Chace v. Chace — New Lawsuit Filed Targets Last Day Changes to Billionaire Chace’s Will
Wednesday, July 12, 2023
A lawsuit was filed in Providence Superior Court on Monday night by Malcolm Chace and eleven other members of his family against their stepmother Liz Chace and her son.
At stake is millions of dollars and this lawsuit may have implications for another family battle.
The six-count lawsuit alleges that lawyers made improper changes to the late billionaire Kim Chace’s will just days before his death.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe changes, known as the “second Codicil,” dramatically enriched Liz Chace by increasing the annual distribution from one of the family's many trusts from $400,000 to $800,000.
The difference between the two amounts plus the interest totals millions — and may be close to $10 million.
Latest in Family Dispute
According to the lawsuit, Kim Chace was incapable of signing the second codicil, and the document was improperly executed.
Much of the Chace wealth was tied to their ownership of Berkshire Hathaway stock.
“Kim Chace battled Glioblastoma, stage four, and went into the hospital during May, 2011, for brain surgery. At the time of the 2nd Codicil on June 14, 2011, Kim was recovering from brain surgery, was in severe physical pain, was on multiple medications, and was generally disoriented under the distress resulting from his illness and surgery,” according to the facts outlined in the lawsuit.
“On June 14, 2011, Kim lacked the ability to communicate, either orally or in writing, he had no independent mobility and could not lift his arms, he only ate intravenously, was heavily medicated, and had limited periods of consciousness when he could open his eyes,” according to the lawsuit.
One of the lawyers for Malcolm Chace, Robert Corrente, former U.S. Attorney for Rhode Island, told GoLocal Tuesday in a phone interview that he believes “the execution of the will is invalid.”
The lawsuit states, “The 2nd Codicil purports to be signed by Robert G. Petix, Jr., Esq. at Kim’s direction, while also being witnessed by Attorney Petix and one other person, Doris Licht, Esq."
“On June 23, 2011, Kim died from his illness, never recovering from the brain surgery,” states the lawsuit.
“It is our contention that [Petix] could not witness his own signature. That is black letter law,” said Corrente.
Petix, who was a partner at the Providence-based law firm Hinckley Allen & Snyder, at the time and executed the will documents, no longer practices law.
Today, he works in the financial services industry in Texas.
Reach by phone on Tuesday, Petix told GoLocal, “This thing again. I have talked to Hinckley, and they told me not to talk to anyone about anything. I want to be cooperative…I am not supposed to answer any questions.”
In April, Licht, the other attorney involved with executing the “second codicil," who is a prominent business attorney and a partner in the firm, refused to say who her client was in the changes to the will.
“You know I am not going to be able to say anything,” said Licht in an interview with GoLocal.
Questions continue to swirl if Petix and Licht were acting at the direction of Kim Chace or his wife Liz Chace.
The suit also challenges the use of the trust as it relates to certain financial guarantees.
Specifically, the lawsuit seeks:
- That the Court Find and Declare that the 2nd Codicil’s further exercise of the limited power of appointment is void based on Kim Chace’s lack of capacity at the time of its execution;
- That the Court Find and Declare that the 2nd Codicil is invalid and void based on the lack of proper execution;
- That the Court Find and Declare that the Consents are invalid as an excess exercise of a testamentary limited power of appointment;
- That the Court Find and Declare that the Consents are invalid due to a breach of fiduciary duty and/or breach of trust by Liz Chace, Saltonstall, and ABC, Jr.;
- That the Court Find and Declare that Liz Chace has been unjustly enriched in the account of $4,800,000.00 for trust distributions received in excess of $400,000.00 annually since 2011;
- Imposing a constructive trust on any M2K Trust monies in the possession of Liz Chace in the amount of $4,800,000.00;
- Enjoin the Trustees of M2K from distributing $800,000.00 annually from M2K or from otherwise acting inconsistent with the Orders of this Court; and grant any further relief this Honorable Court deems just and proper.
Separate But Related to the Malcolm Chace v. Arnold “Buff” Chace
This suit may have ramifications for an ongoing dispute between Malcolm Chace and real estate developer and cousin Arnold "Buff Chace."
GoLocal was first to report on the different factions and the litigation in April of 2022.
Efforts to reach Liz Chace were unsuccessful. Bill Fischer, who previously served as spokesperson for Liz and Buff Chace, told GoLocal he no longer worked for that faction of the family.
Malcolm Chace v. Arnold "Buff" Chace is expected to begin trial in the next few weeks.
This story was first published 7/11/23 2:49 PM
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