Varnum Viewpoints:
- Venue in Multi-State Probate Cases Varies: Choosing the proper court depends on the trust’s administration location and the parties involved.
- Michigan Probate Jurisdiction Requires Three-Part Analysis: Courts assess subject matter jurisdiction, personal jurisdiction, and objections if the trust is managed out-of-state.
- Early Venue Decisions Save Costs: Resolving jurisdiction and venue issues early helps avoid costly, duplicative litigation in complex estate disputes.
Litigation Heats Up Over Jimmy Buffett’s $275 Million Estate
Jimmy Buffett, the famous singer and “Margaritaville” pioneer, died on September 1, 2023. The dispute between Richard Mozenter, the accountant and co-trustee of Buffett’s $275 million estate, and Buffett’s wife, Jane, has intensified.
Jane Buffett has publicly alleged that Mozenter failed to keep her informed about the administration of trust assets and investments, took unreasonable fees for himself at the expense of the trust, and otherwise failed to properly administer the trust.
In early June, Mozenter filed what appeared to be a preemptive petition in Palm Beach County, Florida, alleging various claims against Jane. The next day, she filed a petition in a Southern California court seeking the removal of Mozenter as co-trustee. By July 21, Jane filed a petition of her own in Palm Beach County, Florida, claiming Mozenter had breached his fiduciary duties as trustee, and voluntarily withdrew her California petition. Her attorney publicly acknowledged that she would not litigate in two courts at once, noting that consolidating litigation in Florida was a cost-saving measure.
Where Is the Proper Venue for Probate Litigation in Multi-State Estates?
This back and forth raises the essential question in large, complex estates involving property in multiple states: Where is the proper venue for probate litigation? The answer, as is often the case, depends.
Understanding Michigan Probate Jurisdiction
In Michigan, determining whether a probate court is the proper venue for a dispute involves analyzing both the venue and jurisdiction. There are three parts to the jurisdiction analysis:
- Subject matter jurisdiction
- Personal jurisdiction
- The right of parties to object to proceedings in Michigan where the trust has a foreign principal place of administration
Subject Matter Jurisdiction Explained
Subject matter jurisdiction is a court’s power to hear and decide a particular type of case. Regarding subject matter jurisdiction, “Michigan probate courts have statutory authority to handle trusts.” See MCL 700.21; MCL 700.805. Thus, in a trust dispute, a state probate court will have the power to resolve the dispute.
Personal Jurisdiction Explained
For personal jurisdiction, a litigant must establish that all parties have sufficient contacts with Michigan to meet either general or specific personal jurisdiction.
General jurisdiction applies when a defendant’s contacts with the forum state are so extensive that the court may adjudicate claims even if they do not arise from those contacts.
Specific jurisdiction may also be based on a party’s specific acts or contacts within the forum state related to the trust or estate.
Before initiating probate litigation in Michigan, parties should evaluate the nature of each party’s contacts with the state and any trust or estate transactions that occurred there.
Objections to Michigan Jurisdiction
When a trust from another state is involved, a party may object to the dispute being heard in Michigan. Under MCL 700.7205, if a party objects, the court shall not entertain a proceeding involving a trust registered or with a principal place of administration in another state unless:
- All appropriate parties could not be bound by litigation in the state where the trust is registered or administered, or
- The interests of justice would otherwise be seriously impaired.
When initiating probate litigation in Michigan, the likelihood that another party could successfully object under MCL 700.7205 must be considered.
Venue Based on Trust Registration
If Michigan jurisdiction is established, venue is appropriate “in any place where the trust properly could be registered.” MCL 700.7204. Registration is proper “at the principal of administration.” MCL 700.7209
The principal place of administration is the trustee’s usual place of business, where the trust records are kept, or the trustee’s residence if no such place of business exists, or the trust has not been registered.
Applicable Law for Trust Disputes
Under the Michigan Trust Code, the law of the jurisdiction designated in the trust’s terms applies unless applying that jurisdiction’s laws would violate a strong public policy of the jurisdiction with the most significant relationship to the matter at issue. MCL 700.7107.
Why Venue and Jurisdiction Matter in Complex Estate Litigation
In cases like the Buffett estate, where property spans multiple states, early and thorough analysis of venue and jurisdiction is critical. Addressing these questions up front can yield significant cost savings and help prevent unnecessary litigation over procedural matters.
For questions about navigating estate and trust disputes, contact Varnum’s Probate Litigation Practice Team.
