Opinion
No. 305902
09-13-2012
In re Estate of RUDY JAUW. RONALD R. JAUW, Petitioner-Appellee, v. MONIQUE M. JAUW, Respondent-Appellant.
UNPUBLISHED
Kent Probate Court
LC No. 10-189352-DE
Before: WILDER, P.J., and O’CONNELL and K. F. KELLY, JJ. PER CURIAM.
Respondent, Monique M. Jauw, appeals as of right from an order granting petitioner, Ronald R. Jauw, summary disposition on Ronald's petition for an order confirming construction of the will. We affirm.
I. BASIC FACTS
The testator had three grown children at the time of his October 11, 2010 death - Ronald, Monique, and Paul, a developmentally disabled individual. On November 30, 2007, the testator executed a will appointing Ronald as personal representative. The will included a provision for the appointment of a guardian and conservator for Paul:
I am mindful that my daughter, Monique M. Jauw, may wish to seek appointment as the guardian and conservator for my son, Paul P. Jauw and it is my specific direction that Monique M. Jauw shall not serve in any capacity as the guardian or conservator for my son, Paul P. Jauw.Under the will, Monique was to receive thirty-three percent of the residue of the estate. However, the will contained a "no contest or forfeiture" provision, which provided:
If any beneficiary of this Will shall contest the validity of this Will or any provision [of] this Will, or shall institute or directly or indirectly join in (except as a party defendant) any proceeding to contest the validity of this Will or to prevent any provision thereof from being carried out in accordance with its terms
(regardless of whether or not such proceedings are instituted in good faith and with probable cause), then all benefits provided for the beneficiary and the descendants of the beneficiary under this Will are revoked and such benefits shall be administered as if the person or those persons contesting any part of this Will and all of their descendants had predeceased me, and none of them shall have any beneficial interest in this Will.
Specifically, if Monique M. Jauw shall contest the provisions of this Will concerning the appointment of individuals other than herself as Trustee of the Jauw Family Amenities Trust or as guardian or conservator of my son Paul P. Jauw, then all benefits provided for Monique M. Jauw and her descendants shall be revoked.
On March 25, 2011, Ronald filed a petition for order confirming construction of the will. The petition alleged that shortly after the testator's death, Monique sought and obtained appointment as plenary guardian of Paul. Attorneys for testator's estate advised Monique that they believed she was acting contrary to her father's express wishes and that her continued appointment as Paul's guardian would result in forfeiture of her interest under the will. Nevertheless, Monique continued serving as Paul's guardian. As a result, Ronald, as personal representative of his father's estate, moved the probate court to confirm that: 1) the devise to Monique in the will was conditional on her not serving in any capacity as Paul's guardian; 2) the will clearly barred the personal representative from distributing any share of the residuary to Monique unless she resigned as guardian before the estate was fully administered; and 3) unless Monique resigned as guardian, her share would be added to and held in the Jauw Family Trust.
In response, Monique argued that she had not violated the forfeiture provision of the will because she did not do anything to "contest" the provisions of her father's will. Monique explained that she was previously appointed successor plenary guardian and that after her father's death she had a legal duty to obtain an order confirming her status as plenary guardian. Even assuming that her acceptance of the probate court's appointment constituted a "contest" to her father's will, Monique had probable cause for instituting proceedings and the forfeiture provision of her father's will was unenforceable pursuant to MCL 700.2518 and MCL 700.3905.
MCL 700.2518 provides: "A provision in a will purporting to penalize an interested person for contesting the will or instituting other proceedings relating to the estate is unenforceable if probable cause exists for instituting proceedings."
MCL 700.3905 provides: "In accordance with section 2518, a provision in a will purporting to penalize an interested person for contesting the will or instituting another proceeding relating to the estate shall not be given effect if probable cause exists for instituting a proceeding contesting the will or another proceeding relating to the estate."
On June 3, 2011, Ronald filed a motion for summary disposition pursuant to MCR 2.116(C)(10), arguing that the will unambiguously imposed a condition on the devise to Monique. The will prohibits Monique from serving in any capacity as Paul's guardian. Monique's willful disregard of her father's wishes divested her of her share of the residue. Contrary to Monique's contention, she affirmatively sought and obtained appointment by the probate court to become Paul's plenary guardian - a clear attempt to frustrate the testator's desire. Monique's claim that there was no "contest" is hyper technical; the fact remains that she is acting in contravention of her father's wishes. Continuing to serve as Paul's guardian is Monique's prerogative; however, the consequence of doing so is forfeiture of her portion of the residue. Neither MCL 700.2518 nor MCL 700.3905 provide any basis for relief where Monique could not in good conscience argue that she had probable cause to contest any portion of her father's will.
