Professional Documents
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In Re Succession of Linder
In Re Succession of Linder
In Re Succession of Linder
11-CA-633
FIFTH CIRCUIT COURT OF APPEAL STATE OF LOUISIANA
In re Succession of Linder
Decided May 22, 2012
Attorneys at Law
FREDERICKA HOMBERG WICKER
COUNSEL FOR DEFENDANT/APPELLANT
ON APPEAL FROM THE
AFFIRMED; REMAND FOR
TWENTY-FOURTH JUDICIAL PROCEEDINGS CONSISTENT
DISTRICT COURT
2 WITH THIS OPINION *2
PARISH OF JEFFERSON, STATE
OF LOUISIANA This Court is intimately familiar with the facts of
this case as it has had a long and protracted
NO. 471-804, DIVISION "N"
history, spanning over a period of seventeen years.
HONORABLE HANS J. In 1998, we affirmed the trial court's ruling and
LILJEBERG, JUDGE PRESIDING determined that the provision of the decedent's
testament disinheriting a forced heir was invalid.
Succession of hinder, 97-1269 (La.App. 5 Cir.
FREDERICKA HOMBERG 6/30/98) (unpublished) (Under I). Then, in 2002,
WICKER we affirmed the trial court's ruling that the
JUDGE decedent had testamentary capacity, that the
statutory testament was valid as to form, that the
plaintiff failed to prove undue influence in the
Panel composed of Judges Marion F. execution of the will, and that denied the forced
Edwards, Clarence E. McManus, and heir's request to annul the probated testament.
Succession of Under, 02-0106 (La.App. 5 Cir.
Fredericka Homberg Wicker 7/30/02), 824 So.2d 523 (Under II). In 2006, we
EDWARDS, C.J., DISSENTS dismissed the executor's appeal from the trial
court's denial of his exception of prescription as to
CHARLES B. JOHNSON
1
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
the plaintiff's claim for reduction of excessive Guenther breached his fiduciary duty. The trial
donations, finding that the interlocutory judgment court ordered the final tableau be amended to
was not appealable and remanded the matter to the reflect the following:
trial court. Succession of Under, 05-0640 (La.App.
+--------------------------------------------------
5 Cir. 2/14/06), 924 So.2d 293 (Under III). Finally
---------------+ ¦ASSETS ¦$69,046.41 ¦ +----
in 2008, we vacated the judgment of possession
---------------------------------------+-----------
3 that was rendered by the trial court *3 on June 18,
----------¦ ¦DEBTS DUE ON DATE OF
2007 and remanded the case to the trial court.
DEATH FUNERAL
Succession of Linder, 08-0394 (La.App. 5 Cir.
EXPENSES¦$21,745.00 $ 3,773.55¦ +------
10/14/08), 994 So.2d 148 (Under IV).
----------------------------------------------------
Now, the parties are back before us for the fifth -------+
time on appellant's, Mrs. Jane L. Rosenthal's,
4 *4
appeal of the trial court's November 16, 2010
+-----------------------------------+ ¦LEGAL
judgment, denying her Opposition to the Final
CHARGES ¦$ 1,657.00¦ +--------------------
Tableau of Distribution and Request for Reduction
----+----------¦ ¦NET ESTATE ¦$41,870.86¦
and Recalculation of Mass Estate.
+------------------------+----------¦ ¦FORCED
During the pendency of Under IV, the PORTION (1/4) ¦$10,467.72¦ +--------------
executor/appellee, Mr. Leo Guenther, filed a ----------+----------¦ ¦DISPOSABLE
Petition for Homologation of Final Account on PORTION (3/4)¦$31,403.14¦ +---------------
November 16, 2007, covering the period from --------------------+
January 1, 2007 through November 15, 2007.
Mrs. Rosenthal moved for new trial on November
Although the trial court ordered the final account
30, 2010, on the issues of the valuation of the
homologated on December 10, 2007, Mrs.
estate's mineral interests, the calculation of the
Rosenthal opposed the homologation the
value of the estate, the method of satisfying her
following day. Mr. Guenther opposed the
legitime, and on whether Mr. Guenther breached
opposition on January 9, 2008, arguing that Mrs.
his fiduciary duty. The court denied the motion on
Rosenthal's opposition to the final account was
January 20, 2011. Mrs. Rosenthal moved to
untimely. After continuances and other delays, the
designate the November 16th judgment as final.
trial court heard Mrs. Rosenthal's Opposition to
The trial court designated the judgment final and
the Final Tableau of Distribution and Request for
appealable pursuant to La. C.C. art. 1915. This
Reduction and Recalculation of Mass Estate on
appeal follows.
