Worrell v. Stivers

523 S.W.3d 436, 2017 WL 655479, 2017 Ky. App. LEXIS 30
CourtCourt of Appeals of Kentucky
DecidedFebruary 17, 2017
DocketNO. 2015-CA-001114-MR
StatusPublished
Cited by2 cases

This text of 523 S.W.3d 436 (Worrell v. Stivers) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Worrell v. Stivers, 523 S.W.3d 436, 2017 WL 655479, 2017 Ky. App. LEXIS 30 (Ky. Ct. App. 2017).

Opinion

OPINION

CLAYTON, JUDGE:

Carolyn S. Worrell, in her individual and representative capacities, appeals the Fayette Circuit -Court’s grant of a motion to dismiss based on its decision to decline discretionary personal jurisdiction under Kentucky Revised Statutes (KRS) 454.210, Kentucky’s Long Arm Statute. After careful consideration, we vacate and remand for a determination of whether in person-am jurisdiction existed.

BACKGROUND

This matter involves a dispute between two nonresident siblings, Carolyn S. Wor-rell and Melinda J. Stivers, over the estate of their -mother, Audrey F. Stivers, who died testate, as a resident of the state of Montana, bn April 2, 2014; Carolyn is a resident of Virginia, and Melinda is a resident of Montana.

At the time of her death, Audrey had an intérest in trusts established by her deceased husband, Robert L. Stivers. Robert created two trusts, a revocable trust and an irrevocable trust, both under trust agreements dated November 5,1991. Robert was the trustee of the thusts but after his death, Audrey became the successor trustee. As a trustee, she made disbursements to herself as ostensibly authorized under the trust documents. It was not necessary for these' trusts to pass through [438]*438probate since they were given to the sisters on the terms of the trust.

A probate action was filed in the Twelfth District of Montana. Melinda, who had already been appointed her mother’s guardian/conservator, was appointed personal representative on May 15; 2014. Carolyn maintains that she did not receive notice of the opening and closing of the Montana estate. Melinda contests this allegation. Nonetheless, she has reopened the Montana estate to address any further claims regarding her mother’s estate.

Melinda commenced the ancillary probate action concerning her mother’s Kentucky real property in Payette District Court. The real property is the only asset in the ancillary estate. The property was owned by Garolyn and her mother as tenants-in-common. The mother’s share was devised to Melinda. During the last few years, Carolyn handled the leasing of the property. In the-ancillary probate action, Melinda made claims against Carolyn about the income from the real property and also sought an accounting. (Nonetheless, no evidence has been provided in the record about the real property, including a copy of the probate matter.)

After the probate matter was filed,. Carolyn, who, upon Audrey’s death became the trustee for the trusts, made a statement of claim in Payette .District Court about the income from the revocable trust. She maintains that during her mother’s lifetime, Audrey- improperly disbursed $293,870 from the trust. Carolyn sought to recoup this amount plus lost earnings and appreciation. In response, Melinda, as personal representative of the estate, filed a “Notice of Disallowance of the Claim,” and gave sixty-day notice for filing suit on the claim. Subsequently, Carolyn filed this Complaint against the Estate.

Prior to the filing of these actions, Carolyn and Melinda. engaged in settlement negotiations in an attempt to resolve the dispute related to the trust, the real property, and certain personal property. They enlisted attorneys in Kentucky for these negotiations, but. neither sister entered Kentucky-for the . purpose of negotiating the agreement or contemplated that performance of any actions- in Kentucky. The possible terms of the negotiated settlement addressed issues of Audrey’s personal property, the trust, but only one term related to the real property, the subject of the ancillary probate action.

Carolyn contends that the parties reached a “Letter Agreement.” She supports this contention by'supplying e-mails between the attorneys during the negotiation process. Nonetheless, while correspondence between the attorneys concerning the negotiations were provided in the record, no final settlement agreement appears to have been reached. At least, no signed agreement between the sisters was provided for the record.

After the negotiations broke down, Carolyn filed the - aforementioned complaint against Melinda. In the Complaint, Carolyn asks that the trial court enforce the purported settlement agreement and that the Estate reimburse the trust for the alleged wrongful disbursements from the trust. . . -

In response, Melinda made a motion for the trial court to dismiss this action in its entirety because, according to her, the trial court lacks subject matter jurisdiction and personal jurisdiction to adjudicate the dispute. Carolyn responded to the motion to dismiss by asserting that the Fayette Circuit Court'had both subject matter and personal jurisdiction, and therefore, the motion to dismiss should be denied.

Notably, there has not been an eviden-tiary hearing in this case; and, for the most part, the only “facts” in the record [439]*439are the ones asserted in the parties’ legal memoranda and at oral arguments. For example, although both parties discuss and quote language in the trust agreements, neither party supplied a copy of the trust agreement or the account and its location.

The trial court held oral arguments on May 28, 2015, and entered its final order on June 24, 2015, dismissing the complaint. In its written order, the trial court explained that it had discretion under KRS 454.210, the Kentucky “Long Arm Statute” to hear the matter, and it declined jurisdiction since the trust property was personal in nature, not located in Kentucky during any relevant time period, not a part of Audrey’s éstate, and the alleged misdeeds did not occur in Kentucky. Carolyn appeals this decision. Still, during oral arguments, the trial court judge opined that although he believed personal jurisdiction existed, based on the “permissive” language in the statute, he was declining the matter.

STANDARD OF REVIEW

When considering a motion to dismiss under Kentucky Rules of Civil Procedure (CR) 12.02, the pleadings should be liberally construed in a light most favorable to the plaintiff and all allegations taken in the complaint to be true. Mims v. Western-Southern Agency, Inc., 226 S.W.3d 833, 835 (Ky. App. 2007). Further, the issue of personal jurisdiction is a legal question, and hence, we review the issue de novo. Appalachian Reg’l Healthcare, Inc. v. Coleman, 239 S.W.3d 49, 53-54 (Ky. 2007) (citations omitted).

ANALYSIS

The primary issue in this matter is whether the trial court erred in dismissing the Complaint when it concluded that the personal jurisdiction was discretionary. Besides the issue of personal jurisdiction, Carolyn argues that the trial court has subject matter jurisdiction over the matter. It is clear under KRS 23A.010(1), that the trial court has subject matter jurisdiction.

Returning to the issues of personal jurisdiction, we note that Carolyn argues that the trial court erred in concluding- it had discretion to decline jurisdiction.

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523 S.W.3d 436, 2017 WL 655479, 2017 Ky. App. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worrell-v-stivers-kyctapp-2017.