LILBURN R. RAILEY, JR., APPELLANT,
v.
ALPHA RAILEY MILAM SKAGGS AND MARY WELLS MILAM, INDIVIDUALLY AND AS TRUSTEES UNDER THE WILL OF FLEMING G. RAILEY, DECEASED; ALPHA W. RAILEY AND MARCUS A. MILAM, APPELLEES

Fla. 3d DCA | 1969-03-04
No. 68-573
Before CHARLES CARROLL, C. J., and PEARSON and HENDRY, JJ.
220 So. 2d 689 Florida District Court of Appeal, Third District (1969) Positive Treatment
Cited by 5 cases

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Synopsis

Lilburn Railey appealed the dismissal of his Second Amended Petition seeking removal of trustees of his uncle's estate trusts. The Florida District Court of Appeal reversed the dismissal, holding that Railey stated valid causes of action for breach of fiduciary duty and had standing to challenge the trustees' actions as a remainderman beneficiary.


Holding

The court held that both Count I and Count II of the Second Amended Petition stated valid causes of action—Count II for breach of fiduciary duty based on wrongful and coercive activities, and Count I for construction of trust provisions regarding asset distribution. The petition was not defective under the pleading rules because the trust instrument, not the proposed agreement, was the document upon which the cause of action was premised. Railey had standing to sue because his contingent interest as a remainderman qualified him as a beneficiary under Florida law.


Key Quotes

“These allegations certainly present a charge of failure by the trustees to comply with that standard of good faith which is universally applied to fiduciary officers administering trusts.”

Establishes the legal standard that trustees must comply with a fiduciary duty of good faith in administering trusts.

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Facts & Procedural History

Fleming G. Railey established trusts through his will. Lilburn Railey, named as a remainderman beneficiary, filed suit alleging that the trustees prop…

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Opinion of the Court
PER CURIAM.

PER CURIAM.

This is an appeal from an order entered by the Circuit Court of Dade County in which the second count of a Second Amended Petition of the appellant *690was dismissed with prejudice. The issues presented are predicated on a complex set of factual and procedural circumstances, those pertinent hereto being as follows.

The appellant’s uncle, Fleming G. Railey, deceased, was the settlor of a certain set of trusts established by his will. The appellant, by this action, has sought to remove certain of the trustees of those trusts. The allegations which formed the grounds for such removal were contained in his Second Amended Petition. The trial court predicated its dismissal of that petition upon three reasons, each of which we shall now examine separately. An order of the trial court, while not stating the grounds for dismissal, was entered upon the ap-pellee’s Motion To Dismiss the second count for failure to state a cause of action. Count II (which incorporates the allegations of Count I) need not be set forth in complete detail here; however, suffice it to say that we have examined the allegations contained therein, and find them to be sufficient to state a cause of action for the removal of the trustees. Broadly speaking, Count II relates to certain wrongful and coercive activities alleged to have been carried on by the trustees.1 These allegations certainly present a charge of failure by the trustees to comply with that standard of good faith which is universally applied to fiduciary officers administering trusts. See 54 Am.Jur. Trusts § 311.

Also contained in the appellee’s Motion To Dismiss Count II of the Second Amended Petition is the defense that the Second Amended Petition is defective for failure to comply with F.R.C.P. 1.130(a), 30 F.S.A., in that the Petition failed to identify or attach a copy of a certain proposed agreement, supra, note 1, which the appellant contends is representative of a breach of fiduciary responsibility. However, Rule 1.130(a) does not relate to the proposed agreement because that rule of pleading, by its very words, is meant to include those documents upon which an action is being brought. Here, the proposed agreement is material as evidence of the alleged abuse of fiduciary power; the document upon which the cause of action is premised is the trust instrument itself. Thus, the Second Amended Petition was not defective with regard to F.R.C.P. 1.130(a).

As a third means of attack on the court’s order, appellant has raised the issue of whether the court abused its discretion by dismissing with prejudice.

Although this point becomes moot with regard to Count II of the Second Amended Petition, when viewed with our holding as to the validity of the cause of action stated in Count II, supra, it is nevertheless important for another reason. The record shows that the court entered two separate orders, both dated May 13, 1968, one directed to Count II of the Second_ Amended Petition, and the other dismissing the entire cause with prejudice. The appellant did not directly raise issue as to the court’s disposition of Count I of the Second Amended Petition, but since the appellant did question the propriety of that order dismissing the entire cause, we may *691therefore rule on the validity of Count 1.2 Count I is hereby held to state a valid cause of action, requiring the court to construe a certain provision of the trust instrument, and rule on the disbursements of assets in connection therewith.

Finally, appellant has asked that we determine whether his beneficial position in relation to the trust gives him standing to maintain this action for removal of the trustees. The right to maintain an action for removal of trustees is vested by statute, § 737.18 Fla.Stat., F.S.A. Whether appellant is a beneficiary within the statutory meaning depends on the nature of his interest in the trust. His particular beneficial interest arises under a provision in the trust3 which names those specific remaindermen entitled to share in the disposition of that trust’s principal upon the death of the presently vested beneficiary. (There is a further provision for per stripes distribution in the event of the death of any of these remaindermen.) In addition, § 737.01 Fla.Stat., F.S.A., provides that the word, “beneficiary”, shall mean any person having any interest, vested or contingent, in a trust fund. Thus, the appellant clearly appears to have demonstrated sufficient interest to comply with § 737.18, supra, and thereby has standing to bring this action for removal of the trustees.

Based upon the foregoing reasons, therefore, the order being appealed is hereby reversed.


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Citator

Cited By

  • Kunce v. Robinson, 469 So. 2d 874 (Fla. 3d DCA 1985)
    …); G. Bogert, Trusts and Trustees, §§ 161 n. 16, 162 n. 57 (rev. 2d ed. 1979); 2 A. Scott, The Law of Trusts § 122 (1967); 1 Restatement (Second) of Trusts § 122 (1959); see Estate of Stewart v. Caldwell, 271 So. 2d 754 (Fla.1973); Railey v. Skaggs, 220 So. 2d 689 (Fla. 3d DCA 1969). While this determination is virtually self-evident, what should legally follow from it is not nearly so clear. In several cases, indefiniteness in the dispositive provision of an instrument has been held to invalidate the entire…
  • …, 27 Misc.2d 407, 211 N.Y.S.2d 583 (Sur.Ct.1960); In re Bloomingdale’s Estate, 171 Misc. 31, 11 N.Y.S.2d 808 (Sur.Ct.1938). . See generally, 54 Am.Jur.Trusts § 311; See also, Ball v. Hopkins, 268 Mass. 260, 167 N.E. 338 (1929). . Railey v. Skaggs, 220 So. 2d 689 (Fla.App.3d 1969); Goldberg v. Goldberg, 217 Cal.App.2d 623, 32 Cal.Rptr. 93 (Cal.App.2d 1963); Becker v. Becker, 56 Wis.2d 356, 202 N.W. 2d 681 (1972).…
  • Freeman v. ROZ Berrin (Fla. 2d DCA 2022)
    …of a Temporary Injunction Although not raised by the parties, the majority concludes that the trial court had common law authority to grant temporary injunctive relief removing Freeman as the trustee of the Fiddlesticks Trust. Cf. Railey v. Skaggs, 220 So. 2d 689, 690 (Fla. 3d DCA 1969); Restatement 3d Trusts § 37 ("A trustee may be removed (a) in accordance with the terms of the trust; or (b) for cause by a proper court."). While the parties discuss the elements generally applicable to temporary injunction…

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