Matter of Ricard Family Trust
2016 SD 64
| S.D. | 2016Background
- The Maurice M. Ricard Family Trust was created upon Bernadette Ricard's probate, with Renee as trustee and specified fractional interests for Kelly and the sisters.
- Maurice and Bernadette intended the Ricard ranch to remain in the family and operate as a ranch; since 1998 Kelly leased the land for grazing.
- In 2003 Bernadette formed a family limited partnership; the Family Trust became a limited partner and transferred interests into the LP.
- In November 2003 the sisters signed agreements to sell their 12.5% interests in the Trust to Kelly for $20,000 each, with an option to repurchase under certain conditions.
- The sisters received checks and believed they might inherit from Bernadette’s estate, though they did not receive independent estate advice.
- Bernadette died in August 2010, the Trust terminated, and Kelly sought distribution; the sisters challenged the validity of their sales and sought rescission.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the Agreements enforceable? | Laas argues consent was obtained by undue influence/fraud. | Ricard asserts valid assent; consideration and signing show consent. | Agreements are enforceable. |
| Should the Contracts be rescinded? | Sisters lacked voluntary consent and were pressured; they sought rescission. | Sisters slept on rights; no need for rescission; bad bargain not grounds. | Rescission denied. |
| Did Kelly breach the Agreements? | Transfer of LP real estate without notice breached the bargain and impaired the option. | No breach; the Agreement allowed continued use of assets; implied consent issues not raised properly. | No breach found; claim not properly plead. |
Key Cases Cited
- Geraets v. Halter, 1999 S.D. 11 (S.D. 1999) (fact-finding review and standard of review for undue influence, fraud)
- In re Donald Hyde Tr., 858 N.W.2d 333 (S.D. 2014) (undue influence and fraud questions of fact not reviewed de novo)
- Poeppel v. Lester, 827 N.W.2d 580 (S.D. 2013) (fraud/undue influence as factual inquiries)
- Olson v. Opp, 182 N.W.2d 220 (S.D. 1970) (contract formation and consideration concepts)
- LPN Tr. v. Farrar Outdoor Advert., Inc., 552 N.W.2d 796 (S.D. 1996) (consent to contract and reading of contract terms)
- Amdahl v. Lowe, 471 N.W.2d 770 (S.D. 1991) (execution and binding effect of written contracts)
- Jeschke v. Wockenfuss, 534 N.W.2d 602 (S.D. 1995) (credibility and weight of witness testimony)
- Dussart v. Dussart, 546 N.W.2d 109 (S.D. 1996) (pleading amendments and implied trial of claims)