Revocable Living Trust of Mandel v. Lake Erie Util. Co.
2012 Ohio 5718
Ohio Ct. App.2012Background
- Mandel Trust established in 1996; Stewart Mandel as life trustee with Farmers as successor trustee and Morris as life-trustee if Stewart incapacitated; Morris named trust protector with power to supervise and appoint successor trustees.
- Parcels on Middle Bass Island in Ottawa County; 1991 assessment agreement with Burgundy Bay Association and Lake Erie Utility Company allowing deferral/waiver of assessments for undeveloped parcels; agreement binding on successors and assignees.
- Trust funded with three Middle Bass parcels transferred to the trust in 1996; liens filed by Burgundy Bay and Lake Erie for past assessments when the parcels were to be sold separately as developable lots.
- After Stewart’s death in 2010, Farmers administered the trust; Morris asserts he became successor trustee after removing Farmers in 2011, though the record shows he filed as successor trustee mid-2011.
- November 24, 2010 Morris filed a declaratory judgment action in Cuyahoga County Probate Court seeking contract interpretation of the assessment agreement, damages for slander of title, and to invalidate the liens.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue | Morris had standing as trustee and as present trust beneficiary | Morris lacked standing since not trustee when suit filed | Morris had standing (as trustee or beneficiary) despite later proof Trader not trustee at filing. |
| Subject matter jurisdiction | Probate court has broad jurisdiction over inter vivos trusts and disputes affecting trust property | Contract dispute not within probate jurisdiction; Civ.R. 12(B)(1) applies | Probate court has concurrent jurisdiction over matters involving trust property and contract disputes against trust property. |
| Venue | Cuyahoga County proper because contract drafted there and action involves trust property | Ottawa County proper; Civ.R. 3(B) governs venue; Civ.R. 73 not applicable | Cuyahoga County not proper venue; case must be transferred to an appropriate venue. |
| Effect of dismissal without prejudice | Dismissal should be without prejudice to allow refiling | Not necessary given dismissal on jurisdiction/standing | Question moot after remand for proper venue transfer. |
Key Cases Cited
- Moore v. Middletown, 133 Ohio St.3d 55 (Ohio 2012) (standing elements; de novo review of standing)
- Bank of Am. v. Macho, 2011-Ohio-5495 (Ohio App. 8th Dist. 2011) ( Civ.R. 12(B)(1) subject-matter jurisdiction with inquiry into extrinsic matters)
- Zahn v. Nelson, 170 Ohio App.3d 111 (Ohio 4th Dist. 2007) (probate jurisdiction over claims against trust property)
- Natl. City Bank v. de Laville, 170 Ohio App.3d 317 (Ohio 6th Dist. 2006) (trust instrument interpretation within probate context)
- In re Frank, 181 Ohio App.3d 686 (Ohio 2d Dist. 2009) (Uniform Trust Code breadth of jurisdiction)