854 N.W.2d 792
Neb. Ct. App.2014Background
- Trust established in 1999 to provide for son Robert; after Louise V. Steinhoefel's death, trust funded with 1,471 acres in Gillette for beneficiary care.
- Robert died in 2007; in 2007 Steffensmeier, as trustee, sought to sell trust real estate to meet ongoing care expenses.
- Steffensmeier mistakenly believed Vicki had an active option to purchase all property; he prioritized selling to satisfy trust needs.
- Vicki and husband submitted a full-price offer June 8, 2007; BDG, a backup offer of $2,100,000, contingent on cancellation, followed.
- Trial evidence credited Zabel’s appraisal ($1,477,000) as the credible value; McCracken’s higher value ($3,480,000) was discounted; court found no damages despite breach.
- Interim attorney-fee awards were made from the trust assets, later vacated on appeal; final outcome: no damages, but remand on interim fees to determine whether trust should bear costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether breach caused damages | Appellants claim breach reduced value | No damages proven; sale near market value | No damages proven; liability found but damages absent. |
| Validity of BDG offer and its reflection of market value | Backup offer reflected market value | Backup offer invalid; not true market reflection | BDG offer properly discounted; not a true market reflection. |
| Equitable remedies in trust administration | Remedies including removal or accounting warranted | Remedies not properly proven/appropriate | No equitable relief awarded; no trustee removal. |
| Attorney fees after trial and interim fees | Fees should be awarded to appellants | No fees awarded; breach harmless | No fees after trial; interim fees vacated; remand for costs determination. |
Key Cases Cited
- In re Estate of Hedke, 278 Neb. 727 (2009) (probate standard of review; factual findings affirmed unless clearly erroneous)
- McFadden Ranch v. McFadden, 19 Neb. App. 366 (2011) (negligence elements in breach of fiduciary duty actions)
- In re Estate of Linch, 136 Neb. 705 (1939) (breach of trust includes omissions violating trust terms)
- Connelly v. City of Omaha, 284 Neb. 131 (2012) (damages as fact issue; substantial evidence standard)
- In re Margaret Mastny Revocable Trust, 281 Neb. 188 (2011) (trustee duties; de novo review of equity questions)