948 N.W.2d 452
Mich. Ct. App.2019Background
- James A. Bellamy (settlor), an internationally recognized scholar of medieval classical Arabic literature, executed a trust and a Gift Agreement directing funds to endow a full professorship in medieval classical Arabic literature and to fund graduate fellowships.
- Trevor Le Gassick (plaintiff) served as cotrustee of the Bellamy Trust and later as personal representative of Bellamy’s estate; he distributed $3,500,000 to the University of Michigan pursuant to the Gift Agreement.
- The University appointed Professor Samer Mahdy Ali (an associate and specialist in late medieval Arabic literature) to the Bellamy position, which plaintiff alleges contravened the Gift Agreement’s requirement of a full professorship in classical Arabic literature.
- Plaintiff sued the University and the Dean (Andrew D. Martin) for breach of contract, breach of fiduciary duty (as trustee of the charitable trust created by the gift), and related relief; defendants moved for summary disposition arguing plaintiff lacked standing under MCL 700.7405(3).
- The probate court granted summary disposition for defendants, concluding plaintiff lacked standing; the Court of Appeals reversed, holding plaintiff has standing to enforce the charitable trust as one of the “among others” with a special interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether plaintiff (cotrustee/personal representative) has standing to enforce the charitable trust under MCL 700.7405(3) | "Among others" includes persons with a special interest such as the trustee who administered the transfer and must ensure settlor intent | Enforcement is limited to the settlor, named beneficiaries, the attorney general, or the trustee of the charitable trust; plaintiff is none of these | Plaintiff has standing: appellate court read “among others” to include private persons with a sufficient special interest and reversed summary disposition |
| Whether the settlor’s enforcement right is exclusively personal and cannot be exercised by the settlor’s fiduciary | Statutory text and MTC duties allow a fiduciary with a special interest (and enforcement duties) to bring suit | Probate court: settlor’s right is personal and cannot be exercised by the settlor’s fiduciary | Court rejected the probate-court view and held the fiduciary may be among the "others" with standing when a special interest exists |
| Whether creation/distribution of the charitable trust divests plaintiff of any enforcement remedy (i.e., only AG/University can enforce) | Distribution does not preclude private enforcement where a private party has a specific, direct interest and the MTC’s purposes support enforcement mechanisms | The post-distribution charitable trust is enforceable by the University/Attorney General; plaintiff lacks enforceable status | Court held the post-distribution charitable trust did not bar plaintiff’s suit; limitations in MCL 700.7405(3) do not categorically preclude private enforcement by a qualified party |
| Whether summary disposition was proper on standing grounds | Standing exists as a matter of law based on MTC, trustee powers, and Pollack standing principles | Standing absent; summary disposition appropriate | Summary disposition for defendants was improper; case reversed and remanded |
Key Cases Cited
- ADR Consultants, LLC v. Mich. Land Bank Fast Track Auth., 327 Mich App 66 (standards for reviewing summary disposition and statutory interpretation)
- In re Pollack Trust, 309 Mich App 125 (recognizing trustees and similarly situated parties may have a special interest sufficient for standing to challenge trust modifications or enforcement)
- South Dearborn Envtl. Improvement Ass'n v. Dep't of Environmental Quality, 502 Mich 349 (statutory interpretation principles: enforce plain meaning and give effect to every word)
- Hegadorn v. Dep't of Human Servs. Dir., 503 Mich 231 (trust construction: interpret trust terms to effect settlor intent)
- Osius v. Dingell, 375 Mich 605 (trust creation requires settlor intent and a transfer)