Succession of Robert Daniel Hyde, Jr.

CourtLouisiana Court of Appeal
DecidedAugust 10, 2022
Docket54,619-CA
StatusPublished

This text of Succession of Robert Daniel Hyde, Jr. (Succession of Robert Daniel Hyde, Jr.) 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 Robert Daniel Hyde, Jr., (La. Ct. App. 2022).

Opinion

Judgment rendered August 10, 2022. Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 54,619-CA

COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA

*****

SUCCESSION OF ROBERT DANIEL HYDE, JR.

Appealed from the Twenty-Sixth Judicial District Court for the Parish of Bossier, Louisiana Trial Court No. 21,563

Honorable John Marion Robinson, (Pro Tempore) Judge

AYRES, WARREN, SHELTON, ET AL Counsel for Appellant By: John Robert Williams Mary Elizabeth Hyde Jacob C. White Donahue

WEINER, WEISS, & MADISON Counsel for Appellees By: Cliffe Charles Laborde, III Robert Daniel Hyde, III Marjorie Lawrence Frazier Stephen Patrick Hyde Eva Marie Hyde Baird

Before STEPHENS, THOMPSON, AND MARCOTTE, JJ. MARCOTTE, J.

This appeal arises from the 26th Judicial District Court, Parish of

Bossier, the Honorable John M. Robinson (pro tempore) presiding.

Appellant, Mary Elizabeth Hyde Donahue, appeals the trial court’s denial of

her motion for summary judgment, and the granting of the motion for

summary judgment filed by appellees, Robert Daniel Hyde, III and Stephen

Patrick Hyde, which dismissed her claims against them with prejudice. For

the following reasons we affirm in part, reverse in part, and remand for

further proceedings.

FACTS

On May 15, 2019, Robert Daniel Hyde, Jr. (“Decedent”) died testate

in Bossier City, Louisiana. Decedent was married three times. With his first

wife, Decedent had three children, Robert Daniel Hyde, III (“Robert”),

Stephen Patrick Hyde (“Stephen”), and Eva Marie Hyde Baird (“Eva”), and

a fourth was adopted, Mary Elizabeth Hyde Donahue (“Liz”). All of

Decedent’s children survived him, have attained the age of 24 years, and are

neither physically nor mentally permanently incapable of taking care of their

persons or estates. Decedent was married to his second wife, Shirley Ann

Henry Gunstream Hyde (“Shirley”), in 1982, and the marriage ended in her

death in 1996.

In her will, Shirley gave Decedent a usufruct for life over her

residuary estate with the power to convert by sale, exchange, or any other

means, any property subject to the usufruct. Naked ownership of the

residuary estate was bequeathed to the Shirley Hyde Trust (the “Original

Trust”), which was created pursuant to her will. Her will named Decedent

as the Original Trust’s income beneficiary for life and Robert, Stephen, Eva, and Liz as the principal and successor income beneficiaries in equal parts.

The will named Decedent as trustee of the Original Trust. The will included

the following pertinent provisions:

2.2.12 If my spouse is a trustee and usufructuary, then I relieve my spouse (and co-trustees, if any) from any liability from the sale, exchange, or disposition of assets of the trust, even if such sale, exchange, or disposition converts a usufruct of a non- consumable into a usufruct of a consumable and my spouse decides the usufructuary is entitled to all the proceeds. ….

[T]he trustee shall have the following powers to be exercised as they determine to be in the best interest of the beneficiaries: ….

3.7.4 Enter into any agreement, including but not limited to, purchases, sales, exchanges, partitions, servitudes, easements, options, mortgages, pledges, leases, mineral leases and mineral options upon such terms as the trustee sees fit. ….

3.7.12 Divide the trust into separate trusts for each principal beneficiary of for any other reason to assist in management. If the trustee divides the trust into more than one trust, each trust shall be governed by the provisions hereof.

On January 1, 2010, Decedent, in his capacity as trustee, and as

permitted by the terms of Shirley’s will, split the Original Trust into four

separate trusts, one for each principal beneficiary of the Original Trust,

subject to Decedent’s usufruct. The trust at issue was named the Shirley

Hyde Trust for the Benefit of Mary Elizabeth Hyde Donahue (the “Liz

Trust”). Decedent was made the income beneficiary for life of the four

trusts in favor of his children. Decedent was also named trustee of the four

trusts.

2 Part of the property that was transferred to the Liz Trust was 500

shares of Budget Prepay, Inc. stock. On January 1, 2012, Decedent sold

those shares of stock for $534,385.00.

On August 6, 2014, Hyde Real Estate, LLC transferred a 1.751-acre

parcel of property located on Barksdale Blvd, Bossier City, Louisiana (the

“Barksdale Property”) to Decedent and the Liz Trust in exchange for

redemption of the membership interest each owned in the LLC. Decedent

received a 28.58% ownership interest in the Barksdale Property, and the Liz

Trust received a 71.42% ownership interest. On November 6, 2014,

Decedent entered into a construction contract to build a warehouse on the

Barksdale Property. The project was completed in 2015. Decedent paid the

contractor $621,540.00 from his personal funds for the construction of the

warehouse.1

On November 14, 2018, Decedent executed an affidavit which stated

in paragraph seven:

Between 1998 and 2012, I made a number of gifts to the four principal beneficiaries/naked owners. Those gifts of cash given directly to them and gifts of cash made to a life insurance trust for their benefit (an insurance trust on the life [of] R. Daniel Hyde, Jr., of which the four were named equal beneficiaries). These cash gifts are summarized below.

The document then stated that Liz was given $252,312.00 in cash gifts, and

$106,129.00 was given to “Children’s Insurance Trust.” The total gift value

was $358,441.00.

The affidavit then stated:

It is my intent that my usufruct over the cash given to, or for the benefit of [Robert, Stephen, Eva, and Liz] as set forth in 1 The co-executors attached an affidavit signed by Mike Boggs, president of Boggs & Poole Contracting Group, Inc., which detailed the location and costs of constructing the warehouse. The co-executors also attached copies of eight bank drafts paid to Boggs & Poole by Decedent, dated December 4, 2014, to August 25, 2015. 3 Paragraph 7 above be relinquished. Further, it is my intent that these cash gifts be credited against the usufructuary debt, if any, that I may owe to [Robert, Stephen, Eva, and Liz] at my death.

Decedent died on May 15, 2019. On June 5, 2019, his son Robert

filed a petition to file and execute Decedent’s notarial will and for

appointment of an executor. In his will, Decedent made particular bequests

to Robert, Stephen, Eva, Geraldine Parker, and the Smokey Hyde-Beverly

Trust. The remainder of his estate he left to Stephen and Robert. On June 6,

2019, the trial court ordered Decedent’s will filed and confirmed the

appointment of Robert as independent executor. Later, Robert and Stephen

were appointed independent co-executors.

Between December 23, 2020, and January 12, 2021, Liz, Stephen, and

John M. Frazier (“Frazier”), the trustee of the Liz Trust,2 each individually

executed a document titled “Partial Settlement Agreement” (the

“Agreement”). The Agreement recited the facts related to the creation of the

Original Trust and the Liz Trust. The Liz Trust’s interest in the Barksdale

Property and the remaining assets in the Liz Trust were distributed to Liz,

with the exception of the following.

The Agreement acknowledged that Decedent’s estate owes a

reimbursement to the Liz Trust “as a result of his use of certain usufruct

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Succession of Robert Daniel Hyde, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-robert-daniel-hyde-jr-lactapp-2022.