Estate of Fox CA6

I. FACTS AND PROCEDURAL BACKGROUND2

A. Fox Family and Foundation Background Dr. Richard B. Fox and David K. Fox are brothers of the late Gerald C. Fox (“Jerry”).3 The brothers were raised in Minnesota after the family settled there in 1952. The brothers’ father, Bill C. “B.C.” Fox founded an industrial distribution business called the Lakeland Companies. The Lakeland Companies prospered and branched into several subdivisions. Jerry had developmental challenges (described at times by the parties as “reduced mental capacity”) throughout his life. After graduating from high school in the late 1960s, Jerry worked in the warehouse of one of his father’s Lakeland companies. Between 1985 and 1987, B.C. transferred shares of stock in various Lakeland companies to his personal attorney, John Tambornino, to be held in trust for Jerry. B.C. instructed Tambornino to pay earnings from the shares back to the Lakeland Companies, which Tambornino did over many years. Jerry owned his home and lived independently until 1995, when he suffered a broken hip. Following his hip injury, Jerry moved to an assisted living facility in Minnesota. Richard, who had become a physician and moved to California…