It’s a billion-dollar family feud straight out of central casting.
The first great-grandchild of legendary Dallas oil tycoon H.L. Hunt is suing his father and other family members for alleged mismanagement of two trust funds with up to $4 billion in assets.
In a Texas state court filing that often reads like a Hollywood script, Albert G. Hill III claims that his father, Albert G. Hill Jr., and two aunts “were motivated by their avarice. . .so they could ‘get their money sooner rather than later.’”
The complaint calls Tom Hunt, a nephew of H.L. and trustee of the two trusts, “the ’spider’ in a web of conflicting interests” and “the most conflicted man in Dallas.”
Specific claims involve an $800,000 luxury skybox at Texas Stadium, home of the Dallas Cowboys, a $20 million penthouse condo in Vail, Co., allegations of inappropriate transfers of millions in oil and gas assets, and payments of more than $100 million for Albert Jr.’s legal and tax bills.
The real issue, however, may be that some of H.L.’s progeny simply live too long. What triggered the lawsuit was a decision by family elders to break up a trust established for one of H.L.’s daughters, now deceased.
The suit, filed Nov. 8, was first reported by The Dallas Morning News.
In 1935, H.L. and his first wife, Lyda, established trusts for each of their six surviving children: Margaret, Hassie, Caroline, Nelson Bunker, William Herbert and Lamar.
The trusts named in the suit were established for H.L.’s first two children, Margaret and Hassie, also named Haroldson Lafayette, like his father.
Hassie, born in 1917, was diagnosed with schizophrenia as a young man, and died in 2005.
Margaret, who married Albert Hill Sr., died in June at age 91. Albert Sr. and Hassie were best friends, according to Margaret’s book about her life, and he was an initial trustee of Hassie’s trust.
H.L., who amassed one of the largest fortunes in history, died in 1974 at age 85.
It’s clear, attorneys for Albert Hill III argue, that H.L. intended “the trusts would remain intact for the benefit of his grandchildren and their descendants.”
One exhibit included with the suit is labeled “Hypothetical Model” of the flow of trust assets following Margaret’s death.
The two-page analysis was distributed to family members at a meeting in Colorado Springs six weeks before she died.
After distributions to cousins ($500 million), taxes ($500 million) and payments to Hunt Petroleum ($300 million), it shows $1.4 billion remaining in Margaret’s trust.
Albert Jr.’s share of Margaret’s trust is re-divided into four equal parts among Albert Jr. and his children, Albert III, Heather and Elisa.
Were she still alive, the suit claims, Margaret never would have allowed the breakup of her trust. At the meeting, she reportedly told family members, “The Hill family stays together.”
According to the suit, Tom Hunt is 84, Albert Jr. is 62, Lyda 65, Alinda 59 and Albert III 37.
In the suit, Albert III says that his father “disclaimed” most of his share in Margaret’s trust in exchange for nearly $100 million from the trust being used to pay his gift taxes and legal fees.
Albert III, like many Hunt heirs, is active in Dallas affairs. He sits on the boards of Baylor Health Care System Foundation and the Dallas Zoo. He is an officer of the family’s AG Hill Partners.
H.L. had 15 children with three women, in often overlapping households. Margaret and Hassie were from the first family, along with brothers Nelson and William, who famously tried to corner the world silver market in 1979-80.
Lamar, who died last December, co-founded the American Football League and owned the Kansas City Chiefs of the NFL. Caroline owns and operates some of the top luxury hotels in the world. Nelson and William are also billionaire Dallas oil men.
Ray Hunt, whose Hunt Oil recently signed a controversial exploration deal in Iraq, is from H.L.’s third family. Ray has kept himself and his business interests separate from the other branches of the Hunt tree.
It’s hard to predict how the suit will play out. All parties certainly can afford the best legal talent Dallas has to offer.
One thing for sure, when the Hill branch of the Hunt dynasty sits down for Thanksgiving dinner next week, it’s going to be very quiet — or very loud.