June 18, 2010.
At the conclusion of the trial, the court took the Assignments of Error
matter under advisement and rendered its Ms. Rosenthal assigns seventeen errors.
judgment, with written reasons, on November 16, Specifically, she contends that the district court
2010, denying Mrs. Rosenthal's opposition in part erred by:
and granting it in part. The trial court denied Mrs.
Rosenthal's request to revalue the oil and gas
interests and accepted the valuation of $2,949.00
as depicted in the Amended and Restated Sworn
Descriptive List. The court also denied Mrs.
Rosenthal's request to reduce all particular
legacies as well as her request to find that Mr.
2
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
3
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
4
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
Mrs. Rosenthal's supporting memorandum, we "fair market value" as of March 1, 2005; and
find that the trial court did not abuse its discretion Atwaters III and IV reflect a "true value" on the
9 and properly designated the judgment as final. *9 date of death. The fifth appraisal, provided by
Seek Production, LLC, reflects an appraisal based
First, Second, and Third Assignments on "present value" on the date of death. Thus, we
of Error must first determine what difference, if any, exists
Mrs. Rosenthal first contends that the trial court between these values.
erred in valuing the Succession's oil and gas 1 "The price that a seller is willing to accept
interests at $2,949.00; by rejecting appraisals that
and a buyer is willing to pay on the open
considered information developed after the date of market and in an arm's-length transaction."
death; and by calculating the net estate to be worth BLACK'S LAW DICTIONARY 1549 (7th
$69,046.41. Thus, our initial inquiry here is to ed. 1999).
determine whether the trial court erred in
2 Kathryn V. Lorio, LOUISIANA CIVIL
accepting $2,949.00 as the fair market value of the
LAW TREATISE: SUCCESSIONS AND
oil and gas interests on the date of death.
DONATIONS § 10:7 (2d ed. 2009).
It is well settled that, on appellate review of a
Mrs. Rosenthal contends that "true value" and
factual determination, the reviewing court may not
"fair market value" are synonymous and urges this
set aside the trier's findings of fact in the absence
Court to adopt Atwater IV, which depicts a "true
of manifest error or unless he is clearly wrong.
value" on the date of death of $2,549,571.00. Mrs.
Succession of Gilbert, 95-0426, p.5-6 (La.App. 5
Rosenthal relies on Black's Law Dictionary to
Cir. 1/30/96), 668 So.2d, 1212, 1215, writ
support her contention that these terms have the
granted, 96-0949 (La. 2/7/97), 689 So.2d 1314.
same meaning. Although Black's Law Dictionary
The issue to be resolved by the reviewing court is
defines the terms identically, Mrs. Rosenthal's
not whether the trier of fact was right or wrong,
reliance on such is misplaced in light of the
but whether his conclusion was a reasonable one.
jurisprudence that clearly states that values are
Id. citing Stobart v. State through DOTD, 617
established on the date of death. See Succession of
So.2d 880 (La. 1993). Thus, where two
Songne, 94-1198, p.4 (La.App. 3 Cir. 11/2/95),
permissible views of the evidence exist, the
664 So.2d 556, 559, (the proper time for
factfinder's choice between them cannot be
determining the value of the forced portion is the
manifestly erroneous or clearly wrong. Id.
date of the decedent's death.); Succession of Pratt,
In order "to determine the reduction to which the 97-0580 p.7 (La.App. 5 Cir. 11/25/97), 704 So.2d
donations, either inter vivos or mortis causa, are 310, 313, (" 'active mass, legitime' and 'disposable
subject, an aggregate is formed of all property portion'on an estate are calculated with reference
belonging to the donor or testator at the time of his to the value as of the date of death") (emphasis in
death." La. C.C. art. 1505. The decedent's property original).
must, therefore, be appraised for market value1 as
Atwater IV defines "true value" as "the amount
of the date of death.2 One of the complexities in
that a future sum of money is worth on some given
this case, however, is the fact that the record is
date for a specified rate of return." (emphasis
clouded with five appraisals which depict varying
added). Mr. Johnston explained that in order to
values of the estate's oil and gas interests, i.e. "fair
compute the "true value" in Atwater IV, he
market value," "true value," and "present value."
