Marks v. Marks

465 P.2d 996, 51 Haw. 548, 1970 Haw. LEXIS 156
CourtHawaii Supreme Court
DecidedFebruary 16, 1970
DocketNo. 4857
StatusPublished
Cited by3 cases

This text of 465 P.2d 996 (Marks v. Marks) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marks v. Marks, 465 P.2d 996, 51 Haw. 548, 1970 Haw. LEXIS 156 (haw 1970).

Opinion

[549]*549OPINION OF THE COTJKT BY

KOBAYASHI, J.

I. Facts

Three of the four beneficiaries of a trust created by the will of Lincoln Loy McCandless (hereafter “settlor” or “testator”) sued to recover allegedly excessive commissions taken by the three trustees. Plaintiffs contend commissions were limited by the will. Trustees contend the commissions taken were authorized by statute.

The will was duly admitted to probate by the First Circuit Court in P. No. 11582. It created a trust, naming as trustees A. Lester Marks, Elizabeth Loy Marks, James Sutton McCandless (who refused to serve as trustee) and Elizabeth Janet Cartwright McCandless (widow of testator who died before the inception of the trust). Defendants Mr. and Mrs. Marks accepted their nominations to serve as trustees. Under the terms of the will at least three trustees were required. Defendant Richards was appointed as the third trustee by the First Circuit Court.

Under the undisputed terms of the will the three plaintiffs are entitled to receive one-half (one-sixth each) of the trust income and remainder.

Trustee Elizabeth Loy Marks, wife of trastee A. Lester Mai’ks, is the foui’th beneficiary of the trust, but she has not joined the other beneficiaxúes as a plaintiff. By the terms of the will she is entitled to x*eceive one-half the trust income and remainder1.

Pursuant to the will’s terms, the trust terminated January 13, 1959, when plaintiff Cynthia Marks Salley became twenty-one years of age.

The complaint which began this action was filed March 2,1964. Trustees answered March 16, 1964. Their answer [550]*550contends in part:

“8. In further answer to paragraph 7, defendants say that they are entitled to the full statutory commissions as provided by Section 219-17, R.L.H. 1955, and by reason of the complexity and difficulty in the administration of the trust estate, they are entitled to additional allowance for services rendered in an amount deemed just and reasonable by the Court.”

It makes no mention of any. counterclaim.

On September 12, 1967, trustees took the deposition of Chaunsey Cleveland who said: (1) that at the request of the trustees in 1949 he appraised the value of the assets of the trust estate at $2,882,032.87; (2) that pursuant to the trustees’ request, his appraisal evaluated the trust assets at only 70% of their market value; (3) that his appraisal report to the trustees did not bear any notation that the appraisal was only 70% of market value; (4) that he was unaware of the reasons for underevaluating the property. Mr. Cleveland was asked if the appraisal was. to be used to compute taxes; he answered that he did not know. Cleveland’s deposition was filed September 29,1967, along with two others not material here.

On December 1, 1967, trustees filed a pretrial statement saying in part:

“The only controversy in this case involves the amount of commissions payable to the trustees. No other issue is urged in the pretrial statement.
* * * *
“ * * * The value of the principal of the trust at its inception on October 1,1949 was at least $2,882,032.87. (Deposition of C.F. Cleveland).
* . * «* . *

CONCLUSION

“Defendants are entitled to at least the full státutory commissions; the question is whether they are en[551]*551titled to the 1% mentioned in the will in addition to statutory commissions.
“Since this action is without merit as a matter of law, upon entry of judgment defendants will ask that all of the costs, expenses and defendants’ attorneys-fees be charged against plaintiffs’ share in the estate.”.

On December 18, 1967, trustees moved for summary judgment. On January 10,1968, plaintiffs moved for summary judgment. On January 11, 1968, oral argument of both motions was heard by Judge Ogata. The clerk’s minutes state in pertinent part:

“At 8:44 Mr. Anthony stated that he would waive the ten day notice on motion for summary judgment;' that Mr. Anderson, had filed his motion for summary judgment on January 10, 1968.
“At 10:14 the court took the motions for summary judgment under advisement and informed counsel that they would be informed when the court was ready to rule.”

On January 20, 1968, trustees filed a 5-page “Reply Memorandum” to plaintiffs’ motion for summary judgment (which had been orally argued nine days before). It states in part:

“The facts are not in dispute and hence the question should be decided as a matter of law. The undisputed facts are:
.* * * *
« * * * jj-q, qUegtion was raised by ■ plaintiffs until after the trust had terminated and the trustees had faithfully performed their duties by preserving the estate so that it increased in value from a valuation of approximately $2,800,000 at the date of Mr. McCand[552]*552less’ death to approximately $10,000,000 at the time of termination. * * *
* tt * *
“ * * * penally, under fundamental principles of equity, the trustees should be allowed at least the full statutory commissions provided by law. In this case the trustees by taking commissions on 70% of the fair value have substantially reduced the amount of compensation which the statute says 'shall be allowed as commissions.’ ”

Plaintiffs filed an 18 page “Answering Memorandum” on February 9, 1968. Trustees filed a “Supplementary Memorandum” on August 2, 1968. Plaintiffs filed a “Supplemental Memorandum” on August 6, 1968. None of these memoranda mention any claim that the assets were underevaluated.

On August 6, 1968, Judge Ogata orally granted plaintiffs’ motion for summary judgment and denied trustees’. The yellow minutes of the clerk do not show any discussion of any underevaluation claim.

On October 14, 1968 (more than two months after Judge Ogata had orally granted plaintiffs’ motion for summary judgment), counsel for trustees filed an “Affidavit in Opposition to Plaintiffs’ Motion for Summary Judgment”, which states in pertinent part:

“that in the event the Court adheres to its earlier ruling, defendants will adduce evidence that the services of A. Lester Marks as full-time manager of the estate were reasonably wortli not less than $1,000 pér month and the reasonable value of such services should be offset against any claim of overpayment of commissions.”

An attached memorandum argues that commissions should be computed at 100% of the trust’s inception value, rather than at 70% as appraised by Cleveland. It also argues [553]*553that summary judgment “cannot be entered until disputed issues of fact are resolved”, including the amount of A. Lester Marks’ salary claim; but not including the issue of evaluation of the trust assets, as to which counsel for the trustees states:

“The fact that defendants charged commissions based on 70% of the value is not disputed.”

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Cite This Page — Counsel Stack

Bluebook (online)
465 P.2d 996, 51 Haw. 548, 1970 Haw. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-marks-haw-1970.