This week many people will remember the death of infamous playmate, Anna Nicole Smith. Three years ago reporters from all over the world descended upon Florida to cover the news of her untimely death, yet she continues to be at the center of a heated legal drama, involving a claim against her late husband’s estate, J. Howard Marshall.
According to Smith, J. Howard told her she could have a sizable portion of his estate after he died. Despite ample provisions for Smith during his lifetime, J. Howard Marshall’s detailed estate plan was clear: his assets were left to his youngest son and legal heir, E. Pierce Marshall. But Smith didn’t like being on the outside looking in and wanted what she considered her share. And so began a legal odyssey that has spanned more than 15 years, outlasted the deaths of all immediate plaintiffs and defendants, escalated to the U.S. Supreme Court and now is awaiting a decision in the 9th Circuit Court of Appeals.
Smith’s legal expeditions provide a classic example of forum shopping, jackpot justice and rampant abuse of our nation’s judicial system. For all their misspent and exorbitant legal fees, Smith’s lawsuits have accomplished little more than setting very dangerous precedent that American families and charities will be forced to shoulder and overcome in order to protect loved ones’ estates and retain family assets.
Following the death of J. Howard in 1995, Smith challenged his estate in the appropriate jurisdiction: Texas probate court. After a six month jury trial where over 40 witnesses were heard, the jury ultimately decided against Smith. But to complicate matters, while probate proceedings were pending, Smith and her legal team, including Howard K. Stern, tried to move the matter from Houston to a more favorable court in California, by filing a concurrent proceeding in a bankruptcy court. This was part of an apparent legal strategy to “forum shop” hoping to find a court that would be more favorable to her claims. This abusive strategy ultimately worked in her favor. The bankruptcy court reasoned that the case fell under its jurisdiction because Smith’s assets potentially included monies that might still go to her under ongoing proceedings involving the Marshall estate. The California bankruptcy judge “reasoned” an award of nearly $450 million.
But the champagne didn’t flow for long. The very first appeal of the bankruptcy court’s decision found that the Texas probate court was correct and ruled again against Smith. She lost everything and, in fact, was ordered to pay $1 million in legal fees and expenses to the Marshall family. The conflicting opinions between the Texas probate court and the 9th Circuit Court of Appeals turned the matter into a federal case.
In March 2002, a federal judge vacated the California bankruptcy court’s decision and issued a new ruling, with an award to Smith of $88 million. More than two years later, the pendulum swung again and a three-judge panel of the 9th Circuit Court of Appeals reversed the March 2002 decision, finding that federal courts lacked jurisdiction to overrule probate decisions. Finally!
In what can only be explained as one of life’s great mysteries, the U.S. Supreme Court decided to take up Smith’s case in 2005. The High Court only ruled on the probate exception and the decision didn’t yield Smith a cent, but it did give her the right to pursue her supposed share of J. Howard’s estate in federal court.
And that’s where this legal odyssey ends, for now. Smith’s case against the Marshall estate has been remanded to the 9th Circuit Court of Appeals for adjudication of all remaining unresolved appellate issues. The court heard oral arguments last June but we are still awaiting a final ruling to (hopefully) put an end to this legal saga.
So even three years after her death, Anna Nicole Smith is still racking up legal fees. She is still heaping abuses on Lady Justice. And, worst of all, she is still destroying the peace of mind of all Americans who trust in our legal system to protect the wishes of their families’ estates.
February 8th, 2010
Posted in Uncategorized
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