SAMUEL D. PERRY, TRUSTEE OF THE SEYBURN LEONARD AGNEW TRUST DATED DECEMBER 7, 1999, APPELLANT,
v.
DOUGLAS AGNEW, STEVEN AGNEW, AND ROGER AGNEW, APPELLEES
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The court reversed a circuit court's denial of a motion to dismiss for improper venue, holding that a trust litigation must follow the statutory venue requirements of Florida Statutes section 737.203 rather than common law principles. Because the trust's principal place of administration was in Massachusetts, the Massachusetts courts were the proper forum unless all interested parties could not be bound by litigation there.
The court held that venue is governed by Florida Statutes section 737.203, which prohibits Florida courts from entertaining trust proceedings when the trust has its principal place of administration in another state unless all interested parties cannot be bound by litigation in the foreign state. The circuit court erred in applying common law situs principles and in relying on the choice-of-law provision to confer venue.
[1] A trust's principal place of administration is generally the trustee's usual place of business where trust records are kept, unless otherwise designated in the trust agre…
[2] A court shall not entertain proceedings concerning a trust with its principal place of administration in another state, over the objection of a party, unless all interest…
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Section 737.101(1) provides that "[u]nless otherwise designated in the trust agreement, the principal place of administration of a trust is the trustee's usual place of business where the records pertaining to the trust are kept...."”
Establishes the statutory definition of principal place of administration, which determines venue under section 737.203.
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Join FLexlaw to unlock all legal intelligenceSamuel D. Perry, the trustee of the Seyburn Leonard Agnew Trust, administers the trust from his office in Boston, Massachusetts, where all trust recor…
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NORTHCUTT, Judge.
When three beneficiaries of the Seyburn Leonard Agnew Trust sued the trustee in Charlotte County, Florida, the trustee moved to dismiss for improper venue. The circuit court denied the motion. We reverse because the court failed to apply the controlling statute.
The beneficiaries, Douglas Agnew, Steven Agnew, and Roger Agnew, filed a complaint under section 737.201, Florida Statutes (2003), alleging that the trustee, Samuel D. Perry, had breached his fiduciary duties and seeking an accounting and removal of Perry as trustee. The com plaint alleged that Douglas Agnew is a resident of Florida, Steven Agnew is a resident of Illinois, and Roger Agnew is a resident of Texas. The beneficiaries atr tached to their complaint a copy of the trust agreement, which provides in part that it is to be governed by Florida law. The trustee moved to dismiss pursuant to section 737.203, and he filed an. affidavit asserting that he administers the trust from his office in Boston, Massachusetts, and that all trust records are located there.
At the hearing on the motion, the trustee argued that the trust’s principal place of administration is in Massachusetts and, thus, Massachusetts is a more convenient forum for this litigation. The beneficiaries argued for application of the common law rule that the situs of a trust is where the settlor resides and administers the trust. They also argued that the trust’s choice-of-law provision takes the trust out of the operation of section 737.203. The circuit court agreed and denied the trustee’s motion to dismiss.
Section 737.101(1) provides that “[ujnless otherwise designated in the trust agreement, the principal place of administration of a trust is the trustee’s usual place of business where the records pertaining to the trust are kept....” The undisputed evidence in this case established that the trust is administered by Perry in Massachusetts.
Section 737.203 provides, in pertinent part:
Over the objection of a party, the court shall not entertain proceedings under s. 737.201 for a trust ... having its principal place of administration in another state unless all interested parties could not be bound by litigation in the courts of the state where the trust ... has its principal place of administration.
This statute is in the nature of a venue provision. Levine v. Steiger, 765 So. 2d 249, 250 (Fla. 4th DCA 2000) (citing In re Estate of McMillian, 603 So. 2d 685 (Fla. 1st DCA 1992)).
The beneficiaries rely on Henderson v. Usher, 118 Fla. 688, 160 So. 9 (1935), which addressed the validity of constructive service over a nonresident beneficiary when the trust res was not physically located in Florida. The court found that constructive service was sufficient based on the settled rule “that an inter vivos trust' has its situs at the residence of the creator of the trust even though he subsequently removes to the state where the trustees and beneficiaries reside and dies there.” Id. at 11. Henderson was a case involving jurisdiction, not venue, and it predated the 1974 enactment of section 737.203, see ch. 74-106, Laws of Fla. Therefore, Henderson does not control.
The beneficiaries also rely on the choice-of-law provision in the trust agreement, but this provision does not designate Florida as the principal place of the trust’s administration. See § 737.101(1) (defining principal place of trust administration when not - otherwise designated in trust agreement).
Because the trust’s principal place of administration is in Massachusetts, the circuit court erred by failing to follow the dictates of section 737.203. Accordingly, we reverse and remand for the court to determine whether all interested parties could be bound by litigation in Massachusetts. If so, the court shall continue, stay, or dismiss the suit as required by this statute.
Reversed and remanded.
CASANUEVA and LaROSE, JJ., Concur.
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Meyer v. Meyer, 931 So. 2d 268 (Fla. 5th DCA 2006)…rties were referred to the court of registration.... [T]he issue is essentially only one of forum non conve-niens in having litigation proceed in the most appropriate forum. This is the function of this section. Id. at 688; see also Perry v. Agnew, 903 So. 2d 376, 377 (Fla. 2d DCA 2005); Levine. Hence, when there is a possibility of litigating in more than one forum, section 737.203 recognizes that trust litigation should proceed in the most appropriate forum. See Levine; In re Estate of McMillian. This is t…
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Simons v. Odebrecht, 926 So. 2d 426 (Fla. 3d DCA 2006)…PER CURIAM. Affirmed. Perry v. Agnew, 903 So. 2d 376 (Fla. 2d DCA 2005).…
Authorities Cited
- Henderson v. Usher, 118 Fla. 688 (Fla. 1935)
- In re Est. OF Opal E. McMILLIAN v. Eastpoint Cmty. Action Comm., Inc., 603 So. 2d 685 (Fla. 1st DCA 1992)
- Levine v. Steiger, 765 So. 2d 249 (Fla. 4th DCA 2000)