McHenry v. McHenry
2017 Ohio 1534
| Ohio Ct. App. | 2017Background
- Decedent Glenn E. McHenry, Sr. executed a revocable living trust (2007) and a will; amendments followed in 2010. Trust held real property (Canton Road and Oaklynn Street) and other assets.
- After decedent’s death (Jan. 13, 2011), sister Cindy initially accepted trusteeship, resigned, and brother Glenn Jr. became trustee.
- Cindy sued Glenn Jr. in probate court (Nov. 1, 2012) alleging conversion, multiple breaches of trust (including improper transfers, commingling, failure to account), and sought removal of trustee and injunctive relief; preliminary injunction and TRO were entered to preserve trust assets.
- Bench trial (Feb. 2014) resulted in judgment: conversion damages of $13,364.32, return of Cadillac to trust, removal of Glenn Jr. as trustee conditioned on accounting and tax filing, order to provide an accounting, and awards of attorney fees (initial and supplemental). Many interlocutory appeals were filed and dismissed for lack of final order; trial court later certified final judgments under Civ.R. 54(B).
- On appeal, Glenn Jr. challenged the injunction, conversion finding, breach findings, accounting requirement, and both attorney-fee awards; Cindy cross‑appealed the denial of punitive damages, forfeiture, and the inapplicability of R.C. 2113.52.
Issues
| Issue | Plaintiff's Argument (McHenry) | Defendant's Argument (McHenry Jr.) | Held |
|---|---|---|---|
| Preliminary injunction blocking transfer of Oaklynn property | Needed to preserve trust assets and prevent irreparable harm | Court abused discretion; injunction unnecessary | Court affirmed: testimony showed likelihood of success and risk of irreparable harm; status quo preservation appropriate |
| Conversion (life insurance proceeds & delay in conveying Canton Rd. property) | Cindy was misled to deposit personal life‑insurance proceeds into trust; trustee withheld conveyance | Funds were deposited by agreement and both benefited; no damages for delayed conveyance | Court affirmed conversion liability and award for misused funds; no monetary damages for delayed Canton Rd. transfer because property returned |
| Breach of trust and accounting obligation | Trustee failed fiduciary duties, commingled funds, improperly transferred assets, and withheld required information | Trustee had broad discretionary powers under trust and was excused from formal accounting by instrument | Court affirmed breach findings: trustee’s stated discretionary reasons found not credible; trustee must provide sufficient information under R.C. exceptions despite trust language |
| Attorney fees (trial and appellate work) | Fees recoverable under R.C. 5810.04; reasonable and necessary | Award excessive and disproportionate to monetary recovery; trial court lacked jurisdiction to award appellate fees | Court affirmed fee awards and held R.C. 5810.04 authorizes fees (including appellate work) and trial court did not abuse discretion in amount after review |
Key Cases Cited
- C.E. Morris Co. v. Foley Constr. Co., 54 Ohio St.2d 279 (standard for manifest‑weight review)
- Seasons Coal Co. v. City of Cleveland, 10 Ohio St.3d 77 (trial court better positioned to judge witness credibility)
- Joyce v. General Motors Corp., 49 Ohio St.3d 93 (definition of conversion)
- In re Estate of Binder, 137 Ohio St. 26 (trustee cannot use broad trust language to avoid fiduciary duties)
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (abuse of discretion standard)
- Wilborn v. Bank One Corp., 121 Ohio St.3d 546 (Ohio’s American Rule on attorney fees and exceptions)
- Bittner v. Tri‑County Toyota, Inc., 58 Ohio St.3d 143 (attorney fees need not be proportional to damages in remedial contexts)
- Klein v. Moutz, 118 Ohio St.3d 256 (trial court may award appellate attorney fees under certain remedial statutes)