Justia Communications Law Opinion Summaries
Articles Posted in Trusts & Estates
New York Times Co. v. District Court
The case involves a Nevada-domiciled trust, managed by a Nevada family trust company, whose trustee petitioned the Second Judicial District Court of Nevada to seal confidential information and close all court proceedings under NRS 164.041 and NRS 669A.256. The district court sealed nearly all documents and concealed the existence of the case, citing concerns over revealing personal, financial, and business information, and later provided limited case information after media inquiries. Several media organizations, having reported on the matter—especially due to its connection to Rupert Murdoch and control over major media holdings—sought intervention to access court records and proceedings, arguing that the First Amendment presumption of public access applied.The probate commissioner recommended allowing media intervention but denying access, and the district court entered an order adopting this recommendation. The court interpreted the statutes as granting automatic and comprehensive confidentiality, finding that privacy and security concerns—heightened by the parties’ public profiles—constituted a compelling interest for sealing and closure. The district court also concluded it lacked discretion to consider redaction as an alternative and held that the statutes’ confidentiality provisions justified the broad closure, even after the Nevada Supreme Court’s decision in Falconi v. Eighth Judicial District Court recognized a First Amendment presumption of access in civil and family court proceedings.The Supreme Court of Nevada reviewed the district court’s decision, holding that NRS 164.041 and NRS 669A.256 permit only provisional sealing and require judicial discretion. The statutes do not automatically justify blanket sealing or closure, nor do they displace the common law or constitutional presumption of openness. The court found that the district court failed to make specific, non-speculative factual findings to justify the sealing and closure and did not adequately consider less restrictive alternatives. The Supreme Court granted the petition for a writ of mandamus, directing the district court to vacate its sealing order and conduct the required analysis for each document and hearing transcript. View "New York Times Co. v. District Court" on Justia Law
Noble Prestige Limited v. Craig Thomas Galle, et al
Noble Prestige Limited lent Paul Thomas Horn $500,000 to pursue litigation against a telecommunications company. While the litigation was pending, a conservatorship over Horn’s assets was commenced in a probate court in Denver, Colorado (the “Denver Probate Court”). The case was settled, and the proceeds were placed in the conservatorship estate, subject to Galle’s management and the ultimate custody and control of the Denver Probate Court. Noble ultimately obtained arbitral awards that required Horn to pay Noble the debt owed under the loan agreement and Galle to pay Noble costs associated with the arbitration. Noble moved to confirm the awards and sought a temporary restraining order prohibiting Galle, Horn, and Galle’s law firm. Galle and GLG (together, “Respondents”) opposed Noble’s request and moved to dismiss the action. The district court granted Noble’s request, entering what it termed a “temporary restraining order” that prohibited Galle from dissipating or transferring $10,000,000 “notwithstanding any order(s) entered by the [Denver] Probate Court.” The district court also entered an order granting Respondents’ motion to dismiss in part and denying it in part. Respondents appealed both orders.
The Eleventh Circuit dismissed Respondents’ appeal to the extent it challenged the district court’s denial of their motion to dismiss, vacated the district court’s entry of preliminary injunctive relief, and remanded the case. The court explained that Noble’s petition fails to invoke the equitable jurisdiction of the district court and, therefore, the issuance of a preliminary injunction under Rule 65 was improper. Further, the court explained that district court lacked the power to issue an order freezing the AT&T settlement funds pending judgment. View "Noble Prestige Limited v. Craig Thomas Galle, et al" on Justia Law
Dae v. Traver
Robert filed a petition, alleging that Dae violated a “no contest” clause in a family trust by filing a previous petition challenging Robert’s actions as trustee. Dae’s subsequently moved to strike Robert’s petition under the anti-SLAPP (strategic lawsuit against public participation) statute (Code Civ. Proc. 425.16.)The court of appeal affirmed the denial of the anti-SLAPP motion. Robert’s No Contest Petition arose from protected petitioning activity under Code of Civil Procedure 425.16(e)(1); to defeat Dae’s motion, Robert was required to show a probability that he would prevail on that Petition. Robert made such a showing. Dae’s petition broadly challenged Robert’s conduct in setting up a financial structure that Robert claimed was designed to avoid estate taxes. If Robert’s claim is true, Dae’s petition would implicate the no-contest provision by seeking to “impair” trust provisions giving Robert the authority to manage trust assets. Dae also challenged his own removal as a beneficiary. Whether that more specific challenge amounts to a “contest” for purposes of the no-contest clause depends upon the trustors’ intent. Robert provided sufficient evidence of the trustors’ intent to allow a change of beneficiary to make a prima facie showing of probability of prevailing on Robert’s contention that Dae’s claims are a “contest.” The court expressed no opinion on the outcome of Robert’s petition. View "Dae v. Traver" on Justia Law
Ajemian v. Yahoo!, Inc.
The Stored Communications Act (SCA) does not prohibit Yahoo from voluntarily disclosing the contents of a decedent’s e-mail account to the personal representatives of the decedent’s estate. Rather, the SCA permits Yahoo to divulge the contents of the e-mail account where the personal representatives lawfully consent to disclosure on the decedent’s behalf.The decedent in this case died intestate. The personal representatives of the decedent’s estate sought access to the contents of a Yahoo!, Inc. e-mail account that the decedent left behind. Yahoo declined to provide access to the account. The personal representatives commenced an action challenging Yahoo’s refusal. A judge of the probate and family court granted summary judgment for Yahoo. The Supreme Judicial Court set aside the judgment, holding that summary judgment for Yahoo should not have been allowed (1) on the basis that the requested disclosure was prohibited by the SCA, and (2) on the basis of the terms of a service agreement where material issues of fact pertinent to the enforceability of the contract remained in dispute. View "Ajemian v. Yahoo!, Inc." on Justia Law