First Union National Bank of South Carolina v. Soden

In 1978 Josephine Clary amended her trust to give her husband, Joseph Pierce (defendant), the trust income upon her death. Once Joseph either died or remarried, the trust was to terminate, with the principal divided 40 percent to Clary’s niece, Margaret Ann Soden, 30 percent to the children of Clary’s nephew Ralph Henry Walters, Jr. (collectively, the Soden group, including Margaret together with Ralph’s children) (plaintiffs), and 30 percent to Joseph’s daughter, Nancy Pierce (defendant). First Union National Bank of South Carolina (First Union) (plaintiff) was the successor trustee. Josephine died in 1980. In 1984 Joseph married Elizabeth McMillan. Joseph kept his marriage mostly a secret, and he continued to file taxes as a single person. Although Joseph denied telling Nancy that he remarried and Nancy denied knowing, Nancy testified she knew Joseph and Elizabeth lived together and instructed her children to call Elizabeth grandma. In 1992 Nancy’s ex-husband, Roy Lee Cashwell, told Margaret that Joseph had remarried. Roy testified he and Nancy discussed Joseph’s remarriage, and Joseph filled out a form calling Elizabeth his wife. Margaret’s attorney sent First Union a copy of the marriage certificate. First Union filed an action naming as defendants the Soden group, Joseph, and Nancy, who represented herself. The parties filed crossclaims and counterclaims against each other. The master found Joseph was liable to First Union for $88,669, the amount he received after his marriage. The master found Nancy was only entitled to a 30 percent share of the 1984 value of the trust, not a 30 percent share of its 1992 value, due to her unclean hands in failing to notify First Union of Joseph’s marriage. Finally, the Soden group was awarded $88,669 from First Union. The master dismissed a civil conspiracy claim against Nancy and denied the Soden group’s common-fund-doctrine claim for attorney’s fees from Nancy. All parties but Joseph appealed.