Matter of Estate of Grimm

784 P.2d 1238, 124 Utah Adv. Rep. 48, 1989 Utah App. LEXIS 197, 1989 WL 154910
CourtCourt of Appeals of Utah
DecidedDecember 20, 1989
Docket880708-CA
StatusPublished
Cited by13 cases

This text of 784 P.2d 1238 (Matter of Estate of Grimm) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Estate of Grimm, 784 P.2d 1238, 124 Utah Adv. Rep. 48, 1989 Utah App. LEXIS 197, 1989 WL 154910 (Utah Ct. App. 1989).

Opinion

OPINION

Before BILLINGS, GARFF, JJ., and CROFT 1 , Senior District Judge.

BRYANT H. CROFT, Senior District Judge:

Plaintiffs (appellants) appeal from a final judgment of the district court entered April 25, 1986. Defendants (respondents) cross-appeal from that portion of the judgment denying them attorney fees.

Facts

This litigation had its origin in the probate of two wills referred to as the Philippine will and the non-Philippine will, both executed on January 23, 1959, by Edward Miller Grimm 2 (“Grimm”), who died on November 27, 1977. Grimm, a United States citizen, resided mainly in the Philippine Islands, although he had a secondary residence in Tooele County, Utah, and extensive business and property holdings both in *1240 the Far East and in the western United States.

At the time of his death, Grimm was survived by his wife, Maxine Tate Grimm (“Maxine”), whom he married on June 25, 1947, and their two children, Edward Miller Grimm II (“Pete”) and Linda Grimm (“Linda”). Maxine, Pete, and Linda are the appellants in this action. Grimm was divorced from his first wife, Juanita Kegley Grimm (“Juanita”), in Reno, Nevada, by a decree entered June 2, 1947. Two daughters were born of this marriage, Ethel Grimm Roberts (“Ethel”) and Juanita Grimm Morris (“Nita”). Nita, Ethel, and Ethel’s husband, Rex Roberts, are the respondents in this action.

The Philippine will governed all of Grimm’s property situated in the Philippines. It named Maxine, Charles Parsons (“Parsons”), and Byron S. Huie (“Huie”) as co-executors, noting that Parsons and Huie both resided in Manila. It declared his Philippine properties community property, and directed the executors to deliver to Maxine that portion thereof which under the Philippine laws constituted her share of the community property. It also bequeathed to Maxine his cars, furniture and furnishings, musical instruments, jewelry and clothing situated in the Philippines at the time of his death. He named his four children, Pete, Linda, Ethel and Nita, and directed that the residue of his Philippine estate be distributed according to Philippine “legitime” or compulsory heir law. This division resulted in Ethel and Nita each being entitled to 3.7% of the Philippine estate. As to that portion of his Philippine estate over which he had the power and freedom of testamentary disposition under Philippine law, he bequeathed 16% to two sisters and a brother and 84% to Maxine, Linda, and Pete in equal shares.

The non-Philippine will purported to dispose of his property, both real and personal, not situated in the Philippines. Under this will, Maxine received all real property located outside the Philippines. Grimm bequeathed the remainder of his non-Philippine estate 50% to Maxine and 25% to each of Linda and Pete. Grimm in his will stated he was purposely making no provision for Nita and Ethel, because he had provided for each of them in a separate will disposing of “his Philippine property.” This will named Maxine and E. LaVar Tate (“Tate”) as co-executors.

Both wills contained the following spendthrift clause:

No beneficiary of my estate shall have any right to alienate, encumber, or hy-pothecate his or her interest in said estate or the income therefrom, nor shall such interest of any beneficiary be subject to claims of his or her creditors or liable to attachment, execution, or other process of law.

On July 19, 1977, Grimm executed a trust agreement naming Pete as trustee. We discuss the details of this trust when dealing with its legal effect. In August of 1977, Grimm executed 42 assignments of property interests to Pete “as trustee.”

After Grimm’s death, the relations between the two branches of his family became strained, due in part, at least, to the emergence of the trust agreement. Lawyers were retained by both factions, and conflicts, including tax issues, arose that needed resolution. 3 Ethel, under proceedings initiated on December 29, 1977 in Philippine court, had herself appointed special administratrix, alleging that Grimm had died intestate. This appointment became another source of conflict among the parties.

Finally, after extensive and continuous negotiations, a Family Settlement Agreement (“FSA”) was executed on April 25, 1978 by Maxine, Linda, and Pete as First Parties and Juanita, Nita, and Ethel as Second Parties.

The FSA consisted of two documents: the Agreement and a Supplemental Memorandum. The Agreement provided that *1241 Grimm’s estate included all property owned by Grimm at the time of his death and all property that Maxine had or claimed to have under any community property laws; that from the estate there was to be set apart a “marital share” for Maxine as defined therein, which in no event was to be less than $1,500,000 plus the home in the Philippines and the home in Tooele County. The “net distributable estate” was defined as all of the estate available for distribution after deducting the marital share and all debts of Grimm, claims against the estate, expenses of administration, all inheritance and estate taxes, all bequests to Grimm’s sisters and brother, accounting and legal fees incurred in administering the estate, and certain other enumerated items. The net distributable estate was to be shared equally by Linda, Pete, Nita, and Ethel.

The Supplemental Memorandum provided that any property transferred to Pete as trustee under the trust Agreement of July 12, 1977, would be included in the estate of Grimm. It also specifically identified which bank accounts were or were not to be included in the net distributable estate defined in the Agreement.

Litigation over the FSA was triggered when Ethel and Nita filed a petition in the probate case seeking the removal of Maxine and Tate as personal representatives for failure to move the probate proceedings forward. In response, appellants filed a 13-count civil action against respondents on September 10, 1980, to which respondents filed an answer. 4

In summary, respondents below contended the settlement agreement should be enforced and implemented. Appellants, in twelve claims for relief, generally alleged that the FSA should be declared void, unenforceable, of no effect, and rescinded. Each claim sets forth its own allegations to support that goal. The validity of the FSA was the major issue of this case. However, appellants also claimed intentional infliction of emotional distress.

Trial in the case was set for August 6, 1985. Appellants filed a demand for jury trial, and respondents objected. Respondents contended appellants were not entitled to a jury trial as their claims were equitable. Appellants argued their claims for compensatory and punitive damages, and particularly the one for intentional infliction of emotional distress, asserted legal claims necessitating a jury decision.

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Bluebook (online)
784 P.2d 1238, 124 Utah Adv. Rep. 48, 1989 Utah App. LEXIS 197, 1989 WL 154910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-grimm-utahctapp-1989.