Smith v. Baptist Foundation of Oklahoma Corp.

2000 OK 119, 2000 OK CIV APP 119, 17 P.3d 466, 71 O.B.A.J. 3266, 2000 Okla. Civ. App. LEXIS 98, 2000 WL 1811559
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 15, 2000
DocketNo. 93,176
StatusPublished
Cited by3 cases

This text of 2000 OK 119 (Smith v. Baptist Foundation of Oklahoma Corp.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Baptist Foundation of Oklahoma Corp., 2000 OK 119, 2000 OK CIV APP 119, 17 P.3d 466, 71 O.B.A.J. 3266, 2000 Okla. Civ. App. LEXIS 98, 2000 WL 1811559 (Okla. Ct. App. 2000).

Opinion

OPINION

STUBBLEFIELD, J.

1 This is an appeal from summary judgment voiding a trust. The cause has been assigned to the accelerated docket pursuant to Supreme Court Rule 1.86, 12 O.S. Supp. 1999, ch. 15, app. 1. After a review of the record on appeal and applicable law, we reverse and remand with instructions and for further proceedings.

11 2 Plaintiffs Verbon and Hazel Smith filed this action against Defendants Baptist Foundation of Oklahoma and Baptist General Convention of the State of Oklahoma, both of which are nonprofit corporations.1 They sought a declaratory judgment that an inter vivos irrevocable trust created by Verbon on June 19, 1984, the Verbon Smith Charitable Remainder Unitrust (the Trust), was void as in violation of Oklahoma law. Foundation was the designated trustee under the Trust, and Convention the stated remainder benefi-clary.

. 13 Verbon funded the Trust by deeding to it farmland he owned in Texas, which Foundation sold. The Trust provided that Verbon would receive up to eight percent of the Trust's income during his lifetime, and thereafter, Hazel would receive up to five percent. Upon both of the Smiths' deaths, the remainder would go to Convention.

¶ 4 The Smiths asserted that the trust was void because, at the time it was created, Foundation had no authority to serve as trustee. They sought a declaratory judgment to that effect, plus "damage{[s] caused ... as a result of the unlawful agreement." Alternatively, they sought damages for purported breach of fiduciary duty and negligence on the part of Foundation.

¶ 5 Foundation and Convention filed a special appearance and a motion to dismiss for improper venue. The trial court denied that motion. The Smiths then filed a motion for summary judgment, and Foundation and Convention filed responses and motions for partial summary judgment.

16 The trial court granted the Smiths' motion for summary judgment. In a journal entry of judgment filed May 19, 1999, the trial court declared the Trust void ab initio, and ordered Foundation to return the Trust's corpus (valued at about $500,000) to the Smiths. It also ordered Foundation to pay the Smiths $42,000 in damages, as the difference between what Foundation received for administering the Trust and what a bank would charge as a base amount. The trial court later awarded the Smiths $12,259 in costs. Foundation and Convention appeal. For convenience sake, we shall refer to Defendants collectively as "Foundation" where appropriate.

17 Summary judgment is proper only in those cases where there is no dispute as to any material fact. Flanders v. Crane Co., 1984 OK 88, ¶ 10, 693 P.2d 602, 605. In the case at bar, the trial court's grant of summary judgment was based on undisputed facts and involved the interpretation of stat[469]*469utes. Where the facts are not disputed, an appeal presents only a question of law, Baptist Bldg. Corp. v. Barnes, 1994 OK CIV APP 71, ¶ 5, 874 P.2d 68, 69, meaning our standard of review of the trial court's decision is de novo. Weeks v. Cessna Aircraft Co., 1994 OK CIV APP 171, ¶ 5, 895 P.2d 731, 733 (approved for publication by order of the Oklahoma Supreme Court). "De novo" means no deference, not necessarily a full rehearing or new factfinding. Bose Corp. v. Consumers Union of U.S., 466 U.S. 485, 104 S.Ct. 1949, 80 L.Ed.2d 502 (1984).

18 A threshold issue is whether the trial court correctly ruled venue is proper in Dewey County. We hold that it is.

19 Title 12 0.8.1991 § 134, states that an action may be brought against an Oklahoma corporation in, among other places:

the county where the cause of action or some part thereof arose. ...

Foundation does not dispute the Smiths' assertion that Dewey County is where the Smiths entered into the trust agreement. Therefore, it can be said that the cause of action arose in Dewey County, making venue proper there.

110 Foundation asserts venue is proper only in Oklahoma County. It refers us to 60 0.8. Supp.1999 § 175.28, which states, in applicable part:

A. The district court shall have original jurisdiction to construe the provisions of any trust instrument; to determine the law applicable thereto; the powers, duties, and liability of trustee; the existence or nonexistence of facts affecting the administration of the trust estate; to require accounting by trustees; to surcharge trustee; and in its discretion to supervise the administration of trusts; and all actions hereunder are declared to be proceedings in rem.
B. The venue of such actions shall be in the county where the trustees or any co-trustee resides....

Foundation asserts that because its principal office is located in Oklahoma County, that is where it "resides" for purposes of the statute.

{11 We reject Foundation's assertion for First, section 175.23 provides two reasons. in part for venue in actions dealing with the construction of trust agreements. Practically speaking, this is not primarily an action to construe the Trust. There is no dispute over the Trust's meaning, or what the settlor intended to do, or what powers the trustee has. At the heart of the Smiths' lawsuit is their assertion that, under Oklahoma law, Foundation did not have the authority to serve as trustee, and, therefore, the Trust was void. To resolve this issue, it is Oklahoma law that must be construed, not the Trust.

112 It is true that the Smiths have also made claims that fit under some of the language in section 175.23(A). However, when a plaintiff seeks various forms of relief, it is the principal object of the litigation that determines venue. Ruggles v. First Nat'l Bank of Carmen, 1976 OK CIV APP 40, ¶ 11, 558 P.2d 419, 421. That object, as previously explained, is to void the Trust by applying Oklahoma law, not to construe it.

118 Second, even if we were to conclude that venue was proper in Oklahoma County due to section 175.28, that would not mean venue would lie there exclusively. Title 12 0.9.1991 § 143, provides that:

All venue statutes are cumulative wherever they appear and any action brought under any such statute may be maintained where brought. No court shall apply one venue statute in preference to another whether considered general or special.

This statute abolished the preference a specific venue statute had as against a general statute. Harwood v. Woodson, 1977 OK 57, ¶ 10, 565 P.2d 1, 3. The Oklahoma Supreme Court has consistently held that if venue attaches under any statute, then the action is properly filed. Stevens v. Blevins, 1995 OK 6, ¶ 5, 890 P.2d 936, 938. We conclude the venue is proper in Dewey County, and the trial court did not err in denying Foundation's motion to dismiss.

114 We turn to the principal contentions of error raised by Foundation. It claims that the trial court's judgment was erroneous because Foundation did have authority to act as trustee, and, even if it did not, the trust would not fail.

[470]*4701 15 The Smiths attacked Foundation's authority to act as trustee because of a provision of the Oklahoma Banking Code in effect at the time the Trust was created in 1984, 6 § 1002, which provided:

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Related

Smith v. Baptist Foundation of Oklahoma
2002 OK 57 (Supreme Court of Oklahoma, 2002)

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Bluebook (online)
2000 OK 119, 2000 OK CIV APP 119, 17 P.3d 466, 71 O.B.A.J. 3266, 2000 Okla. Civ. App. LEXIS 98, 2000 WL 1811559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-baptist-foundation-of-oklahoma-corp-oklacivapp-2000.