John Chelson v. Ellen Peterson
Published: Nov. 8, 1997 | Result Date: Oct. 1, 1997 | Filing Date: Jan. 1, 1900 |Case number: VC022559 – $5,325
Judge
Court
L.A. Superior Norwalk
Attorneys
Plaintiff
Defendant
Gregory M. Bordo
(Blank Rome LLP)
Gregory M. Bordo
(Blank Rome LLP)
Facts
Clarence and Ellen Peterson took their brother Walter Peterson to a bank where Walter signed a durable Power of Attorney, giving his brother and sister-in-law Ellen, broad powers once Walter became incapacitated. Clarence and Ellen had previously moved Walter to a care facility because of Walter's deteriorating health. Subsequently, Walter established a living trust for his benefit. Walter signed his trust as did Clarence and Ellen as holders of the power of attorney. Clarence died a year later, leaving Ellen to care for Walter. Walter died eight months later. According to the provisions of Walter's trust, his assets were to be used to fund a charitable foundation to honor Walter and his deceased wife, Alma. Walter's estate, before taxes, totaled about $800,000. Ellen served on the board of Walter's and Alma's charitable foundation. Years later, Ellen died. Her granddaughter, Cynthia Weber, found a copy of Walter's old will in Ellen's records. Walter had executed the will before he established his living trust. Weber sent Walter's will to certain beneficiaries named in the old will, along with a letter in which she indirectly accused Ellen of subverting Walter's desires. The beneficiaries then brought suit seeking to terminate the charitable trust and nullify the Walter and Alma Peterson foundation. The plaintiff John Chelson, as administrator of the Estate of Walter Peterson, brought this action against the defendants, Ellen Peterson, the Walter and Alma Peterson Support Foundation and the state Attorney General Dan Lungren based on conversion, constructive trust and breach of fiduciary duty. The plaintiff claimed that Ellen breached the fiduciary duty as holders of Walter's Power of Attorney. The plaintiff also contended that any amounts which the foundation gave to charity should be accounted for and given to them by tapping into Ellen's estate assets. The defendants contended that a power of attorney could not be used by the holders to create a trust which changed the ultimate beneficiaries of Walter's estate.
Settlement Discussions
The plaintiff made a settlement demand for $1.2 million. The defendants jointly offered $500,000 plus benefits.
Result
Costs to defendants were awarded as follows: $3,290 (to defendants, Ellen Peterson trustees and successors); $2,037 (to defendant Walter and Alma Peterson Foundation).
Other Information
The award was rendered approximately one year after the case was filed. A settlement conference was held on June 19, 1997 before Judge C. Robert Simpson of the Norwalk Superior Court. It did not resolve the matter.
Deliberation
______ hours
Poll
______ (# PLS.)
Length
four days
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