considered the total sum derived from the sale of
10 In this *10 case, Atwater Consultants provided
oil and gas interests from November 1994 through
four appraisals. Atwater I reflects a "fair market
June 2010. So based on his report and testimony, it
value" on the date of death; Atwater II reflects a
5
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
is apparent that Atwater IV used information estate's unit well was capable of producing more
obtained subsequent to the date of death to than it had produced in the years preceding and
compute the "true value." Thus, it stands to reason immediately following her mother's death. In fact,
that if values are set on the date of death, those 12 her own expert testified that no *12 quantifiable
values subsequently obtained cannot be used to data existed on November 30, 1994, to support the
11 calculate the *11 value of the estate's oil and gas finding that the reserves exceeded what people
interests on the date of death. In spite of this, generally thought at that time. To now say,
however, Mrs. Rosenthal states that even if the oil eighteen years later, that Mrs. Rosenthal is entitled
and gas were not being produced on the date of to increase the fair market value of the oil and gas
death, they were in fact, present in the ground on interests based on information later obtained
that date and we should therefore consider the would be untenable. As the trial court stated in its
information obtained subsequent to the date of reasons for judgment:
death to value the oil and gas interests.
[t]he law requires this Court to determine
The Amended Descriptive List in this case values the fair market value of the mineral
the oil and gas interests at $2,949.00. La. C.C.P. interests as of the date of death, thereby
art. 3136 provides that the descriptive list of precluding the consideration of
succession property shall be accepted as prima information obtained years later. Any other
facie proof of all matters shown therein, unless finding would allow the value of the
amended or traversed successfully. Succession of disposable portion and legitime to
Hebert, 03-0531, 03-0532 (La. App. 1 Cir. continuously fluctuate until the heirs are
9/17/04), 887 So.2d 98, 100, writ denied, 04-2571 finally placed in possession. Such a
(La. 12/17/04), 888 So.2d 872. However, any finding would cause great uncertainly and
interested party may traverse the descriptive list at is simply contrary to law.3
any time. Id. The burden, however, is on the party
3 The Louisiana Supreme Court further
filing a motion to traverse to show that the
crystallized the point in Wilkins v. Nelson,
descriptive list is in error. Succession of Feitel, 05-
155 La. 807, 813-814, 99 So. 607 (La.
1482 (La.App. 4 Cir. 4/18/07), 958 So.2d 58, 60, 1924), when it stated, "[t]he price [of oil
writ denied, 07-1046 (La. 8/31/07), 962 So.2d and gas] may be at the very lowest today
436. It was therefore incumbent upon Mrs. and by 'leaps and bounds' reach the very
Rosenthal to prove the inaccuracy of the value peak of prices tomorrow, dependent on the
assigned to the oil and gas interests. production or nonproduction of oil and gas
in the neighboring territory" (emphasis
Mrs. Rosenthal opposed the final tableau in
added). See also Cascio v. Twin Cities
December of 2007, but the matter was not heard Dev., LLC, 45,634, p.5 (La.App. 2 Cir.
until June of 2010. Therefore, she has had ample 9/22/10), 48 So.3d 341.
opportunity to conduct discovery in order to
determine what was known or what reasonably Yet, Mrs. Rosenthal maintains that information
could have been learned by a willing buyer about available after her mother's death should be used
the reserves which were actually in the ground on in the estate's valuation to account for the
November 30, 1994 — the date of her mother's tremendous appreciation of the oil and gas
death. Yet, she failed to present any evidence to interest. To support this proposition, she cites
show that the fair market value was anything other Succession of Dorand, 94-1627 (La.App. 4 Cir.
than $2,949.00 on the date of death nor has she 7/26/95), 659 So.2d 523 where the court ordered a
presented any evidence that a willing buyer could
have learned, on November 30, 1994, that the
6
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
reduction in the value of an estate after the date of years preceding and immediately following Mrs.
death to better reflect the estate's value as it Linder's death. The record is void of any evidence
existed at the time of death. which suggest that, in November of 1994, the unit
well was capable of producing more than it was.
