Van Schaack v. AmSouth Bank, N.A.

586 So. 2d 192, 1991 Ala. LEXIS 904, 1991 WL 183961
CourtSupreme Court of Alabama
DecidedAugust 23, 1991
Docket89-1284
StatusPublished
Cited by5 cases

This text of 586 So. 2d 192 (Van Schaack v. AmSouth Bank, N.A.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Schaack v. AmSouth Bank, N.A., 586 So. 2d 192, 1991 Ala. LEXIS 904, 1991 WL 183961 (Ala. 1991).

Opinion

KENNEDY, Justice.

Margaret D. Van Schaack appeals from a judgment entered on a “petition for final settlement” filed by AmSouth Bank, N.A. (“AmSouth”), as executor of the estate of her mother, Annie Hargrove Donald.

Annie Donald died in November 1979, and she was survived by her three children, Anne Shannonhouse, Robert Donald, and Van Schaack, who are all adults. Annie Donald bequeathed her personal belongings to her children in equal shares, with the residue of the estate to be divided as follows, with AmSouth as trustee:

“(a) The trustee shall apportion the trust so that there will be one share for each child of mine then living and one share for the then living descendants of each deceased child of mine. The said shares shall be equal except that the share allocated to my daughter, Margaret Caldwell Donald von Schaack [sic], or her descendants, shall be of a value $50,-000.00 less than the value of each of the other shares allocated to my remaining children or their descendants.
“If the share allocated to my daughter, Margaret Caldwell Donald von Schaack, or her descendants shall be determined to be of a value of zero or less than zero, then my said daughter or her descendants shall take no part of my estate.
“(b) The trustee shall hold the share allocated to any child of mine for the benefit of such child for and during his or her lifetime.”

The residuary estate originally consisted of bank accounts and numerous parcels of land. AmSouth sold all the land, except for the Burroughs Building, to pay estate taxes and administrative expenses. On March 16, 1984, AmSouth divided the residuary estate into three shares based on its interpretation of the provision above.

On April 14, 1986, AmSouth filed a petition for final settlement. According to the petition, there was insufficient cash to create the $50,000 differential between Van Schaack and Shannonhouse and Donald referred to in the will. Accordingly, the petition suggested that the interests of Annie Donald’s children in the Burroughs Building be adjusted to compensate for the $50,-000 difference, so that Shannonhouse and Donald each obtained a 37.75% percent interest in that building and Van Schaack obtained a 24.5% interest. AmSouth based its valuation of the Burroughs Building on the date of Annie Donald’s death, rather than, as Van Schaack advocated, on the date the building was “distributed” to the trust.

The trial court entered a judgment approving AmSouth’s calculations, declaring the estate closed, and awarding an attorney fee to AmSouth’s attorney and a fee to a guardian ad litem.

Van Schaack appealed that judgment, and this Court addressed that appeal in Van Schaack v. AmSouth Bank, N.A., 530 So.2d 740 (Ala.1988). First, the Court addressed “the propriety of [AmSouth’s] valuation of the property contained in the residual estate for purposes of satisfying the pecuniary bequest and the fractional shares of the residual trust estate.” 530 So.2d at 743. Van Schaack argued that the date-of-death valuation of the Burroughs Building was improper, because the bequest was not merely a fractional share bequest. Id., at 744. Instead, Van Schaack argued, the bequest was a hybrid between a pecuniary bequest and a fractional shares bequest, and the date of distribution of the trust assets, accordingly, she argued, would be the proper date of valuation of the Burroughs Building. Id. The Court agreed and so held. Id., at 744-49. The Court stated:

“Accordingly, we reverse the judgment below approving the Bank’s satisfaction of the residual pecuniary bequests and the subsequent fixing of the percentage values of the residual shares in the trust assets based on the date-of-death value of the primary residual trust asset, the Burroughs Building. We hold that, in satisfying the terms of the residual trust, [194]*194the Bank must use the value of the building as of the date of distribution.”

The Court affirmed the award of attorney fees, id., at 749-50; held moot Van Schaack’s challenge to the appointment of only one guardian ad litem, id., at 751; and remanded for an evidentiary determination of the propriety of the guardian ad litem’s fee, id., at 750.

After the remand, AmSouth filed the petition for final settlement that is the subject of this appeal. The petition based its recalculation of Shannonhouse, Robert Donald, and Van Schaack’s interests in the Burroughs Building on the date of distribution, as this Court instructed. The recalculation allowed Van Schaack a 27.62% interest and Shannonhouse and Robert Donald both a 36.19% interest.

Two hearings were conducted in relation to that petition. At the first hearing, the trial court sustained objections to Van Schaack’s questions to an AmSouth representative concerning AmSouth’s actions in regard to the estate prior to March 16, 1984, the date AmSouth originally divided the interests in the Burroughs Building according to its interpretation of Annie Donald’s will. With those questions Van Schaack sought to produce evidence that AmSouth had erred in determining that there was insufficient cash in the estate to provide the initial $50,000 for both Shan-nonhouse and Robert Donald’s difference; Van Schaack sought to prove further with that evidence that the interests in the Burroughs Building should be divided equally and that the unequal distribution of the interests in the building was resulting in a difference in interest in the residuary estate of far more than the $50,000 each that the will contemplated for Shannonhouse and Robert Donald.

In the second hearing, the trial court refused to allow similar testimony. It also refused to allow any evidence concerning AmSouth’s actions and calculations prior to the judgment in Van Schaack.

The trial court later entered an order that held that both Shannonhouse and Robert Donald are entitled to a 35.83% interest in the Burroughs Building and Van Schaack a 28.34% interest. The trial court awarded an additional attorney fee of $27,-000 and a guardian ad litem’s fee of $8,500. Van Schaack appeals all these holdings.

Van Schaack contends that the trial court erred in refusing to allow her to obtain the evidence that we described, because, she says, it erroneously held that the only issue before it was the recalculation of the value of the Burroughs Building based on the date of the distribution of the Burroughs Building to the residuary. We agree, and a comparison of our holding in Ex parte Riley, 464 So.2d 92 (Ala.1985), with our holding in Van Schaack demonstrates the trial court’s error.

In Ex parte Riley, the Court addressed a modification of a judgment divorcing Marion Riley and Ronald Roberson, and, in relation to that issue, addressed the law of judgments:

“During their marriage, Riley and Roberson executed a joint promissory note to Riley’s parents for $12,000. The divorce decree dissolving the marriage of Riley and Roberson incorporated the terms of a separation agreement containing fifteen paragraphs of specific provisions. Under the agreement, Riley was given custody of the children and the use of the home and furnishings. Paragraph 10 of the agreement made Roberson liable for all debts incurred by the parties during their marriage.
“Roberson subsequently filed a petition for modification of the divorce decree, which petition was granted.

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Bluebook (online)
586 So. 2d 192, 1991 Ala. LEXIS 904, 1991 WL 183961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-schaack-v-amsouth-bank-na-ala-1991.