On June 17, 2011, Monique filed her own motion for summary disposition pursuant to MCR 2.116(C)(8) and (C)(10). She argued that the probate court's order appointing her as plenary guardian superseded her father's designation in the will. Instead of seeking to modify the guardianship via Michigan's Mental Health Code, Ronald was strong-arming Monique into breaching her fiduciary obligation to her developmentally disabled brother by threatening to divest her of her share of residue. Thus, while framing this action as a petition to confirm construction of the will, Ronald's desire was to have Monique removed as Paul's guardian. In so doing, Ronald was asking the court to disregard its own judicial authority.
See MCL 330.1637(1), which provides, in part, "[t]he individual with a developmental disability, the individual's guardian, or any interested person on his or her behalf may petition the court for a discharge or modification order under this section."
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A hearing on the competing motions for summary disposition was held on July 6, 2011. After listening to the parties' arguments, the trial court found that "[t]he will is not ambiguous." The court noted that the testator had the right to dispose of his property as he saw fit and to attach a condition subsequent to his devise. The court believed that Monique's act of accepting the plenary guardianship was a contest of her father's will and that she did not have probable cause to do so. On August 5, 2011, the trial court entered an order granting Ronald's motion for summary disposition.
Monique now appeals as of right.
II. ANALYSIS
Monique argues that the trial court erred in concluding that she forfeited her share of the residue by continuing to act as Paul's guardian. We disagree and conclude that the trial court correctly entered summary judgment in Ronald's favor.
We review de novo a trial court's ruling on a summary disposition motion. Dancey v Travelers Prop Cas Co, 288 Mich App 1, 7; 792 NW2d 372 (2010). "Summary disposition is appropriate under MCR 2.116(C)(10) if there is no genuine issue regarding any material fact and the moving party is entitled to judgment as a matter of law." West v Gen Motors Corp, 469 Mich 177, 183; 665 NW2d 468 (2003).
"[A] probate court's construction of a will is a question of law subject to de novo review." In re Raymond Estate, 483 Mich 48, 53, 764 N.W.2d 1 (2009).
"The primary goal of the Court in construing a will is to effectuate, to the extent consistent with the law, the intent of the testator." Raymond, 483 Mich at 52 quoting In re Edgar Estate, 425 Mich 364, 378; 389 NW2d 696 (1986). It is incumbent upon a probate court to execute the intent of the testator regarding the distribution of the estate, especially where the intent has been expressed in the lawful provisions of a will. In re Howlett's Estate, 275 Mich 596, 600-601; 267 NW 743 (1936). The testator's intent is to be determined from the four corners of the will. Id. at 601. If the plain language of the will is unambiguous, "the Court is to enforce the will as written." Raymond, 483 Mich at 52. Because a testator is free to dispose of his property as he sees fit, the intent of the testator is the "guiding polar star." Id. at 58. Once the testator's intent is discovered, "it is the duty of the court to give that intention effect if that be legally possible." Id. quoting In re Scheyer's Estate, 336 Mich 645, 649; 59 NW2d 33 (1953).
The testator could not have been clearer. Monique was not to serve as Paul's guardian if she intended to take under the will.
• Article 3 of the will provides: "I am mindful that my daughter, Monique M. Jauw, may wish to seek appointment as the guardian and conservator for my son, Paul P. Jauw and it is my specific direction that Monique M. Jauw shall not serve in any capacity as the guardian or conservator for my son, Paul P. Jauw." [Emphasis added.]
• Article 4 provides: "[I]f Monique M. Jauw shall contest the provisions of this Will concerning the appointment of individuals other than herself as Trustee of the Jauw Family Amenities Trust or as guardian or conservator of my son Paul P. Jauw, then all benefits provided for Monique M. Jauw and her descendants shall be revoked."
• Also, Article 2.3(B) regarding the Jauw Family Amenities Trust, authorizes the trustee "to retain counsel, physicians, or other medical or legal experts to oppose any attempt by my daughter, Monique M. Jauw, to contest this Will, to appoint Monique M. Jauw as a Trustee of the Jauw Family Amenities Trust, or to appoint Monique M. Jauw as the guardian or conservator for my son, Paul P. Jauw."
The trial court noted that the testator had the right to dispose of his property as he saw fit and to attach a condition subsequent to his devise. It compared the two paragraphs in the forfeiture provision:
[The first paragraph] is a much broader provision than the second paragraph that talks about the contest of the will by Ms. Jauw regarding both serving as trustee or guardian or conservator. But I believe Ms. Jauw has fallen into the provisions of that first broad paragraph.The trial court concluded that, in acting as Paul's guardian, Monique forfeited her share under the will:
And the reason the Court believes that is she has taken an affirmative act to thwart the desire of her father in that provision of the will by executing an acceptance of trust in the DD guardianship of her disabled brother.
The condition I think is clear . . . Ms. Jauw had a right to decline to serve as the successor guardian, and her motivation really is unimportant in a legal sense to this case.
