of a proceeding under this section on the consent of any party to jurisdiction of the state in which the trust is registered or has its principal place of business, or the court may grant a continuance or enter any other appropriate order.

Section 15-16-203, a probate statute based on § 7-203 of the Uniform Probate Code (U.P.C.), 8 U.L.A. 496 (1998), applies to proceedings that involve “the administration and distribution of trusts, the declaration of rights, and the determination of other matters involving trustees and beneficiaries of trusts.” Section 15-16-201(1), C.R.S.2005.

Because § 15-16-203 has not been previously construed in any published appellate decisions in Colorado, we turn to other sources to inform our analysis.

Statutes modeled on U.P.C. § 7-203 create statutory versions of the common law doctrine of forum non conveniens and grant trial courts discretion to dismiss a case when the trust is principally administered in another state. See U.P.C. § 7-203 cmt.

Other jurisdictions have held that such statutes are not jurisdictional. Instead, they provide that, when there is a possibility of litigating in more than one forum, trust litigation should proceed in the most appropriate forum. See Levine v. Steiger, 765 So.2d 249 (Fla.Dist.Ct.App.2000); see also In re Estate of McMillian, 603 So.2d 685 (Fla.Dist.Ct.App.1992) (holding that Florida’s version of U.P.C. § 7-203 is in the nature of a venue statute and not jurisdictional); Macaulay v. Wachovia Bank, 333 S.C. 201, 508 S.E.2d 46, 48 (Ct.App.1998) (stating that South Carolina’s version of U.P.C. § 7-203 “does not deny or confer jurisdiction upon South Carolina courts”).

Unlike their common law counterpart, statutes such as § 15-16-203 create the presumption that the state court should dismiss actions against foreign trusts. See Macaulay v. Wachovia Bank, supra, 508 S.E.2d at 48-49. To overcome this presumption, the nonmoving party must show that “the interests of justice would be strongly impaired by referring the case to the state where the trust is registered.” Macaulay v. Wachovia Bank, supra, 508 S.E.2d at 49.

When determining whether the interests of justice would be strongly impaired by refer[1092]

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Related

Boddie v. Connecticut
401 U.S. 371 (Supreme Court, 1971)
Levine v. Steiger
765 So. 2d 249 (District Court of Appeal of Florida, 2000)
McDonnell Douglas Corp. v. Lohn
557 P.2d 373 (Supreme Court of Colorado, 1976)
O'QUINN v. Walt Disney Productions, Inc.
493 P.2d 344 (Supreme Court of Colorado, 1972)
PMI Mortgage Insurance Co. v. Deseret Federal Savings & Loan
757 P.2d 1156 (Colorado Court of Appeals, 1988)
In Re Marriage of Hartley
886 P.2d 665 (Supreme Court of Colorado, 1995)
In Re Estate of McMillian
603 So. 2d 685 (District Court of Appeal of Florida, 1992)
Allison v. Industrial Claim Appeals Office of Colorado
884 P.2d 1113 (Supreme Court of Colorado, 1994)
Tidwell v. City and County of Denver
83 P.3d 75 (Supreme Court of Colorado, 2003)
Archangel Diamond Corp. v. Lukoil
123 P.3d 1187 (Supreme Court of Colorado, 2005)
UIH-SFCC Holdings, L.P. v. Brigato
51 P.3d 1076 (Colorado Court of Appeals, 2002)

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Bluebook (online)
143 P.3d 1088, 2006 Colo. App. LEXIS 535, 2006 WL 1028934, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luebke-v-luebke-coloctapp-2006.