Mamoulian v. St. Louis University

780 S.W.2d 648, 1989 Mo. App. LEXIS 302, 1989 WL 21786
CourtMissouri Court of Appeals
DecidedMarch 7, 1989
DocketNos. 54823, 55054
StatusPublished
Cited by1 cases

This text of 780 S.W.2d 648 (Mamoulian v. St. Louis University) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mamoulian v. St. Louis University, 780 S.W.2d 648, 1989 Mo. App. LEXIS 302, 1989 WL 21786 (Mo. Ct. App. 1989).

Opinion

STEPHAN, Judge.

This is an appeal from a final order of the trial court dismissing a will contest action and approving a settlement thereof pursuant to § 473.085, RSMo 1986. The trial court found that awarding movants $30,000 of the $600,000 settlement was fair, just and reasonable under the facts of this case. Movants appeal; we affirm.

We will sustain the judgment of the trial court unless there is no substantial evidence to support it, it is against the weight of the evidence or it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). This standard also applies to a trial court’s order approving a settlement agreement. Centerre Trust Co. v. Jackson Saw Mill Company, 736 S.W.2d 486, 496 (Mo.App.1987). We give due regard to the opportunity of the trial court to judge the credibility of witnesses. Trenton Trust Company v. Western Surety Company, 599 S.W.2d 481, 483 (Mo. banc 1980). Conflicts in the evidence are resolved by the trial court and must be taken in accord with the result reached by the trial court. Id. A review of the necessary facts, viewed in a light most favorable to the judgment below follows.

This action concerns the 1976 will, and its codicils, of Clara Drefs, deceased, which left 90% to 95% of her estate to St. Louis University. With the exception of a life interest in a trust for her sister, Azadia [650]*650Mamoulian, the will left nothing to any of the decedent’s heirs at law.

A will contest was initiated by Azadia Mamoulian and five Cammack brothers, the sons of a predeceased sister (collectively the “plaintiffs”). The children of a predeceased brother (“movants”) were originally named as defendants but were subsequently dismissed.

Prior to naming them as defendants in the action, plaintiffs’ trial attorney, David Lupo, attempted to persuade movants to participate in the will contest. He spoke with each of the surviving children: Louis Frank Newman, David Newman, Arthur Newman, John Newman, and Jean Har-grave. Mr. Lupo also corresponded with an attorney who represented the six children of a predeceased nephew. In addition, Mr. Lupo sent each of the movants a proposed contract of employment. All declined to join the action or to assume any responsibility for the burden or expense of the litigation.

Plaintiffs planned to submit on a theory of insane delusions. Plaintiffs had a sub-missible case, but it was going to be difficult to persuade a jury that decedent was in fact insane and not merely eccentric. St. Louis University intended to defend on the theory that decedent deliberately omitted her family from her will, because she preferred to leave her money to local charities rather than her already wealthy relatives.

Another obstacle was decedent’s 1968 will. Plaintiffs’ petition challenged the 1976 will and its three codicils. There was, however, an earlier will which was basically the same. In order to obtain the relief they sought, plaintiffs would have to challenge both wills. Most of the evidence regarding decedent’s delusions, however, related to the period after 1968.

After discovery was completed, but prior to trial, plaintiffs and St. Louis University agreed to settle. Movants stipulated that the settlement negotiations were at arm’s length and that the offer made by St. Louis University was “the best offer they were going to get.”

The parties agreed that plaintiffs would accept $600,000.00 in settlement and dismiss the will contest with prejudice. St. Louis University agreed to assume liability for whatever estate or inheritance taxes might ultimately be assessed. Ms. Mamou-lian renounced her life interest in the trust created under the will, and the parties agreed the 1976 will and its codicils would be admitted to probate.

In January 1983, the settlement was approved and the will contest was dismissed. St. Louis University obtained a partial distribution from the estate with which it satisfied its obligations to plaintiffs.

In September 1983, movants filed a collateral attack on the settlement pursuant to former Rule 74.32. The Missouri Supreme Court sustained the attack and set aside the 1983 settlement and dismissal. Mamoulian v. St. Louis University, 732 S.W.2d 512 (Mo. banc 1987). The case was remanded to the circuit court to determine if the settlement was fair and reasonable under the circumstances and whether the movants in fact stood in the same position as the plaintiffs.

An evidentiary hearing was held on December 7, 1987. The movants, with the exception of Mrs. Lewis Frank Newman, were all represented by counsel at the hearing. Mrs. Newman had notice of the hearing by certified mail to her home and by service on her counsel.

On April 22, 1988, the trial court entered an order approving the original settlement and awarding movants $30,000. On May 17, 1988, the trial court entered an amended order which included specific findings of fact, and a denial of movants’ post-trial motion. This appeal followed.

Movants raise four points on appeal. They allege that the trial court erred in failing to follow the instructions of the Supreme Court on remand by failing to scrutinize the settlement in accordance with the holding that due to the unique nature of a will contest, plaintiffs were deemed to have represented the other heirs and movants were to be treated the same as other similarly situated heirs, plus the trial court failed to scrutinize the accounting report regarding fees and expenses in[651]*651curred in creating the common fund. Secondly, the trial court erred in signing the findings of fact and conclusions of law, as prepared by plaintiffs, because there was no substantial evidence to support them. Third, the trial court erred in considering claims that movants should be penalized for not “participating” in the lawsuit because that issue had already been determined. Lastly, the trial court erred in failing to award movants prejudgment interest.

In their first point movants assert that the trial court erred in failing to follow the Supreme Court’s instructions because it failed to divide the settlement equally and because it failed to scrutinize the estate valuation and expense reports. Contrary to what movants believe, the ultimate issue is whether the trial court abused its discretion in approving the settlement. The Supreme Court remanded:

[Bjecause the circuit court must determine whether the settlement is “just and reasonable” from the standpoint of all heirs, notice to those in the position of these appellants is essential so that they may make their views on reasonableness known to the court.

Mamoulian, 732 S.W.2d at 518. After reviewing the evidence, we find that the trial court did not abuse its discretion in approving the settlement.

When a settlement provides the named parties with preferential treatment, the proponents of the settlement have the burden of demonstrating its fairness. Holmes v. Continental Can Company, 706 F.2d 1144, 1147 (11th Cir.1983).

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Bluebook (online)
780 S.W.2d 648, 1989 Mo. App. LEXIS 302, 1989 WL 21786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mamoulian-v-st-louis-university-moctapp-1989.