Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-00672/USCOURTS-azd-2_12-cv-00672-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1441 Petition for Removal- Contract Dispute

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WO 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA 

John R. McGovern, 

Petitioner, 

vs. 

Richard J. Braun, 

Respondent.

No. CV-12-672-PHX-GMS

ORDER 

 

 

 Pending before the Court is Petitioner’s Motion to Remand to State Court (Doc. 

5). For the reasons discussed below, Petitioner’s motion is granted. 

BACKGROUND 

O.R. Braun was the fourth husband of Dorothy G. Braun. O.R. had three children 

from a prior marriage, namely Richard J. Braun, William D. Braun, and Gregg P. Braun, 

who is deceased. Richard is the Respondent in this action. Dorothy had one child from a 

prior marriage, namely Robert N. McGovern. Robert is deceased but is survived by three 

children: John R. McGovern, Lisa M. McGovern, and Michael T. McGovern. John is the 

Petitioner in this action. O.R. and Dorothy had no children common to their marriage. 

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 On April 16, 1987, O.R. created the Braun Revocable Living Trust (the “Braun 

Trust”) to administer his assets. On December 4, 1992, Dorothy created the Dorothy G. 

Braun Revocable Living Trust (“Dorothy’s Trust”) to administer her assets. 

 Dorothy owned real property in Paradise Valley, Arizona, which was her sole and 

separate property. On October 27, 2000, Dorothy sold this property. In December 2000, 

Dorothy used $510,922 of the proceeds from the sale of her property to pay the entrance 

fee to a residential care facility for her and O.R. Under the terms of the contract, upon the 

death of the survivor of Dorothy and O.R., a portion of the entrance fee was to be 

refunded (the “Refundable Entrance Fee”). 

 On September 2, 2003, Dorothy died. After Dorothy’s death, O.R. amended the 

Braun Trust via a document entitled the Fifth Amendment. Petitioner interprets the Fifth 

Amendment as requiring that, upon O.R.’s death, the Trust pay out an amount equal to 

the value of the Refundable Entrance Fee to Dorothy’s Trust and issue. 

 At some point, O.R.’s son Richard was appointed as O.R.’s attorney-in-fact 

pursuant to a Special Power of Attorney. On October 27, 2010, Richard signed a Master 

Trust Agreement Revocable Payment Direction (“Payment Direction”) in which 

Richard’s brother William was named as the recipient of the Refundable Entrance Fee. 

Petitioner contends that the Special Power of Attorney did not grant Richard the power to 

change O.R.’s estate plan. Petitioner also contends that the Payment Direction does not 

comply with certain required documentary formalities. 

 On May 30, 2011 O.R. died. He left a Last Will and Testament naming Richard as 

Personal Representative. Richard has taken the position that the Braun Trust need not 

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make a distribution pursuant to the Fifth Amendment because the Refundable Entrance 

Fee was not received by the trust. 

 Petitioner, meanwhile, contends that the Fifth Amendment requires that the 

Trustee of the Braun Trust distribute a pecuniary gift to Dorothy’s Trust and her issue 

equal to the amount of the refund. Petitioner alternatively contends that Richard violated 

Arizona’s prohibition against an agent acting pursuant to a power of attorney divesting a 

devisee of a specific gift of property. Petitioner also argues that by diverting the 

Refundable Entrance Fee to William “in an attempt to defeat the gift under the Braun 

Trust,” Richard breached his fiduciary duty to Dorothy’s grandchildren. 

 On March 6, 2012, John McGovern, as Trustee of Dorothy’s Trust, filed the 

instant Petition for Appointment of Special Administrator and to Compel Distribution 

from Trust (Doc. 1-2 at 4) in Maricopa County Superior Court. The Petition requests that 

Richard, as Trustee of the Braun Trust, distribute the value of the Refundable Entrance 

Fee to Dorothy’s Trust and issue, or alternatively that John McGovern be appointed as 

Special Administrator for the Estate to pursue the Refundable Entrance Fee. The Petition 

further requests that the Court authorize the Special Administrator to “file any actions he 

deems necessary against Richard” and that the Court direct Richard to transfer $100,000 

to the Estate to be used to pay the costs incurred in such actions. 

 On March 28, 2012, Respondent Richard Braun removed the action to this court. 

(Doc. 1). Petitioner John McGovern now moves to remand the action to state court. (Doc. 

5). 

