Opinion ID: 1453334
Heading Depth: 1
Heading Rank: 2

Heading: proceedings and facts

Text: We are reviewing, for a second time, the district court's disposition of this very complex family dispute over trust funds and other property which were left to the Kerper daughters by their parents. See Kerper v. Kerper, 780 P.2d 923. The dispute has turned a long-term legacy of considerable value into a short-term benefice for lawyering skills and a diseconomy for the Wyoming court system, as a district court and this supreme court attempt to sort out problems that virtually defy judicial resolution. This Bleak House [2] -like tragedy could likely have been avoided if the beneficiaries of the Kerper trusts had employed some small measure of the common sense and legal acumen with which their parents were so generously endowed. The dispute at this stage of the proceedings is whether funds, which we shall identify as the Husky royalty, are the property of the Kerper daughters or part of the principal of Kerper Trust No. 1. The record reveals the royalties were initially paid by Husky Oil but are now paid by Marathon Oil. For purposes of simplicity, they will be referred to in this opinion only as the Husky royalties. The district court determined in a partial summary judgment, entered on March 31, 1987, that: I. HUSKY ROYALTY. A. Findings of Fact. (1) The Declaration of Trust, executed by Loujen Kerper as purported Trustor, dated September 7, 1965, as to the Husky Oil royalty, (1) provides for vested remainders, in equal one-fourth (1/4) shares to MEIKE KERPER (formerly Minabelle Kerper Milodragovich) LOUJEN KERPER (formerly Loujen Kerper Kuiva), JANEEN KERPER and JILL KERPER; (2) pursuant to the terms of this trust and the accomplishment of its purposes, this trust terminated and became distributable to said four remaindermen on September 1, 1967 and at all times since; (3) that the said four remaindermen were then and now are entitled to conveyance of each of their undivided one-fourth (1/4) interest therein together with any accumulated income, but for the Order of this Court hereinafter deferring such distribution and payment. B. Conclusions of Law. (1) The Amendment to Declaration of Trust No. 1, executed by Loujen Kerper as purported Trustor on May 30, 1972, was not effective as to the 1965 Declaration of Trust for two reasons. First, the 1965 Declaration had already expired by its terms, and secondly, no power to revoke, amend or modify had been reserved in the 1965 Declaration of Trust and, accordingly by operation of law, it was irrevocable and not subject to any amendment or modification. (2) The Amendment to Declaration of Trust No. 1 did not constitute a partial modification of the trust as to only Loujen Kerper's undivided one-fourth (1/4) thereof, because the real settlors never consented to any such modification, either before or after the trust expired by its terms on September 1, 1967. (3) Application of the Wyoming Principal and Income Act, W.S. § 2-3-601 et seq. (1977) to this trust is moot, all principal and income being distributable to the same four persons as both income and remainder beneficiaries. No issue is raised as to the validity of these findings, but Meike contests the district court's application of these findings to the issue of when, and under what circumstances, the Husky royalties should be paid out to the Kerper daughters. Meike, in essence, contends the ultimate result of the district court's partial summary judgment should have been that all sums payable from the Husky royalty are immediately distributable to the owners. It is evident that much of it was distributed to some of the daughters in the form of loans. Janeen borrowed almost the amount she was entitled to as a distribution, or $36,500. Loujen Kerper applied the indebtednesses owed the trust by three of the daughters against the distribution owed them by the trust. Janeen Kerper owed the trust $36,500, Loujen Kerper owed the trust $30,000, and Jill Kerper owed the trust $10,000. Meike Kerper owed the trust nothing. However, for the period May 1985 through September 8, 1987, instead of paying out that portion of the royalties not applied to an indebtedness, Loujen Kerper, as trustee, and in reaction to the initiation of this litigation which had the potential to require the Kerper daughters to repay a large sum of money to Kerper Trust No. 1, simply showed all undistributed royalties as accounts payable from the trust. The effect of all this was that Janeen had received distribution of her full share of the royalty (less $92) and Meike had received nothing.