Winston v. Winston

684 So. 2d 315, 1996 WL 724325
CourtDistrict Court of Appeal of Florida
DecidedDecember 18, 1996
Docket95-2276
StatusPublished
Cited by3 cases

This text of 684 So. 2d 315 (Winston v. Winston) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winston v. Winston, 684 So. 2d 315, 1996 WL 724325 (Fla. Ct. App. 1996).

Opinion

684 So.2d 315 (1996)

Ronald WINSTON, as Personal Representative and former Co-Guardian of the Estate of Edna Vivian Winston, Deceased, Appellant,
v.
Bruce WINSTON, Appellee.

No. 95-2276.

District Court of Appeal of Florida, Fourth District.

December 18, 1996.

*316 Arthur J. England, Jr., John G. Crabtree of Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A., Miami, for appellant.

Samuel S. Smith of Ruden, McClosky, Smith, Schuster & Russell, P.A., Fort Lauderdale, and Edward H. Wohl of Wohl & Entwistle, New York, NY, for appellee.

PARIENTE, Judge.

Appellant, Ronald Winston (Ronald), appeals a final order which vacated a prior order transferring assets from a guardianship to a marital trust. Because the conduct complained of does not constitute extrinsic fraud as a matter of law, the trial court erred in vacating the order more than one year after its entry.

Ronald and appellee, Bruce Winston (Bruce), were the sons of Harry Winston and Edna Winston. Both Harry and Edna died testate; Harry in 1978, and Edna in 1986. Ronald and Bruce were the sole heirs to the multi-million dollar fortune of Harry Winston, owner of the world-famous family jewelry business, Harry Winston, Inc. Ronald and Bruce were also the sole heirs of Edna's residuary estate, which consisted of her entire probate estate except for the bequest of a life estate in her jewelry.

While both sons inherited under the wills of both their father and mother, the terms of inheritance varied. Under their mother's will, each son received equal treatment—fifty percent of her residuary estate outright. Their father's will created a marital trust which provided that after his wife's death, the marital trust would be equally divided between Ronald and Bruce. Whereas Ronald was to receive his fifty percent share outright, Bruce was to receive his fifty percent share in trust with the corpus to be paid out in five-year installments over a twenty-five year period.

The trustees of the marital trust had sole discretion to disburse additional funds to Bruce from the principal if "appropriate for his support and welfare." If Bruce were to die within the twenty-five years following Edna's death without issue surviving him, Ronald would receive the remaining assets of the trust outright. Ronald was one of the trust's three trustees and was authorized to cast the deciding vote in a dispute between the two other trustees.

Edna became incompetent after executing the will. In 1979, with their father deceased, Ronald and Bruce petitioned for and were granted appointment as co-conservators for their mother in New York. Later that year, Ronald and Bruce received authorization from the New York court to relocate their mother to Florida for health reasons. A guardianship was established in Florida, with Ronald and Bruce appointed co-guardians by the Broward County Circuit Court, probate division (probate court), upon their joint petition.

The court proceeding critical to this appeal occurred in 1983, when Ronald and Bruce jointly petitioned the probate court for approval to transfer all of Edna's liquid assets to the marital trust created by Harry's will. According to Ronald, the petition to transfer was filed as a result of sophisticated tax and estate planning strategy recommended by a cadre of tax and estate attorneys. Ronald asserts that the transfer was recommended to prevent Edna's estate from being consumed in the payment of taxes because of particular provisions in the testamentary documents.

Before approving the transfer of Edna's separate assets to the marital trust, the probate court required sworn verifications to the petition from Ronald and Bruce as co-guardians. It also required the filing of certain exhibits to the petition, including copies of both wills. After Edna's death in 1986, Ronald and Bruce as co-guardians submitted a *317 final accounting. The guardianship was subsequently closed.

In 1991, eight years after Bruce had joined in petitioning for approval of the transfer, and five years after the guardianship was closed, Bruce petitioned the probate court to reopen the closed guardianship proceeding. Bruce also initiated a separate lawsuit to invalidate the 1983 transfer order, claiming that he had been the victim of extrinsic fraud. Bruce contended that Ronald had defrauded him and the probate court by concealing Ronald's true purpose for the transfer, which Bruce asserted was to prevent him from receiving his share of Edna's assets outright. Bruce stated that he had not understood that the transferred assets would be held in trust for him rather than disbursed to him outright upon his mother's death.

Both proceedings were consolidated and, following a non-jury trial, the trial court vacated the 1983 order of transfer. The trial court found that the petition and its attachments "so misled the Court and plaintiff regarding the effect of the transfer that Bruce Winston had no reason to act to protect his rights as against his brother and co-guardian Ronald Winston."[1] The trial court specifically found that one attachment to the petition, referred to as the "New York Petition," "advised the Court and Bruce Winston that the testamentary provisions were the same" and the transfer revocable.[2]

The trial court found not only misrepresentations in the documents presented to the probate court, but "concealment of the true facts." It referred to a letter written to Ronald by an attorney which advised Ronald that "[c]onceptually [the transfer] might present a problem for Bruce because his interest in the trust does not entitle him to corpus (except for periodic payments over 20[sic] years), whereas his interest in Mrs. Winston's residue comes to him outright." Bruce never received a copy of this letter.

The trial court rejected Ronald's argument that no fraud on his part had been established. In rejecting Ronald's alternate argument that if any fraud had been involved, it was intrinsic, the trial court found:

While there may have been intrinsic fraud involved in this case, this Court makes no finding as to the existence of intrinsic fraud. What this Court does find, and finds most disturbing, is the collateral fraud, consisting of the acts and omissions of Ronald Winston, which fraud was calculated to prevent Bruce Winston from ever presenting his case regarding the effect of the transfer of the cash and investment assets to the marital trust under the Will of Harry Winston. Specifically, the extrinsic fraud was effectuated through a series of letters and memos, together with the New York Petition, followed by the filing of the Florida Petition, all of which effectively prevented Bruce Winston from objecting to a plan that resulted in the assets of his mother's estate being held in trust for him, rather than being distributed outright to him....

The trial court found that as a result of the fraud practiced upon Bruce, the probate court never addressed the "issue of the distribution of Edna Winston's cash and investment assets." Implicit in the trial court's findings is that if Bruce had known the true facts, he would have opposed the transfer, thus giving the probate court an opportunity to question the propriety of the transfer.[3] In vacating the 1983 order, the trial court also ordered Ronald to seek a return of all assets transferred together with all earnings thereon.

We focus on the legal issue of whether the conduct complained of constitutes *318 extrinsic fraud, because if it does not, then the proceedings were time-barred.

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Cite This Page — Counsel Stack

Bluebook (online)
684 So. 2d 315, 1996 WL 724325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winston-v-winston-fladistctapp-1996.