Sterling v. Sterling

Donald Sterling (defendant) and his wife, Rochelle Sterling (plaintiff), owned the Los Angeles Clippers, a National Basketball Association (NBA) team. Donald and Rochelle were the settlors and trustees of the Sterling Family Trust, which provided for the removal of a trustee after a finding of mental incapacity by two independent physicians who regularly made such determinations. In April 2014, a tape recording of Donald making racially insensitive remarks became a subject of controversy. The NBA banned Donald from the league and pressured him to sell the Clippers. Donald initially agreed and encouraged Rochelle to facilitate the sale. However, after Rochelle obtained a favorable offer, Donald changed his mind and refused to sign the sale agreement. Donald was evaluated by a neurologist and a geriatric psychiatrist, both of whom concluded that Donald was suffering from Alzheimer’s and was thus unable to competently carry out his duties as a trustee. Rochelle initiated an action in probate court to confirm the removal of Donald as trustee on grounds of incapacity, which would make Rochelle the sole trustee. The court approved Donald’s removal and Rochelle’s authority to act unilaterally for the trust. Donald appealed, asserting that he was so anxious about potentially losing ownership of the Clippers that his preoccupied mental state negatively affected the mental evaluations. The California Court of Appeal granted certiorari.