Matter of Hill

509 N.W.2d 168, 1993 Minn. App. LEXIS 1174
CourtCourt of Appeals of Minnesota
DecidedDecember 7, 1993
DocketCX-93-698
StatusPublished
Cited by2 cases

This text of 509 N.W.2d 168 (Matter of Hill) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Hill, 509 N.W.2d 168, 1993 Minn. App. LEXIS 1174 (Mich. Ct. App. 1993).

Opinion

509 N.W.2d 168 (1993)

In The Matter of the Trust Created by Louis W. HILL on December 27, 1934.

No. CX-93-698.

Court of Appeals of Minnesota.

December 7, 1993.
Review Denied February 1, 1994.

*169 Eric J. Magnuson, James L. Forman, Karen Imus Johnson, Rider, Bennett, Egan & Arundel, Minneapolis, for appellants Louis Fors Hill and Louis W. Hill, Jr.

John C. Johanneson, Maun & Simon, St. Paul, for respondents Irving Clark and Sheila ffolliott.

John E. Harris, Bonnie M. Fleming, Faegre & Benson, Minneapolis, for respondents W. John Driscoll and Northwest Area Foundation.

Considered and decided by ANDERSON, C.J., and DAVIES and STONE,[*] JJ.

OPINION

ANDERSON, Judge.

Appellants Louis W. Hill, Jr. and Louis Fors Hill challenge the district court's order allowing amendment of the Northwest Area Foundation articles of incorporation. Appellant Louis Fors Hill also contends the district court erred by concluding that he lacked standing to object to the amendment of the articles of incorporation. We reverse.

FACTS

The subject of this action is a charitable trust created in 1934 by Louis W. Hill, Sr. The sole assets of the trust are ten shares of capital stock of respondent Northwest Area Foundation (Foundation), which represent all of the corporation's outstanding stock. The current trustees are respondents W. John Driscoll, Irving Clark, Sheila ffolliott, and appellant Louis W. Hill, Jr. Appellant Louis Fors Hill is the grandson of Louis W. Hill, Sr. and a former trustee.

In 1934, Louis W. Hill, Sr. established a philanthropic foundation called the Lexington Foundation, now known as the Northwest Area Foundation. Pursuant to a deed of trust dated December 27, 1934, Louis W. Hill, Sr. transferred all of the Foundation's outstanding stock to a trust. The deed of trust contains the following provision regarding the appointment of trustees:

There shall at all times be not less than three (3) trustees nor more than five (5), and after the death or resignation of [Louis W. Hill, Sr.] as one of said trustees there shall be at all times at least five (5) trustees. Such trustees shall be appointed by the court having jurisdiction of the administration of said trust, and it is the desire of the trustor that the court appoint such persons as trustees as will promote the management of the Foundation and the serving of broad public uses. It is not the desire of the trustor that the trustees shall be in effect self-perpetuating, but this shall not be construed to militate against reappointment of trustees nor consideration of suggestions made by them.

After Louis W. Hill, Sr.'s death in 1948, the Second Judicial District assumed jurisdiction over the trust and took over the appointment of trustees.

*170 The deed of trust provides a multi-level administrative structure for the Foundation. The district court appoints the trustees. The trustees annually elect the Foundation's Board of Directors. The Board is responsible for determining the Foundation's policy and program and for hiring staff to implement the program. Currently the Foundation employs a professional staff of 11 people to manage its business affairs.

In 1992, respondents petitioned the district court for an order amending the Foundation's articles of incorporation. Respondents proposed in part that (1) successor trustees be nominated to the court by a four-member nominating committee consisting of two of the five trustees and two directors of the Foundation; (2) the nominating committee be appointed by the trustees; (3) the directors of the Foundation appointed to the nominating committee not be trustees or descendants of Louis W. Hill, Sr. or spouses of such descendants; (4) the committee not nominate any person for trustee who has attained the age of seventy or has been elected to three consecutive three-year terms; and (5) persons serving as Foundation directors not be eligible to be nominated as a trustee if the person's appointment would result in more than two trustees also serving as directors.[1]

Under the terms of the proposed amendment to the Foundation's articles of incorporation, both Louis Fors Hill and Louis W. Hill, Jr., as descendants of Louis W. Hill, Sr., could be excluded from the nominating committee if either one was a director of the Foundation. Louis Fors Hill filed a reply petition and cross-petition objecting to the amendment. Louis W. Hill, Jr. did not appear or participate in the proceeding. He argues that as an interested party he was entitled to notice of the hearing and that he did not receive notice. The attorney general was notified of a hearing that was scheduled on the matter, but did not appear or participate in the proceeding.

The district court determined Louis Fors Hill lacked standing to participate in the proceeding and dismissed his petitions. The court found the proposed nominating procedure was consistent with the purpose of the trust and allowed the amendment with one modification. The court required "the deletion of any language restricting descendants of [Louis W. Hill, Sr.] or spouses of such descendants from membership on the nominating committee." The court also stated *171 that the "nominating procedure is not intended to change in any manner the discretion placed upon the district court by the deed of trust."

Louis W. Hill, Jr. and Louis Fors Hill appealed the district court's decision. Respondents moved to dismiss Louis W. Hill, Jr.'s appeal on the grounds he did not appear before the district court. Louis W. Hill, Jr. argued that he did not appear because he did not receive proper notice of the hearing. Respondents also argued that a conservatorship precluded Louis W. Hill, Jr. from bringing an appeal on his own behalf. This court denied the motion to dismiss based on respondents' failure to prove that dismissal was warranted, but did not make a final determination on the notice issue or the conservatorship issue.

ISSUES

I. Did Louis Fors Hill have standing to object to respondents' petition in the district court?

II. Did the trial court err in allowing the amendment of the Foundation's articles of incorporation?

ANALYSIS

I.

Standing

Louis Fors Hill contends that the district court erred by concluding he did not have standing to participate in the proceedings. We agree and reverse.

"Standing is a jurisdictional question to be determined by this court." In re Implementation of Util. Energy Conservation Improvement Programs, 368 N.W.2d 308, 312 (Minn.App.1985).

[T]he fundamental aspect of standing is that it focuses on the party seeking to get his complaint before a * * * court and not on the issues he wishes to have adjudicated.

Sundberg v. Abbott, 423 N.W.2d 686, 689 (Minn.App.1988) (emphasis and alteration in original) (quoting Flast v. Cohen, 392 U.S. 83, 99, 88 S.Ct. 1942, 1952, 20 L.Ed.2d 947 (1968)).

The essential question is "whether the litigant is entitled to have the court decide the merits of the dispute or of particular issues."

Id. (quoting Warth v. Seldin,

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Bluebook (online)
509 N.W.2d 168, 1993 Minn. App. LEXIS 1174, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-hill-minnctapp-1993.