246 P.3d 1184
Utah2011Background
- The Irrevocable Jack W. Kunkler Trust A requires investment in Salt Lake County undeveloped ground and decennial land sales of 25–30% of the value.
- Two trustees: Class I (initially Commercial Security Bank of Utah, later KeyBank) and Class II (initially William B. Wray, Jr.).
- Wray as Class II Trustee began selling two Trust properties (worth >$46 million) in 2005; Wray resigned effective Jan 2006; KeyBank assumed duties as Class I Trustee and Kunkler became the new Class II Trustee.
- Two land sales occurred: July 14, 2006 and June 19, 2007; 1031 exchanges were completed through Dec 11, 2007.
- KeyBank first presented its trustee-fee request (up to 10%) in its February 2008 resignation motion; Kunkler opposed, arguing prior negotiations by Wray reduced or negated fees.
- Kunkler asserted the fee amount was disputed and that no specific amount was guaranteed in the Trust.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of the jury demand under Rule 38 | Kunkler: jury demand timely after last pleading addressing fees. | KeyBank: last pleading directed to fees occurred May 9, 2007; demand untimely. | Timely; jury demand timely on remand. |
| Whether the district court correctly treated KeyBank's motion to resign as a trigger for invoking jurisdiction | Kunkler: the motion should have been treated as a petition invoking court jurisdiction over fees. | KeyBank: resignation motion did not constitute a petition and thus did not invoke jurisdiction for fees. | Court vacated ruling; treated motion as petition on remand. |
| Whether KeyBank's motion to resign injected a new issue into the proceedings | Kunkler: the motion injected trustee-fee issues retroactively and improperly. | KeyBank: no improper injection; fees were within trustee duties. | Motion injected a new issue; remand warranted |
Key Cases Cited
- Berneau v. Martino, 223 P.3d 1128 (2009 UT 87) (plain-language interpretation of trust statutes)
- Salt Lake Cnty. v. Holliday Water Co., 234 P.3d 1105 (2010 UT 45) (statutory interpretation and deference to plain language)
- Jaques v. Midway Auto Plaza, Inc., 240 P.3d 769 (2010 UT 54) (statutory and rule interpretation deference for correctness)
- Arbogast Family Trust v. River Crossings, LLC, 238 P.3d 1035 (2010 UT 40) (trust administration supervision scope and invocation of jurisdiction)
- Roark v. Crabtree, 893 P.2d 1058 (Utah 1995) (review of district court legal conclusions)
- James Mfg. Co. v. Wilson, 390 P.2d 127 (Utah 1964) (trial court discretion in granting jury trials)
- Pete v. Youngblood, 141 P.3d 629 (2006 UT App 303) (untimeliness of jury demand; standard of review)