Knopik v. Shelby Investments, LLC

597 S.W.3d 189 (2020)

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Nature of the Case

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Facts

Gift L.L.C. (Settlor) created the Knopik Irrevocable Trust (Trust) in late December 2016. The provisions of the Trust established D as the sole trustee and P as the sole beneficiary of the Trust. The Trust was to provide P with a $100-per-month distribution, beginning in December 2016 and ending in December 2020. Provision 12 of the Trust, denominated 'No Contest,' provided: In case any beneficiary shall (i) contest the validity of this trust, or any provisions hereof, in whole or in part; (ii) make a claim against a trustee for maladministration or breach of trust; or (iii) attempt to remove a trustee for any reason, with or without cause; then such contest or claim and such attempt shall cancel and terminate all provisions for or in favor of the beneficiary making or inciting such contest or claim, without regard to whether such contest or claim shall succeed or not; and all and any provisions or provision herein in favor of the beneficiary so making such contest or claim, or attempting or inciting the same, to be revoked and of no force and effect; and the entire trust estate shall revert to the Settlor and be distributed to the Settlor. D made a single distribution but made no further distributions pursuant to the terms of the Trust. P filed a petition for breach of trust and to remove D. D admitted it had no intention of making any more payments. D raised a counterclaim for declaratory judgment, asking the circuit court to determine that, due to the violation of the 'No Contest' provision of the Trust, all provisions of the Trust in favor of the Beneficiary were canceled and terminated. The circuit court entered summary judgment in favor of D on its counterclaim after finding that P's filing of his petition for breach of trust and removal violated the Trust's no-contest clause. P appealed.