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In re Aoki

Supreme Court of New York, First Department
Nov 16, 2023
221 A.D.3d 479 (N.Y. App. Div. 2023)

Opinion

1045 File Nos. 2008/2604/H/I, 2008/2604/F Case No. 2023–02293

11-16-2023

In the MATTER OF Devon AOKI and Steven Aoki as Beneficiaries of the Trust Created under Article VIII of the Will of Rocky H. Aoki, also known as Hiroaki Aoki, Deceased. to Revoke the Letters of Trusteeship Issued to Keiko Ono Aoki as Trustee of the Trust. Devon Aoki, et al., Petitioners–Respondents, v. Keiko Ono Aoki, Respondent–Appellant. In the Matter of the Judicial Settlement of the First Intermediate Account of Proceedings of Keiko Ono Aoki, as Trustee of the Trust under Article VIII of the Will of Rocky H. Aoki, also known as Hiroaki Aoki, Deceased. Keiko Ono Aoki, Petitioner–Appellant, v. Devon Aoki, et al., Respondents–Respondents.

Holwell Shuster & Goldberg LLP, New York (James M. McGuire of counsel), for appellant. Pryor Cashman LLP, New York (David C. Rose of counsel) for Devon Aoki and Steven Aoki, respondents. Ruskin Moscou Faltischek, P.C., Uniondale (Jessica M. Baquet of counsel), guardian ad litem.


Holwell Shuster & Goldberg LLP, New York (James M. McGuire of counsel), for appellant.

Pryor Cashman LLP, New York (David C. Rose of counsel) for Devon Aoki and Steven Aoki, respondents.

Ruskin Moscou Faltischek, P.C., Uniondale (Jessica M. Baquet of counsel), guardian ad litem.

Renwick, P.J., Kern, Gesmer, Shulman, O'Neill Levy, JJ.

Order, Surrogate's Court, New York County (Rita Mella, S.), entered on or about April 14, 2023, which, to the extent appealed from, denied trustee Keiko Ono Aoki's motion for summary judgment for an order determining that petitioners Devon Aoki and Steven Aoki lacked standing to participate in removal and accounting proceedings, unanimously affirmed, with costs.

The trustee failed to establish that petitioners Devon Aoki and Steven Aoki violated the no-contest clause of decedent's will by asserting claims in an accounting proceeding, by commencing proceedings for construction of the will under SCPA 1420, and by seeking removal of the trustee, thus forfeiting their bequests (see Matter of Ellis, 252 A.D.2d 118, 132, 683 N.Y.S.2d 113 [2d Dept. 1998], lv denied 93 N.Y.2d 805, 689 N.Y.S.2d 429, 711 N.E.2d 643 [1999] ). With respect to the will construction proceeding, Devon and Steven's initiation of that proceeding under SCPA 1420 was protected by the safe harbor provision of EPTL 3–3.5(b)(3)(E), which expressly provides that commencement of a construction proceeding does not violate a no-contest clause in a will (see also Matter of Harrison, 184 A.D.2d 42, 46, 590 N.Y.S.2d 318 [3d Dept. 1992] ). Similarly, with respect to the removal and accounting proceedings, it is against public policy for a testator to take steps to render a trustee immune from liability for failure to exercise reasonable care, diligence, and prudence ( EPTL 11–1.7[a] ).

We reject the trustee's argument that the decedent's intent to bar will contests must necessarily predominate. The decedent elected to place the bequests to Devon and Steven into a trust rather than bequeath his estate directly to them in fee simple, and, given certain provisions in the will, must have been aware that the trustee's conduct was subject to oversight based on public policy considerations (see EPTL 11–1.7[a] ; see also Matter of Dawe, 179 A.D.3d 1182, 1183, 115 N.Y.S.3d 568 [3d Dept. 2020] [testator's intent must be ascertained by a reading of the will in its entirety and in view of all of the facts and circumstances]; Matter of Sochurek, 174 A.D.3d 908, 910, 107 N.Y.S.3d 49 [2d Dept. 2019] ).

We have considered the remaining arguments and find them unavailing.


Summaries of

In re Aoki

Supreme Court of New York, First Department
Nov 16, 2023
221 A.D.3d 479 (N.Y. App. Div. 2023)
Case details for

In re Aoki

Case Details

Full title:In the Matter of Devon Aoki and Steven Aoki as Beneficiaries of the Trust…

Court:Supreme Court of New York, First Department

Date published: Nov 16, 2023

Citations

221 A.D.3d 479 (N.Y. App. Div. 2023)
199 N.Y.S.3d 52
2023 N.Y. Slip Op. 5784