RMO Case Spotlight

Background 

This case began years ago when our client (the “good brother”) was sued by his brother (the “nefarious brother”) for an accounting of their late father’s trust. Both brothers were co-trustees of the trust, but the nefarious brother failed to contribute, mismanaged the trust, and repeatedly demanded more than his fair share. Unfortunately, the good brother was initially represented by an attorney who mishandled the case, filing a poorly prepared accounting with inconsistencies, incorrect totals, and confusing entries. The accounting was so poorly done that it was nearly impossible to read, let alone be presented in court.

For almost four years, the litigation continued with the nefarious brother constantly shifting his demands for more money. This dysfunction hindered the operation of the brothers’ inherited insurance corporation, which had been split 51-49, with good brother holding the majority stake. The nefarious brother’s interference resulted in the suspension of income streams from the insurance corporation, with a court order preventing the brothers from taking action together. Meanwhile, the nefarious brother accused the good brother of theft despite the fact that the good brother had been distributing funds to him regularly. To make matters worse, the nefarious brother pocketed $38,000 meant for his own children, using it to cover his own personal expenses.

Solution

After RMO stepped in, we quickly identified the accounting errors made by the previous attorney and secured a hearing with the judge. Armed with the correct numbers, we showed that the nefarious brother had already received more than his share of the trustand that he owed the good brother nearly $150,000. At the same time, the nefarious brother filed a civil suit, claiming oppression in the operation of the insurance corporation.

During mediation, the nefarious brother demanded hundreds of thousands of dollars to offset a gift our client had received—a house given to him during their father’s life. However, we countered by highlighting that their father had purchased two houses for the nefarious brother, which he conveniently ignored. Ultimately, we crafted a settlement that allowed our client to avoid writing a check to his sibling.

Results

As part of the settlement, the nefarious brother gave up all his stock in the insurance corporation. Additionally, the settlement included a general release, ensuring that the nefarious brother could no longer harass the good brother about the past.

In the end, our client saved a substantial amount in potential litigation costs and avoided trial. The resolution provided our client with peace of mind after years of being badgered by his sibling. For the first time in seven years, the good brother was able to enjoy a quiet and peaceful Christmas, free from the constant turmoil caused by his brother.