IN THE MATTER OF JENO F. PAULUCCI REVOCABLE TRUSTCourt of Appeals of Minnesota.
Filed May 6, 2013.
Filed May 6, 2013.
Jeno and Lois were residents of Florida, but in October 2011, Jeno was hospitalized in Duluth. On October 8, while hospitalized, Jeno executed the Thirteenth Complete Amendment to the Jeno Revocable Trust. This amendment replaced two Minnesota trustees, attorneys William Berens and George Eck, with two Florida trustees, respondents Larry Nelson, who worked with Jeno for a number of years, and David Simmons, a trial attorney and state senator. On October 10, Lois executed the Tenth Complete Amendment to the Lois Revocable Trust, which likewise replaced trustees Berens and Eck with Nelson and Simmons.
Lois died on November 20, 2011, and Jeno died on November 24, 2011. Trustee Nelson is the personal representative of Jeno's and Lois's probate estates and both wills have been admitted to probate in a Florida circuit court. Lois's will, which is governed by Florida law, provides that the residue of her estate is to be given to the trustee of the Lois Revocable Trust.
In March 2012, Gina petitioned the St. Louis County district court for, among other relief, the non-cause removal of trustees Nelson and Simmons of the Jeno Revocable Trust, to be replaced by former trustees Berens and Eck. Gina venued this petition in St. Louis County under Minn. Stat. § 501B.17, subd. 1(3) (2012),1 because the trust holds real property in St. Louis County. Later in March, Michael and Cynthia filed a notice of appearance in the St. Louis County action. On March 30, trustees Nelson and Simmons filed a memorandum objecting to the removal petition based on lack of jurisdiction (then under the mistaken belief that the trust held no real property in Minnesota) and on the doctrine of forum non conveniens. The district court scheduled a hearing on the matter for April 3, 2012.
Meanwhile, in early February 2012, Berens and Eck, as trustees of the Trust FBO Lois, petitioned the Hennepin County district court for instructions regarding the disposition of that trust's assets and proposed an alternate disposition of the assets, alleging that Lois had intentionally exceeded her limited testamentary powers of appointment and subjected the trust assets to debts, expenses, and taxes. In late February 2012, Gina also petitioned the Hennepin County district court for, among other things, the non-cause removal of Nelson and Simmons as trustees of the Lois Revocable Trust, to be replaced by Berens and Eck. Gina venued the petition in Hennepin County district court under Minn. Stat. § 501B.17, subd. 2 (2012), which provides that when there have been prior trust proceedings—here, the Trust FBO Lois petition—a petition must be filed in the same court.
The St. Louis County district court, which was aware of the Hennepin County proceedings, conducted the April 3 hearing to address Gina's petition for the removal of Nelson and Simmons as trustees of the Jeno Revocable Trust and the trustees' objections to their removal, which they based on jurisdictional and forum-non-conveniens grounds. Michael and Cynthia appeared at the hearing as interested parties because they are beneficiaries, and, at the hearing, Gina filed joinders of the beneficiaries, including Michael and Cynthia, in her petition. The court advised the parties that it had contacted the Hennepin County district court to address its concern that the two courts might issue conflicting orders. At the close of the hearing, the court permitted Gina, as well as Michael and Cynthia, to file written replies to the objections by trustees Nelson and Simmons, and they did so, addressing both the merits of Gina's removal petition and the jurisdictional and forum-non-conveniens objections raised by trustees Nelson and Simmons.
After the April hearing, the St. Louis County district court informally stayed the proceedings while some or all of the parties unsuccessfully attempted to mediate their disputes. The court then gave counsel until July 18 to file responsive pleadings. On July 13, 2012, Michael and Cynthia petitioned the St. Louis County district court, in relevant part, for a determination that the thirteenth amendment to the Jeno Revocable Trust was void based on incapacity and undue influence by trustees Nelson and Simmons and to remove them as trustees, to be replaced by Berens and Eck. On July 16, the court scheduled Michael and Cynthia's petition for a September 2012 hearing. In a July 16 letter, the court advised the parties that whether this hearing took place depended on their review of the instant letter, informed them that the court believed counsel wanted a determination of whether Minnesota or Florida had jurisdiction over the matter, and told them to inform the court immediately if this was in error. Gina submitted a supplemental brief on July 18, but Michael and Cynthia filed nothing further with the court. The court then allowed trustees Nelson and Simmons until July 26 to file a reply to Gina's supplemental brief, and they did so.
In an August 1, 2012, order, the St. Louis County district court concluded, "Florida is the proper jurisdiction and venue to hear all matters pertaining to the Thirteenth Complete Amendment to the Trust Agreement of Jeno F. Paulucci," and dismissed the action without prejudice. And the court ruled that any pending petitions would not be considered, which we construe as dismissals without prejudice of those petitions. The court also denied appellant and co-appellants permission to move for reconsideration.
