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authority. Harlan or Jody signed all checks drawn on this
account in 1998.
Jody was appointed trustee of Floors Trust at its inception
and served as trustee in 1998. Roland Mears (Roland) also served
as trustee of Floors Trust at its inception.
The trust instrument for Floors Trust provides that a
trustee who resigns “will sign and have witnessed a letter of
resignation” that is made part of the trust agreement. The trust
instrument further provides that upon the resignation of a
trustee, the appointment of a successor trustee “shall be upon
the unanimous action of the remaining trustees”.
On May 1, 1996, Roland purported to resign as trustee from
Floors Trust, but his letter of resignation was not witnessed as
required by the trust instrument. On the same day, Roland
purported to appoint Becky Mears (Becky) as a successor trustee
by means of a document signed by Roland but not Jody,
notwithstanding the trust instrument’s requirement that successor
trustees be appointed by the unanimous action of the remaining
trustees.4
4 The documents evidencing Roland’s purported resignation
and replacement by Becky were submitted by respondent as exhibits
to his motion to dismiss Becky as a party for lack of
jurisdiction, which was granted upon petitioners’ failure to
respond. Petitioners have admitted in their brief the foregoing
facts concerning the purported resignation and replacement.
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Last modified: May 25, 2011