On September 13, the San Francisco Superior Court in Probate ordered the Richard Blum Trust case (Feinstein) to mediation. There are actually two related cases, both of which were ordered to mediation.

It is very early in both cases, but the Court nevertheless ordered both cases to mediation. The cases were filed in late June and in early August, 2023. It appears that there has been no discovery. I do believe that more parties should engage in mediation earlier in cases, and then also a second or third time if that case still has not settled and if settlement appears reasonably possible.

In Blum Trust (Feinstein) the allegations are serious but not unusual for trust litigation pleading, including a petition to compel accounting, to instruct the trustees to fund the marital trust, for breach of trust, to set aside the acts of the trustees, to disgorge and reduce the trustees’ compensation, to suspend and remove the trustees, for financial elder abuse, and to prohibit the trustees from using the trust funds.

Settlement might reasonably be possible if the parties really do not want to have to litigate the claims in public; however, there might be significant issues of law and fact (evidence), and the history of the relationships and interactions might also be relevant. It is also possible that discovery could be needed on some issues and claims before the case is ready for resolution; however, if a case does not settle, often mediation still can be worthwhile to get the parties communicating and discussing and perhaps agreeing on next steps, possible issues relating to the pleadings, and discovery to occur. The law firms that are involved in the cases are well-known and experienced. It appears that there are sufficient assets available. I would say that although it is early in both cases, attending a mediation is worthwhile.  

In Blum Trust (Feinstein) the Court ordered the cases to mediation based on the authority provided in Breslin v. Breslin (2021) 62 Cal. App. 5th 801, 806, in which the court held that the probate court has the power to order the parties into mediation (citing California Probate Code §17206). In Breslin a detailed notice was served on the parties informing them that the court had ordered the parties to mediation – subsequently when a party did not attend and participate in the court-ordered mediation the terms of the mediated settlement agreement that was reached between the parties who did attend the mediation were held to also be binding against the party who failed to attend and participate in the court-ordered mediation. Thus, if you are ordered to mediation, you need to attend and participate in good faith.

In the Blum Trust (Feinstein) cases the Court has ordered the mediation to be completed by December 11, 2023, and the parties are ordered to notify the Probate Examiner of the outcome of the mediation by December 18, 2023, with a follow up new Court hearing date on January 22, 2024.

Good luck to all in the mediation.

I have attached below my paper discussing questions to consider to help facilitate legal dispute resolution and settlement.

 

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Thank you for viewing this discussion. Please do pass this blog and blog post and information to other people who would be interested as it is only through collaboration and sharing that great things and success are more quickly achieved. If you are interested in discussing anything that I have said in the discussion above or in either of my two blogs (see blog addresses below), or if you simply want to reach out or are seeking assistance, it is best to reach me by email at dave@tateattorney.com.

David Tate, Esq. (and inactive CPA)

• Business litigation and disputes – business, breach of contract/commercial, co-owners, shareholders, investors, founders, workplace and employment, environmental, D&O, governance, boards and committees.
• Trust, estate and probate court litigation and disputes – trust, estate, probate, elder and dependent abuse, conservatorship, POA, real property, mental health and care, mental capacity, undue influence, conflicts of interest, and contentious administrations.
• Governance, boards, audit and governance committees, investigations, auditing, ESG, etc.
• Mediator and facilitating dispute resolution (evaluative and facilitative):
  • Trust, estate, probate, conservatorship, elder and dependent abuse, etc.
  • Business, breach of contract/commercial, owner, shareholder, investor, etc.
  • D&O, board, audit and governance committee, accountant and CPA related.
  • Other: workplace and employment, environmental, trade secret.

Remember, every case and situation is different. It is important to obtain and evaluate all of the evidence that is available, and to apply that evidence to the applicable standards and laws. You do need to consult with an attorney and other professionals about your particular situation. This post is not a solicitation for legal or other services inside of or outside of California, and, of course, this post only is a summary of information that changes from time to time, and does not apply to any particular situation or to your specific situation. So . . . you cannot rely on this post for your situation or as legal or other professional advice or representation, or as or for my opinions and views on the subject matter.

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http://tateattorney.com – business, D&O, audit committee, governance, compliance, etc. – previously at http://auditcommitteeupdate.com

Trust, estate, conservatorship, elder and elder abuse, etc. litigation and contentious administrations http://californiaestatetrust.com

David Tate, Esq. (and inactive California CPA) – practicing only as an attorney in California.