Ulinski v. Byers

2015 Ohio 282
Ohio Court of Appeals·Decided January 28, 2015·No. 27267·Published·Cited by 6 cases

Opinion

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

CHRISTOPHER K. ULINSKI, TRUSTEE C.A. No. 27267 OF THE RADER FAMILY IRREVOCABLE TRUST U/A/D DECEMBER 10, 1993 APPEAL FROM JUDGMENT

Appellant ENTERED IN THE COURT OF COMMON PLEAS

v. COUNTY OF SUMMIT, OHIO CASE No. 2013-CV-00003

PETER BYERS, et al.

Appellees DECISION AND JOURNAL ENTRY Dated: January 28, 2015

BELFANCE, Presiding Judge.

{¶1} Appellant, Christopher Ulinski, appeals from the order of the Summit County Court of Common Pleas, Probate Division, removing him as trustee of the Rader Family Irrevocable Trust (“the Rader Trust”). This Court affirms.

I.

{¶2} On December 10, 1993, Lewis and Gwendolyn Rader (“the Raders”) executed the Rader Trust and named its drafter, Mr. Ulinski, as trustee. The Raders created the trust for the purpose of holding various assets for the benefit of their family and, in particular, their grandchildren. The trust provided that, upon its creation, Mr. Ulinski would divide its funds into separate, equal shares for each of the Raders’ grandchildren, with the exception of two.1 It

1 The Rader Trust excluded Jody Bishop and Heather Bishop as beneficiaries of the trust.

further provided that, after the Raders died, Mr. Ulinski would be responsible for distributing those shares to the grandchildren. Gwendolyn Rader died on September 20, 2011, and her husband, Lewis Rader, died on October 5, 2011. There is no dispute that, after their deaths, the Rader Trust received approximately $250,000 from their life insurance policy.

{¶3} The Rader Trust specifically named five of the Raders’ grandchildren as primary beneficiaries of the trust. Those five grandchildren were: Peter Byers, Berkley Byers, Rebecca Minerva Byers, Taylia Waller aka Bishop, and Terra Adams aka Bishop (collectively, “the Primary Beneficiaries”). It was the position of Mr. Ulinski, however, that the Primary Beneficiaries were not the only grandchildren who would receive a share of the trust. Mr. Ulinski read the trust to entitle all of the Raders’ surviving grandchildren to a share, with the exception of the two who had been specifically excluded. Consequently, when the Raders died, Mr. Ulinski did not give the Primary Beneficiaries their shares. Instead, he hired a search firm to identify all of the Raders’ surviving grandchildren, with the exception of the two excluded by the trust. The search was completed in January 2012 and uncovered 26 grandchildren, including the Primary Beneficiaries. Mr. Ulinski then notified the Primary Beneficiaries and the other 21 grandchildren identified by the search (“the Potential Beneficiaries”) of their status as beneficiaries of the Rader Trust.

{¶4} On January 10, 2013, two of the Primary Beneficiaries filed a complaint for declaratory judgment in the probate court. The complaint named Mr. Ulinski as a defendant, as well as the remaining Primary Beneficiaries and seven of the Potential Beneficiaries. The complaint alleged that Mr. Ulinski had incorrectly identified the Potential Beneficiaries named therein “and other unknown persons” as beneficiaries of the trust when, in fact, they were not.

Consequently, the complaint sought a declaration that the Primary Beneficiaries were “the only persons entitled to receive the Trust assets upon distribution.”

{¶5} Mr. Ulinski answered the complaint. Additionally, he filed a cross-claim against the Potential Beneficiaries named in the complaint and a third-party complaint against the Potential Beneficiaries who had not yet been named. Mr. Ulinski alleged that, through a search firm, he had identified all of the Raders’ surviving grandchildren. He further alleged that the Rader Trust contained conflicting language, such that it was unclear to him whether he was to distribute its assets strictly to the Primary Beneficiaries or to all 26 surviving grandchildren. He asked the court to declare the beneficiaries of the trust and the manner in which he should distribute its assets.

{¶6} On August 30, 2013, Mr. Byers, one of the Primary Beneficiaries, filed a motion to remove Mr. Ulinski as trustee of the Rader Trust. Mr. Byers alleged that, since becoming trustee in 1993, Mr. Ulinski had been convicted of fraud and disbarred. He also alleged that Mr. Ulinski had demonstrated both incompetence and negligence in his role as a trustee. According to Mr. Byers, since redeeming the Raders’ $250,000 insurance policy, Mr. Ulinski had “disbursed to himself and others at least $25,000.00 * * * to collect Trustee fees for services never rendered, to pay for his belated search for the Rader’s (sic) heirs, and to pay lawyers hired to defend his incompetence, neglect, and inaction.” Mr. Byers asked the court to immediately remove Mr. Ulinski as trustee. Several of the Potential Beneficiaries joined in his motion while another faction of the Potential Beneficiaries filed a brief in opposition. Mr. Ulinski also filed a brief in opposition, and Mr. Byers filed a reply. Additionally, Mr. Ulinski filed a supplemental response with the court’s permission.

{¶7} At the same time that the parties were either pursuing or opposing the motion to remove, the Primary Beneficiaries and the Potential Beneficiaries participated in a court-ordered mediation. The two groups reached a settlement, which entitled each of the Potential Beneficiaries who had participated in the litigation to receive a $5,000 distribution.2 On December 18, 2013, several of the Potential Beneficiaries filed a motion to enforce their settlement. In their motion, they alleged that it was their

understanding that because of a pending motion to remove the trustee, trustee’s counsel [was] reluctant to make [the agreed upon] distributions unless the same [were] approved by [the] Court and the trustee [was] held to be without liability to make the [] distributions as set forth in the settlement agreement.

They asked the court to issue an order effectuating the terms of the settlement. Additionally, Mr. Byers filed a motion in which he asked the court to hold in abeyance any ruling on his motion to remove Mr. Ulinski as trustee, pending enforcement of the settlement. The court agreed to hold the motion to remove in abeyance until further notice and issued an order to that effect.

{¶8} Within days of the trial court’s order, Mr. Ulinski filed a brief in which he opposed the settlement agreement. On January 6, 2014, over Mr. Ulinski’s objection, the court ordered the settlement. Specifically, it ordered Mr. Ulinski to pay $5,000 to each of the Potential Beneficiaries named within its order.

{¶9} On February 6, 2014, Mr. Ulinski filed a motion for summary judgment. He acknowledged that the deadline the court had set for the filing of dispositive motions had expired, but asked the court to accept his late filing on the basis that the settlement left no genuine issues of material fact for trial. He noted that he was in the process of making distributions to the Potential Beneficiaries in accordance with the settlement order, that the Rader

2 The court entered a default judgment against two of the Potential Beneficiaries who were served with the complaint, but never responded.

Trust currently had a balance of $181,299.16, and that “[t]rustee fees in the amount of $2,487.50 and reasonable billed attorney fees incurred by the Trustee in the amount of $8,702.00 [had] not yet been charged to the Trust * * *.” He asked the court to declare all the parties receiving trust funds to be beneficiaries and to order him to distribute the remaining balance of the trust to the three remaining Primary Beneficiaries,3 less his trustee fees and reasonable attorney fees.

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