In Dor and, the decedent owned 100 shares of
There was no evidence produced at trial that
stock in a closely held corporation which were
information existed in November of 1994 that
depicted on the sworn descriptive list as having a
would have increased the value of the mineral
date of death value of $162,925.08. The trial court
interests. And because there was no evidence of
determined, however, that the executor had
knowledge of information in 1994 that could have
overvalued the stock and therefore ordered a
proven the existence of "millions of feet in
reduction. On appeal, the Fourth Circuit noted that
recoverable oil and gas"4 owned by Linder on the
the executor's valuation failed to take into account
date of her death, subsequent information proving
unpaid IRS back taxes as well as the prior three
the existence of those minerals cannot be
years' operating losses which were both pending
considered in valuation.
and exigible before the decedent's death. The
Fourth Circuit noted: 4 Original Brief of Appellant at 13,
Succession of Linder, No. 11-0633 (7/8/11).
[G]enerally, events occurring after the
death of the deceased should not affect the In sum, post-mortem information, unbeknownst to
value of stock for purposes of a descriptive the parties and discovered subsequent to the date
list of death, may not be used to re-value an estate
13 *13 valuation. Cf Succession of Katakura, since the succession is "calculated as of the date of
621 So.2d 893 (La.App. 4th cir. 1993). 14 death," regardless of appreciations of *14 value.
However, in the instant case, the after- Pratt, supra, at 313. We, therefore, find that the
death debt incurred in liquidating the trial court did not err in accepting $2,949.00 as the
business, and any losses incurred during "fair market value" of the oil and gas interests on
the operating of the business pending the date of death. And because this was the only
liquidation, were evidence bearing on the asset in dispute, we, likewise, find that the trial
fair market value of the stock as of the time court did not err in its factual finding that the
of death . . ." (emphasis added). estate's assets on the date of death totaled
$69,046.41. Therefore, these assignments of error
Dorand, supra, at 525.
are without merit.
Thus, the court clarified that although the value of
the stock was being adjusted after the time of
Fourth and Fifth Assignments of
death, the valuation was based on information Error
readily available at the time of death — i.e., costs Next, Mrs. Rosenthal contends that the trial court
associated with liquidating a corporation. erred in calculating the estate's net estate to be
worth $41,870.86 and in calculating her forced
Unlike Dorand, Mrs. Rosenthal produced no
portion to be worth $10,467.72. She contends that
evidence that the information used to seek a post-
the active mass5 is actually worth $2,615,668.40,
mortem increase in value is information that was
thereby increasing the forced portion to
available when Mrs. Linder died. Thus, the
$647,123.22.
presence of the dormant mineral reserves in the
ground at the time of Mrs. Linder's death is 5 The active mass includes the aggregate of
irrelevant. In this case, there just simply was not a all property belonging to the testator at the
vast amount of production occurring during the time of his death, including inter vivos
7
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
donations made within three years of the their respective legitimes. We specifically stated
date of death. See La. C.C. art. 1505. so in Pratt and further held that "we [saw] no error
in the trial court's calculation of the active mass of
Universal and particular legatees are entitled to
the succession, which was based on the valuation
post-value appreciations in the value of their own
of the assets as of the date of decedent's death . . .
legitimes. Pratt, supra. This Court expounded on
" (emphasis in original). Id.
this principle in Pratt — a case upon which Mrs.
Rosenthal relies. Mrs. Rosenthal expands the Pratt Like the daughters in Pratt, Mrs. Rosenthal
holding however to suggest that a forced heir is misinterprets our holding to mean that the post-
entitled to any post-death increase in the value of death appreciation of Mr. Guenther's particular
legitimes by way of increasing the value of the legacy should increase the value of the active
active mass, leading to an appreciation of the mass, and thus, the value of her forced portion. As
forced portion. Mrs. Rosenthal's interpretation of explained, however, that was not our holding.
