Richards v. Richards

408 So. 2d 1209
CourtSupreme Court of Louisiana
DecidedJanuary 25, 1982
Docket80-C-2559
StatusPublished
Cited by20 cases

This text of 408 So. 2d 1209 (Richards v. Richards) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richards v. Richards, 408 So. 2d 1209 (La. 1982).

Opinion

408 So.2d 1209 (1981)

William G. RICHARDS, et al.
v.
Horace V. RICHARDS.
Mrs. Loretto Richards O'REILLY
v.
Horace V. RICHARDS.

No. 80-C-2559.

Supreme Court of Louisiana.

May 18, 1981.
On Rehearing January 25, 1982.

Andrew L. Gates, III, of Gordon, Arata & McCollam, New Orleans, for defendant-relator.

Thomas B. Lemann of Monroe & Lemann, Howard J. Smith of Doyle, Smith & Doyle, New Orleans, for plaintiff-respondent.

MARCUS, Justice.

On December 26, 1941, Ernest V. Richards, Jr., established nine separate trusts, one for each of his children, by nine separate acts of donation which were identical in form. Plaintiffs, William G. Richards, Julian S. Richards and Mrs. Loretto Richards O'Reilly, each a beneficiary of one of these trusts, and John J. Richards, a co-trustee *1210 of these three trusts, filed actions to have their brother, Horace V. Richards, removed as a trustee of these three trusts pursuant to La.R.S. 9:1789.[1]

The district court rendered judgment in favor of defendant and against plaintiffs dismissing their suits with prejudice. Plaintiffs appealed. Subsequent to oral argument on appeal, the clerk of court for the court of appeal informed counsel for defendant by letter that the court's preliminary view was that the three trusts involved in the litigation had terminated. Defense counsel replied by letter advising the court that he was willing to acquiesce in the court's view that the trusts had terminated by operation of law. The court of appeal rendered the following judgment:

Because defendant trustee concedes that the trust and his trusteeship have expired, the questions presented by this suit are moot. This appeal is therefore dismissed.

After reviewing the decision of the court of appeal, defendant became concerned as to whether the trusts had actually legally terminated and, if so, whether the six other trusts created by his father had also terminated. The latter question was of particular interest to defendant as he was the beneficiary of one of the trusts not involved in this litigation. Accordingly, he filed an application for rehearing requesting that the court (1) not decide at this time whether the trusts had terminated; or in the alternative (2) expand its reasons for its decision; or in the further alternative (3) remand the case to the trial court with the specific instructions that defendant be allowed to file a reconventional demand to allege specifically that the three trusts subject to this litigation as well as the trust created for the benefit of defendant had expired. The court of appeal refused rehearing but did expand on its reasons for dismissing the action as moot.[2] On defendant's application, we granted certiorari to review the correctness of that judgment.[3]

Plaintiffs first contend that defendant should not be allowed to attack the judgment rendered by the court of appeal terminating the trusts as the judgment was rendered in reliance on his acquiescence. In particular, plaintiffs urge that (1) defendant is estopped from revoking his "judicial confession" that the trusts had terminated because plaintiffs and the court of appeal relied upon it; (2) defendant was granted the relief requested by him when the court ruled that the trusts had terminated after his acquiescence of the termination, and thus is not entitled to an appeal; (3) defense counsel's letter signified his consent to the court's preliminary view that the trusts had terminated, and thus the decision rendered by the court was a consent judgment binding on all of the consenting parties and thus is not appealable; and (4) defendant should not be permitted to repudiate his consent to the dismissal which was relied upon by plaintiffs in giving their consent to the dismissal.

We need not address any of these contentions as defendant did not have the power or authority to terminate any of the trusts. The concept of trust indestructibility is inherent in our Louisiana trust law. McLendon v. First National Bank of Shreveport, 299 So.2d 407 (La.App. 2d Cir. 1974). This is evidenced by La.R.S. 9:2028 which states:

The consent of all settlors, trustees, and beneficiaries shall not be effective to terminate the trust or any disposition in trust, unless the trust instrument provides otherwise.

In the instant case, the trust instrument does not provide for termination by consent of any or all of the parties. Therefore, defense counsel's letter acquiescing in the termination of the trusts had no effect. Furthermore, he had no authority to terminate *1211 the trusts as La.R.S. 9:2111 provides that

a trustee shall exercise only those powers conferred upon him by the provisions of the trust instrument or necessary or appropriate to carry out the purposes of the trust and are not forbidden by the provisions of the trust instrument.

The sole issue for our determination is whether the court of appeal erred in finding that the trusts had terminated.[4] Each of the acts of donation creating the trusts contain the following provision:

The legal title to all the trust estate shall be vested in the Trustees, and their successors, as Trustees, to be held by them in trust pursuant to the laws of the State of Louisiana, and particularly the Trust Estates Act, as same may from time-to-time be amended, for the maximum allowable period.

It is clear from this provision that the settlor-donor desired the trusts to exist for the maximum allowable period of time as provided for under Louisiana trust law as would from time-to-time be amended.

In ruling that the trusts had terminated, the court of appeal relied on La.R.S. 9:2252 (savings clause) which provides in pertinent part:

Trusts heretofore created and any provisions or dispositions therein made shall be governed by the laws in effect at the time of their creation.

Following this statute, the court applied the trust law regarding term of trusts that was in effect in 1941, the year the trusts were created. Section 4 of Louisiana Acts 1938, No. 81, provided in pertinent part:

Unless an earlier termination is required by the trust instrument or by the proper court, every inter vivos or testamentary trust created under this Act shall terminate at the expiration of ten years from the settlor's death as to a beneficiary which is not a natural person, at the expiration of ten years from the settlor's death as to a beneficiary who is a natural person and of full age at the settlor's death, and at the expiration of ten years from the beneficiary's majority as to a beneficiary who is a natural person and a minor at the settlor's death.

The court ruled that since Ernest V. Richards, Jr., the settlor, died in 1960, the trusts "expired either in 1970, ten years from the settlor's death, or no later than 1973, which is at least ten years from the [majority] of any beneficiary alive or conceived in 1941."

In reaching this result, the court of appeal ignored the settlor's intent and misapplied the savings clause of La.R.S. 9:2252. In construing a trust, the settlor's intention controls and is to be ascertained and given effect, unless opposed to law or public policy. Lelong v. Succession of Lelong, 164 So.2d 671 (La.App. 3d Cir. 1964). It was the settlor's intent that the trusts in question exist for the maximum allowable period of time as provided for under Louisiana trust law as would from time-to-time be amended.

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Bluebook (online)
408 So. 2d 1209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richards-v-richards-la-1982.