Hamel v. Hamel

This appeal arose over the administration of a Trust between Lawrence, the Trust's beneficiary, and the Trust's trustees, Dennis and Leona (collectively, Trustees). Lawrence moved to set aside a contract for deed executed between Dennis and his wife and the Trustees for the sale of farmland owned by the Trust and also sought to remove the Trustees, alleging they engaged in self-dealing and breached their fiduciary duties. The district court concluded (1) the Trust permitted the Trustees to finance the sale of the farmland to Dennis under the terms set forth in the contract for deed; and (2) Lawrence violated the Trust's no-contest clause by challenging the Trustee's sale of the farmland to Dennis, which required Lawrence's disinheritance. The Supreme Court reversed the district court's ruling regarding the Trustees' authority to finance the sale of the farm and its enforcement of the no-contest clause against Lawrence, holding (1) the Trustees' execution of the contract for deed violated the terms of the Trust; and (2) Lawrence had probable cause to challenge the Trustees' sale of the farm to Dennis. Remanded. View "Hamel v. Hamel" on Justia Law