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DISCUSSION 

I. Legal Standard 

“Only . . . actions that originally could have been filed in federal court may be 

removed to federal court by the defendant.” Caterpillar, Inc. v. Williams, 482 U.S. 386, 

392 (1987). “If at any time before final judgment it appears that the district court lacks 

subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c). There is a 

“strong presumption” against removal, and “[f]ederal jurisdiction must be rejected if 

there is any doubt as to the right of removal in the first instance.” Gaus v. Miles, Inc., 

980 F.2d 564, 566 (9th Cir. 1992) (citing Libhart v. Santa Monica Dairy Co., 592 F.2d 

1062, 1064 (9th Cir. 1979)). Moreover, “[t]he party asserting jurisdiction has the burden 

of proving all jurisdictional facts.” Indus. Tectonics, Inc. v. Aero Alloy, 912 F.2d 1090, 

1092 (9th Cir. 1990). 

II. Analysis 

 Petitioner contends that this action is subject to the “probate exception” and that 

the Court accordingly lacks federal subject matter jurisdiction. In Marshall v. Marshall,

the Supreme Court recognized a “probate exception” to otherwise proper federal 

jurisdiction. 47 U.S. 293, 308 (2006). This exception “reserves to state probate courts the 

probate or annulment of a will and the administration of a decedent's estate.” Id. at 311. 

The exception “does not bar federal courts from adjudicating matters outside those 

confines and otherwise within federal jurisdiction.” Id. at 312. 

 In Marshall, a widow had filed a counterclaim against her stepson in bankruptcy 

court for tortious interference, claiming that the stepson had interfered with a gift she had 

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expected to receive from her late husband in the form of a “catchall” trust. 547 U.S. at 

293. The Court determined that the widow’s tortious interference claim “d[id] not involve 

the administration of an estate, the probate of a will, or any other purely probate matter,” 

and therefore that a federal court could exercise diversity jurisdiction over her claim. Id.

at 312. 

 Respondent contends that, in the instant action, Petitioner’s allegation that he 

acted contrary to his fiduciary duty is analogous to the tortious interference claim in 

Marshall. The Court disagrees. To be sure, Petitioner states as part of the factual 

allegations in his Complaint that Respondent’s diversion of the Refundable Entrance Fee 

was “a breach of fiduciary duty.” Unlike the widow in Marshall, however, Petitioner has 

not brought an actual breach of fiduciary duty claim, or any other tort claims, against 

Respondent. (See Doc. 1-2 at 4–19). Rather, the Petition seeks to instigate probate 

proceedings to determine who should administer O.R.’s Estate, what property is in the 

Estate, and to whom the Estate should distribute that property. (See id.). Such 

determinations primarily concern “the administration of a decedent’s estate.” Marshall, 

547 U.S. at 312. It appears that Petitioner could have pled this action as a tort action, 

which may have placed it outside the purview of the administration of O.R.’s Estate—

and therefore outside the probate exception. Plaintiff, however, is the “master” of his 

complaint, and he has elected to pursue remedies that are inseparable from the 

administration of the Estate. See Cambridge Literary Properties, Ltd. v. W. Goebel 

Porzellanfabrik, 510 F.3d 77, 93 (1st Cir. 2007) (“For jurisdictional purposes, the 

plaintiff normally is the ‘master’ of his complaint.”). 

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 For instance, one of the primary remedies sought by Petitioner is the appointment 

of a special administrator for the Estate. (See Doc. 1-2 at 17). The appointment of a 

special administrator can only be ordered by the state court. See State Farm Life Ins. Co. 

v. Cai, 2010 WL 4628228, at *4 (N.D. Cal. Nov. 4, 2010) (“[T]o the extent that [the 

defendant] requests removal of the Special Administrator or otherwise asks this Court to 

take over administration of estate assets, the Court lacks subject matter jurisdiction under 

the probate exception to federal jurisdiction.”); Wilson v. Sundstrand Corp., 2002 WL 

99745, at *4 (N.D. Ill. Jan. 25, 2002) (“A federal court lacks the authority to appoint a 

special administrator. If plaintiffs want a court in this country to appoint them as special 

administrators, they must go to state court.”) (internal citation omitted). Allowing the 

action to remain in this Court would extinguish that remedy. 

CONCLUSION 

 This is a case about who should be appointed to administer an estate, what 

property is in the estate, and to whom the estate should distribute that property. The case 

is therefore subject to the “probate exception” and the Court lacks subject matter 

jurisdiction. 

IT IS THEREFORE ORDERED that the Petitioner’s Motion to Remand to State 

Court (Doc. 5) is GRANTED. 

 IT IS FURTHER ORDERED that the Clerk of the Court shall REMAND the 

present action back to Maricopa County Superior Court. 

 DATED this 25th day of May, 2012. 

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