And, again, I take the filing of the acceptance as an affirmative act . . . because there are many ways to trigger the penalties of the no contest clause. You can either directly or indirectly join in any proceeding to contest the validity of the will or to prevent any provision thereof from being carried out in accordance with its terms.
The provision was I don't want Monique to serve. If you serve in that capacity, the devise is lost. The act of Ms. Monique Jauw in executing the acceptance is an affirmative act which either directly or indirectly prevents the provision of Mr. Jauw's will from being carried out. I find no probable cause exists to contest the provision in the will.
The trial court's findings are supported by the unassailable terms of the will. Monique could not serve as Paul's guardian and take under the will. A condition subsequent is a condition that, if not met by one party, abrogates the other party's obligation to perform. Archambo v Lawyers Title Ins Corp, 466 Mich 402, 411-412; 646 NW2d 170 (2002). Monique's interest in the residue vested immediately, but was subject to divestment upon her becoming Paul's plenary guardian. There is simply no other way to read the will.
Monique argues that she took no affirmative step to contest the will and that she merely accepted her obligation to serve as plenary guardian because she was named as successor in the event of her father's death. The argument is disingenuous. As the trial court noted, Monique filed an acceptance of the appointment - an affirmative act. She could have just as easily declined the appointment. By accepting the appointment, Monique clearly frustrated the testator's intent and acted in such a way that thwarted his wishes.
Although Monique claims that only the second paragraph of the forfeiture provision applied to her because it was the more specific of the two clauses, she cites only to a notion in contract law that general provisions of a contract must yield to specific provisions. We are not convinced that such a notion has a place in the context of this case. While it is true that "[t]he rules in interpreting contracts are equally applicable to interpreting wills," it is also true that "[a] cardinal principle of construction is that a contract is to be construed as a whole, and all parts are to be harmonized as far as possible. Every word must be taken to have been used for a purpose and no word should be taken as surplusage if the court can discover any reasonable purpose for it which can be gathered from the whole instrument." Czapp v Cox, 179 Mich App 216; 445 NW2d 218 (1989). Again, the polar star in will construction is the testator's intent. The testator was clear that Monique not serve as Paul's guardian if she hoped to take under the will. Where Monique sought to frustrate the testator's intent, the general forfeiture paragraph applied. A testator may "direct forfeiture of the legacy of one who, by indirection, seeks to harass or frustrate his will." Saier v Saier, 366 Mich 515, 521; 115 NW2d 279 (1962). Accordingly, the trial court did not err in concluding that Monique triggered the first paragraph by preventing provisions of the will from being carried out in accordance with the terms thereof.
Monique next argues that even if she "contested" the will by accepting plenary guardianship, she acted in good faith and with probable cause such that the forfeiture provision was unenforceable pursuant to MCL 700.2518 and MCL 700.3905. We disagree.
In Schiffer v Brenton, 247 Mich 512; 226 NW 253 (1929), the Supreme Court held that no-contest clauses in wills were valid and enforceable, regardless of whether the will contestant acted in good faith because "[s]uch provisions serve a wise purpose; they discourage a child from precipitating expensive litigation against the estate, and encourage and reward other children in their effort to sustain their parent's disposition of his property if such contest is precipitated; they discourage family strife, they discourage litigation, and the law abhors litigation." Id. at 519. However, in 1998, the Legislature enacted MCL 700.2518, which provides that "[a] provision in a will purporting to penalize an interested person for contesting the will or instituting other proceedings relating to the estate is unenforceable if probable cause exists for instituting proceedings." Unlike in the past, a no-contest clause in a will is unenforceable if probable cause exists for instituting proceedings. "'Probable cause exists when, at the time of instituting the proceeding, there was evidence that would lead a reasonable person, properly informed and advised, to conclude that there was a substantial likelihood that the challenge would be successful.'" In re Griffin Trust, 281 Mich App 532, 540; 760 NW2d 318 (2008) rev'd on other grounds 483 Mich 1031 (2009) quoting 2 Restatement Property, 3d, Wills and Other Donative Transfers, § 8.5, comment c, p. 195.
Monique's inheritance was clearly conditioned upon her not serving in any capacity as Paul's guardian or conservator. Given the clear and unequivocal intent of the testator, there was no basis for Monique to believe that there was a substantial likelihood that her challenge would be successful. Accordingly, the forfeiture provision is enforceable against Monique.
Finally, there is no support for Monique's claim that Ronald's motivation was to have her removed as guardian. It must be stressed that the trial court did nothing to remove Monique as guardian; instead, the trial court only found that Monique was in violation of her father's wishes and, as such, would not be able to take under the will. The trial court did not disregard its own judicial authority. Monique must now decide whether she would like to remain Paul's plenary guardian or whether she would like to share in her portion of the residue. But she may not do both based on the clear and unequivocal language of the will.
Affirmed.
Kurtis T. Wilder
Peter D. O'Connell
Kirsten Frank Kelly