Keeven v. Keeven (In re Joseph H. Keeven Revocable Trust Dated Dec. 13, 2006)
541 S.W.3d 732
Mo. Ct. App.2018Background
- Decedent Joseph H. Keeven created a revocable trust (2006) naming his seven children as equal remainder beneficiaries; he also formed a family limited partnership (FLP, 2007) in which the Trust (through Joseph as trustee) was the sole general partner. Joseph died August 18, 2010.
- Successor co-trustees Matthew Keeven and Patricia Fink failed to wind up the Trust after Joseph's death; Matthew used Trust/FLP property for his personal farming business. Litigation followed (Harry Keeven filed for removal, accounting, other relief; Matthew later sued/tried to remove Bentz after Bentz was appointed successor trustee/personal representative in 2014).
- After a multi-day bench trial, the court (July 29, 2016) entered judgment awarding damages against Matthew and attorney fees, denied removal of Bentz, and ordered winding up/limits on agricultural activity.
- During post-judgment proceedings the court amended the judgment (Dec. 20, 2016) to state the Trust terminated upon Joseph’s death and the FLP dissolved on that date (except for winding up), basing the amendment on the Trust instrument and Missouri partnership law.
- Bentz appealed the amendment (arguing lack of notice/jurisdiction and that the Trust had not terminated until final accounting/distribution). Matthew cross-appealed (challenging damages allocations and post-trial rulings); the trial court’s amended judgment was affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held | |
|---|---|---|---|---|
| Whether the trial court lacked jurisdiction/failed to give reasonable notice and hearing before amending the judgment to find the Trust terminated and FLP dissolved | Bentz: court amended judgment without complying with Rule 75.01 notice/hearing requirements | Court/other parties: post-trial motions and ongoing hearings preserved jurisdiction; partnership agreement and termination issue were litigated in post-trial proceedings | Denied; court retained jurisdiction during post-judgment motions, parties had notice and opportunity to be heard; amendment was proper | |
| Whether the Trust terminated only upon trustee’s final accounting/distribution, so FLP did not dissolve on decedent’s death | Bentz: citing Shannon, a trust doesn’t terminate until final accounting/distribution, so withdrawal/dissolution under partnership law did not occur on death | Court: Trust instrument expressly directed distribution “after the death” and death triggered termination for purposes of withdrawal; winding up is distinct from termination | Denied; plain terms show trust terminated on death and withdrawal of trustee-general partner caused FLP dissolution (except winding up) | |
| Whether damages awarded for profits from FLP property were improper because FLP had dissolved and those profits should be apportioned differently | Matthew: damages tied to FLP activities shouldn’t be awarded to Trust or should be separately allocated | Court: Trust and FLP terminated/dissolved simultaneously but both are part of the estate to be wound up; any reapportionment would be pointless and not return funds to Matthew | Denied; damages stand and would be distributed among beneficiaries; no prejudice to Matthew | |
| Whether Matthew’s cross-appeal should be reviewed given appellate record deficiencies | Respondents: Matthew failed to file trial transcript and failed to preserve issues; move to dismiss | Matthew: asserted errors in trial rulings | Court: dismissal motion well taken but ultimately denied as moot because points lacked merit; failure to file transcript precludes review | Matthew’s points denied; failure to provide transcript precluded meaningful review and his claims lacked merit |
Key Cases Cited
- Alexander v. UMB Bank, NA, 497 S.W.3d 323 (Mo. App. W.D. 2016) (standard of review in court-tried probate cases)
- Sherman v. Kaplan, 522 S.W.3d 318 (Mo. App. W.D. 2017) (post-judgment motions toll trial court jurisdiction period)
- Ferguson v. Curators of Lincoln Univ., 498 S.W.3d 481 (Mo. App. W.D. 2016) (timing/rules for finality after post-trial motions)
- Shannon v. Johnson, 741 S.W.2d 791 (Mo. App. E.D. 1987) (general statement that a trust terminates upon final accounting and distribution)
- American Cancer Soc. v. Hammerstein, 631 S.W.2d 858 (Mo. App. E.D. 1982) (trustee continues in role during winding up and must preserve trust property)
- State ex rel. Kairuz v. Romines, 806 S.W.2d 451 (Mo. App. E.D. 1991) (trial court power to amend prior orders subject to notice and hearing requirement)
- State ex rel. Stoffer v. Moore, 628 S.W.2d 637 (Mo. banc 1982) (same principle on court’s power to amend orders)