Edmund William Ross II Irrevocable Tr. v. Breer (In re Edmund William Ross II Irrevocable Tr.)
Decision Date | 16 September 2021 |
Docket Number | 354303,349679,354298,349680,351982,351981,349917; 351355; 351823,349926; 351356; 351839 |
Parties | In re EDMUND WILLIAM ROSS II IRREVOCABLE TRUST. v. CORRINE BREER, Appellant EDMUND WILLIAM ROSS II IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellee, and WILLIAM J. ROSS III, Appellee. In re WILLIAM JAMES ROSS IV IRREVOCABLE TRUST. WILLIAM JAMES ROSS IV IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellee, v. CORRINE BREER, Appellant, and WILLIAM J. ROSS III, Appellee. In re EDMUND WILLIAM ROSS II IRREVOCABLE TRUST. EDMUND WILLIAM ROSS II IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, and RICHARD CONNORS, Appellees/Cross-Appellants, v. CORRINE BREER, Appellant/Cross-Appellee, and WILLIAM J. ROSS III, Appellee. In re WILLIAM JAMES ROSS IV IRREVOCABLE TRUST. WILLIAM JAMES ROSS IV IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, and RICHARD CONNORS, Appellees/Cross-Appellants, v. CORRINE BREER, Appellant/Cross-Appellee, and WILLIAM J. ROSS III, Appellee. In re EDMUND WILLIAM ROSS II IRREVOCABLE TRUST. EDMUND WILLIAM ROSS II IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellant, v. CORRINE BREER, WILLIAM J. ROSS III, and RICHARD CONNORS, Appellees. In re WILLIAM JAMES ROSS IV IRREVOCABLE TRUST. WILLIAM JAMES ROSS IV IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellant, v. CORRINE BREER, WILLIAM J. ROSS III, and RICHARD CONNORS, Appellees. In re EDMUND WILLIAM ROSS II IRREVOCABLE TRUST. EDMUND WILLIAM ROSS II IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellee, v. CORRINE BREER, Appellant and WILLIAM J. ROSS III and RICHARD CONNORS, Other Parties. In re WILLIAM JAMES ROSS IV IRREVOCABLE TRUST. WILLIAM JAMES ROSS IV IRREVOCABLE TRUST, by ANNETTE M. LEROUX, Trustee, Appellee, v. CORRINE BREER Appellant and WILLIAM J. ROSS III and RICHARD CONNORS, Other Parties. |
Court | Court of Appeal of Michigan — District of US |
UNPUBLISHED
Before: Michael F. Gadola, P.J., and Kathleen Jansen and Colleen A. O'Brien, JJ.
These 12 consolidated appeals arise out of two highly contentious trust proceedings in the probate court, which ultimately resulted in an award of sanctions against the trustee Annette M. Leroux (the "trustee"), and her attorney, Richard Connors, in favor of Corrine Breer.[1] The court also entered an order partially suspending the trustee and appointing a special fiduciary. Breer, the trustee, and Connors claim various appeals and cross-appeals from the probate court's orders.[2]We affirm in part, vacate in part, and remand for further proceedings.
These contentious trust cases arise out of familial litigation following a divorce. As explained by the probate court:
William James Ross III [the "settlor"] and Annette LeRoux [i.e., the trustee] have two children: Edmund William Ross II and William James Ross IV. On December 30, 1987, two separate Trusts were created: (1) the Edmund William Ross II [Irrevocable Trust]; and (2) the William James Ross IV [Irrevocable Trust] (the "Ross Trusts" [or "subject trusts"]). William James Ross III was the settlor and the initial trustee of both trusts. Annette LeRoux . . . is one of the Successor Trustees of the trusts. . . . Leroux is [the settlor's] ex-wife. Corinne Breer ("Breer") is [the settlor's] elderly mother.
In 2006, following her divorce from the settlor, the trustee initiated two cases in the probate court-one for each of the subject trusts-by filing petitions for an accounting, to remove the settlor as the acting trustee, and to surcharge him for alleged breaches of trust. As noted by the probate court:
On January 25, 2009, [the probate court] entered a Settlement Order resolving all matters. One of the provisions of the settlement was the removal of [the settlor] as the initial trustee of the Ross Trusts and the appointment of a Successor Trustee. Comerica Bank became the Successor Trustee. On March 16, 2009, a Judgment was entered against [the settlor].[3] Consequently, collection proceedings began in multiple states: Michigan, Florida[, ] and Illinois, as well as courts with different subject matter jurisdiction, including a bankruptcy court in Florida and a Florida appellate court. LeRoux's claims against Breer have been previously dismissed twice by Florida courts.
In February 2019, the trustee, acting through her counsel, Connors, filed a petition seeking reinstatement of these cases and the issuance of a subpoena directing Breer to appear before the probate court to be examined under oath concerning the assets then in the settlor's possession. As relevant here, the February 11, 2019 petition alleged that the trustee had become the acting trustee of both trusts in July 2013, after Comerica "resigned" that position, and that the settlor had recently transferred two checks, made payable to him in a total amount exceeding $37, 000, to Breer, in hopes of avoiding the trustee's collection efforts against the settlor. In reaction, Breer filed an emergency motion seeking, among other things, leave to intervene in these cases. Following a hearing, the probate court granted Breer leave to intervene, holding that she would thereafter be "a party to the post-judgment proceedings."
Initially, it appeared that a settlement of the instant litigation between Breer and the trustee was imminent. On April 8, 2019, the parties stipulated to the entry of a judgment against Breer under MCR 2.405. At a hearing the next day, the parties informed the probate court of their settlement, and the trustee's counsel, Connors, indicated that the trustee no longer had any known claims against Breer. Thus, there was "nothing more that Ms. Breer [wa]s required to be in this case for," and the trustee moved to have her "dismissed as a party." Also, when the probate court asked Connors whether his request for the issuance of a subpoena against Breer was "off the table," Connors replied: "Oh, absolutely." However, Connors also foreshadowed the events that would follow by suggesting that the trustee might yet "be bringing additional requests for discovery, maybe on [Breer], maybe not[.]"
On April 10, 2019, the probate court entered an order awarding a judgment against Breer consistent with the parties' stipulation. In addition, the probate court dismissed Breer as a party and dismissed the trustee's February 11, 2019 "petition regarding . . . Breer[.]"
On April 19, 2019, however, the trustee moved to compel discovery, which would ultimately be the impetus of the sanction proceedings now at bar. In pertinent part, that motion to compel stated:
WHEREFORE, [the trustee] respectfully requests that this honorable Court:
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