Schwerin v. Bessemer Trust Co.
| Decision Date | 14 February 2017 |
| Docket Number | X04HHDCV126036160S |
| Court | Connecticut Superior Court |
| Parties | Francis T. Schwerin, Jr. et al. v. Bessemer Trust Company, as Trustee et al |
UNPUBLISHED OPINION
This is a declaratory judgment action seeking a determination as to the proper method for distributing the corpus of two family trusts when those trusts expire according to their terms. Before the court are cross motions for summary judgment filed by different groups of potential beneficiaries, advancing different schemes for distribution based upon an interpretation of the particular language used in the trust agreements.
At the center of this dispute are two trusts. The first was created by Harvey Hubbell, III (referred to in the trust instrument as " Harvey Hubbell") on August 23, 1957, and amended on October 9, 1963 (" the Hubbell Trust"). The second was created by Louie E. Roche, Harvey Hubbell III's mother, on September 2, 1957 (" the Roche Trust"). The Hubbell Trust and Roche Trust are referred to collectively herein as " the Hubbell Family Trusts."
Hubbell Trust, October 9, 1963 Amendment, Article FIRST.
Roche Trust, Article FIRST.
Thus, the seven measuring lives for the Hubbell Family Trusts consist of Harvey Hubbell, III himself, his mother, his wife, his three children (Harvey Hubbell, Jr. a/k/a Harvey Hubbell, IV; defendant William H. Hubbell a/k/a William Ham Hubbell; and defendant Elizabeth H. Schwerin) and Harvey Hubbell, III's two grandchildren who were alive at the time the Trusts were created (plaintiff Francis T. Schwerin, Jr., and defendant Lisa Lugovich, né e Lisa Loraine Hubbell).[1] The Hubbell Family Trusts will expire upon the death of the last survivor of the measuring lives. Four of the measuring lives have ended.[2] Plaintiff Francis T. Schwerin, Jr. and defendants William Ham Hubbell, Elizabeth H. Schwerin, and Lisa Lugovich are still alive.
With respect to the distribution of Trust principal upon expiration, the Hubbell Trust provides in pertinent part:
Upon the expiration of the trust term the trustees, subject to the provisions hereinafter contained, shall convey and deliver all property then belonging to the principal of the trust to grantor's issue then living, per stirpes .
Hubbell Trust, October 9, 1963 Amendment, Article FIRST (emphasis in original).
With respect to the distribution of Trust principal upon expiration, the Roche Trust provides in pertinent part:
(e) Upon the expiration of the trust term the trustees shall convey and deliver all property then belonging to the trust, including the principal and any undistributed income thereof, absolutely to the issue of the grantor then living, per stirpes, or in default of such issue to the persons who would be entitled to take the same in accordance with the laws of the State of Connecticut then in force if the grantor has died at the expiration of the trust term, intestate, and a resident of the State of Connecticut, and the absolute owner of said property.
Roche Trust, Article FIRST (emphasis in original).
The issue of the grantors of the Hubbell Family Trusts are as follows:[3]
The three children of Harvey Hubbell : Harvey Hubbell, Jr. a/k/a Harvey Hubbell, III (deceased), William Ham Hubbell; and Elizabeth H. Schwerin.
The six grandchildren of Harvey Hubbell, all whom are currently alive, are:
The sixteen great-grandchildren of Harvey Hubbell, all of whom are currently alive: William Hale Lyon Alarcon Hubbell; Alexandra Louie Hubbell; Stephen Michael Lugovich; John Daniel Lugovich; Augustine Lazarus Schwerin; Timothy Hale Schwerin; Craig Thomas Schwerin; Mary Anastasia Campion; Seamus Francis Campion; Martin Ambrose Campion; Tadhg William Campion; Elizabeth Lorraine Nunez; Clara Antonia Nunez; Brenda Mercedes Nuriez; Jennifer Blanca Nunez; and Talpa Guadalupe Nunez.
September 15, 2014 Amended Complaint [#130], p. 8.
On September 30, 2015, the plaintiffs moved for summary judgment [#170]. The plaintiffs argue that the court should find that, at the expiration of the term of the Hubbell Family Trusts, the provisions in the trust indentures which direct distribution of the property of the trust " to grantor's issue then living, per stirpes, " require a stirpital distribution at the generational level defined by the six grandchildren of Harvey Hubbell, III, with any children of the six grandchildren succeeding to the shares of their deceased parent.
The defendants William Hale Hubbell and William Hale Lyon Alarcon Hubbell have also moved for summary judgment [#168]. Those defendants argue that the court should find that, upon termination of the Hubbell Family Trusts, the provisions in the trust indentures which direct distribution of the property of the trust " to grantor's issue then living, per stirpes, " require a strict per stirpes method of distribution, with each child of Harvey Hubbell (Harvey Hubbell, Jr., Elizabeth H. Schwerin, and William H. Hubbell) as the head of each stirpe.
The defendants Harvey Hubbell V, Lisa L. Lugovich, Richard J. Lugovich, Stephen M. Lugovich, and John D. Lugovich (sometimes referred to as " the Hubbell-Lugovich defendants") filed a third motion for summary judgment [#176] based upon arguments similar to those of defendants William Hale Hubbell and William Hale Lyon Alarcon Hubbell. The Hubbell-Lugovich defendants argue that, upon termination of the Hubbell Family Trusts, " the corpus of each trust should be divided equally into three shares, which are representative of the three children of Harvey Hubbell, III, with living descendants of each of the three children succeeding to the shares of their deceased ancestors." (September 30, 2015 Memorandum in Support of Motion for Summary Judgment [#177], p.3.)
After initial consideration of the parties' motions, the court ordered that three guardians ad litem be appointed for the minor, unborn and unascertained beneficiaries who are descendants of Brendan Schwerin and Cynthia Schwerin, Harvey Hubbell, V and William Hale Hubbell, and Lisa Lugovich and Francis Schwerin respectively. Each guardian ad litem submitted a report as to their view of the proper distribution of the trust corpus based upon the particular interests they represented.
Attorney Nuala E. Droney, the guardian ad litem for the minor, unborn and unascertained beneficiaries who are descendants of Brendan Schwerin and Cynthia Schwerin, and Michael D. O'Connell, the guardian ad litem for the minor, unborn and unascertained beneficiaries who are descendants of Lisa Lugovich and Francis Schwerin, argue that the Trust principal should be distributed per capita to all members of the oldest generation of Hubbell Family with a member still living, and to the issue of all deceased members of that generation by representation. This is similar to the position of plaintiffs, who have argued that the principal should be divided equally among the members of the oldest generation that could possibly take the gift. See August 15, 2016 Memorandum of Attorney Droney [#206], pp. 5-6; August 23, 2016 Report of Attorney O'Connell [#211], p. 3.
Attorney James K. Robertson, the guardian ad litem for the minor unborn and unascertained beneficiaries who are descendants of the Harvey Hubbell V and William Hale Hubbell, argues that Trust principal should be divided into three equal shares (representing the three children of Harvey Hubbell, III) to be distributed to the then-living descendants of each of these three stirpital lines, assuming that there are living descendants for all three of these lines at the time the Hubbell Family Trusts terminate. This position is consistent with that of the defendants William Hale Hubbell and William Hale Lyon Alarcon Hubbell and the Hubbell-Lugovich defendants in their...
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