Two recent decisions applying claim preclusion, issue preclusion, and related doctrines in the trust context:
(1) Reed v. JPMorgan Chase Bank, 2011 OK 93, decided 11/1/2011. When a court provides instructions regarding a trust under 60 OS 175.23, such instructions are entitled to preclusive effect on the same subject matter, parties, and cause of action. But the instructions are not preclusive on a request for instructions, modification, or other relief that is unconnected and deals with an issue that did not surface in the original action. In Reed, the original request was for interpretation of a trust provision on distributions. The subsequent request was to modify the trust due to the beneficiary’s current needs. This was different enough that the court found no preclusion. Decision can be found here: http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=464694
(2) Horwitz v. Doubenskaia, 2011 OK CIV APP 115, decided 8/16/2011, mandate issued 10/28/2011. Creditor filed a motion to levy and execute against a trustee of a trust in favor of the debtor, arguing that the trust should be dissolved because it is alienable, subject to claims of creditors, revocable, should be considered the debtor’s assets, fails for lack of definite class of remaindermen, and violates rule against perpetuities. Previous garnishments had been issued with various responses filed. In one instance, the trustee obtained summary judgment. The Court of Civil Appeals found no issue preclusion because the summary judgment determined only whether the creditor could recover against any assets of the trust as of a certain date. But the Court of Civil Appeals found preclusion based on the creditor’s failure to file a notice of election challenging the trustee’s answer to a previous garnishment stating, among other things, that the trust was irrevocable and made no obligation on the trustee to pay any amount to the debtor. The creditor’s failure to file a notice of election meant that the trustee’s answer to the prior garnishment was conclusive as to the truth of the facts contained therein. Decision can be found here: http://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=464696