Pratt is incorrect, however. Rather than holding Rather, the Pratt case specifically stated that the
that forced heirs are generally entitled to post- active mass of the estate was based on assets
death increases in legitimes, the holding was valued at the time of death but that each legatee
narrower. In Pratt, we determined that forced was entitled to the increased value in the assets
heirs, as universal legatees, are entitled to value under their legitime. Once the value of the active
appreciations in their own legitimes, as opposed to mass is calculated at the time of death, and the
an appreciation of the active mass by way of the legitimes are allocated, the active mass cannot be
increase in value of another legitime. increased by appreciations in the value of
16 individual legitimes. To hold otherwise would *16
In Pratt, a testator's testament specified that his
effectively value the active mass after the time of
daughter, Catherine, was to receive the minimum
death, which is specifically prohibited by Pratt,
amount of the estate that was required by law. The
pursuant to La. C.C. art. 1505. Id. at 313.
testament further specified the assets to be used
15 for her bequest. The testament also *15 purported As Pratt is applied to this case, Mrs. Rosenthal is
to disinherit the decedent's other daughter, Anne, entitled to any increases in the assets within her
but this court held that the disinherison clause was legitime, and Mr. Guenther is entitled to any
invalid. There, we determined that Anne was a increases in the value in his legitime. Mrs.
forced heir, and thus, a universal legatee. Rosenthal's legitime, however, does not consist of
Catherine, however, was a particular legatee since the mineral interests specifically bequeathed to
her portion was to be satisfied by certain assets. Mr. Guenther. Thus, under Pratt's specific
holding, Mrs. Rosenthal cannot use the increased
In that case, we held that the particular and
value of Mr. Guenther's legitime to claim that the
universal legatees were entitled to post-death
value of the entire active mass is also increased,
increases and decreases in the valuation of their
thereby leading to an increase in her forced
legitimes. Id. Specifically, we stated, ". . . Ms.
portion. To that extent, Mrs. Rosenthal's reliance
Pratt is entitled to any post-death increase in the
on Pratt is misplaced. Therefore, these
value of her legitime" (emphasis in original) and ".
assignments of error are without merit.
. . [Catherine] is entitled to post-death increases in
values of the particular assets bequeathed to her." Sixth, Ninth, and Tenth Assignments
Id. at 313. Our holding markedly differed from the of Error
Pratt daughters' contention that the increases in
In assignments of error six, nine, and ten, Mrs.
their legitime should be used to increase the value
Rosenthal challenges the reduction the trial court
of the active mass of the estate. The Pratt heirs
applied in this case. Specifically, she argues that
were entitled to the increase of the assets only in
8
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
the trial court erred by failing to reduce all request to reduce all of the particular legacies and
legacies under the will, by failing to require Mr. determined that her forced portion could be
Guenther to return the oil and gas royalties satisfied from the balance of the estate. Mrs.
accruing on his legacy, and by finding that the Rosenthal challenges these decisions. Before
forced portion be satisfied only from the residue of determining whether reduction is required, we
the estate. must first classify the legacies made in the
testament.
In substance, the testament at issue contains the
following provisions: A universal legacy is a testamentary disposition by
which the testator gives to one or more the whole
1. I give and bequeath the sum of
of the property he leaves at his decease.
$2,000.00 cash to my dear friend, JANICE
Succession of Moffat, 577 So.2d 1210,1212
RICH STURDEVANT.
(La.App. 4 Cir. 1991), writ denied, 582 So.2d
2. I give and bequeath any royalties and/or
1312 (La. 1991); La C.C. art. 1606.6 A legacy
mineral interests which I own at my death
under universal title is that by which a testator
to my dear friend, LEO A. GUENTHER.
bequeaths a certain portion of the effects, as a half,
3. I give and bequeath to ELSA
a third or all of his immovables or movables or a
QUINTANILLA the framed mirror
fixed proportion of his immovables or movables.
approximately 29 inches by 49 inches and
Id.; La. C.C. art. 1612.7 Every legacy, however,
cabinet below the mirror situated in my
living/dining room, the 19" Zenith not included in the definition of a universal legacy
television, T.V. table, and rose designed and a legacy under universal title is a particular
glass vase on the T.V. legacy. Id.; La. C.C. art. 1625.8 In this case, the
4. I give and bequeath to LENY testament includes particular legacies to Janice
BOUDREAUX the two (2) Chinese Rich Sturdevant, Leo Guenther, Elsa Quintanilla,
figurines, male and female, bearing the and Leny Boudreaux. It also includes a
inscription on bottom "EVERLAST general/residual legacy to Touro Synagogue. The
CORP. GOLDSCHEIDER." 18 remaining question, *18 then, is how must we treat
17 *17 5. I specifically disinherit my daughter, the disposition to Mrs. Rosenthal for only that
JANE LINDER ROSENTHAL, since she portion reserved to her as provided under the laws
has known how to contact me for quite of the State of Louisiana.
some time, but has failed without just 6 La. C.C. art. 1606 was revised by Acts
cause to communicate with me for a period 1997, No. 1421 § 1 and is currently
of at least two (2) years prior to the date of restated in La. C.C. art. 1585.
this will. Should it be determined that this
7 La. C.C. art. 1612 was revised by Acts
provision is invalid, then, and in that event,
1997, No. 1421 § 1 and is currently
I desire that she receive only that portion
restated in La. C.C. art. 1586. It is now
reserved to her as provided under the laws
referred to as a "general legacy."
of the State of Louisiana.
