Redland v. Redland (In re Robert and Irene Redland Family Trust, Dated August 10, 1989)

435 P.3d 349
CourtWyoming Supreme Court
DecidedFebruary 8, 2019
DocketS-18-0091; S-18-0092; S-18-0093
StatusPublished
Cited by7 cases

This text of 435 P.3d 349 (Redland v. Redland (In re Robert and Irene Redland Family Trust, Dated August 10, 1989)) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redland v. Redland (In re Robert and Irene Redland Family Trust, Dated August 10, 1989), 435 P.3d 349 (Wyo. 2019).

Opinion

BOOMGAARDEN, Justice

[¶1] These consolidated appeals involve the ongoing disputes with the Redland family's irrevocable trust. Appeals S-18-0091 and S-18-0092 relate to Rolly Redland's counterclaim to remove his sister, Lisa Kimsey, as co-trustee for allegedly breaching her fiduciary duties and interfering with trust administration. Appeal S-18-0093 concerns Ms. Kimsey's request to terminate the trust because she claims it is invalid and otherwise fails to achieve the settlors' intended purposes. After a five-day trial, the district court decided not to remove Ms. Kimsey as co-trustee or terminate the trust. Finding no error, we affirm.

ISSUES

[¶2] We state the issues as:

I. Did the district court err when it did not terminate the trust?
A. Does res judicata bar Lisa's claim that the trust is invalid?
B. Does the trust fail to achieve any material purpose?
II. Did the district court err when it retained Lisa Kimsey as co-trustee?

FACTS

[¶3] We detailed the history of the Redland family's trust in Redland v. Redland , 2012 WY 148, 288 P.3d 1173 (Wyo. 2012) ( Redland I ) and Redland v. Redland , 2015 WY 31, 346 P.3d 857 (Wyo. 2015) ( Redland II ). We restate it here to the extent necessary to put the current appellate issues into context.

[¶4] Robert Redland (Robert) and his wife, Irene Redland (Irene), created the Robert Redland and Irene Redland Family Trust dated August 10, 1989 (Redland Family Trust) to hold and manage ranch properties acquired from Robert's father and brother, along with the family's future ranch property acquisitions. Redland I , ¶ 21, 288 P.3d at 1180. Robert, Irene, and their five children1 each made contributions to acquire the trust property; each were named as beneficial owners; and, Robert and Irene served as the original trustees. Id. In 1995, Robert, Irene, Lisa, Kendrick, and Roalene amended the Redland Family Trust to: provide for the appointment of a successor trustee; require two trustees to serve at all times; create a marital trust for the survivor of Robert or Irene; and revise the buyout provision, inter alia (1995 Amendment).

*3542 Irene passed away in 2007 and, pursuant to the 1995 Amendment, the beneficiaries appointed Rolly as co-trustee. Id. ¶¶ 36, 38, 288 P.3d at 1182-83.

[¶5] Thereafter, a dispute arose between Robert and four of his children about Robert's failure to convey additional lands into the Redland Family Trust and about lease agreements Robert executed without approval of his co-trustee. Redland I , ¶¶ 35-39, 288 P.3d at 1182-83. Contentious litigation involving all the beneficial owners ensued with the parties asserting several causes of action. Id. ¶¶ 39-40, 288 P.3d at 1183. Among those claims, Rolly sought to recover additional trust lands and Robert sought to invalidate the trust for violating the rule against perpetuities. Id. ¶¶ 39-41, 288 P.3d at 1183. The district court entered partial summary judgment, concluding the statute of limitations and statute of frauds barred Rolly's claim to recover property, and held a lengthy trial on the parties' remaining claims. Id. ¶¶ 41, 44, 181, 288 P.3d at 1183-84, 1214. While the matter was under advisement, the parties filed a stipulation resolving several of their disputed claims (2010 Stipulation). Id. ¶ 44, 288 P.3d at 1184. Pertinent to this appeal, the 2010 Stipulation requested that the court approve a trust amendment requiring the appointment of a third (tie-breaker) trustee in the event the court determined the trust was valid. Id. The district court approved the amendment after ruling the trust did not violate the rule against perpetuities.3 Id. ¶ 45, 288 P.3d at 1184.

[¶6] The parties appealed several of the district court's rulings but did not further challenge the trust's validity. Redland I , ¶¶ 4-6, 288 P.3d at 1177-78. In Redland I , we reversed the district court's summary judgment order barring the recovery of additional property and remanded the matter for trial. Id. ¶ 181, 288 P.3d at 1214. Thereafter, the district court ordered Robert to immediately transfer the disputed property to the Redland Family Trust, except it allowed the Manderson Place (Robert's residential parcel) to be transferred on his death. Redland II , ¶ 2, 346 P.3d at 859. Robert appealed. In Redland II , we affirmed the district court's decision on the merits, but we remanded the matter for an order immediately transferring the Manderson Place to the Redland Family Trust, subject to Robert's life estate. Id. ¶¶ 68-69, 346 P.3d at 880.

[¶7] On February 13, 2013, while the second appeal was pending, Robert filed a complaint4 against the other co-trustees, Rolly and Larry Heiser (the present litigation). In his complaint, Robert requested temporary and permanent injunctions to preclude Mr. Heiser from acting as the third co-trustee and to prohibit further trustee meetings pending further order of the court. Robert also requested a declaratory judgment that the Redland Family Trust is dysfunctional, or alternatively, that the beneficiaries select a new trustee to replace Mr. Heiser.5 Rolly filed a counterclaim to remove Robert as co-trustee.

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Bluebook (online)
435 P.3d 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redland-v-redland-in-re-robert-and-irene-redland-family-trust-dated-wyo-2019.