United States District Court, D. Oregon
AGAFYA SNEGIREV, individually and as co-trustee of the Yakov Ovchinnikov Trust, Plaintiffs,
VICTOR OVCHINNIKOV, individually and as co-trustee of the Yakov Ovchinnikov Trust, et al., Defendants.
OPINION AND ORDER
MICHAEL J. MCSHANE, UNITED STATES DISTRICT JUDGE
Agafya Snegirev and Defendant Victor Ovchinnikov are
co-trustees of a family Trust which had contained a parcel of
real property before Victor conveyed the Property from the
Trust to himself and then from himself to his wife, Defendant
Penny Ovchinnikov. No consideration was paid for the
conveyances. Because there are federal tax liens and
judgments for debts owed by Defendants Victor and Penny
Ovchinnikov, when Victor transferred the Property into his
name individually those liens and judgments attached to the
bring this suit to set aside the conveyances and have the
Property returned to the Trust. Plaintiffs assert three
claims: (1) breach of Fiduciary Duty; (2) to Set Aside
Conveyance; and (3) for Quiet Title against defendants Victor
Ovchinnikov, Fred Ovchinnikov, Penny Ovchinnikov, and United
States of America. Before this Court is Plaintiffs'
motion for summary judgment on those three claims. Pl.s'
MSJ, ECF No. 45.
Fred Ovchinnikov responds with a Motion for Order (ECF No.
17) and Motion for Summary Judgment (ECF No. 48). Fred argues
he is the valid owner of parcel 3 of the Property in that he
is the original purchaser of the property, and only through a
serious of unauthorized transfers did the property become an
asset of the Trust before being transferred to Victor and
then to Penny.
States of America has expressed an interest in preserving the
amount and validity of its tax liens against Victor, but
otherwise does not take a position on Plaintiffs' claims.
USA's Resp. 2-3, ECF No. 51. If the Property is held by
Victor or Penny Ovchinnikov, then the federal tax liens
against Victor encumber the entire property. Id. If
the property is held by the Trust, then the tax liens
encumber only Victor's beneficiary interest share of the
Victor as a co-trustee conveyed the Property from the Trust
to himself individually without any consideration, Victor
acted contrary to the beneficiaries' interest, breached
his fiduciary duty, and is ordered removed as co-trustee of
the Trust. Because the two July 30, 2013 conveyances were
without any consideration, the two conveyances are set aside.
The Property is deemed to be an asset of the Trust. Because
the two conveyances are set aside, the United States of
America's tax liens and judgments attached only to
Victor's fractional beneficiary interest. Plaintiffs'
Motion for Summary Judgment (ECF No. 45) is GRANTED.
Defendant Fred Ovchinnikov's Motion for Order (ECF No.
17) and Motion for Summary Judgment (ECF No. 48) are DENIED.
action was original filed in the Circuit Court of Marion
County, Oregon, where the Property at issue is located.
Defendant United States removed this case to the U.S.
District Court of Oregon pursuant to 28 U.S.C. § 1444.
of Default has been entered against Defendant Midland Funding
LLC and Defendant Christopher Vandaam for failure to answer
or otherwise appear. Entry of Default was entered against the
State of Oregon with consent from the state with the
understanding that a money judgment against the State of
Oregon is prohibited under ORS 30.360(3). See Order,
ECF No. 34 and Order, ECF No. 44.
Agafya Snegirev, Kathy Efimov, Julie Ovchinnikov, and Tina
Cesce, and Defendants Victor Ovchinnikov and Fred Ovchinnikov
are siblings and the adult children of Yakov Ovchinnikov
(“Yakov”) and Irina Ovchinnikov (“Irina).
Declaration of Agafya Snegirev (“Snegirev Decl.”)
¶ 2, ECF No.46.
September 1997, Yakov created the Yakov Ovchinnikov Trust
(“the Trust”) where he was the sole Trustee of
the Trust during his lifetime. Sengirev Decl. ¶ 3 &
Ex. 1, ECF No. 46; Pollock Decl. Ex. 10, Victor Ovchinnikov
Depo, 7:24-8:1, ECF No. 47. Yakov then conveyed into the
Trust title to the parcel of real property:
Parcel 3 of Partition Plan No. 95-67, recorded in Reel 1244,
Page 574, Marion County Microfilm Records, together with a
thirty (30) foot private access as ...