8 La. C.C. art. 1606 was revised by Acts
The balance of my estate, I give and
bequeath to the Touro Synagogue, 1501 1997, No. 1421 § 1 and is currently
General Pershing Street, New Orleans, restated in La. C.C. art. 1587.
9
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
Rosenthal as such. Therefore, Mrs. Rosenthal's Rosenthal's forced portion and no requirement that
forced portion is one-fourth of her mother's estate. the particular legacies be reduced. Nevertheless,
Id. So, the seminal question is how should the Mrs. Rosenthal contends that Touro Synagogue
forced portion be satisfied? The trial court should not singularly bear the burden of satisfying
determined that it should be paid from the balance her legitime. Rather, she contends that all legacies
of the funds available. Mrs. Rosenthal contends, under the testament should be reduced.
on the other hand, that her forced portion must be
Granted, the practical application of the trial
satisfied from all legacies pursuant to La. C.C. art.
court's judgment will, in fact, "reduce" the bequest
1511.
to Touro Synagogue. However, Touro Synagogue
At the time of the decedent's death, La. C.C. art. is, in fact, a residuary/universal legatee who is
1511 provided: only entitled to the balance of the estate. "The
residuary, or universal legatee, receives nothing,
[w]hen the dispositions mortis causa
except what is left, after the payment of the debts
exceed either the disposable quantum or
and charges of the succession, the discharge of the
the portion of that quantum that remains
particular legacies, and the contributions for the
after the deduction of the value of the
legitime." Succession of Peters, 189 So. 122, 123
donations inter vivos, the reduction shall
(La. 1939) (emphasis added). So, in essence,
be made pro rata, without any distinction
Touro Synagogue, does not necessarily bear the
between universal dispositions and
burden of satisfying the forced portion, because,
particular ones.
by law, as a universal legatee, it is only entitled to
Succession of Trahant, 76 So.2d 919, 921 (La. what remains after the payments of debts and
1954). charges and the satisfaction of particular legatees
and the legitime. Id.
Thus, pursuant to this article, universal or
particular legatees are subject to a pro rata Therefore, we find that the trial court did not err in
reduction only when dispositions mortis causa failing to reduce the particular legacies or by
exceed the disposable portion or balance of the finding that Mrs. Rosenthal's legitime be satisfied
estate. In this case, the monetary dispositions from the balance of the estate. Therefore, these
made in the testament include a $2,000.00 cash assignments of error are without merit.
bequest to Janice Sturdevant and the oil and gas
royalties to Mr. Guenther, which we have
Eleventh Assignment of Error
determined have a date of death value of Mrs. Rosenthal contends that the trial court erred
$2,949.00. in applying La. C.C. art. 1512 to find that the
decedent expressed a preference that an
The enactment of La. C.C. art. 1502 in effect at undisclosed forced heir be paid from the balance
the time of Mrs. Linder's death provided, "any of the estate. This assignment of error, however, is
disposal of property, whether inter vivos or mortis rendered moot in light of our holding above that
causa, exceeding the quantum of which a person Mrs. Rosenthal's legitime can be satisfied from the
may legally dispose to the prejudice of the forced 20 balance of the estate. *20
heirs, is not null, but only reducible to that
quantum." Succession of Trahant, 76 So.2d 919 Seventh and Eight Assignments of
(La. 1954). In this case, the net estate is Error
19 $41,870.00, the *19 forced portion is $10,476.72, Rosenthal argues that as a forced heir, her legitime
and the disposable portion is $31,403.14. As should consist of an undivided one-fourth interest
depicted, there is no impingement on Mrs. in her mother's estate, and further asserts that her
10
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
one-fourth legitime should be satisfied, in part, by is itself subject to the forced heir's legitime.
rights to the mineral interests that Mrs. Linder Rather, the value of all assets should be considered
bequeathed to Mr. Guenther, the particular legatee. so that the forced portion can be calculated. La.
