Succession of Cook

189 So. 3d 409, 2015 La. App. LEXIS 2566, 2015 WL 8953569
CourtLouisiana Court of Appeal
DecidedDecember 16, 2015
DocketNo. 50,111-CA
StatusPublished
Cited by2 cases

This text of 189 So. 3d 409 (Succession of Cook) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Succession of Cook, 189 So. 3d 409, 2015 La. App. LEXIS 2566, 2015 WL 8953569 (La. Ct. App. 2015).

Opinions

CALLOWAY, J., Pro Tempore.

| iDuring the last year of his life, Joseph Robert Cook (“Joseph”) executed a will leaving the entirety of his estate to his daughter, Elizabeth. Dianne Cook (“Dianne”), and in the alternative, his housekeeper. His sons, Robert Cook (“Robert”) and David Cook (“David”), filed suit to invalidate the will on the grounds of undue influence by Dianne. Finding clear and convincing evidence of undue influence by Dianne over her father, the trial court invalidated the will. Dianne now appeals. Because we find no manifest error in the trial court’s findings of fact and because we find the evidence of undue influence to be clear and convincing, we affirm.

[411]*411FACTS

In 1998, Joseph and his wife, Dorothy Lovett Cook (“Dorothy”), executed reciprocal wills leaving all their property to the other and then to their three children in equal portions. Dorothy died in 2005. On July 17, 2012, Joseph, a few days away from turning 90, executed a new will in which he bequeathed all his property .to Dianne, and in the alternative, to Mary Margaret Thurman (“Thurman”), his housekeeper.. ,

The execution of the new will followed months of increasing discord between Dianne and her brothers and of Dianne’s increasing involvement in Joseph’s daily life. At the center of the Cook family discord was Rodidaco, Inc. (“Rodidaco”), a family corporation formed in the 1970s by Joseph, a certified public accountant, and Dorothy, with their three children as the sole and equal shareholders. Upon incorporating Rodidaco, Joseph kept the stock certificates, which were endorsed in blank.

[2Rodidaco owns a large tract of land on U.S. Highway 80 on which is located Robert’s law office, the Cook Law Firm, and Farm Park, Inc. (“Farm Park”), a trailer park and Rodidaco subsidiary developed by Joseph. Since Dorothy’s death, Joseph has lived in a trailer- at Farm Park. Dianne, who also lives at Farm Park next to Joseph, collects rental income from some of the trailers at Farm Park. David operates a restaurant and a granite yard on property owned by Rodidaco. None of the three siblings pay rent for their use of the Rodidaco property. In addition to the income generated by Farm Park, Rodidaco received income from mineral royalties, a pipeline servitude, and leases of radio and/or cell towers located on the property. Both Dianne and David testified that Joseph, although not a shareholder, lived out of Rodidaco, using its funds as needed for his expenses.

Dianne had moved back to Louisiana from California in 1995, From 1996 until 2008,-she worked as the office manager for Robert’s law firm. . Dianne left Robert’s employ when he did not .increase her $135,000 salary, which she admitted was more than some of the attorneys at the firm were making. Dianne testified that Robert had promised that she would make more as they grew the business together, and she did not believe he was keeping that promise;- Robert beliévéd Dianne’s demands equated to establishing a prohibited partnership between a--lawyer -and nonlawyer.' A short time after she left his firm, Robert gave her $200,000. Referring to the payment as-a severance, Robert testified that he was worried about Dianne not being able to.pay her bills. Dianne said he paid it because of his promise to take care of her. Both agreed that, for tax purposes, they | ^considered the payment a buyout of Dianne’s interest in a related advertising business. Robert testified that his relationship with Dianne “went south” after she left his employ.

Dianne then worked for David for a few months. According to David, she left his employ after she tried to fire his wife’s brother, who managed his Crawfish Palace restaurant. Dianne denied this.

In November. 2009, Dianne had a car accident. Shortly after, she sold her house and moved to Farm Park next to her father and began taking care, of him. The record indicates that she was, by this time, Joseph’s, daily companion and that she had taken charge of the bookkeeping and records associated with Rodidaco.

In late 2009, during litigation involving David’s granite business, Dianne testified that she was the sole owner of Rodidaco. This prompted David and Robert to ask Joseph for their, Rodidaco stock certificates. After first calling Dianne, Joseph gave them the certificates. Explaining her [412]*412testimony in the granite litigation, Dianne stated that Joseph had, over the years, allowed her and her brothers to claim losses to Rodidaco on their individual tax returns, with any refunds placed back into corporation. When David and Robért no longer wanted to participate in that arrangement, she took all the losses and filed tax returns showing herself as 100% owner of Rodidaco.'

Around October 2011, Robert and David asked to see Rodidaco’s financial records. According to Dianne, the request followed an argument with Robert during a family dinner outing. • Joseph objected when Robert | ¿informed him that he had given someone permission to hunt on Rodidaco land. Dianne testified that when she asked Robert to honor Joseph’s wishes, Robert “exploded,” called her a “dominatrix,” and said that he and David did not know what was going on with Rodidaco and Farm Park. She told Robert to be at Joseph’s trailer the next day with David to see the records. Dianne claims that she allowed her brothers to. see all that she had; the brothers allege that the records she provided were incomplete.

After the above episode concerning the corporate records, Dianne retained an attorney, Ken Mascagni (“Mascagni”) of Cook Yancy, King and Galloway (“CYKG”), to represent her in dealing with Robert and David'. Dianne testified that she felt like she’d be “bullied” otherwise. Mascagni wrote to Robert and David on December 10, 2011, informing them that, in light of their questioning the Rodidaco records and suggesting that Dianne had “shorted” them or the corporation, Dianne now “wants to terminate any mutual interest in the corporation and in any property.” The brothers' retained their own attorney. Both sides' demanded records from the other.

Dianne made a proposal for dividing the property between the three ■ siblings and allowing Joseph to retain income from the cell towers and royalties and to have a usufruct over his trailer. Robert testified that the three siblings met, without their attorneys, to discuss the agreement. However, their negotiations were unsuccessful.

In March 2012, Dianne closed on a house in Gulf Shores, Alabama, and had an elevator installed to accommodate Joseph. By May, Dianne and |KJoseph were spending four to five days at a time about every couple of weeks in Gulf Shores.

At the beginning of June 2012, Robert found a letter placed on his desk about a proposal to buy one of the towers on Rodi-daco property. Joseph had written across the top of the letter, “I want my money up front.” David went to Joseph to discuss the sale. But Dianne, who was present with Joseph, intervened and made it clear that the decision to sell had been made. This event precipitated the brothers scheduling the shareholder meeting on June 19, 2012, during which they exercised their majority shareholders’ rights and removed Dianne as secretary of Rodidaco and their 89-year-old father as its president. Robert explained that Joseph was in declining health and that he had abdicated all his functions regarding Rodidaco to Dianne, who also- had Joseph’s power of attorney.

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Related

In re Cook
244 So. 3d 686 (Louisiana Court of Appeal, 2017)
Succession of Davisson
211 So. 3d 597 (Louisiana Court of Appeal, 2016)

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Bluebook (online)
189 So. 3d 409, 2015 La. App. LEXIS 2566, 2015 WL 8953569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-cook-lactapp-2015.