Sawyer v. Lebanon Citizens National Bank

664 N.E.2d 571, 105 Ohio App. 3d 464
CourtOhio Court of Appeals
DecidedJuly 31, 1995
DocketNo. CA95-02-016.
StatusPublished
Cited by4 cases

This text of 664 N.E.2d 571 (Sawyer v. Lebanon Citizens National Bank) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sawyer v. Lebanon Citizens National Bank, 664 N.E.2d 571, 105 Ohio App. 3d 464 (Ohio Ct. App. 1995).

Opinion

Walsh, Presiding Judge.

Plaintiff-appellant, Bonnie Sawyer, appeals a decision of the Warren County Court of Common Pleas, Probate Division, which granted summary judgment in favor of defendants-appellees, Lebanon Citizens National Bank, Trustee (“LCNB”); James A. Favaron and Loretta Favaron, individually; James and Loretta Favaron as next and best friends on behalf of Shonda Kay Favaron and Melissa Sue Favaron, minors; Shonda Kay Favaron, minor (“Shonda”); and Melissa Sue Favaron, minor (“Melissa”) (“appellees”); and ordered a hearing for a determination of frivolous conduct.

Timberly Kay Favaron (“Favaron”) died as a result of a motor vehicle accident in 1982. At the time of her death, Favaron left two minor children surviving her, Shonda, then age three, and Melissa, then age two. 1 An action for the wrongful death of Favaron resulted in a settlement in which Shonda and Melissa received a total of approximately $55,000. The Warren County Court of Common Pleas, Probate Division, approved the children’s share of the settlement and created an irrevocable trust pursuant to R.C. 2125.03(A)(2) under which the funds were placed in trust for the two minor children. The trust agreement specifically named Shonda and Melissa as the beneficiaries and LCNB as the trustee.

The trust agreement provided for distribution of the trust funds to the beneficiaries when they reach age twenty-five. Section six of the trust agreement also contained the following contingency language:

“If both beneficiaries die prior to their twenty-fifth (25th) birthdays without surviving children, their Trust shall terminate and be paid to the heirs of Timberly Kay Favaron. Said heirs shall be determined as if she (Timberly Kay Favaron) had died the day after the last beneficiary.”

On October 8, 1984, subsequent to the death of their natural mother and the creation of the wrongful death trust, Shonda and Melissa were adopted by James and Loretta Favaron, their paternal uncle and aunt. The natural father of the children relinquished all parental rights to his two children and consented to their *467 adoption. On July 14, 1992, all rights to any familial relationships, visitation, and contact between appellant and the children was terminated by court order.

Thereafter, appellant brought a declaratory judgment action seeking termination of the trust. Appellant argued that by virtue of the adoption of Shonda and Melissa, the contingency language in the trust had been met and that only she was entitled to the trust funds as Favaron’s next of kin. Appellant argued that pursuant to the Ohio adoption statute, the children were now the children of someone else and no longer had any legal right to share in the trust funds accumulated by reason of the wrongful death of their natural mother.

The trial court granted summary judgment in favor of appellees. The trial court also ordered a hearing for a determination of whether the action brought by appellant was frivolous and adversely affected appellees so as to justify an award of attorney fees.

On appeal, appellant raises two assignments of error for review. In her first assignment of error, appellant contends that the trial court erred in granting summary judgment in favor of appellees. Appellant argues that a wrongful death trust containing a provision which terminates the trust upon the death of the beneficiaries is terminated as a matter of law when the beneficiaries are adopted. Appellant also argues that the trial court’s interpretation of the wrongful death and adoption statutes causes a conflict between them and that it is unconstitutional to sever the familial relationships between an adopted child and his or her natural family, but not an adopted child’s rights to income, support or assets from the natural family.

The trial court found that at the time the wrongful death action was settled, Shonda and Melissa were proper beneficiaries and that their adoption after the creation of the trust agreement did not affect their status as such beneficiaries. Thus, the trial court refused to terminate the trust and entered judgment for appellees.

Civ.R. 56(C) provides that summary judgment is appropriate where (1) no genuine issue of material fact remains to be litigated; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds construing the evidence in favor of the nonmoving party could reach but one conclusion, which is adverse to the nonmoving party. Bostic v. Connor (1988), 37 Ohio St.3d 144, 146, 524 N.E.2d 881, 883-884.

R.C. 2125.02(A)(1) provides that an action for wrongful death shall be brought for the exclusive benefit of the surviving spouse, children, and parents of the decedent, who are rebuttably presumed to have suffered damages by reason of the wrongful death. In addition, the statute states that “[t]he date of the decedent’s death fixes * * * the status of all beneficiaries of the action for *468 purposes of determining the damages suffered by them * * *.” R.C. 2125.02(A)(3)(a). When some or all of the beneficiaries of a wrongful death action are children, the court may order the amount received for the children to be placed in trust for their benefit until the children reach the age of twenty-five. R.C. 2125.03(A)(2).

In this case, an irrevocable trust was created for the benefit of the children after the wrongful death of their natural mother. The record indicates that at the time of their natural mother’s death, Shonda and Melissa, while minors, were proper beneficiaries according to R.C. 2125.02(A)(3)(a). It was not until after the creation of the trust that the children were adopted by their paternal uncle and aunt.

Appellant’s reliance upon R.C. 3107.15, the adoption statute, to support her argument that an adoption terminates a trust previously established for minor beneficiaries is misplaced. The adoption statute has no bearing upon the provisions of this trust agreement.

As a result of their natural mother’s wrongful death, Shonda and Melissa received a total settlement amount of $55,000. Because of their minority, the court created an irrevocable trust for the specific benefit of the children under which their share of the settlement proceeds was deposited. R.C. 2125.03(A)(2). We find that the interests of Shonda and Melissa in the trust established explicitly for their benefit became vested when the judge adjusted the shares of all the beneficiaries under R.C. 2125.03(A)(1) and (2) and cannot be affected by their subsequent adoption. See Ulmer v. Ackerman (1993), 87 Ohio App.3d 137, 621 N.E.2d 1315; Eisenmann v. Eisenmann (C.P.1976), 52 Ohio Misc. 119, 126, 6 O.O.3d 449, 453, 370 N.E.2d 788, 792 (interpreting former analogous adoption statute, R.C. 3107.13).

In addition, we find that the contingency language in the trust agreement which purports to transfer the children’s trust funds to appellant as Favaron’s next of kin, in the event both children die without issue, is invalid and against public policy.

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Bluebook (online)
664 N.E.2d 571, 105 Ohio App. 3d 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sawyer-v-lebanon-citizens-national-bank-ohioctapp-1995.