Thus, she essentially construes "undivided C.C. art. 1505 supports this conclusion.
interest" as the undivided asset rather than the Specifically, the language of subsection (B) states
undivided value of the asset. that the disposable quantum that is calculated,
after consideration of any forced heirs, uses the
At the time of Mrs. Linder's death, La. C.C. art.
"aggregate amount" as the bases for the
1493 provided, "[d]onations inter vivos or mortis
calculation, rather than the aggregate assets. La.
causa cannot exceed three-fourths if the property
C.C. art. 1505. Thus, Mrs. Rosenthal's contention
of the disposer, if he leaves, at his decease, one
that she is entitled to one-fourth of Mr. Guenther's
child; and one-half, if he leaves two or more
particular legacy, even though her portion may be
children." In addition, La. C.C. art. 1505 provides:
satisfied from the residuary is without merit.
A. To determine the reduction to which the 9 Edward E. Chase, Jr. LOUISIANA CIVIL
donations, either inter vivos or mortis LAW TREATISE: TRUSTS, § 11:1 (2d ed.
causa, are liable, an aggregate is formed of 2009).
all the property belonging to the donor or
the testator at the time of his death; to that The Louisiana Supreme Court explained in
is fictitiously added the property disposed Succession of Coste, 9 So. 62 (La. 1890) that
of by donation inter vivos, according to its particular legatees are never liable to contribute to
value at the time of the donor's decease, in the payment of debts or to satisfy the legitime
the state in which it was at the period of portion of the forced heir when there are other
the donation. assets out of which said charges can be satisfied.
B. The sums due by the estate are deducted There can be no residuum for residuary legatees or
from this aggregate amount and the legal heirs until the particular legacies are fully
disposable quantum is calculated on the acquitted. Id. Since Mrs. Rosenthal's forced
balance, taking into consideration the portion can be satisfied without disturbing the
number of forced heirs. particular legatee's bequeathal, namely Mr.
Guenther's mineral interests, there is no bases to
Mrs. Rosenthal claims that pursuant to La. C.C. disturb his bequest. Therefore, Mrs. Rosenthal's
art. 1493, La. C.C. art. 1505 requires the court to contention that she is entitled to one-fourth of the
determine the aggregate assets, and to then give oil and gas interests is without merit. And because
her an undivided one-fourth of those particular we have already determined that her legitime does
assets, rather than the value of the assets. Yet, not consist of Mr. Guenther's particular legacy, we
academic and judicial interpretation of the further find that she is not entitled to any past or
calculation of forced portions as it relates to future royalties produced from his specific
valuation of the estate does not support this 22 bequest. *22
argument. And there is nothing presented in Mrs.
Rosenthal's argument that the calculation of a Twelfth Assignment of Error
legitime must consist of the assets themselves, Next, Mrs. Rosenthal contends that the trial court
21 rather than the value of the assets. *21 erred by failing to award her interest from the day
The forced portion is part of the decedent's overall she opposed the disinherison and demanded her
estate.9 The estate is taken as a whole in order to legitime.
11
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
In Succession of Dittmar, 493 So.2d 221, 10 Mr. Guenther testified that estate's jewelry,
12
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
Circuit further elaborated on the succession does not warrant removal. It is "when this conflict
representative's fiduciary duty in Succession of becomes such that it is actively tainting the
Songne, supra, at 559 as follows: administration of the succession, [that] removal of
the executor becomes necessary." Mangle, supra,
[A] succession representative is a fiduciary
at 200.
of the succession and has the duty of
collecting, preserving, and managing the We first note that, contrary to Mrs. Rosenthal's
property of the succession in accordance assertion, Mr. Guenther does know what his
with law. La.Code Civ.P. art. 3191. She fiduciary duty entails. He testified that as executor,
must act, at all times, as a prudent he was responsible for collecting, maintaining, and
administrator, and she is personally protecting the Succession's assets. Mrs. Rosenthal
responsible for all damages resulting from maintains, however, that Mr. Guenther breached
her failure to so act. Id. This fiduciary duty 25 his fiduciary duty *25 by deciding to pay her
should be read expansively to pervade all legitime in cash rather than with a percentage of
of the representative's operations. La.Code the royalties. Yet, we have already determined that
Civ.P. art. 3191, comment (a). The court Mrs. Rosenthal is not entitled to Mr. Guenther's
may remove a succession representative legacy or any fruits thereof; therefore, there was
who has mismanaged the estate or who has no breach in this regard. Although this Court is
failed to perform any duty imposed by law. especially concerned with Mr. Guenther's failure
La.Code Civ.P. art. 3182. to return the oil and gas royalties once we vacated
Among the specific duties of the the judgment of possession, we do not find that
succession representative is the duty to this amounts to a breach of his fiduciary duty.
