Jacob v. Jacob
2017 Ohio 8725
| Ohio Ct. App. | 2017Background
- Juanieta Jacob created a revocable living trust naming daughter Lisa as successor trustee, later amended to name son David, and later amended again to reduce Lisa’s share by $216,927.76 and redistribute it to other beneficiaries.
- After Juanieta’s death, David served as trustee; Lisa sued alleging breach of fiduciary duty, sought a declaratory judgment and an accounting, and contested the reduction of her share.
- David moved for summary judgment; the probate court granted it. Lisa filed a Civ.R. 60(B) motion; this Court remanded for the trial court to rule, the court denied relief, and Lisa appealed both orders.
- On appeal Lisa argued (1) she was entitled to an accounting because David failed to comply with R.C. 5808.13(C) and engaged in self-dealing, and (2) the trial court erred in denying her Civ.R. 60(B)(5) motion including a statute-of-limitations defense to any claim of repayment.
- The appellate court reviewed summary judgment de novo and Civ.R. 60(B) denial for abuse of discretion, found David met his initial burden on the statutory reporting requirement, and that Lisa failed to present specific facts creating a genuine issue or a meritorious post-judgment claim.
Issues
| Issue | Plaintiff's Argument (Lisa) | Defendant's Argument (David) | Held |
|---|---|---|---|
| Whether trustee failed to provide required accounting under R.C. 5808.13(C) | David did not produce required annual reports showing property, liabilities, receipts, disbursements, and trustee compensation | Letters David sent to beneficiaries sufficiently reported trust status and satisfied statutory reporting; no liabilities existed to disclose | Court held David met his Dresher burden; Lisa failed to identify specific facts creating a genuine issue; summary judgment for David affirmed |
| Whether trustee breached fiduciary duties warranting a full accounting (self-dealing / capacity of settlor) | David induced settlor to amend trust; settlor lacked testamentary capacity; David self‑dealt by writing checks to himself and spouse; breach requires accounting | Disputed capacity not shown to affect validity; reporting was sufficient; no material fact shown to require trial | Court found Lisa did not raise specific facts tying breaches to incomplete accounting; no genuine issue on accounting claim |
| Whether trial court abused discretion in denying Civ.R. 60(B)(5) relief based on accounting claim | New accounting request (July 2016) shows grounds for relief; court ignored evidence and did not review materials | Motion made after summary judgment; new request postdated final judgment so no meritorious claim existed for relief | Court held Lisa lacked a meritorious claim for 60(B) relief on accounting because the requested accounting occurred after judgment; denial not an abuse of discretion |
| Whether statute-of-limitations defense to alleged loan repayment required relief under Civ.R. 60(B) | Transfer to Lisa during divorce was a gift or, if a loan, statute of limitations bars recovery so trust reduction invalid | Whether the transfer was repayment or gift is irrelevant to trust amendment validity; key issue was settlor capacity at time of amendment | Court: statute-of-limitations argument irrelevant to this action; trial court properly denied 60(B) relief on that basis |
Key Cases Cited
- Temple v. Wean United, Inc., 50 Ohio St.2d 317 (summary judgment standard in Ohio)
- Dresher v. Burt, 75 Ohio St.3d 280 (party moving for summary judgment bears initial burden; opponent must then show specific facts creating genuine issue)
- Grafton v. Ohio Edison Co., 77 Ohio St.3d 102 (appellate review of summary judgment is de novo)
- GTE Automatic Elec., Inc. v. ARC Industries, Inc., 47 Ohio St.2d 146 (standards for Civ.R. 60(B) relief)
- Griffey v. Rajan, 33 Ohio St.3d 75 (Civ.R. 60(B) denial reviewed for abuse of discretion)
- Strack v. Pelton, 70 Ohio St.3d 172 (requirements for Civ.R. 60(B) are independent and conjunctive)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (definition of abuse of discretion)