Gibbs v. Altenhofen

Summary

The Montana Supreme Court reviewed summary judgment orders in a dispute involving alleged breaches of fiduciary duty by trustees of a family trust. The court held that claim preclusion, judicial estoppel, and issue preclusion barred most claims against the successor trustee, but reversed and remanded two claims concerning failure to act against the former trustee and allegedly excessive fees incurred after the prior litigation. The court affirmed dismissal of the claims against the former trustee as barred by the applicable three-year statute of limitations.

Holdings

1. Claim preclusion barred the Gibbs' claims that Nordtvedt breached fiduciary duties by approving the ranch sale, seeking court approval, misrepresenting the ranch's profitability to obtain approval, relinquishing the Farm Service Administration arrangement, and acting despite an alleged conflict of interest.
2. Claim preclusion did not bar the claim that Nordtvedt failed to take action against Altenhofen or the claim concerning excessive fees charged during the ten months after the 2005 litigation.
3. Judicial estoppel barred the current trustees' claims that the ranch sale was improper, that excessive fees were charged, and that use of confidential information created a conflict of interest.
4. Issue preclusion barred some of the Gibbs' claims concerning the propriety of the ranch sale and information used in the sale.
5. The claims against Altenhofen were barred by the three-year statute of limitations in Montana Code Annotated § 72-34-511(1)(b), measured from when the Gibbs discovered or reasonably should have discovered the claim.

Questions Presented

1. Whether claim preclusion barred the Gibbs' claims against Nordtvedt.
2. Whether judicial estoppel barred claims concerning the propriety of the ranch sale, excessive fees, and alleged conflicts of interest.
3. Whether issue preclusion barred claims concerning the propriety of the ranch sale and information used in the sale.
4. Whether the claims against Altenhofen were barred by the applicable three-year statute of limitations.

Disposition

reversed_and_remanded