collect all succession funds and deposit Compare, Mangle, supra, (the executor failed to
them in a succession bank account as soon notify forced heirs concerning their entitlement to
as they are received. La.Code Civ.P. art. the forced portion); Langendorf v. Admin. Of
3222. The representative may be dismissed Tulane Ed. Fund, 361 So.2d 905 (La. 1978)
from office for failure to comply with this (executor devised a scheme to purchase estate
duty. Id. It is no defense under this article property, that belonged to heirs, for himself).
that the representative honestly believes
The record supports the conclusion that Mr.
that she has a claim to the funds not
Guenther has served as a prudent administrator of
deposited as required; she must first
the Succession — he has collected, preserved and
deposit succession funds in a succession
managed the estate's assets. Although Mr.
account, and only then may she properly
Guenther failed to update the final tableau with the
assert her claim thereto. Succession of
royalty payments received after 2004, the
Dykes, 258 So.2d 606 (La.App. 1 Cir.),
Succession's bank records reflect that the royalty
writs denied, 261 La. 533, 260 So.2d 319,
checks were, in fact, deposited into the bank
320 (1972).
account. There is no evidence that Mr. Guenther's
Fiduciaries owe the highest standard of care to actions have actively tainted the administration of
collect, preserve, and manage an estate's property. the succession. We, therefore, find that the trial
And as the court in Songne stated, they also owe a court did not err in finding that Mr. Guenther did
duty to the legatees. Although there is no not breach his fiduciary duty.
prohibition against a legatee serving as an estate's
executor, this dual role often times presents a Assignments of Error Fifteen,
conflict of interest — as it does here. We note, Sixteen, and Seventeen
however, that a mere conflict of interest in itself
13
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
Mrs. Rosenthal argues alternatively that all duty of collecting, preserving, and managing the
legacies in the testament lapsed due to the estate's property of the succession in accordance with law,
insolvency. She contends that the estate would and must act as a prudent administrator.11
have been insolvent if the trial court had not
11 La. C.C.P. art. 3191.
allowed Mr. Guenther to pay certain expenses
related to the Succession. We are unable, however, The testament giving Mr. Guenther the mineral
to find any authority which prohibits a legatee rights at issue and naming Mr. Guenther, the
from electing to pay expenses from his/her legacy. decedent's CPA, as executor was filed for probate
Therefore, we find no basis to disturb the trial on December 6, 1994. Mr. Guenther's second
court's judgment which found the estate to be action was to file a rule to show cause why Mrs.
26 solvent on the date of death. *26 Rosenthal should not suffer disinheritance. That
was denied by the trial court because, at the time
Based on the foregoing, the trial court judgment is
of the death, Mrs. Rosenthal was a forced heir.
affirmed. Mr. Guenther is ordered to return the
After the testament was upheld as to form, Mr.
money he removed from the Succession account
Guenther filed the Petition for Final Tableau of
until a valid judgment of possession is rendered.
Distribution, alleging that Mrs. Rosenthal was not
He is further ordered to update the final tableau of
entitled to collect any amounts as forced heir
distribution to reflect all funds the Succession has
because the estate's liabilities exceeded its assets.
received.
The petition valued decedent's mineral interests at
AFFIRMED; REMAND FOR 28 $2,000. The liabilities included *28 $131,065.89
PROCEEDINGS CONSISTENT WITH THIS for bookkeeping, legal, and executor costs.12 The
27 OPINION *27 petition also stated that Mrs. Rosenthal should not
receive any distribution because she failed to
SUCCESSION OF ROSALIE
make a timely claim for reduction of excessive
BIGMAN LINDER donations.
NO. 11-CA-633 12 Subsequently, Mr. Guenther agreed to
14
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
15
In re Succession of Linder NO. 11-CA-633 (La. Ct. App. May. 22, 2012)
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