Duell Family Trust v. Donna May Duell Trust
3:24-cv-00654
S.D. Cal.Oct 2, 2024Background
- Plaintiffs are the Duell Family Trust and Todd Alan Duell, acting as trustee; the complaint is about alleged improper transfers from the irrevocable Donna M Duell Trust (California) to the revocable Donna May Duell Trust (Hawaii), for which Donna May Duell serves as grantor and trustee.
- Plaintiffs claim Donna May Duell improperly transferred $200,000 and sold Nevada real property for $900,000 from the irrevocable trust, placing proceeds into a revocable trust or with an unrelated third party, contrary to trust terms and her authority.
- Plaintiffs argue these actions bankrupted the irrevocable trust and left the trustee, Todd Alan Duell, indigent and homeless.
- Plaintiffs moved to proceed in forma pauperis (IFP), asserting they lack funds due to the alleged misappropriation.
- The independently acting trustee attempted to represent the trust in federal court in a pro se capacity.
- The complaint was screened under 28 U.S.C. § 1915(e)(2)(B) due to the IFP status.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff may proceed IFP | Duell is indigent due to lost assets | N/A | IFP application granted |
| Whether pro se trustee can represent trust | Trustee may represent | Only an attorney may represent a trust | Pro se trustee cannot represent trust |
| Whether complaint states a claim on the merits | Alleged unauthorized transfers amount | N/A (not reached) | Complaint dismissed due to improper representation |
| Opportunity to amend or retain counsel | Request to proceed as filed | N/A | Leave granted to retain counsel and amend complaint by date |
Key Cases Cited
- C.E. Pope Equity Trust v. United States, 818 F.2d 696 (9th Cir. 1987) (a trust cannot be represented in federal court by a non-attorney trustee)
- Adkins v. E.I. DuPont de Nemours & Co., 335 U.S. 331 (1948) (standard for in forma pauperis status)
- Lopez v. Smith, 203 F.3d 1122 (9th Cir. 2000) (requirement to dismiss IFP complaints that fail to state a claim)
- Venable v. Meyers, 500 F.2d 1215 (9th Cir. 1974) (discretion of district courts in granting or denying IFP status)