In the Matter of the Jane Tiffany Living Trust 2001, U/A/D November 5, 2001; William Ricks, Individually v. Phillip J. Dabney, Trustee of the Trust of Jane Tiffany; Josephine Ricks v. Jane Tiffany Living Trust 2001, a/k/a Peninnah J. Tiffany Living Trust, and Phillip J. Dabney, Trustee of the Peninnah J. Tiffany Living Trust

Summary

The Nevada Supreme Court affirmed orders concerning consolidated appeals arising from the Jane Tiffany Living Trust. The court held that the presumption of undue influence arising from an attorney-beneficiary relationship was rebutted by clear and convincing evidence, and that violations of Nevada professional conduct rules did not create a private right of action to invalidate the trust. The court also upheld dismissal of a constructive-trust action because the claimant failed to pursue the claim during the earlier trust proceeding.

Holdings

1. When a fiduciary relationship exists and the fiduciary substantially benefits from the challenged transaction, a presumption of undue influence arises; the presumption may be rebutted only by clear and convincing evidence. Dabney rebutted the presumption with clear and convincing evidence.
2. Violations of the Nevada Rules of Professional Conduct, including former SCR 158 and SCR 160, do not create a private right of action to set aside a trust or obtain civil damages.
3. The district court properly dismissed Josephine Ricks's constructive-trust action because her claim was required to be asserted in the earlier trust proceeding and was barred by her failure to file a timely claim against the trust estate.

Questions Presented

1. Whether Dabney rebutted the presumption of undue influence arising from the preparation of Tiffany's estate plan by his law-firm partner and Dabney's receipt of a substantial benefit.
2. Whether alleged violations of former SCR 158 and SCR 160 created a private right of action to set aside Tiffany's living trust.
3. Whether the district court properly dismissed Josephine Ricks's later constructive-trust action because she failed to assert her claim during the prior trust proceeding and failed to file a timely creditor's claim.

Disposition

affirmed