Argument over Rochester real estate mogul's trust could move to Supreme Court

May 22, 2026 - 10:13

The Minnesota Supreme Court has stepped into a bitter family fight over the estate of a Rochester real estate mogul. Chief Justice Natalie Hudson issued an order allowing Ann Chafoulias to appeal two lower court decisions that effectively disinherited her from a family trust.

The case centers on the trust of the late real estate developer, whose holdings shaped much of Rochester's commercial landscape. Chafoulias, a family member, argues that the lower courts improperly interpreted the trust's terms, stripping her of her rightful share. The rulings she challenges had upheld a previous decision to exclude her from the trust's benefits, citing specific conditions she allegedly failed to meet.

Legal experts say the dispute could set a precedent for how trusts are contested in Minnesota, particularly when beneficiaries claim procedural errors influenced the outcome. The Supreme Court's involvement signals that the justices see a broader legal question worth examining.

Chafoulias's attorneys have argued that the lower courts ignored key evidence and misapplied state trust law. They contend that the trust's language was ambiguous and that their client was denied a fair hearing. Opposing counsel maintains that the rulings were sound and that the trust's terms were clear.

The Supreme Court has not yet scheduled oral arguments. If the justices agree to hear the full appeal, the case could take months to resolve. For now, the order gives Chafoulias a chance to make her case before the state's highest court, a rare opportunity in trust litigation.